6 Oct 2016 Johan Tønsberg (Manager: Contracting, Procurement & Supply Chain) Maersk Oil (Norway)

EPC contracts. Historicly, and holisticly O&G Comp (Operatpr) IOC/NOC T & I H & C EPC C-Studies FEED Ops M & M De-com EPCM Alt 1: EPma FC Alt 2: Alt 3: EPC (T) (I) (C)

EPC contracts. A lesson to be learned: A classic «mistake» that the O&G Companies often make Cost * time Concept Study & Cost Est Investment decision Concept Select Contract Award, EPC Contractor delivery (execution) Final delivery Contract close-out * Cost = Total invoiced cost under the EPC contract

EPC contractor «buying» the contract ... EPC contracts. Another lessoned learned: EPC contractor «buying» the contract ...

Negotiations (post Bid) EPC contracts. Lesson learned no. 3: An «incentive scheme» worth exploring and pursuing where mutually agreeable Price * (b) (a) time ITT Tender (comp) Bids Negotiations (post Bid) Contract Award Contractor delivery Contract Close-out * Price = Total price bidded and finally agreed as part of contract (Price = all aspects of remuneration; such as rates, lump sums, bonueses, etc.)