Operators need industry-wide standardization to manage the $3 trillion in CAPEX expenditure forecast for 2018-2025 (Global Data, 2018), while maintaining competitiveness and mitigating risks.
With the backing of the World Economic Forum, Joint Industry Program 33 (JIP 33) was initiated to drive industry-level standardization for procuring equipment items, moving the industry structurally – across the value chain - towards common engineering designs and solutions, established by means of cross-company and value-chain collaboration.
By 2022 over 50 standardized, freely available specifications will have been delivered. Their adoption by 12 major operators is being measured and is progressing well. This enables the program to capture and evaluate successes, challenges, key learnings and feedback. The program has also established a process for future maintenance of JIP33 specifications in order to achieve sustained benefits.
The success of JIP33 is measured, within the operating companies and the wider industry, by the extent of adoption and use of the JIP33 specifications. This requires aligning corporate engineering and procurement processes with JIP33 methodology, embedding the JIP33 specifications in company systems, and using JIP33 specifications as default on projects, with a policy of ‘no deviations’.
In 2019-2021 JIP33 specifications have been downloaded over 110,000 times from the IOGP website. Supplier feedback indicates cost savings of up to 50% and a potential reduction of 65% in supplier engineering hours could be achieved if the specifications become industry standard designs. Key information that is filtered through constructive feedback from vendors during the purchase process, has led to a series of recommendations for further improving existing JIP33 specifications. These now become part of a structured maintenance process. JIP33 is closely collaborating with Standards Development Organisations to ensure that valuable learning can be included in updates of the international parent standards.
Industry networks have been established to engage with engineering contractors and suppliers to create awareness of JIP33, and to further efforts in advocating the use of JIP33 specifications across the wider oil and gas industry.
This paper will present the status of the JIP33 program after 5 years. It will showcase some of its early successes, challenges and learnings. Learnings from the adoption and use of the specifications by the JIP33 members will be discussed. Initiatives that further encourage operators, EPC's and suppliers to use the specifications will be shared.