Trainingportal Competence Days

Cost Reduction in Training and Competence Ivar Viktil, Managing Director

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Where do you see opportunities for oil and gas companies to reduce the cost associated with training through*:

• Re-evaluation of competency standards and training policies

• Re-evaluation of training needs and certification requirements

• Finding more efficient ways of achieving the desired learning outcomes

• Re-engineering existing training methods

• Adopting existing or establishing new industry standard approaches

• Leveraging supply chain to provide volume discounts

• Maximising the use of innovation and technology

• (Outsourcing all or part of the internal training departments)

*Mandated training (required by company standard, regulation or competency etc.) is still required to be undertaken in order to operate regardless of economic climate

Cost savings opportuneties

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HOW DOES IT WORK ?

Mintra Trainingportal has previously achieved cost savings for our clients through:

1) Migration of classroom courses to e-Learning courses

2) Migration of classroom courses to blended courses

3) Migration of courses to preferred delivery providers at discounted rates

4) Alternative ways to structure the courses logistically or otherwise

How relevant does the group believe these cost savings initiatives are?

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Case studies of Mintra’s ability to save customers’ costs

Avg. training of 180 pers./yr in Authorised Gas Testing

Prev. provided by Petrofac Training at GBP 200 per delegate on a 2-day course

Mintra re-engineered and reduced to a 1-day blended course utilising:

TrainingPortal, eLearning and practical delivery

Value proposition to Prosafe: save one day’s pay and one night accommodation per delegate

Profitable for Prosafe even with 25% higher price per delegate in course fees charged by Mintra

Mintra have in this case: Neutralised the competition

Charged more to Prosafe

Had lower delivery costs (due to technology)

Increased the gross margin

Added value to Prosafe’s business

Converted 60 classroom courses to eLearning

Added ~40 new courses in eLearning format to their 1,500 personnel on the UKCS

Baseline savings est. in excess of GBP 1 mill. each year

– Benefits: automation of scheduling and storage of compliance records

Mintra’s value proposition heavily based on cost efficiency and maintaining compliance

– Yearly fee of 33% of tangible savings realised by ConocoPhillips

7-yr contract signed in 2013

Numerous new products and services are being positioned within this strategic account

Source: Mintra

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NOK 7m = ~23%

31

24

Alt. 1 Alt. 2

Case studies of Mintra’s ability to save customers’ costs

Co-operation for safety (2003-04): Common standard for Work Permits (AT) and Safe Job Analysis (SJA)

Standardised: Work processes;

Forms; and

Training

Est. cost savings related to standardised training: NOK 50-100 mill. annually

2013-14: The course is updated based on input from various operators to ensure quality assurance

Case study 1: Standardisation of HSE training Case study 2: Reduction in course costs

Alternative 1 Alternative 2

3 classroom courses + 3 eLearning courses

Ann. costs: NOK ~31 mill

2 classroom courses + 4 eLearning courses

Ann. costs: NOK ~24 mill

Assumptions

Time per class room course: 10 hours (including travel)

Course fee for classroom courses: NOK 5,000

Time per eLearning course: 3 hours

Course fee per eLearning course: NOK 1,000

Hourly rate: NOK 900

Hotel: NOK 1,500 per night

Travel: NOK 3,000

500 employees

Source: Mintra