SNS Pool

Learnings

• Collaboration and Integration in offshore supply chain

• Since 2002 • 12 Operators • >150 offshore production platforms • Scope of collaboration: marine ops,

supply base, warehousing, transport • Maximise efficiency by combining

volumes, distance and capacity • www.snspool.com

>40% less vessels

SNS Pool

SNS Pool history

Before 1989… 9 operators, 9 supply bases, 9 vessels, 60 offshore locations Collaboration • 1989 Amoco & Mobil • 1990 Conoco & Unocal • 1991 A&M + C&U • 1995 Occidental & Elf Petroland • 1997 Ymondpool (5 operators) • 2002 SNS Pool (9 operators)

SNS Pool - History

• 2002; vessel sharing, cost allocation

software • 2004; 1 shared supply base

(Den Helder) • 2005; 1 cross docking warehouse

(8 operators) • 2006; SNS Pool aviation

(7 operators) • 2012; introduction eLogistics

software in entire supply chain • 2014; >400,000 tonnes, >150

locations, 11 drilling rigs • 2015; Production support 5.2

vessels • 2017; Walk2work and Offshore

wind?

SNS Pool - History

SNS Pool fleet (current) • 12 operators (9 voting partners) • >150 Production locations • 4 drilling locations (11 in 2014) • 10-12 vessels PSV (18-22 in 2014) • 1200 voyages (2100 in 2014)

Sharing includes more… • Marine assurance • Bulk tank, water management • Development of Transport terms and

Marine operations standard • HSEQ incident reports, audits, experts

(DG, Environmental) • Customs formalities

SNS Pool – Facts and figures

Voting partners 1. Centrica 2. Dana Petroleum 3. ENGIE 4. NAM (Shell/Exxon Mobil) 5. Oranje Nassau Energy 6. Petrogas (previously Chevron) 7. Taqa 8. Total 9. Wintershall North Sea

Den Helder supply base • One-stop-shop (fuel, mud,

chemicals, water, stores etc)

• 407.000 MT cargo (2014) • >10.000 lifts per month • 6 vessels average per day;

max 12

• 3x 90m berths (optional public quay)

• 17 hours/day in operation • 3x mobile cranes, forklifts,

trucks

SNS Pool – Facts and figures

WARE HOUSE

TRANSPORT

QUAY SIDE

MARINE OFF SHORE

• Classification: Horizontal Collaboration; Integrated

• Characteristics – Collaborative vision and trust – Robust governance structure – Independent Facilitator – Fair gain sharing – Structured development process;

incl legal, commercial, contracts, resource assurance programme, HSEQ standards

– Uniform approach on safety – Supported by software solutions

SNS Pool – Characteristics

Other North Sea Collaboration Models

AMLA, Aberdeen Maritime Logistics Alliance Since 1996, www.amla.uk Region Northern North Sea Current clients 30 operators Facilitator: Peterson

Model AMLA enables Ad-Hoc sharing of deck space Operators pay an agreed sum based on an

agreed calculation methodology.

CNNS Pool To start 2017 Q1 www.onepeterson.com Region Central & Northerns North Sea 4 operators Facilitator/Charterer Peterson

Model Based on SNS Pool model Localization on Systems, Standards,

Manuals, Contracts

SNS Pool

Learnings

Implementation approach

Implementation approach

1 2

3

4

5

6

7

Source: Palmer, A., Saenz, M., van Woensel, T., & Ballot, E. (2012). CO³ Position Paper: Characteristics of Collaborative Business Models. Edinburgh: CO³ Project - European Union's Seventh Framework Program.

Source: Palmer, A., Saenz, M., van Woensel, T., & Ballot, E. (2012). CO³ Position Paper: Characteristics of Collaborative Business Models. Edinburgh: CO³ Project - European Union's Seventh Framework Program.

• Lesson – Expect more…

• Primary objective of the SNS Pool: • To maximise efficiency by

combining volumes and capacity

• Outcomes • Higher efficiency, reduced OPEX • Increased flexibility (vessel

availability) • Higher service level (increased

delivery frequency) • Additional innovation capacity

(shared resources) • Higher safety standards • Contingency

Lesson learned 1- Drivers and outcomes

• Lesson – Don’t go without a neutral body

• How to control such supply chain? • Conflict of interest • “It’s mine”

• Install

• Neutral body Facilitator

• Transparancy • Control tower

Lesson learned 2- Barriers

Source: Ortec (2016), White paper: How to boost Transportation Control Tower

• Lesson – Building Trust, solidarity

• Overcoming • Mistrust • Skepticism • Machoism

• Robust governancing

• Steering committee • Operations committee • HSEQ / commercial / legal

Lesson learned 3- Imperative elements

• Lesson – Choose the type of collaboration that fits best (intensivity)

Lesson learned 4- Framework elements

Model Description Example

Spot deck sharing

Based on the individual supply chains operators offer spare deck space for third parties. Known as hitch-hike model

AMLA (since 1996)

Vessel splitting Operators ‘split’ vessel availability based on agreed time-windows

Ymond Pool (1990-2002)

Vessel sharing Operators share quayside and marine activities, by combining volume and capacity

CNNS Pool (since 2017)

Supply chain collaboration

Collaboration throughout supply chain with combined integrated logistics

SNS Pool (since 2002)

• Lesson - Select the highest standards

• Representative body - NOGEPA • Maritime transport terms • Audits • Checklists • Best practices

Lesson learned 5- Framework elements

• Lesson – Share pain and gain by Transparency

• Time registration for cost allocation • Focus on reducing non-

productive time among partners

• How to divide costs? • How to divide non-productive

time?

Lesson learned 6- Gain sharing

• Lesson - Measuring, Benchmarking, Improving • Tangible cost benefits • Higher and consistent quality

standards • More profitable relationships • Reduced operational risk • Greater consistency and

efficiencies

Lesson learned 7 – Continuous improvement