A Service Contractors View ofShared Risk and RewardJohn R. HuffChairmanChief Executive OfficerOceaneering International, Inc.Collaboration To Be Successful Team Effort Win-Win Relationship Long Term Big Picture Culture Mutual Respect and Trust Reality (Most Of The Time) Operators Control Relationship Each Party Maximizes Their Position Short Term Culture Lack of Respect and TrustCollaboration Key Ingredients Full and Open Alignment of Goals Technical and Commercial Drivers Commercial Compensation and Risk Cost and Schedule Goals HSE Standards and Goals Integrated Team With No Hidden Agenda Results Focus Company Affiliation Should Be Secondary Build Team Spirit Open Communication Respect and TrustContracting Trends Lower Operators Life-Of-Field Costs Traditional Contracts vs. Collaboration Long Term Agenda to Shift More Cost and Risk to Contractors Outsourcing Personnel and TechnologyTechnology Development and Innovation Operators Are: Outsourcing Personnel Outsourcing of Technology Development and Innovation Contractor Increasing Staff and Costs Responding to Operators Pressure to Fund Development Operators Reluctance Most Cases Not a Commercial Success Logical Area For Collaboration Operator Knows Requirements Contractor Knows How to Apply TechnologyOceaneering Has Been Lucky Examples Of Successful Collaboration FPSO Zafiro Production SILS Subsea System VSIS SimulatorVery Powerful Relationship When SuccessfulFast Track DevelopmentFPSO Zafiro Producer Record Time Discovery to First Oil Effective Integrated Team On Budget On Schedule Win-Win RelationshipSubsea Intervention Lubricator System Developed In Response to Customers Need Customer Input During Design Deploy from DSV Subsea Light Well Intervention Plug and Abandonment Operator Potential Savings$1 3 million per useVSIS/MIMIC SimulationsEasily Model Entire Field Electronic S-I-T Electronic Wet Test On-Shore Learning Remote Sim Images Remote Operations Live Recording Risk MitigationVSIS / MIMIC SavingsT i m e V a l u e o f T r a i n i n g01 02 03 04 05 06 07 08 0N u m b e r o f J o b s C o m p l e t e dHours for Job CompletionP r e VS I S 7 2 6 4 5 6 4 8 4 0 3 2 2 4 1 6 1 2 1 0 9 8 7 6 . 5 6VS I S 1 0 9 8 7 6 . 5 6 6 6 6 6 6 6 6 6 61 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5The Time Value of Training - 310 Hours Saved at 20k per hour is$6,200,000