SCM ISSUES IN WEST AFRICA LOCAL CONTENT DEVELOPMENT

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SCM ISSUES IN WEST AFRICALOCAL CONTENT
DEVELOPMENT
JUNE 2006
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What we do
SURF Conventional Trunklines
IMR
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Africa Mediterranean Countries of operation

• 40 of ACERGY worldwide activity circa 750 MUSD
  in 2005.
• 45 of which is related to procurement of
  Projects 350 MUSD
• 450 MUSD foreseen in 2006 2007.
• Projects in the Gulf of Guinea
• Nigeria
• Angola
• Equatorial Guinea
• Congo

Regional permanent implantation in Angola,
Nigeria and Gabon.
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SCM Issues 1/2
Logistic
Delivery on site
Engineering
Installation
Fabrication
Transport
Customs

• Weak and critical point
• Risky
• Remote environment
• Uncontrolled planning

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SCM Issues 2/2

• How to succeed the installation ?
• Engineering - over design gt secure
  installation and in service life
• Fabrication - zero default gt high QA/QC
  capabilities
• How to succeed the delivery on site ?
• Ensure good structure for logistics
• - Availability of transport (flexible planning)
• - Very good knowledge of local regulations which
  are constantly changing
• - Strong set up and full control of local
  logistics from shore to site.

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West African Top Priority Local Content
Constraint but also an Opportunity
Transport
Customs
Delivery on site
Installation
Fabrication
Engineering

• 1. Constraint
• Access to local Human Resources
• - Engineers (Engineering)
• - Workers (Fabrication)
• Control of Quality
• 2. Opportunity
• Transport and Customs are cleared Upstream
• - Improve Float on planning
• - Less complex nature of goods to import.

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West Africa A region with high Country
Specifics
Pipe fabrication (Steel mill)
high
CAPEX \ Investment
Yard long-product base (Jacket-piles /double
joint)
low
low
high
Technology / Complexity
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SOME LOCAL REALISATIONS
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Nigeria Warri Yard Angola Lobito Yard
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HRT in Lobito
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Manifolds in Lobito
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APL offloading Buoy
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YOKRI Deck fabrication in Warri
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Warri Fabrication Yard Jacket - Suction Piles
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Warri Fabrication Yard Jacket - Suction Piles
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Conclusion

• Common objective for main Contractors and
  Suppliers
• - Localisation in country with guaranteed quality
  and delivery
• Strong and relationship / partnership required