Wood Group Mustang – GoM Experience Delivering Best Practices for Other Regions

Christopher M. Barton SVP Global Offshore Business Development March 26, 2015

WG Mustang’s Growth Trajectory

Angola

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WG Mustang Houston, Texas

WG Mustang KL, Malaysia

WG Mustang Woking, UK

WG Kianda Luanda, Angola

Mustang HDP Al Khobar, Saudi Arabia

Energeticos Bogota, Colombia

WG Mustang Norway

WG Mustang Shanghai, China

Offshore Operating Centers

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We Specialize in Topsides Design

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Tubular Bells First Oil

November 2014

Lucius First Oil January

2015

Jack/St. Malo First Oil December 2014

Wood Group Mustang designed

the topsides for the last 3 GOM

Start-ups

How Have We Leveraged Our GOM Success?

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Right Concept Efficient Execution

Higher spend More time

Bigger prize

Lower spend Less Time

• Understand equipment/system risks • Leverage industry standards & solutions (green)

• Apply “select” company standards for higher risk (yellow)

• Apply most company standards for highest risks (red)

• Avoid defaulting to highest risk for entire project • Custom design only when risks warrant the effort

Where’s the Risk?

• Spend time on higher cost equipment/systems • Leverage relationships and agreements

• Obtain firm pricing for competitive equipment • Consider performance spec for lower risk eqmt/systems

(green) • Single source lower cost eqmt from reputable suppliers

(right of blue line) • Avoid preparing custom specs for lower cost equipment

(right of dashed line)

Where’s the Money?

Most Company standards

Industry Standards

Know What Matters

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• Minimum Scope: minimum wells, equipment, infrastructure, organization and execution strategy that delivers a project

• Justified Adds: incremental scope items that improve the minimum scope project and that are approved based on economics, regulatory, HSE, benchmarking or strategic drivers

Right Concept = Minimum Scope + “Justify In”

• Understand project objectives, drivers, boundaries, and the most efficient pathway to profitability

Aligned Objectives: Ensure project team and stakeholders are aligned and key decisions impacting scope and execution are properly vetted

• Explore broader range of engineering, procurement and project execution strategies

• Leverage standardization with vendors & contractors • Ensure balance in processes and level of effort are

consistent with project scope and risk

Efficient Execution = Freeze scope, eliminate late add-ins and changes, and make timely decisions

Capital Efficiency Vision Maximizing the Value of Every $ Spent

Right Concept Efficient Execution

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Best Practices to Ensure Certainty of Outcome • WG Mustang has developed and employs Best Practices

that lead to enhanced project performance and results

45,600 • Best practices are about

clearly articulating objectives, explicitly defining the tasks, clarifying expectations, and communicating performance criteria

Proper planning is critical to success!

Alignment * Benchmarking * Change Management * Constructability * Front End Planning * Lessons Learned * QMS

• Best practices are about using approaches and plans that deliver superior results

Plan Project

Execute Project

Close Proposal

Plan Proposal

Execute Proposal

Initiate Proposal

Close Project

Initiate Project

PROPOSAL DEVELOPMENT

PROJECT DELIVERY AS-SOLD

BASIS

CURRENT BASIS

AS-BID BASIS

Proposal to Project Handover

Risk, Change Management,

Checking

Best Practice - Baseline Establishes a set of common minimum requirements

Ensures not only consistency but also improves: • transition from proposal to project • client expectations and satisfaction • alignment in understanding of the

scope of the project

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• PACESETTER™ – communications module for management of Engineering, Vendor and 3rd Party documents

• Citadon CW – an internet-based EDMS, serving as a document repository and providing collaboration tools

• Autonomy – an Electronic Records Management System with web access which interfaces with PACESETTER™ and Citadon CW

• AVEVA NET – a web-enabled engineering data consolidation database which intelligently links and relates project information by equipment tag, document number, PO, etc.

Best Practice – Project Information Mgmt (PIM)

PIM System Toolset

Best Practice – Project Execution Assurance • Comprehensive

project management system to help ensure project success

• PACESETTER provides a platform to integrate engineering with procurement and subsequent construction activities

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45,600

Best Practice – Technical Excellence (TechX) • Technical Excellence is consistently and predictably delivering the right

technical solution, from anywhere in the world • TechX equips project teams with the framework, guidelines, checklists and tools that facilitate delivering consistent and repeatable project results

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Keys to success: Take what has been successful and fine tune for specific needs Re-inventing the wheel and starting from scratch should not be an option Design One, Build Two principle was a success for Anadarko’s Lucius & Heidelberg projects

Best Practice - Design One, Build Many

Benefits for Heidelberg • Engineering savings • Fabrication savings • Procurement savings • Project execution efficiency • Optimized sparing

Initiative • Designing effective and efficient facilities to minimize weight

Best Practice – Lightweight Design

Activities • A focus on equipment layout to

minimize platform size, piping, steel and cable requirements

• Use of innovative steel configurations to keep weight down

• Fit for purpose engineering and design – process design and equipment

Results experienced • 20% to 30% less weight

Lightweight design is a group effort with all disciplines - including the client - thinking “outside the box”

15 - Wood Group Mustang

Rethinking the Way We Work • Set the project up right, focus on front end • Improve project efficiency • Challenge cost • Faster on delivery • Fit for Purpose • Think past engineering:

• Think Constructability • Think Total Installed Cost

Design One, Build Two Lightweight Topsides Modularization/Standardization Optimization and Fit for Purpose Constructability Reviews Assurance Systems Project Information Management TechX State of the Art Engineering Tools

Thank You!