MCDERMOTT INTERNATIONAL INC
DIGITAL REPORT 2020
TRANSFORMING OPERATIONS THROUGH DIGITISATION IN ASSOCIATION WITH
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TRANSFORMING OPERATIONS THROUGH DIGITISATION
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M C D E R M O T T I N T E R N AT I O N A L I N C
Mark Lowman, Vice President of Operations at McDermott, discusses the impact of COVID-19 in the oil and gas industry
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cDermott is a premier, fully-integrated provider of technology, engineering and construction solutions to the energy indus-
try. Operating in over 54 countries, McDermott’s locally focused and globally integrated resources include more than 42,000 employees, a diversified fleet of specialty marine construction vessels and 04
fabrication facilities worldwide. Mark Lowman is Vice President of Operations at McDermott. Having spent his early career as a Submariner in the Royal Navy, Lowman worked his way through the ranks to advance to Lieutenant Commander, before spending a further four years with the Royal Australian Navy. In 2000, Lowman left the Navy and joined the oil and gas industry and, over the next few years, gained experience as a Project Manager delivering projects in the Subsea, Offshore and Onshore business segments. In 2012, he joined McDermott to oversee company fabrication operations in Asia and to manage the Batam Fabrication yard. Two years later, he stepped into his current role as Vice President of Operations and is now based in Houston, Texas. “I loved my career with the Royal Navy, but I always knew I was
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— Makes operations and asset optimization easier than it looks ABB Ability™ Genix Industrial Analytics and AI Suite In today’s trying times, we need every angle to solve business challenges faster. Analyzing data can give us an edge. But deciding which data and how is a whole different game. As a leader in digital technologies that help customers improve operations, we developed the ABB Ability™ Genix Industrial Analytics and AI Suite. Genix takes data from distributed control systems and devices, and combines it with data from information and engineering systems to provide multidimensional analytics that help you increase production, optimize assets and streamline business processes. Artificial Intelligence helps you produce predictive and prescriptive actions to improve. The Genix platform is augmented with easy-to-use applications and supplemented with expert ABB services to help you find the right solution to solve business challenges faster. abb.com
ABB: accelerating digitalisation with McDermott ABB is a leading global engineering company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. Heather Cykoski is the Group Vice President at ABB. Having worked for the organisation since 2005 in several different leadership positions, she has a comprehensive understanding of the industry and has observed her organisation’s digital transformation journey first-hand. “It’s incredibly interesting to be where we are today. Digitalisation has been at the core of what we do for many years; however, the acceleration of implementation today is truly transformational,” explains Cykoski. “Now is the time for those who lead in this space to transform and deliver digital value to both our own operations and to our customers. Today’s challenging economy makes this more urgent than ever. There is so much more to deliver, and we need to deliver fast.” Rajesh Ramachandran is the Chief Digital Officer for ABB’s Industrial Automation business. He joined ABB in February 2019 and brings over three decades of experience in technology and business leadership to ABB, having helped to transform world-class multinational organisations such as Oracle, Siemens, PayPal and more.
ABB Partner Video
“Having established a key, strategic business relationship with McDermott, Cykoski affirms that this collaboration is influential to mutual success. “The partner ecosystem has changed. The combination of a technology provider like ABB, and an EPC like McDermott, supporting the end user, is the trifecta that creates the perfect project,” says Cykoski. “We know how important an EPC is: 80% of large projects go through an EPC. When you look at digitalisation and partnerships, what it truly means is that you trust one another and collaborate to provide value. McDermott and ABB both have very similar outlooks and values, and that is key.”
“With the future in mind, Ramachandran has a clear idea of what the partnership with McDermott could hold. “We’re actively working on how to build solutions together that have a “Different customers are at different points of lifecycle value for customers, from design through their digital transformation journeys,” says operations through continuous improvement,” he Ramachandran. “This is even true with the solution says. “The trusted relationship that we have with providers as they are learning along with the McDermott is important to ensure projects are customers on what the real value of digital is to delivered on time at the right cost. There is now a drive business outcomes. In today’s highly new normal in the industry following the pandemic. competitive landscape, industries are able to It’s the right time for partners to come together embrace digital technologies to address their core and develop, test and implement new technologies — challenges, while striving for operational excellence that challenge traditional ways of working. We’re Makes operations and asset and output of the highest quality. Digital confident that by working together, we will ensure transformation has becomeoptimization a high priority due easier safer, than smarterit and more sustainable operations looks to its promise of addressing strategic business across the industry. “It’s a great opportunity to ABB Ability™ Industrial Analytics andknowledge AI Suite imperatives. Many companies are struggling withGenix bring the combined power of domain how to leverage this potential. We believe the and leading technology to our customers. We’re In today’s trying times, we need every angle to solve business challenges faster. Analyzing data industry must adopt a clear can roadmap of how to confident this jointgame. value will help our give us an edge. But deciding which data and how is a whole different As a proposition leader in technologies that help customers improve operations, we developed the ABB Ability™ address digitalisation, from digital enabling it to customers succeed today and tomorrow .” Genix Industrial Analytics and AI Suite. Genix takes data from distributed control systems and implementing it through focused solutions, devices, and combines it with data from information and engineering systems to provide multidimensional analytics that help you increase production, optimize assets and streamline keeping in mind the longer digitalisation journey. business processes. Artificial Intelligence helps you produce predictive and prescriptive actions to improve. effectively The Genix platform is augmented with easy-to-use applications and supplemented At ABB, we can help our customers with with expert ABB services to help you find the right solution to solve business challenges faster. these challenges.” Learn more abb.com
M C D E R M O T T I N T E R N AT I O N A L I N C
“MCDERMOTT HAS CREATED AN ENVIRONMENT WHERE EMPLOYEES ARE ENCOURAGED TO ENGAGE AND PROMOTE THEIR IDEAS AND WE HAVE A MANTRA TO ‘TAKE THE LEAD” 08
Mark Lowman, Vice President of Operations, McDermott
going to move jobs eventually because there comes a time when you can no longer serve at sea,” explains Lowman. He studied at Deakin University and was awarded an MBA in Law, Finance, Human Resources, Economics and Marketing in 2001. He points to that experience as vital in providing a network of like-minded individuals. “That programme had a big influence on me as I got introduced to a number of senior executives from other companies and those conversations about opportunities really drove me to switch my career.” Lowman believes the oil and gas industry has been slower to adopt new technology than other industries, but recognises that digitalisation is beginning to have a greater influence on operations. “When I started, digitalisation was in its infancy in the industry,” he explains. “McDermott was still working in the same way it always had with adequate systems and processes while not fully understanding the benefits of digitalisation. We have created our Digital and Project Innovation Group who are supported by resources across the organisation. This allows us to educate our employees and the leadership as
Ship-to-Ship Motion Measurement System CLICK TO WATCH
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09 we prepare to evolve to a digital culture.
we can find. Going forward, our focus
Digital disruption is very likely to upend
is heavily on technologies which help
the way we operate.” Pointing to his
us improve collaboration, expand our
organisation’s ongoing digital transfor-
project predictability through analytics
mation journey, Lowman acknowledges
and automate repetitive activities to free
that there has been a combination of
up our people.”
small point solutions as well as longer
With the COVID-19 pandemic
running programmes. “We’re leveraging
impacting businesses across the globe
cloud technology in certain areas, such
during the first half of 2020, Lowman
as our ERP and utilising technology
recognises how difficult the challenge
platforms like PLM from the aerospace
of transforming operations rapidly was.
and automotive industries,” he says. “We
“There’s no doubt that COVID-19 has
have tried to ensure that we don’t have
had a significant influence on the way
an ‘only invented here’ mentality and are
businesses operate now,” he explains.
always looking to leverage the best that
“Almost overnight, we had to switch w w w.mc de rmo t t . com
M C D E R M O T T I N T E R N AT I O N A L I N C
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“THE KEY IS UNDERSTANDING THE CUSTOMER’S DRIVERS” Mark Lowman, Vice President of Operations, McDermott w w w.mc de rmo t t . com
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ServiceNow: driving digitalisation with McDermott Kevin Galloway, Director of Enterprise Sales, and Sunny Mahato, Advisory Solution, Consultant at ServiceNow discusses their firm’s partnership with McDermott. ServiceNow is an industry leading SaaS provider, helping to make the world work better for people and has a mission to improve the overall employee experience. ServiceNow has formed a key, strategic relationship with McDermott and helps the organisation with their digital strategy. Kevin Galloway is a Director of Enterprise Sales at ServiceNow. Having been with the company since February 2019, he has operated in the oil and gas industry over the past decade and has observed the rise of digital transformation first-hand. “Before McDermott brought in ServiceNow, they had a very manual process,” he explains. “If there was an issue, it would have to be passed around different employees until it reached the right person. With ServiceNow, we automate that process.” Sunny Mahato is an experienced technology leader with experience in strategic account software sales cycles, advanced enterprise software applications, business process optimisation, solution development and consultancy. He believes that ServiceNow’s solution is of significant value to McDermott as it streamlines the process considerably. “McDermott doesn’t have to worry about maintaining or managing the servers or having people go into the office to look after it. It’s all driven from the cloud.” Prior to joining forces with ServiceNow, McDermott had no way of tracking inventory or streamlining their HR processes. Galloway believes that upon the beginning of the partnership with his organisation, the cost savings have been considerable. “McDermott went from 100% manual intervention and spreadsheets to now running our platform which they now use as ERP,” he says. “They track millions of dollars of assets automatically through our platform and their onboarding process has transformed from a manual process to a workflow which streamlines that process. Sometimes, people don’t realise
ServiceNow
the cost involved with some of these manual processes and the cost savings are in the millions.” Mahato affirms the importance of displaying a compassionate and understanding approach to customers and employees alike. “Our mission is all about showing compassion to not just employees but also our customers, particularly in the current challenging environment,” says Mahato. “We want our employees and customers to know that we stand with them.” Looking to the future, Galloway has a clear idea of the next stage of the partnership with McDermott. “As we continue to grow our relationship with McDermott, we want to begin to leverage AI into our platform and machine learning to help McDermott further automate their environment,” explains Galloway. “The world is going more mobile, particularly because of COVID-19. Working from home isn’t going to go away so being a cloud-based mobile platform provider has become more important than ever. The ability to connect mobily and through an automated fashion is vital.” Mahato adds that he believes in an agile and lean approach in order to drive success in the market. “We’re hopeful we can continue to help McDermott with project management and introducing greater technology such as AI and ML,” adds Mahato. “It’s crucial to be as proactive as possible instead of reactive.”
M C D E R M O T T I N T E R N AT I O N A L I N C
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from a normal office environment to
reassurance,” says Lowman. “We have
virtual working. Travel restrictions meant
fabrication operations where we have
that we haven’t been able to visit our
thousands of staff that work in close
customers face to face and as we’re a
proximity to one another and we need
global operation, travel was an essential
to be able to communicate and reassure
element to remain connected. COVID-
them, while ensuring they understand
19 has forced us to make the switch
the evolution post-COVID-19.” Despite
to online communications as well as
the unprecedented challenge of the
encouraged us to find innovative ways
coronavirus, McDermott managed to
of working together.” Lowman rec-
keep all sites fully operational glob-
ognised the importance of reassuring
ally. “From the beginning, our QMW
employees while undergoing significant
Fabrication operation on the Qingdao
disruption and change to everyday
coast, Shangdong province, Central
operations. “Our employees needed
China, was able to respond quickly and
E X E C U T I V E P R OF IL E :
Mark Lowman Title: Vice President of Operations Industry: Oil & Energy
Company: McDermott
Location: Texas, USA
Mark Lowman is an accomplished, highly resourceful Executive Management professional with a wealth of experience in managing multi-billion dollar construction projects in the Oil and Gas industry from inception to delivery. Prior to his career in the oil and gas industry, Mark had a successful naval career moving from the ranks to Lieutenant Commander. Mark has been with McDermott International Inc. for seven years in a variety of roles, including as the Director of Fabrication in Batam, Indonesia, Senior Director of Commercial Asia Pacific, and Vice President of Project Execution in both Asia Pacific and in Houston. Prior to McDermott, Mark held leadership positions at Technip Oceania Pty Ltd. Marks holds a Master of Business from Deakin University and has degrees in Nuclear Engineering, Naval Science and Operational Studies, from Britannia Royal Naval College and Royal Naval College Greenwich. Mark has a proven track record leading global operations, building business and setting up operations in new geographical areas and countries. He is a results-driven business leader who creates shared vision and leads from the front, to build, empower and motivate multi-cultural, cross-functional teams to achieve goals.
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M C D E R M O T T I N T E R N AT I O N A L I N C
O N E MCDERMO T T WAY
Customers rely on McDermott to deliver certainty to some of the most complex projects, from concept to commissioning. To help provide consistency and assurance of delivery, McDermott has established the “One McDermott Way” which means the same vision, values and processes are always observed.
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“This particularly helped when we combined with CB&I as we put a huge amount of effort in working as coming together as one team,” says Lowman. “McDermott has created an environment where employees are encouraged to engage and promote their ideas and we have a mantra to ‘take the lead.’”
Our Vision is One CLICK TO WATCH
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17 proactively by introducing control and
McDermott currently has a backlog
mitigation measures well in advance
of US$16bn worth of projects to execute
of Government restrictions,” explains
over the next few years. “This is a great
Lowman. “This has also been the case
position to be in, particularly at a time
for all our fabrication yards including
when market conditions are so uncer-
Dubai, Indonesia and Mexico, as well as
tain,” affirms Lowman. The projects
our project construction sites in the US
in question include BP Cassia – Cassia
and across the world.” McDermott took
C Greenfield and Gulf Coast Joint
the pandemic seriously from the outset
Ventures – MEG project. “In terms of BP
and quickly established global and local
Cassia, McDermott is undertaking the
area Crisis Management Teams. “We
procurement, construction and fabrica-
very quickly and efficiently developed
tion of a 7,250 MT topsides and a 3,400
procedures and processes to manage
MT four-legged jacket and piles. That
our response to the pandemic, but more
project is progressing well and our fabri-
importantly to keep our employees safe.”
cation yard in Mexico has remained open w w w.mc de rmo t t . com
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“WHEN I STARTED, DIGITALISATION WAS IN ITS INFANCY IN THE INDUSTRY” Mark Lowman, Vice President of Operations, McDermott
you can’t do it as a one- man band. You need a series of experienced, industry professionals whom you can trust to build the team and empower them to align to the project goals.” McDermott places considerable value on sustainability and has established several CSR initiatives. McDermott holds an Annual Batam International Golf Tournament which has been able to raise over US$1mn to fund the build-
during the pandemic and has responded
ing of orphanages in Batam Island in
with remarkable productivity,” explains
Indonesia, providing health kits to chil-
Lowman. “With the MEG project, we’re
dren, digging wells for a nearby island
fabricating large modules in two of our
and offering a range of other events.
global fabrication yards. The first mod-
“We have a series of sustainability goals
ules were delivered in early April and they
that we’ve been developing over time,”
are now in Texas where the construction
explains Lowman. “We like to engage
site is putting together and creating the
with the communities to ensure we
plant.” Despite the seismic shift in the
provide the support that is needed and
scale of projects, Lowman believes the
make sure that McDermott as a busi-
core foundations remain the same. “The
ness is conscious of the worldwide effort
key is understanding the customer’s
to reduce carbon footprint.” Those goals
drivers,” explains Lowman. “This will help
that Lowman mentioned centre around
execute the project successfully and
developing sustainable solutions that
provide a level of assurance to the cus-
support energy transition, contribut-
tomer. As a project director, I would want
ing to sustainable growth, reducing
to build a project management team with
operational environmental footprint and
a high-level of experience. With some of
promoting workplace and community
these larger multi-billion dollar projects,
wellbeing. Having previously focused on w w w.mc de rmo t t . com
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M C D E R M O T T I N T E R N AT I O N A L I N C
developing natural gas power technology that produces low cost electricity while providing zero carbon emissions with NET Power, Lowman says that McDermott remains well placed to keep sustainability at the fore. “Everyone understands that climate change is an area that needs to be considered in planning,” he says. “Clean Fuels and NET Power have generated interests and we’re still providing customers with the opportunity to become engaged.” Lowman recognises the importance 20
of partnerships and believes developing key, strategic business relationships are vital to success in the oil and gas industry. “Due to the sheer size of some of the projects, it means that you have to share the risk and one partner may have a higher level of expertise in a particular area
“DIGITAL DISRUPTION IS VERY LIKELY TO UPEND THE WAY WE OPERATE”
than another,” he explains. “However,
Mark Lowman, Vice President of Operations, McDermott
as particularly important. “We’ve been
by working together, this allows for more confidence in delivery and we rely on partners and vendors across the globe.” Lowman points to McDermott’s relationship with Baker Hughes and ABB working together on Subsea production solutions in conjunction with Subsea
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umbilical rises and flow lines (SURF)
Onshore and Offshore business and
and by collaborating we’ve been able
is extremely supportive. They’re also
to offer solutions to the market that can
involved in some of our management
deliver savings to the customer that are
discussions with customers in terms of
potentially in the millions,” says Lowman.
providing the best lower cost solutions
“ABB is a great supporting company
that the customer is always looking for.
that provides technical solutions to help
The relationship is really built on aligned
us position ourselves to win work. ABB
goals and the ability to communicate
offers switchboard equipment for our
and work together effectively.” w w w.mc de rmo t t . com
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“I BELIEVE WE WILL EVOLVE AND BECOME A DIFFERENT KIND OF COMPANY, BUT WE WILL ALWAYS BE HERE TO DELIVER PROJECTS TO OUR CUSTOMERS” Mark Lowman, Vice President of Operations, McDermott 23 Having been around for almost 100
the forefront of technology and the
years, McDermott has significantly
ability to continue to offer project
evolved over the years. Following the
concepts to final delivery to our
merger of McDermott and CB&I in
customers both upstream and down-
2018, the organisation has matured
stream from Petrochemical and LNG
into a company that has a presence
plants, Storage Tanks and Offshore
both Onshore and Offshore. “Despite
and Subsea. I believe we will evolve
the challenges, we’ve adjusted and
and become a different kind of com-
grown,” affirms Lowman. “We con-
pany, but we will always be here to
tinue to be a company that prides
deliver projects to our customers.”
itself on technology-led solutions and we have secured a partnership with Lummus Technology for the longer term. This relationship will enable McDermott to remain at w w w.mc de rmo t t . com
757 N. ELDRIDGE PKWY HOUSTON TX 7 7079 USA T +1 281 870 5000 www.mcdermott.com
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