Project Logistics in Oil

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Project Logistics in Oil Gas industry
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Contents

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

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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 assets
• 700,000 square meters of environment controlled
  warehousing
• 800,000 pallet positions

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A Global Network with Seven Headquarters
More than 450 locationsIn over 100 countries
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Our Comprehensive Suite of Services
Freight Management
Defense Government Services
Project Logistics
Fairs Events
Supply Chain Solutions
High Technology
Retail
Oil Gas
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Project Logistics Services

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

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Total Logistics Planning

• Identify scope of work
• Review implementation schedule/30 day
• mobilization plan
• Develop procedures, method statements
• and KPIs
• Overcoming geographical limitations
• Prepare HSE/QA plan
• Risk Assessments
• Resource Planning

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Long Standing Clients Agility Group

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

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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 Project 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 Development India Reliance Industries 120,000 F/T
Pluto LNG Project Australia Foster Wheeler / Worley Parsons 500,000 F/T
Yanbu Petrochemical Complex, Offsite Utilities Saudi Arabia Fluor Arabia 200,000 F/T
Habshan Gas Export Project U.A.E. Fluor Mideast 120,000 F/T
SHARQ 3rd Expansion Ethylene Project Saudi Arabia Foster Wheeler 250,000 F/T
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Agility India

• Operational Since 1998
• Network
• 26 Offices
• 43 Logistics Centers
• 2600 Associates
• Turnover 1000C
• International Freight
• Sea 50000 TEUs
• Air 30000 Tons
• B/Bulk 200,000 FRT
• 3.2 Mil. SFT Warehouse Space
• In House Customs Clearance

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Macro Over view of the Logistics Space
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Energy Investments by Region
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Logistics Market in Oil Gas Sector
Estimated Current Logistics Market Size 9
Billion
Estimated Logistics Market Size 2030 49 Billion
Average Industry Logistics Spend 7.5
Average Industry Growth Rate 8.0
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India as a refining Hub
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Logistics Challenges in India
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Project Logistics Some Challenges

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

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Project logistics Some common issues

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

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Competent Forwarder Key Role in Logistics

• Competent Forwarder, who has
• Own global coverage
• Pool of Experienced Personnel situated at each
  location
• Track record of handling large projects
  worldwide
• Own Customs Clearances team to avoid any
  interphase
• Owned Transport asset / strategic alliance
• Excellent chartering knowledge and carrier
  relationship
• Visible track trace IT tool for updation of
  progress
• Senior management commitment to support project
  logistics

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Selection of Project Forwarder - Transform
Pre Qualification to Tender
Tender Evaluation
Sufficient time for review Detailed review of
Functional capability Access to IT systems and
assets and subcontractors Financial strength of
the company Past Experience Review of
Credentials Global Coverage (Owned /
Agents) HSE / Accreditations Review and Verify
Shortage of Time Bidders consisting of various
levels Detailed Technical review ??? Focus is
on Pricing L-1 bidder in most cases failed in
operations Incur additional cost or
litigations HSE Big concern High Indirect
costs
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Key factors in Project Logistics Movement

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

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Key factors in Project Logistics Movement

• Customs Clearances
• Project registration formalities under
  particular scheme and process flow
• Detailed review of customs requirement and
  respective documentation
• Preparation of detailed process flow for customs
  formalities time frame
• Identification of dedicated pool of CC staff to
  handle the projects movements
• In-land Transportation
• Deployment of suitable equipment to receive
  imported cargo considering
• weight dimensions
• Lashing and securing of cargo
• Escorts arrangement to ensure safe timely
  in-transit journey
• Detailed journey management plan

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HSE Challanges
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Framework
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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.

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Summary and Question
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Summary

• 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.

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Questions and Answers