PowerLogistics Asia 2013

31 Oct 2013 1

Project Forwarding in Oil

and Gas

Dan Chua

PowerLogistics Asia 2013

PowerLogistics Asia 2013

31 Oct 2013 2

Agenda

• Introduction

• Type of Oil and Gas Projects

• Roles of Freight Forwarder in Oil and Gas Projects

• Opportunities and Risks in Project Forwarding

PowerLogistics Asia 2013

31 Oct 2013 3

Panalpina at a glance

• 500 own offices in 80 countries

• Around 15,000 employees

• CHF 6,617 million net forwarding revenue

• CHF 1,465 million gross profit

• CHF 36 million EBITDA

• Forwarding volumes:

801,000 tons in Air Freight

1,388,000 TEU in Ocean Freight

• More than 1.2 million square meters

warehousing space under management

Peter Ulber, CEO

PowerLogistics Asia 2013

31 Oct 2013 4

What is Project Forwarding?

“It is a very specialized area of shipping that goes beyond standard

freight forwarding, often involving the transportation of heavier or

complicated nature of goods”

PowerLogistics Asia 2013

31 Oct 2013 5

Oil and Gas Processes

PowerLogistics Asia 2013

31 Oct 2013 6

Type of Oil and Gas Projects

Rig Moves

Drilling Project

Mobilization and

Demobilization for offshore engineering

work

Offshore infrastructure construction

Pipeline Laying

PowerLogistics Asia 2013

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PowerLogistics Asia 2013

31 Oct 2013 8

What are the roles of Project Forwarder in the Oil and Gas Sector?

• Investor - Pre-contract investigation to explore the best way of

transportation and working within the financial consideration of

interest

• Civil Engineer - Involve infrastructure changes to site to enable

delivery

• Customs specialist - Ensure movement of equipment are compliance

with local customs

• Maestro – Putting together resources within and outside the network

to support the project delivery through procedure and execution plan

in compliance with company policies and contractual requirement

• Safety officer – Ensure shipping regulation and safety procedure are

in place especially for heavy lift movement

PowerLogistics Asia 2013

31 Oct 2013 9

Risks of Project Forwarding

• Technical Risk

• Adequate resources - overexertion and fatigue are two major causes of accidents

• Properly trained staffs – correct operation of machineries, proper lifting

techniques.

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31 Oct 2013 10

Risks of Project Forwarding

• Technical Risk

• Proper risk assessment techniques and Carrier/Subcontractor Management

• Proper procedures and policies dealing with specialized domain like Maritime Law.

PowerLogistics Asia 2013

31 Oct 2013 11

Risks of Project Forwarding

• Financial Risk

• Availability investment funding

• Foreign exchange and Tax systems differences

• Credit risk

• Weather and Natural Calamities

• Floods, Earthquakes,

• Hurricanes, Typhoon,

• Snow storms & River Freeze

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Risks of Project Forwarding

• Political Risk

• Civil unrest

• Sovereignty

• War

PowerLogistics Asia 2013

31 Oct 2013 13

Health and Safety

PowerLogistics Asia 2013

31 Oct 2013 14

Opportunities – Global Oil Reserves

> 100 bn boe

> 50 bn boe

> 40 bn boe

> 25 bn boe

PowerLogistics Asia 2013

31 Oct 2013 15

Opportunities – Rigs Count Worldwide

PowerLogistics Asia 2013

31 Oct 2013 16

Opportunities - Explorations & Production Drilling Installations

PowerLogistics Asia 2013

31 Oct 2013 17

Footage from CNA: Our Oil and Gas Facility in Singapore