Vantage Drilling Brochure 2019

Action Rapid Drilling through OIL & GAS DIVISIO Transit

difficulty

We operate two shipyards in the Canary Islands. Supportin contractors for their SPS, rig reactivation, maintenance, rep upgrade projects as well as MPD readiness and 2nd BOP D Reinforcement in the Canary Islands. We support local wo knowledge and skills development to meet our global clie

OUR 16,000 yard FACILITIES • Subsea & heavy Mechanical workshop with 126 tons overhead Gantry Crane • Mechanical and Hydraulic workshop

• Blast & paint shop • 500 mtrs quay side wi water depth 19mtrs

Our Capabilities • Rig repair and upgrade, SPS projects.

• MPD Readiness and 2nd BOP Deck Reinforcement

• Re-engineering and stru analysis with ANSYS

Ontime safely Delivered projects within fixed price co Our facilities and capabilities at Las Palmas are also s

ESTABLISHED IN GABON SINCE 1993

PORT-G A member of contact

HOUSTO operatio

PORT-GENTIL OFFICE CERTIFIED ISO 9

02

Mobile assets: Vantage Drilling’s mature supply chain WRITTEN BY

JOHN O’HANLON PRODUCED BY

DENITRA PRICE

03

w w w.va nt a ge dri l l in g . com

VA N TA G E D R I L L I N G

Maturing Vantage Drilling’s supply chain function over the last six years, with full buy-in from senior management, has seen the department morph from support to partner, says Director of Supply Chain Andy Poosuthasee

B 04

ased in Houston, Texas, Vantage Drilling is one of the most effective players in that specialized niche of the oil & gas busi-

ness: offshore drilling. Offshore operations are generally not as easy as onshore or littoral operations – major, national and independent oil and natural gas companies require a dependable partner to carry this out. Vantage has five ultra-premium jackup rigs capable of operating in up to 375ft of water and drilling to depths of 30,000ft. It also has three ultra-deep-water dynamically positioned drillships designed to operate in water depths down to 12,000ft and drill to 40,000ft.

It’s no secret that the entire oil & gas sector is on a slow climb back from its boom days. According to the industry analyst Rystad, offshore drilling in particular may not fully recover till 2027. This has affected drilling contractors like Vantage in a number of ways, says its Director of Supply Chain Andy Poosuthasee. The most notable of these is

05

Photos Š Greg Williams

w w w.va nt a ge dri l l in g . com

VA N TA G E D R I L L I N G

“ We won’t sacrifice quality or compliance in order to get something quicker” 06

— Andy Poosuthasee, Director of Supply Chain

that where the norm used to be longer term, multi-year contracts, these days contract terms are often counted in months. This in turn means that the company’s assets have to be moved much more frequently than before.

From a supply chain point of view frequent movements call for a greater degree of maturity, says Poosuthasee.

“Probably the major challenge we face currently is that our rigs don’t tend to spend a lot of time in one particular country – we’re jumping around to different locations,” he explains. With seven of its eight rigs under contract Vantage is doing a lot better than its peers – the industry average is around 61% utilization, and there’s no lack of rigs waiting to come out of shipyards to further dilute that percentage. Still, the brevity of contract duration that is the price for high utilization is a supply chain challenge. “Even if we are working in the same country, the agreements these operators have with us and with the country itself are different. Looking ahead, I think we will be seeing more rather than fewer movements and that means that we have to be very nimble from a supply chain perspective.”

CLICK TO WATCH : ‘VANTAGE DRILLING SHORT FILM 10 DAILY SAFETY TOOLS’ 07

KEEPING IT CLEAN

West Africa, customs procedures are

A fact of life for Vantage is that much of

more complicated, fickle and constant-

its business is conducted in countries

ly changing. In addition, countries that

that occupy the bottom 30 percentile

are highly dependent on oil are even

of the Corruption Perceptions Index.

more so severely affected in the

“This brings in a whole new level of

downturn, which has a knock-on effect

compliance and complexity into the

of potential added corruption. That has

supply chain organization where we

affected our supply chain strategy

must absolutely comply with transpar-

tremendously. We will obviously

ency and anti-bribery legislation such

comply with the anti-corruption laws

as FCPA (US). If you are working in

and have no tolerance for any devia-

places like the Gulf of Mexico or

tion. Recognizing that import clearance

Canada it is simple enough to organize

times may be measured in months

a compliant and predictable supply

rather than days, a rethink of strategic

chain, but in other locations such as in

sourcing and inventory management w w w.va nt a ge dri l l in g . com

VA N TA G E D R I L L I N G

08

strategies is called for,� he adds.

Poosuthasee is not daunted by such

forced offshore drilling contractors to find ways to be more effective, espe-

difficulties though. As a certified lean

cially within their supply chain. Conse-

sensei from his earlier experience with

quently, supply chain has become

the oil & gas services company

more important than it used to be in the

Halliburton, he looks on both the

past. I believe most companies

general downturn, and the rise in

(especially large ones) don’t take the

corruption that in part comes out of

total cost of ownership into account

that, as opportunities for refining best

because it is difficult to calculate

practices. “In the good times, compa-

especially when they may be working

nies tend to stagnate and the focus

in silos. For example, strategic

was more topline driven for offshore

procurement may be negotiating

drillers. I actually think the downturn

global/regional fixed price agreements,

has been a good thing because it

but not considering the import duties

(which in some countries can be up to

We have seen tremendous benefits

30% of the purchase value), customs

from that exercise.” These benefits

clearance times, freight, and inventory

include a significant reduction in lead

impact because that’s managed by

times, eliminating exposure to import

other departments within supply chain.”

duties (which can be as much as 30%) and customs fines, and enabling leaner

PARTNERING WITH OPERATIONS

inventories. In just three years, he adds,

When moving into a new country, the

Vantage’s local content in all categories

first task is for the procurement and

went from 33.2% to 56.7%, while in the

logistics team to go in, find local

same period lead times were cut by

suppliers and set up a local supply

nearly 40%. Another benefit of local

chain. “In challenging countries, where

sourcing is that it grows the local

it is very difficult to import, our strategy

economy, coupled with the fact that

is to source as much as possible locally.

many countries require foreign 09

E XE CU T I VE PRO FI LE

Andy Poosuthasee Andy Poosuthasee is Director of Supply Chain at Vantage, as well as looking after Engineering, Maintenance and Technical Support. Reporting to the COO, Poosuthasee is responsible for a key part of the company’s strategy. He joined Vantage in 2013, having previously worked at Transocean where he was also a supply chain manager. Prior to this, Poosuthasee was at Halliburton, one of the world’s largest suppliers of products and services for the energy sector.

w w w.va nt a ge dri l l in g . com

expect more

Ship Agency

Advert

Logistic Operator Customs Broker Main Spanish ports, Canary Islands, Gibraltar, WAF

24/7

ops@alfaship.com

T +34 928 247 978

alfaship.agency

11

operators to maximize local sourcing.

Any supply chain organization adds

importation delays or potential ‘penalties’ and ‘fines’. Countries that

value to operations through quality

are heavily dependent on oil and gas

delivery and pricing – in that order of

especially are constantly changing

importance, Poosuthasee believes.

their import/export requirements.

“We won’t sacrifice quality or compli-

Therefore, the potential for significant

ance in order to get something quicker

fines or penalties by local customs is

and we won’t sacrifice meeting our

there if you are not diligent and

internal customer’s operations delivery

focused on trade compliance. Of

requirements just because it’s going to

course among local suppliers, there is

save us some money,” he says. “One of

also a level of corruption so you must

the biggest benefits we see is that

spend a lot of time auditing them and

when you source locally you don’t have

doing due diligence to ensure compli-

to deal with trade compliance issues,

ance with the FCPA.” w w w.va nt a ge dri l l in g . com

VA N TA G E D R I L L I N G

Vantage now has a mature process for moving into a new market. Its Rig Move Checklist covers 30 logistics actions and 29 supply chain and procurement actions that are done before the rig moves to its new location.

“We are very confident with the process because we have successfully used it so many times before,” he asserts. “I think taking the time to complete these 59 actions in advance is one reason we’ve had such success as we go into new countries. Of course, close liaison with the operations team 12

is very important: they are our customer so we spend a lot of time communicating with them to ensure we cover all of their needs prior to the rig’s arrival.”

TECH TOOLS FOR THE TIMES The priority for Vantage has been to identify cost effective rather than big ticket solutions to deliver automation, data management and reporting in the areas of procurement and inventory management as well as other parts of the business, such as maintenance and engineering. This is no time for heavy investment in this industry, and Vantage’s supply chain team discovered inexpensive, cloud-based

solutions at a fraction of the price of managed software to be the answer.

One implemented cloud-based solution has proven to be a collaborative and work management platform with a relatively straightforward user interface. “It is a tremendous tool that has allowed us to eliminate many of our manual processes. The downturn has meant doing the same job with fewer people but we have not seen a degradation in the service that we provide. That’s because we have been able to automate many of our manual processes through the use of simple and really economical applications.”

As a lean six sigma practitioner, Poosuthasee asserts: “One of the hardest things to do is to eliminate a piece of paper from the process.” Even so, a lot of paper processes have been automated by transferring them to this intuitive cloud based system. It’s clear though that he sets more store by the attitudes and commitment people bring to their task than the methodology. “I’ve learnt a lot from mistakes I have made in the past. One of the biggest ones was chasing too many initiatives, too many strategic goals.

Now I tell my team to focus on what w w w.va nt a ge dri l l in g . com

13

VA N TA G E D R I L L I N G

SERVICING YOUR OFFSHORE & MARINE UNITS AROUND THE WORLD Sodexo is the leading Quality of Life services provider for offshore facilities around the globe, from Asian shipyards through towing operations to exploration and production locations around the world, serving thousands of men and women from the North Sea to Western Africa and from Singapore and Australia to the Gulf of Mexico.

Sodexo's Offshore & Marine business addresses the complexities of our clients' challenges in this sector, including the geographic mobility of their operations and

installations as well as work-life balance in this unique environment. The very nature of onshore & offshore rotations is extremely demanding for our clients' crews. We deliver services to make their time away from home as comfortable as possible.

If you would like to find out more about how Sodexo can support your business visit our website www.sodexo.com

Action Rapide Transit

Follow us on:

• Shipping Agency • Door to Door Services • Project Management Consulting • Integrated Logistics • Yard & Warehouse Management • Custom Clearing • Handling & Trucking

www.artgabon.com

ESTABLISHED IN GABON SINCE 1993 PORT-GENTIL OFFICE contactpog@artgabon.com

LIBREVILLE OFFICE contactlbv@artgabon.com

HOUSTON OFFICE operationusa@artgabon.com

POINTE-NOIRE OFFICE a.ampat@artgabon.com

PORT-GENTIL OFFICE CERTIFIED ISO 9001 SINCE 2014

15

“ We have to be very nimble from a supply chain perspective” — Andy Poosuthasee, Director of Supply Chain

Franklin Covey calls the wildly important goals; focus on less so that your team can achieve more.”

In furtherance of this principle, which Poosuthasee also characterizes as going “an inch wide but a mile deep”, the supply chain team is focusing this year on trade compliance, both to minimize the risks thrown up by different customs regimes and to further automate procurement systems and processes. w w w.va nt a ge dri l l in g . com

VA N TA G E D R I L L I N G

16

A PARTNER IN THE ENTERPRISE When Poosuthasee joined Vantage in 2013, the company was still in “start-up” mode, and supply chain was doing a good job, but more as a support function. Since joining, he has worked to build the organization in three phases. The first phase was to strengthen the foundations and streamline the processes to be as effective as possible; the second was to start demonstrating and adding value to the company. “I wanted to show that we could actively impact KPIs and other value-added activities such as on-time delivery, quality, local sourcing, negotiations and inventory management. Show the company we can do more than just transactional tasks such as issuing POs.” Phase three was to become a true partner in the business, being asked to support non-traditional supply chain tasks such as sourcing service personnel and labor, real estate, catering, auditing, compliance, and even marketing right from the bidding stage. “It was truly pleasing from my viewpoint to see us moving from being a support team to being asked for advice on things we w w w.va nt a ge dri l l in g . com

17

VA N TA G E D R I L L I N G

OIL & GAS DIVISION We operate two shipyards in the Canary Islands. Supporting drilling contractors for their SPS, rig reactivation, maintenance, repair and upgrade projects as well as MPD readiness and 2nd BOP Deck Reinforcement in the Canary Islands. We support local workforce knowledge and skills development to meet our global clients

OUR 16,000 yard FACILITIES • Subsea & heavy Mechanical workshop with 126 tons overhead Gantry Crane • Mechanical and Hydraulic workshop

• Blast & paint shop • 500 mtrs quay side with water depth 19mtrs

Our Capabilities • Rig repair and upgrade, SPS projects.

• MPD Readiness and 2nd BOP Deck Reinforcement

• Re-engineering and structural analysis with ANSYS

Ontime safely Delivered projects within fixed price contracts Our facilities and capabilities at Las Palmas are also similar

A member of

www.tenerifeshipyards.com www.hidramar.com

VISIT OUR SITE

+34 922 104 982 gara.socas@hidramar.com commercial@tenerifeshipyards.com

CONTACT US

“ We have been able to automate many of our manual processes through the use of simple and really economical applications” — Andy Poosuthasee, Director of Supply Chain

weren’t involved with in the past and becoming a true partner in the organization.”

Andy Poosuthasee and his supply chain team are certainly finding ways to add value. Even some relatively mature locations have seen some dramatic results. For example, trade compliance turned out to be a big issue in Indonesia where even airfreight imports were taking a fortnight to clear. By developing local suppliers Vantage went from sourcing 47% to 81% locally. A different challenge faced the company in Qatar following the imposition of sanctions by GCC countries from which most supplies had previously been sourced.

In just a couple of years, local suppliers have been brought on, at first being given short contracts but more recently these have been extended and today, he says, it is one of the easiest locations, with more than 80% locally sourced.

w w w.va nt a ge dri l l in g . com

19

Vantage Drilling 777 Post Oak Blvd, Suite 800 Houston, Texas 77056 USA T +1 281 404 4700 www.vantagedrilling.com