Standardization Of Procurement Equipment Specifications: Establishing A Strong Foundation For Oil & Gas Capital Project Development And Delivery

Industry-wide standardization is needed for operators to manage the $3 trillion in CAPEX expenditure forecast for 2018-2025 (Global Data, 2018), while maintaining competitiveness and mitigating risks. With the backing of the World Economic Forum, Joint Industry Program 33 (JIP 33) was initiated to drive industry-level standardization for the procurement of equipment items, moving the industry structurally – across the value chain - towards common engineering designs and solutions established by means of cross-company collaboration. Fourteen (14) standard specifications have been delivered to date. Their adoption by 12 major operators is being measured and is progressing well. This enables the program to capture and evaluate successes, challenges, key learnings and feedback. The program is also establishing a process for future maintenance of JIP33 specifications in order to achieve sustained benefits. A further 35-40 supplementary specifications are being developed, based on recognized industry or international standards by the end of 2020. This paper will present the status of the JIP33 program and showcase some of its early successes, challenges and learnings. Experience with digital requirement developments will be shared, as well as learnings from the adoption and use of the Phase 1-2 specifications by JIP33 members.