Project Logistics in Oil _ Gas industry - pptfun.ppt by hcj


									Project Logistics in Oil & Gas industry
• Agility – A brief

• A Macro Over view of the Logistics space
• Project Logistics Challenges & Common Issues
• HSE challenges
• Summary
•Question and Answers

The Scale of Our Business
•   450+ offices
•   100+ countries
•   $6.5 billion revenue (USD)
•   22,000+ employees
•   Top ten logistics service providers
•   Publicly traded
•   6000+ owned vehicles and transport
•   700,000 square meters of environment
    controlled warehousing
•   800,000 pallet positions

A Global Network with Seven Headquarters

                      More than 450 locations
                       In over 100 countries

Our Comprehensive Suite of Services

 Supply       Freight      Defense &    Fairs &   Project
 Chain        Management   Government   Events    Logistics
 Solutions                 Services

 High Technology


 Oil & Gas

Project Logistics Services
q International freight forwarding – Air
  and Sea
q Inland transport
q Heavy lift
q Vessel / Air charters
q Barging
q Customs brokerage
q Export packing
q Turnkey project management
q Marine, aviation, and port services
q Warehousing

Total Logistics Planning
§ Identify scope of work

§ Review implementation schedule/30 day
 mobilization plan

§ Develop procedures, method statements
  and KPI’s

§ Overcoming geographical limitations

§ Prepare HSE/QA plan

§ Risk Assessments

§ Resource Planning

Long Standing Clients – Agility Group
Specific EPC/Oil & Gas Clients
 v Baker Hughes                24 Years
 v Fluor                       24 Years
 v BJ Services                 24 Years
 v Hunt Oil                    22 Years
 v ABB                         22 Years
 v Chevron                     20 Years
 v Conoco Phillips             19 Years
 v KBR                         18 Years
 v Marathon Oil                        16 Years
 Plus numerous others…………..
 that verify the consistent level of service provided by Agility

Mega O & G projects under execution by Agility
Name of Project                Country        EPC Contactor             Volume (FRT)

Woodside Phase V LNG           Australia      Foster Wheeler / Worley   250,000 F/T
Khursaniyah Gas Plant          Saudi Arabia   Bechtel / Technip         500,000 F/T
Pearl GTL Project              Qatar          MW Kellogg / Shell        1,500,000 F/T

Kakinada KG-D6 Block Field     India          Reliance Industries       120,000 F/T
Pluto LNG Project              Australia      Foster Wheeler / Worley   500,000 F/T
Yanbu Petrochemical            Saudi Arabia   Fluor Arabia              200,000 F/T
Complex, Offsite & Utilities
Habshan Gas Export Project     U.A.E.         Fluor Mideast             120,000 F/T

SHARQ 3rd Expansion            Saudi Arabia   Foster Wheeler            250,000 F/T
Ethylene Project

Agility India
                Operational Since 1998
                Network :
                          26 Offices
                          43 Logistics Centers
                          2600+ Associates
                Turnover : 1000C

                International Freight

                Sea         : 50000 TEU’s
                Air         : 30000 Tons
                B/Bulk      : 200,000 FRT

                3.2 Mil. SFT Warehouse Space

                In House Customs Clearance

                Market Leading Integrated
                logistics Service Provider

Macro Over view of the Logistics Space

Energy Investments by Region

Logistics Market in Oil & Gas Sector         Estimated Current
                                            Logistics Market Size
                                                   $ 9 Billion
 Current Market Size     Market Size 2030

                                            Estimated Logistics
                                             Market Size 2030
                                                $ 49 Billion

                                              Average Industry
                                              Logistics Spend
                                                   7.5 %

    $ 120 Billion          $ 652 Billion
                                              Average Industry
                                                Growth Rate
                                                   8.0 %
India as a refining Hub

Logistics Challenges in India

Project Logistics – Some Challenges
Challenges faced by various user groups / EPC contractors
v Complex movement of cargo
v Huge No. of PO’s placed with vendors based globally
v Co-ordination & Expediting with various vendors located worldwide
v Varying Processes & formalities with authorities at each countries
v Hinter-land movement of ODC / HL cargo at origin point
v Lack of Vessel chartering knowledge to cover financial risks
v Warehouse and distribution facility & expertise
v Shortage of trained manpower to cope up with concentrated logistics
v Comprehensive IT tools to manage the process

Project logistics – Some common issues

v Improper Route survey causing delay in hinter-land movement &
  additional cost
v Vessel age – Violation of Insurance norms
v Self – geared Vessel – Capacity of gear and HL package wt.
v Synchronization of Sea & Road transportation
v Availability of MHE at unloading point ( Port / site )
v Communication gap with outsourced CHA – delay in Customs
v Non-availability of Tracking system
v Co-ordination with agencies tied up for global coverage
v Lack of professional approach
v Financial strength of project forwarder

Competent Forwarder – Key Role in Logistics
Competent Forwarder, who has
vOwn global coverage
vPool of Experienced Personnel situated at each location
vTrack record of handling large projects worldwide
vOwn Customs Clearances team to avoid any interphase
vOwned Transport asset / strategic alliance
vExcellent chartering knowledge and carrier relationship
vVisible track & trace IT tool for updation of progress
vSenior management commitment to support project logistics

Selection of Project Forwarder - Transform

         Tender Evaluation                Pre Qualification to Tender

   Shortage of Time                       Sufficient time for review

   Bidders consisting of various levels   Detailed review of Functional
                                          capability – Access to IT systems
   Detailed Technical review ???          and assets and subcontractors

   Focus is on Pricing                    Financial strength of the company

   L-1 bidder in most cases failed in     Past Experience
                                          Review of Credentials
   Incur additional cost or litigations
                                          Global Coverage (Owned /
   HSE – Big concern                      Agents)

   High Indirect costs                    HSE / Accreditations

                                          Review and Verify
Key factors in Project Logistics Movement
Route Survey
v Technical review of most heaviest and ODC Package of the project cargo
v Technical survey covering all hurdles viz. overhead wire lines, bridges, railway
  crossing, overhead bridges, by-passes etc…
v Requirement of permits from statutory authorities viz. PWD , Railways,
  Electricity board, local panchayats etc…
Vessel Chartering
v Availability of vessel meeting particular lay-can
v Age of vessel and capacity of self-gear available
v Credential / reputation of Carrier
v Engagement of reputed Marine Surveyor at each stage of operation
v Assessment of Safety check-list to ensure safe operation

Key factors in Project Logistics Movement
Customs Clearances
v Project registration formalities under particular scheme and process flow
v Detailed review of customs requirement and respective documentation
v Preparation of detailed process flow for customs formalities & time frame
v Identification of dedicated pool of CC staff to handle the projects movements

In-land Transportation
v Deployment of suitable equipment to receive imported cargo considering
   weight & dimensions
v Lashing and securing of cargo
v Escorts arrangement to ensure safe & timely in-transit journey
v Detailed journey management plan

HSE Challanges


    Agility HSE Policy
•   Agility Logistics, firmly believes that Health, Safety and Environment Protection are an essential and
    integral part of its business operations. It has a firm conviction that accidents and risk to health are
    preventable through continuous improvement in the working environment and compliance to relevant
    statutory requirements.
•   Agility Logistics declares that:
•   Its operations are conducted with the Utmost Regard for the Safety & Health of its Personnel,
    Machinery & the Environment at large.
•   It is the best endeavor of the management to Follow & Sustain Standards & Procedures related to
    Health, Safety and Environment Protection.
•   It endeavors to Support & Commit the Resources necessary to ensure adherence / compliance to
    various standards under relevant statutes.
•   It strives to achieve a Conducive Work Environment facilitating active participation of its employees
    in maintaining safe & eco-friendly business operations.
•   It assures to extend required organizational support & provide facilities for imparting Relevant
    Information, Instruction, Training, and Motivation & Encourage Involvement of its Employees,
    Onsite Contractors, Customers and Suppliers for implementation of this Safety, Health and
    Environmental Policy.
•   It shall focus its efforts on Recycling, Resource Conservation and Management of Wastes,
    hazardous chemicals, emissions and emergencies to continually improve the quality, efficiency and
    environmental performance of the processes in the organization.
•   It ensures Continual Improvement of its SHE management system through periodic review of its
    policy, objectives & targets for relevance, changing conditions & new information.

Summary and Question


• Logistics is key and challenging

• Transform from tender management mode and emphasis on pre qualification.

• Outsource complete logistics activities

• Look at Supply chain cost optimisation and not minimisation

• Transform from a Fragmented cost control model to a Outsourced solutions model

• Health & Safety in Logistics is NON NEGOCIABLE

• Look for Green Logistics Companies to outsource.

• Your vendor Partners should be able to comply with your own HSE policies.

Questions and Answers


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