HOUSTON – McDermott International Inc. and 14 other companies have signed a memorandum of understanding (MoU) to establish engineering standards for the industry.
Known as the Standardization Unified Joint Industry Project (JIP), the one-year agreement outlines the terms and conditions upon which the signing parties shall establish industry standards for offshore engineering.
The objective is to reduce cost and increase predictability without compromising safety in international offshore oil and gas engineering, procurement, and construction (EPC) topsides projects by using standardized bulk materials and equipment, construction, and qualification procedures, and documentation requirements.
Alongside McDermott at the signing ceremony at the recent Offshore Technology Conference, were officials from Wood Group Mustang; DNV GL; Technip; Samsung Heavy Industries Co. Ltd.; Daewoo Shipbuilding and Marine Engineering Co. Ltd.; Hyundai Heavy Industries Co. Ltd.; Royal Dutch Shell; Chevron; and MODEC International.
Classification societies that signed the agreement were American Bureau of Shipping; Bureau Veritas; Korea Offshore & Shipbuilding Association; Korea Marine Equipment Research Institute; and Lloyd’s Register.
As part of the agreement, all parties also agreed to comply with all applicable laws, rules, and regulations in the performance of the MoU and in particular with all applicable anti-trust, anti-competition and anti-bribery laws.
Vaseem Khan, vice president, Engineering for McDermott, said: “As the industry moves to arrest and reverse the cost and schedule inflation of the past decade, a core element is offshore and subsea product standardization with a move to agnostic solutions which are industry specific but operator independent.”