welcome to FPAL

Agenda Who are Achilles What is FPAL? Making your FPAL registration work Forward Work Plans Summary N.B. Please ask questions as we go along!

Our global reach Offices worldwide, supporting local supplier management solutions Norway Sweden Holland Denmark Ireland Germany UK Kazakhstan Slovakia Portugal Italy Spain We provide services to 31 countries. Hong Kong Colombia Nigeria Peru Brazil Australia Chile Argentina 3 3

Once upon a time.... FPAL is but a recent procurement love story An industrial ménage a trois Quasco – 1985, operator owned, shared audit service Oscar – 1995, supplier registration database CRINE – 1994, 30% cost reduction but how? Standardisation Functional specifications Reduced document complexity Stop adversarial practices Better behaviour

Then, 1996 – the birth of FPAL Amec Amerda Hess BP Conoco EIC Kvaerner McDermott Saipem Shell Total ELF Weir Pumps Double Breasted suits were in!

Contractors & Suppliers Now, 2010 - FPAL Used by over 80 purchasing organisations in the UK, Netherlands & Ireland With in excess of 2700 Suppliers Governed by an industry Steering Committee which includes representation from oil majors, main contractors and suppliers Chair – Ian Donaldson (Talisman) Operators Marie Marsh (Shell) Russell Watt(ConocoPhillips) Sean McCann (Chevron) Paul Todd (E-on Ruhrgas) Mark Borowski (BP) Contractors & Suppliers Bob Thom (Aker Solutions) Fred Pallett (AKD) Mike Major (Energy Industries Council) Graeme Urquhart (Wood Group) Gordon Smith (Petrofac Facilities) Other Attendees Brian Kinkead(Oil & Gas UK) Ronald Laarhoven (Dutch Purchaser User Group) 

Industry Commitment Set up in 2002 Identifies use of FPAL as one of the key elements of creating an ethical and equitable Supply Chain Signed at MD/CEO level and also Supply Chain Manager level Over 140 signatory companies New Tiered Compliance 23 companies attained an award 16 Gold 3 Silver 4 bronze Gold – Aker Solutions, Amec, BG Group, Bibby Offshore, Chevron, Fairfield, Halliburton, Nexen, Petrofac, PSN, Shell, Subsea 7, Talisman, Technip, Total and Wood Group Silver – Apache, BP and Centrica Energy Bronze – AGR, ConocoPhillips, Marathon and Petro-Canada

Code of Practice – What’s in it for you? Save time and money when bidding for work by cutting repetitive pre-qualification and receiving industry standard ITTs Give & receive feedback in an open way Improve chances of winning future work via bid de-briefs Know which customers are committed to meeting 30 day payment targets Gain market intelligence through access to Share Fairs, Pilot Forward Workplans & FPAL Purchaser Profiles Next Share Fair on 3rd November, 2010 @ AECC Further information available from www.pilottaskforce.co.uk

Advanced Registration What’s in FPAL Overview of company’s product/service’s offering Self declared Based on “Actual” Performance Ongoing assessment of Suppliers ability (Plus peer review) Registration (mandatory) Performance Feedback Verify Advanced Registration Sharing of information amongst Verify members – reduces cost, saves time Physical site assessment of Suppliers H&S,E & C&T capabilities Compliments the Advance Registration Desk assessment of Suppliers Policies and Procedures Profile valid for 2 years

Standard Registration Includes Continuous data integrity drive by FPAL Supplier Responsibility Self declared as accurate & honest Data Flag applied to identify old info. >15 months

Performance Feedback Industry standard tool, available to purchasers and suppliers wishing to carry out a performance assessment during or following a piece of work.   Feedback is aggregated and displayed as a performance profile graph Ongoing assessment of Suppliers ability (Plus peer review) Profiles can be analysed by product, service line, size of job and time. Feedback is valid for a maximum of 5 years Suppliers can benchmark their performance against their competitors

Advanced Registration / Capability Profile Desk top evaluation of a supplier’s capability There is no pass, fail or overall single score Valid for 2 years Profile, questions, answers and evidence fully visible to purchasers Speeds up the pre-qualification process by enabling Purchasers to have access to Supplier capability information which has been assessed in consistent way Circa. 250 Supplier records Visible Over 40 awaiting final agreement Click her for full response

Circa 450 Verified Suppliers Verify Verify is a supplier assessment service that involves a ‘verification visit’ to nominated suppliers’ premises. Assess Health & Safety, Environment and Competence & Training practices.  For the Health & Safety and the Environmental practices this is in alignment with oil and gas industry's OGP & NORSOK standards.  Valid for 2 years Circa 450 Verified Suppliers Supplier nominations through the Cross Industry Schedule, cost of audits shared by the Purchasers 40 Verify Purchasers Nominate Purchaser identifies Supplier following risk assessment Pre-visit FPAL contacts supplier Pre-visit submission made by supplier FPAL reviews submission Report On-site audit conducted by FPAL Conclusion agreed Report, scores & Improvement Plan made available on-line

What’s in FPAL - Summary Overview of company’s product/service’s offering Self declared Based on “Actual” Performance Ongoing assessment of Suppliers ability (Plus peer review) Registration (mandatory) Performance Feedback Verify Advanced Registration Sharing of information amongst Verify members – reduces cost, saves time Physical site assessment of Suppliers H&S,E & C&T capabilities Compliments the Advance Registration Desk assessment of Suppliers Policies and Procedures Profile valid for 2 years

Levels of Assurance Level 1 Low Risk Level 2/3 Medium/High Risk Desk Evaluation/ Performance Review Verify assessment visit Basic Data Collection FPAL’s risk matrix Registration Pre-qualification Advanced Registration & Performance Feedback Verify visit HSE & Competence

PILOT Forward Workplans Originally the Pilot Forward Workplan was initiated by the supply chain forum, to address the need to communicate forward opportunities as requested in the supply chain code of practice. Promoted and funded by DECC in conjunction with FPAL, through a link on the FPAL website. Also supported by the supply chain forum and Oil and Gas UK. Forward workplans now form part of the criteria for achieving a Gold award for compliance to the supply chain code of practice.

Where to find the workplans www.fpal.com

Forward Workplans

Workplan Example 1

FPAL and Marketing Use the FPAL Supplier Stamp Promote your membership and use alongside your supplier number on your marketing literature, website etc. Purchaser Contacts Registered Purchaser Procurement Contact List Performance Feedback Proactively use the resulting Performance Feedback profiles to promote your performance to existing and potential customers Verify Demonstrate your commitment to improving H&S, E & C&T performance in line with industry standards by promoting your unique supplier improvement plans Forward Work Plans Plan your marketing campaign around available contracts & tenders

Thanks Website: www.fpal.com