Santos engaged Charles Kendall Australia (CKA) to provide additional in-house support to the Contracts and Procurement (C&P) department to assist in establishing strategies and contracts during the Gladstone Liquefied Natural Gas (GLNG) project, a US$18.5 billion gas export venture scheduled for delivery in early 2015. CKA successfully aided in the delivery of procurement activities, enabling financial savings and ensuring stakeholder satisfaction.
- Support Santos’ in-house C&P team in establishing strategies and contracts.
- Manage joint venture approvals.
- Compile and administer complex tender packages, including contract formation, negotiation and post-award administration.
- Adhere to establish joint venture protocols to deliver operational and financial benefits to stakeholders.
CKA supplied long-term resources to provide capacity and stability to the C&P team, ensuring cost, time and quality parameters were met.
- Deliver strategies and contracts to stakeholders’ requirements.
- Ensure maximum operational and financial value were achieved throughout.
- Abide by established governance, processes and protocols as sanctioned by stakeholders.
- Successful delivery of contract and procurement activities in accordance with stakeholder expectations.
- Contribution to a Master Procurement Plan to schedule and monitor project-wide procurement, ensuring stakeholder objectives were met from the earliest possible stage.
- Financial savings of several million dollars over the life of the project achieved via contracting strategies and stakeholder consultation.
Procurement & Advanced Contract Management Training
Queensland Gas Company Ltd (QGC) engaged Charles Kendall Australia (CKA) to aid in skills and capability improvement among their procurement and contract management staff. CKA delivered customised training for 75 contracts and procurement personnel, filling skill gaps and supporting professional development.
- Develop tailored programs to target specific areas of weakness across diverse disciplines.
- Design practical, interactive and customised courses to provide immediate and long-lasting results.
- Incorporate local policy and procedures, while ensuring minimal disruption to participants’ daily work functions.
- Conduct reviews of QGC’s policies, procedures and standards to ensure detailed understanding of the environment.
- Engage stakeholders to establish key issues, outcomes and methodologies.
- Collaboratively design course content and structure to include:
- An introduction to procurement. - Tender development. - Supplier management. - Contract management. - Category management. - Best-practice procurement.
- Successful delivery of the course, with QGC engaging CKA to deliver subsequent courses.
- Creation of high-quality, corporate-branded support materials, including PowerPoint presentation, desk manuals, reference guides, case studies, activities and notes pages.
- Minimal disruption to business operations.
- Positive feedback from participants, particularly regarding course relevancy and practical benefits.
Petroleum Development Oman (PDO) is the foremost exploration and production company in the Sultanate. PDO accounts for more than 70% of the country's crude oil production and nearly all of its natural gas supply. PDO engaged Charles Kendall Australia (CKA) to develop several should-cost models for complex areas of spend. Should-cost models are tools that provide a clear understanding of the specific economics behind manufacturing a particular product or service. Benefits range from improving efficiencies and delivering substantial costs savings (without cutting back on scope, quality, capabilities or suppliers’ profits), to improved supplier relationships.
- Developing accurate should-cost models with restrictions such as limited data availability and no direct interaction with PDO’s contractors.
- Developing should-cost models for complex areas of spend across several contractors.
- Developing models for multiple layers and interactions of the supply chain.
- Delivering the models in a short time frame.
- Preparing the ground for fact-based negotiations with contractors.
- Reviewed and analysed PDO’s expenditure, existing pricing schedules, contractor’s financial data, asset and vehicle lists, responses to a request for information, etc.
- Leveraged Charles Kendall Group and CKA’s market knowledge and understanding of the oil & gas industry and supply base in Oman.
- Mapped out the supply chain for each service and identified all cost drivers.
- Determined target prices and compared them against PDO’s current pricing.
- Estimated potential cost reduction opportunities.
The deliverables included:
- producing the should-cost models in an Excel format that could be updated by PDO;
- a presentation of the should-cost models to PDO; and
- a report including an overview of the potential savings, general findings and recommendations, assumptions, the should-cost models results and the methodology followed.
The models provided PDO with in-depth insights into the cost structure of the services in scope and target pricing for those services which allowed PDO to enter into fact-based contractor negotiations.