Australia Conference - Paris 2014 - Easy Skill

Easy Skill AustraliaAustralia Pacific LNG and

Wheatstone LNG

Christopher Lorho

Contents

2

1. My Experience in Australia2. The Australian LNG market3. Focus on Australia Pacific LNG

a. Upstreamb. Transmission pipelinec. Downstreamd. Location of AP LNGe. Focus on MOFf. Curtis Island / Gladstone activities

4. Wheatstone LNG5. The great potential of Australia6. The greatest challenge for Australia7. Info for non Australian engineers willing to migrate8. Info for Non Australian companies willing to enter9. Questions

Overall presentation

©2014 EASY SKILL | Engineering | Recruiting | Training

©2014 EASY SKILL | Engineering | Recruiting | Training3

From 2007 to now

1. My experience in Australia

Arts et MetiersEngineering Master’s Degree

Keller Australia7 yrs. of experience in civil/geotechnical/energy

Set up of Easy Skill, engineering and staffing company dedicated to the energy sector


LNG projects in Australia (M T/yr: million tonne of LNG per year)

WheatstoneProduction capacity: 8M T/yrPartners: Chevron, Apache, Shell…

GorgonProduction capacity: 15M T/yrPartners: Chevron, ExxonMobil, Shell

PlutoProduction capacity: 4.3M T/yrPartners: Woodside, Kansai Electric…

PreludeProduction capacity: 3.5M T/yrPartners: Shell

IchthysProduction capacity: 8.4M T/yrPartners: Inpex, Total

Darwin LNGProduction capacity: 3.7M T/yrPartners: ConocoPhilipps, Inpex…

Australia Pacific LNGProduction capacity: 9M T/yrPartners: ConocoPhilipps, Origin Energy

Queensland Curtis LNGProduction capacity: 8.5M T/yrPartners: BG Group, CNOOC

Gladstone LNGProduction capacity: 7.8M T/yrPartners: Santos, Petronas…

North West Shelf VentureProduction capacity: 16.3M T/yrPartners: Woodside, BHP Biliton…

Source : www.appea.com.au

BonaparteProduction capacity: 2M T/yrPartners: GDF Suez, Santos

2. The Australian LNG marketOperation phaseConstruction phaseDesign phase


Australia Pacific LNG – Key FiguresSize: Two processing trains, each with a nameplate production capacity of 4.5 mtpa

Project Partners: •Origin Energy 37.5% (Upstream and transmission pipeline)• ConocoPhillips 37.5% (Downstream, EPC: Bechtel)• Sinopec 25%

Cost / Employment: • AU$ 24.7 billion for 10,000 employments in Australia

Off-take agreements:• 7.6 mtpa LNG supply for 20 yrs to JV partner Sinopec• 1 mtpa LNG supply for 20 yrs to Kansai Electric

Timing:• First LNG export from Train 1 expected mid-2015• First LNG export from Train 2 expected late 2015

3. Focus on Australia Pacific LNG


Upstream works consist of furtherdevelopment of AP LNG’s gas fields in Suratand Bowen Bassins in south-west and centralQueensland

Phase 1: 5 years of gas plant and pipeline construction, drilling and completion of ~1000 wells

Phase 2: ~20yrs of ongoing drilling ~8000-9000 wells, well completion and gatheringnetworks. Maintenance and workovers for a 30 year economic life

6

3a. Upstream Works on Australia Pacific LNG


3b. Transmission Pipeline on Australia Pacific LNG

Construction of a 530km gas transmissionpipeline from the gas fields to an LNG facilityon Curtis Island off the Coast of Gladstone

380km for the mainline (High Presssure Gas Network)

150km for the laterals (HPGN) crossing the Bowen and the Surat bassins


Construction of an LNG facility onCurtis Island off the coast ofGladstone (9 mtpa capacity)

Material Offloading Facility

2 LNG trains

2 LNG tanks

Camp site (3000 people cap)

Tanker jetty

8

3c. Downstream works on Australia Pacific LNG


3d. Location of Australia Pacific LNG


3e. Focus on the Material Offloading Facility (MOF)


3e. Focus on the Material Offloading Facility (MOF)

Sheet pile wall installation using a 300 ton crane mounted on a barge

250m long Jetty installation using a 130 ton crane mounted on a barge


3f. Curtis Island / Gladstone activities

AP LNG

QC LNG

G LNG

Coal Storage

Coal loadingfacility


Wheatstone LNG – Key FiguresSize: Two processing trains, equivalent to 8.9 mtpa

Project Partners: • Chevron 73.6% (Operator)• Apache Corp 13%, KUFPEC 7%, Shell 6.4%

Offshore Installation: •Well infrastructure and subsea installations• Processing platform in 73m of water, 225 km from the

coastOnshore Installation:

• LNG plant (same as AP LNG)Local benefits:

• 6500 direct and indirect jobs, 3500 on the work site• Over 30 years, $20 billion in revenues will flow to

Australian businesses

4. Focus on Wheatstone LNG


5. The Great Potential of Australia

Capability to become the biggest gas producer in the world in 2020 (overtaking Qatar)

Liquefaction Capacity by Country (MTPA) and Utilization (%), 2012

Source: PFC Energy Global LNG Service

Liquefaction Capacity by Country (MTPA), 2012-2020 growth estimation

Source : Easy Skill Analysis


Coal seam gas reserves expected to be greaterthan offshore reserves

5 more LNG projects are currently planned1. Arrow LNG Plant (2 trains)2. Browse Floating LNG3. Fisherman’s Landing LNG Plant (1st train)4. Scarborough (Pilbara) LNG5. Bonaparte FLNG

Australian shale oil discovery estimated to begreater than Canada’s oilsands

Intensive offshore exploration campaigns in South Australia

15

5. The Great Potential of Australia

Upcoming Project Estimated Capacity by 2020 (MTPA)

Arrow LNG Plant (2 trains) 8

Australia Pacific LNG 9

Bonaparte LNG 2.4

Browse Floating LNG 3.6

Fisherman’s Landing LNG Plant (1st train) 1.9

Gladstone LNG 7.8

Gorgon 15

Ichthys 8.4

Prelude 3.5

Queensland Curtis LNG 8.5

Scarborough (Pilbara) LNG 6

Wheatstone 9

Total 83.1

Constructed and Planned LNG Projects with their Estimated Capacity by 2020

Source: World LNG Plants & Terminals as of March 2014, Global LNG Limited


Australian LNG is the most expensive in the world due to :

1. Highest paid labor force in the world2. Strong union impact on the Australian

economy market3. A tripartite organisation with clashing

interests: Australian Government Australian Unions Foreign and local investors (Total, Shell,

Chevron, Woodside, Santos, Sinopec…)

Australia has only a shipping advantage with SE Asia compared to other producing countries (Qatar)

16

6. The Greatest Challenge of Australia

Source: Hays Oil & Gas Global Salary Guide, Review of 2013, outlook for 2014.

To remain competitive and attractive for foreign investments to develop future Australian O&G projects


Non Australian Engineers

Skill shortage in engineering 7000 engineers produced by Australian Education (in 2013) 16-18000 engineers required each years (from 2007 till 2013) 50 – 50 between foreign and local engineers

Temporary and permanent working migration Being sponsored by a local company is the key to enter the

market (mostly young engineers – 4970 in 2012) Skilled migration for permanent residency (5322 in 2012,~10 yr

exp to apply, 8 month process)

Competency/experience and not University background

Australia recognises competency and experience rather than University background

17

7. Info for Non Australian engineers willing to migrate

Source : Engineers Australia, The Engineering Profession a Statistical Overview, Ninth Edition, July 2012


Non Australian companies

At least one Australian director in the Australian subsidiary

Australian Employment law is in favour of companies

12% charges per employee (73% in France)

Strong British and now US way of doing business

Networking is very important (shows, professional groups, GEP-AFTP, FACCI…)

Long term relationship is the key to succeed in Australia (NO one shot deal)

Local contents in quite strong but not restrictive (especially in the engineering world)

French engineers are recognised worldwide and in Australia too

18

8. Info for Non Australian companies willing to enter

www.easy-skill.com

19

Presented by Christopher Lorho

Christopher LorhoManaging Director – Australian Office

T France (+33) 4 81 92 60 70 | (+33) 6 98 85 01 30T Australie (+61) 4 50 335 345

M [email protected] W www.easy-skill.com

Pierre BussyManaging Director – French Office

T France (+33) 4 81 92 60 70 | (+33) 6 75 62 49 88

M [email protected] W www.easy-skill.com

Questions?

ProjectMechanical

Quality/HSE

E&I

Drilling

Process

Australia Conference - Paris 2014 - Easy Skill

Documents

Transcript of Australia Conference - Paris 2014 - Easy Skill