This post is sponsored by INTECSEA.
As a difficult year draws to a close, the O&G industry has never been more focused on finding field development solutions that increase value, reduce costs, and improve returns. This is especially true for mega-projects offshore, where longer lead times, complexity, and scale are disadvantages vs. shorter-cycle shale plays in the downcycle.
This week, INTECSEA, a leading offshore engineering, project management and consulting company, is turning some heads as it shifts its focus on full lifecycle asset management.
Traditionally, INTECSEA has taken a more systematic approach to its offering, marketing itself as a leader in subsea systems, floating systems, pipelines and even Arctic solutions.
But through a series of client conversations, INTECSEA realized the value and importance of aligning its offering to the respective stage gates of a project. Moving forward, the group will focus on providing solutions in Front-End (Offshore Select), FEED, Detailed Design, PMC, Specialist Engineering and Brownfield/Asset Management.
We sat down with Neil Mackintosh, President of INTECSEA, to discuss the change and learn how INTECSEA is approaching the rapidly evolving market under his leadership.
Neil Mackintosh, President of INTECSEA
Thinking Like A Client
The first thing Mackintosh emphasizes is that this shift is not a change in the services or capabilities at INTECSEA. “It’s more about how we move the organization forward and enhance the discussions we are having with clients,” he says.
To better understand, a little background is needed. About a year ago, the decision was made to move all of WorleyParsons’ Front-End offshore engineering into INTECSEA. The idea was to offer clients a complete solution spanning subsea to topsides to floating systems to pipelines all from one integrated group. “We wanted to bring everything together into one team, and the most obvious place was INTECSEA,” Mackintosh says.
That consolidation strengthened the company’s front-end capabilities, enabling better decisions across all elements of early project phases.
“We’ve been talking to our clients about what they are looking for from a front-end capability. The consensus from VP through project managers is no surprise: costs need to come down and value propositions must improve.” For a company like INTECSEA, these objectives are accomplished by working as one with operators and other suppliers to make the best possible decisions across every phase of a project’s lifecycle, from concept to decommissioning.
“Better decisions about the application of technology across the entire industry, whether new or traditional, and better project management decisions create value. Our offering optimizes the delivery of insight, knowledge and solutions from INTECSEA to clients,” Mackintosh says. “We incorporate the latest subsea and topsides technology right at the front end where the value can be most easily scrutinized.”
The combined front end offering (called Offshore Select), includes field development, commercial and environmental assessment, cost estimating, decision analysis and more. Teams across the globe in offices from Perth to London and Houston are now focused on growing this capability. The initiative targets early identification of the business drivers that impact project lifecycles.
Among operators, there is a new sense of urgency and willingness to think out of the box. Mackintosh says his clients are “rethinking the way they contract and the way they go about doing things”.” As operators re-evaluate their internal processes to reduce costs, so too must their advisors and suppliers.
More firms will likely follow INTECSEA’s lead in rethinking their internal processes and offering. This is one company’s early step forward down the path toward a lower cost, higher value offshore world.
The Importance Of Independence In The Subsea Industry
Even before the downturn, the subsea landscape was shifting. JVs and alliances were beginning to form among EPC companies, oil service firms, and vendors.
Falling oil prices have spurred this on, resulting in the proliferation of some nine JVs and alliances, whereby subsea contractors are combining forces to pitch more integrated offerings for offshore installation and subsea systems.
The early results from the proliferation of JVs have been mixed. Operators have been willing to consider the potential benefits from the new options in the market. But the rising affiliation across the space also brings to light new concerns. Some of the structures incentivize market share gains for specific vendors via cross-selling by partners. This can insert bias in the advice operators receive about their projects.
While it’s too early to render a verdict, the conflict of interest some new partnerships bring to the selection of sub-contractors and equipment suppliers is a concern operators are honing in on.
For INTECSEA, the fact that they can offer independent advice is an advantage in an increasingly affiliated field of suppliers. They are changing how they face their clients, but the firm remains one of the last truly independent advisors in the world of offshore mega-projects. “Our advice on subsea equipment selections is unbiased because we have no ties to other contractors or suppliers,” Mackintosh says.
While INTECSEA’s shift is a more subtle change than some of the big JV and affiliate announcements we’ve seen over the past two years, it is a well thought out move driven by client feedback in a changing market. It has the potential to both reduce costs and create value – the two key objectives for any operator in this environment.
From front-end planning to compliance engineering to construction management, we look forward to hearing success stories from INTECSEA’s new market approach in the months ahead.
This post is sponsored by INTECSEA. To learn more about Oilpro sponsored content, click here.