Case Study 2: Using Standard Codes of Practice and supporting Documention to Accelerate Tendering and the Pace of New Developments

Fairfield Energy Limited is a new UK independent oil and gas company whose business plan is to acquire and enhance recovery from existing fields in the North Sea. It currently operates the Dunlin platform including the Osprey and Merlin subsea fields plus the Maureen, Crawford and Clipper South fields.

From the outset, one of the key principles of Fairfield’s strategy has been to use fully the most effective and fit for purpose systems and technology; therefore, it was very keen to commence major tendering activities using LOGIC’s suite of standard contract forms in conjunction with the newly developed model Invitations to Tender (ITTs). These documents form part of the recommendations of good procurement practice contained in Oil & Gas UK’s Supply Chain Code of Practice (see Appendix C).

The fundamental concept of the model ITTs is simplification; a suite of standard formats has been developed into which each operator can insert its specific requirements. The major benefits are not only a significant reduction in the administrative time required to draft an ITT, but also a reduction in the time and cost expended by tenderers interpreting the requirements of the operator and completing their tenders. It is estimated that cost savings in the region of £25,000 to £50,000 per bid can be achieved, crucially enabling the whole process to be carried out more quickly and efficiently. Given the number of tenders and the volume of spending across the industry, this will translate into large savings of time and money annually.

Fairfield has successfully used the model ITTs for the following requirements:

• Topsides engineering and construction services (Topsides Support Model ITT), awarded to Aker Solutions,
• Baseline ROV survey of the Dunlin platform (Marine Construction Model ITT), awarded to Fugro-Rovtech,
• Pipeline pigging support, currently out to tender,
• Clipper South project engineering, currently out to tender.

Fairfield is also about to embark on a tendering exercise to secure the services required to perform an extensive drilling programme on the Dunlin platform using the standard Well Services Model ITT.

As Brian Brown, Fairfield’s Contracts Manager, explains, “Service providers in the UKCS have long complained that the multitudes of ITT formats and differing contents means that they have to spend a significant time reviewing and interpreting an ITT before they start responding to it. Using a standard format means that tenderers will always know where the key requirements of the ITT are, thus allowing them to identify the specific requirements more quickly and to focus their resources accordingly.

Fairfield has received positive feedback from the companies whom they have invited to tender, in respect of the clarity of the documents issued and their ease of use. This model ITT initiative has provided the necessary procurement tools to allow a new entrant to the UKCS to secure the services required efficiently, whilst reducing administrative timescales and duplication on both the part of the operator and the service providers.