40% cost reduction on API-certified subsea valve bodies while maintaining quality and cutting delivery time by 30%
A major Perth-based offshore oil and gas operator needed 50 subsea valve bodies manufactured in Duplex 2205 stainless steel for a scheduled platform maintenance shutdown. Local Australian quotes exceeded budget at $18,500 per unit with 14-week lead times that risked project delays. By partnering with Fedele Autocore's AS9100D certified facility in India, the operator achieved 40% cost savings ($112,000 total), received components in 10 weeks, and maintained 100% API compliance with zero quality issues.
The client is a mid-sized oil and gas operator managing three offshore platforms in Western Australian waters, approximately 120km northwest of Perth. With operations focused on natural gas extraction and processing, they maintain strict safety and quality standards across all equipment and components.
Their maintenance philosophy prioritizes scheduled shutdowns over reactive repairs, requiring reliable suppliers who can deliver critical components on predictable timelines. As cost pressures in the oil and gas sector intensified in recent years, the procurement team was tasked with finding ways to reduce maintenance costs without compromising safety or quality.
During routine inspection planning for their June 2024 platform shutdown, engineers identified that 50 subsea valve bodies required replacement due to corrosion from prolonged exposure to seawater. These weren't standard off-the-shelf components—they needed custom dimensions to fit existing valve assemblies, with specifications that included:
The procurement team faced several critical constraints:
Budget Pressure
Australian manufacturers quoted $18,500 per valve body ($925,000 total for 50 units). This exceeded the maintenance budget allocation by nearly $200,000, threatening to delay other critical work.
Time Constraints
The platform shutdown was scheduled for mid-June with a 3-week weather window. Components needed to arrive by early June for pre-installation inspection and logistics coordination. The 14-week lead time from Australian suppliers put the entire shutdown timeline at risk.
Quality & Compliance
As subsea components operating at high pressure, any quality compromise could result in catastrophic failure, environmental damage, and production loss costing tens of thousands per day. API 6A certification wasn't optional—it was mandatory.
The procurement manager, who had previously only worked with Australian suppliers for critical components, was understandably hesitant about offshore manufacturing. "We'd heard stories about quality issues and documentation problems with overseas suppliers," he later told us. "But the numbers didn't work with Australian quotes, and we were running out of time."
After an initial consultation call in early March, we moved quickly to establish confidence and demonstrate our capabilities:
Documentation Review: We immediately provided our AS9100D certificate from SAI Global (most recent surveillance audit February 2024), API 6A certification, and mill approvals for Duplex 2205 from three European mills we regularly work with.
Technical Analysis: Our engineering team reviewed the client's drawings and identified two potential cost-saving modifications that wouldn't affect performance: a slightly different internal corner radius that reduced machining time by 15%, and an alternative surface treatment sequence that improved corrosion resistance while lowering costs.
Reference Calls: We connected the client with two other Australian oil and gas operators we'd supplied, including one who'd been using our subsea components for 18 months without issues.
Detailed Quote: We provided a comprehensive quote at $11,100 per valve body ($555,000 total), including all testing, documentation, and shipping to Perth. Importantly, we showed the complete cost breakdown so there were no surprises.
Sample Production: To prove our capabilities, we offered to manufacture one sample valve body at cost. The client accepted, and we delivered the sample to Perth within two weeks with complete documentation.
Third-Party Inspection: The client engaged a Perth-based inspection service to verify the sample against drawings. Result: 100% dimensional compliance with surface finish actually exceeding specification (Ra 1.2μm vs required 1.6μm).
With the sample approved and confidence established, the client issued a purchase order for 50 valve bodies in late March with delivery required by early June.
Material Procurement: We sourced Duplex 2205 bar stock from Outokumpu (Finnish mill) with complete mill test certificates. All material heat numbers were recorded and linked to specific valve bodies for full traceability.
Manufacturing: Components were machined on our 5-axis CNC centers in a climate-controlled environment (20°C ±1°C) to maintain dimensional stability. Each valve body required approximately 8 hours of machining time.
Heat Treatment: Post-machining stress relief at 1050°C followed by controlled cooling to ensure proper microstructure and corrosion resistance.
Pressure Testing: Each valve body underwent hydrostatic pressure testing to 6000 PSI (twice working pressure) for 30 minutes. All tests were witnessed and documented with date/time stamped photographs.
Final Inspection: Our quality team performed 100% dimensional inspection using CMM (Coordinate Measuring Machine) in our temperature-controlled inspection room. Every critical dimension was verified and recorded.
A key feature that gave the client confidence: we set up weekly video inspection calls where their engineers could watch components being measured in real-time and ask questions directly to our quality team. This transparency was crucial for building trust.
"Being able to see our components being inspected in real-time, 6000km away, was incredible. It gave us confidence we weren't getting in our own facility." - Client Engineering Manager
Packaging: Each valve body was individually wrapped in VCI (Vapor Corrosion Inhibitor) paper and placed in custom foam-lined crates to prevent damage during transport.
Documentation Package: Complete material certificates, dimensional inspection reports, pressure test results, and API 6A certificates were prepared in both digital and physical formats.
Shipping: Air freight from Mumbai to Perth with door-to-door logistics coordination. Total transit time: 6 days including customs clearance.
Customs: Zero import duty under ECTA (Australia-India trade agreement), saving an additional $27,750 compared to pre-2022 rates.
The valve bodies arrived in Perth on June 2nd, 2024—exactly on schedule and well ahead of the mid-June platform shutdown. The client's receiving inspection team verified all components against the documentation we'd provided.
During the June platform shutdown, all 50 valve bodies were installed without modification. The maintenance crew reported that tolerances were "tighter than they'd seen from previous suppliers," which actually made assembly easier and improved seal integrity.
As of January 2025, seven months post-installation, all valves are performing flawlessly with no leaks, pressure issues, or signs of corrosion. The operator's maintenance team conducts monthly inspections, and their reports consistently note the components are "performing as specified with no concerns."
"I'll be honest—I was skeptical about going offshore for critical subsea components. But Fedele Autocore exceeded our expectations at every step. The engineering support during design review caught issues our own team had missed. The remote video inspections gave us real-time visibility we've never had with any supplier. And the final components? They're actually higher quality than what we've received from our previous Australian supplier at 40% lower cost."
"The real test was installation and operation. Every single valve body fit perfectly, sealed on the first attempt, and they're still performing flawlessly seven months later. We've since placed two additional orders with Fedele and they're now our preferred supplier for offshore components."
Looking back at this project, several factors contributed to its success:
Our AS9100D and API 6A certifications from recognized bodies (SAI Global) weren't just documents—they represented real quality systems that we live by daily. The client verified our certificates directly with the certification body before committing.
Producing a sample valve body upfront, at our cost, demonstrated our capabilities and gave the client tangible proof before they committed to the full order. This de-risked their decision significantly.
Weekly video inspection calls eliminated the "black box" feeling of offshore manufacturing. The client could see components being made and inspected in real-time, building trust throughout the process.
We didn't just manufacture to the drawings—our engineers proactively suggested improvements that reduced costs while improving performance. This collaborative approach turned us from a vendor into a partner.
We understood what Australian oil and gas operators need: comprehensive material certificates, dimensional reports, test results, and traceability documentation in the format their auditors expect. No gaps, no questions.
The success of this initial project led to an ongoing relationship. Since June 2024, the client has placed two additional orders:
The client has also introduced us to two other Perth-based oil and gas operators, both of whom have since become customers. This referral business represents over $800,000 in additional revenue and demonstrates the power of delivering exceptional results.
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