This paper describes opportunities to achieve cost savings relative to purchasing oil & gas production equipment and services in the offshore major project sector. Examples are provided from the perspective of an engineering, procurement, construction, installation & operating (EPCIO) contractor within the Floating, Production, Storage, and Offloading vessel industry (FPSO), however, the challenges and the recommendations equally apply to other offshore structures, including Spars, TLPs, and semi-submersible platforms. The examples provided focus on subjects related to vendor relationships, standardization, technology development, quality, and stakeholder communications.
This paper provides practical recommendations, based upon past experience, in order that organizations may maximize cost reductions on future projects. A novel aspect of this paper is the discussion related to relationships and behaviors (interpersonal communications / actions that will enable a desired cost reduction).