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tions in both capital expenditures (CapEx) and ope-
            rating expenditures (OpEx) and identifying process
            and practices that can overcome diffused ineffi-
            ciencies.
            One of the major causes of inefficiency is the enor-
            mous variety of technical requirements between
            projects, even for the same end-user! Analyzing
            the technical requirements encountered in various
            projects, it can be noted that: There are different in-
            ternational standards but also many different Ope-
            rator Specifications as well.

                 JIP33 has identified
                 standardization as a key
            “opportunity to reduce
                 inefficiencies in the oil and gas
                 industry
                                                          Standardization is a key lever
            The oil and gas industry has a wide range of stan-  we can pull as an industry to
            dards  (international,  end user  and  manufacturer)   “structurally reduce large capital
            for engineering and procuring equipment and ma-
            terials. The only thing they have in common is that   project lifecycle costs
            they are different, project by project, even in briefs   (McKinsey Energy Insights)
            from the same customer.
            The World Economic Forum (WEF) is an internatio-  The following key elements were identified to rea-
            nal organization, whose purpose is for public-pri-  lizing value:
            vate cooperation committed to improving the state   1.  Standardization Requirements
            of the world. It commissioned a study of the oil and   Industry adoption means repeatability for the
            gas sector, which revealed the extra budget and   supplier leading to improved
            extra time mentioned above.                   efficiency, reducing schedule and cost risk.
            WEF recognized that finding a solution to the pro-
            blem required worldwide consensus and decided   2.  Essential Minimum
            to collaborate with the International Association of   Aim not  to  harmonize existing specifica-
            Oil and Gas Producers, (IOGP), members of which   tions, but to create a new set of  minimum
            produce 40% of the world’s oil and gas, to address   requirements  to  meet  essential  needs
            the situation.                                only.
                                                          Vendor can standardize production processes
                 Because requirements are                 to a cost-effective design.
                 standardized, in addition to the     3.  Defined Optionality
            “increased quality, suppliers                 Choose from  the  options given  within
                 can also focus more on                   the standardized specifications.
                                                          No changes by the user, supplementary
                 continuous improvement and               requirements added by users will  erode
                 more innovative designs                  the benefits of standardization.

                                                      A  set  of  specifications,  aiming  to  cover  the  abo-
            Together they created Joint Industry Project (JIP   ve philosophies has been identified for the various
            33) with the objective to drive a structural reduction   equipment and materials as follows:
            in project costs and schedule improvement.  •   A Supplementary Specification to an in-
             Starting from 2016, JIP33 has identified standardi-  dustry standard
            zation as a key opportunity to reduce inefficiencies   Containing a set of “minimum requirements”
            in the oil and gas industry.                  sufficient to purchase equipment that meets
                                                          the functional needs of users.
            These new standardization efforts creating a
            common set of requirements that can be used   •   An Information Requirements Specifica-
            by across the supply chain on all projects al-  tion or “IRS”
            low for collaborative design execution, between   Containing a list of pre-defined   documents
            end-users, contractors and suppliers like never   and contents required to be delivered by the
            before.                                       supplier



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