ConocoPhillips Announces Winners of First Supplier Recognition Award Program

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HOUSTON – ConocoPhillips today announced the winners of its first Supplier Recognition Award program. The five recipient companies were honored for exhibiting exceptional leadership that supports the long-term health of the company, the environment and the communities where ConocoPhillips operates.

Awards were given in the areas of safety, integrity and responsibility, innovation, teamwork and business excellence.

Business unit leadership around the world generated nominations internally with winners chosen by a global cross-functional committee, including senior management.

“Eighty percent of our global spend is with suppliers, so it’s important to recognize notable performances that enable us to achieve our goals and deliver shareholder value,” said Al Hirshberg, executive vice president, Technology and Projects.

“These suppliers have made a real impact on our business by demonstrating their commitment to excellence in these five key areas,” said Matt Fox, executive vice president, Exploration and Production. “This award program is an opportunity for us to show them how much we appreciate the role they play in helping deliver on our commitments.”

The 2015 recipients are:

• Safety: XstremeMD (Nominating Business Unit: Lower 48 Gulf Coast)

• Integrity and Responsibility: M-I SWACO (Nominating Business Unit: Malaysia)

• Innovation: Kakivik Asset Management LLC (Nominating Business Unit: Australia West)

• Teamwork: Flowline Alaska Inc. (Nominating Business Unit: Alaska)

• Business Excellence: PT Kwality Oiltools Supply (Nominating Business Unit: Indonesia)


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About ConocoPhillips

ConocoPhillips is the world’s largest independent E&P company based on production and proved reserves. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 27 countries, $53 billion in annual revenue, $117 billion of total assets, and approximately 19,100 employees as of Dec. 31, 2014. Production from continuing operations, excluding Libya, averaged 1,532 MBOED in 2014, and proved reserves were 8.9 billion BOE as of Dec. 31, 2014. For more information, go to www.conocophillips.com.


Vinnika Johnson (media)

Editor’s Notes:

XstremeMD established telemedicine capabilities in the Eagle Ford to provide full-service occupational medicine to employees and business partners working in this rapidly developing, remote onshore area. Previously, the nearest facility was more than an hour away. Since implementation, response time between incidents and treatment has been reduced significantly, further diminishing severity and recovery time. These emergency and non-emergency service offerings, including x-rays, pulmonary function tests and prescriptions, are improving health and safety in this key operating area. The implementation was so successful other operators and contractors are utilizing the venture, significantly reducing the cost to ConocoPhillips. This model is now being applied in other Lower 48 operating areas.

M-I SWACO minimized environmental impacts as part of the KBB Phase 1 drilling and completions campaign through the cost-effective waste management of fluids, chemicals, and drill cuttings. These improvements occurred throughout the life cycle of the fluid systems, from delivery and fluid management, to recycling and disposal. The company’s project engineers’ efforts resulted in a cost saving by not having to incinerate the entire 4,500 barrels of synthetic oil-based mud inventory and, instead, recycled and sold the reconditioned mud.

Kakivik Asset Management LLC provided rapid inspection of insulated piping and vessels to ensure asset integrity at Darwin LNG and Bayu Undan, and adapted specific radioscopy and thermography tools used in Alaska for use in the higher heat and humidity found in Australia. This innovative approach to preventative maintenance allowed ConocoPhillips to quantify the risk of corrosion under insulation without insulation removal and reinstatement. The time saved by the rapid screening capability ultimately translated to sizeable cost savings during execution, in addition to risk-weighted loss of containment cost. The technology contributed to ConocoPhillips winning the national safety award in Australia for process safety.

After ConocoPhillips Alaska (COPA) received pipe from a supplier that did not meet COPA technical specifications, Flowline Alaska Inc. managed the testing and disposal of the out-of-spec pipe, and provided critical jointing, coating, and insulating support to install the replacement pipe under an extremely tight timeline. By meeting the aggressive deadline, ConocoPhillips avoided a one-year delay in major project startups (CD-5 and DS-2S). As the primary supplier for line-pipe services for the North Slope, Flowline has worked exceptionally well with the COPA team and been instrumental to the success of new pipeline projects and the pipeline integrity program.

Small business PT Kwality Oiltools Supply significantly improved their year-over-year performance and won more than double the orders in 2014 than their peers. ConocoPhillips Indonesia’s (COPI) program for underperforming material suppliers measures quality, conformance to specification and timely delivery. PT Kwality emerged as COPI’s best-performing material supplier in 2014, achieving 97.4 percent on-time delivery and receiving the highest supplier performance evaluation rating.