Investor Trip November 2008 - Petrofac€¦ · Pisys, Aberdeen-based software company – Provide...
Transcript of Investor Trip November 2008 - Petrofac€¦ · Pisys, Aberdeen-based software company – Provide...
Investor TripNovember 2008
Day 1 Operations Services
Day 1 – Tuesday, 25 November 2008Welcome
Keith Roberts, chief financial officer
Agenda – Tuesday, 25 November 2008
1300 Arrivals at Dubai Petroleum (lunch)
1350 Welcome Keith Roberts
1400 Tour of training facility Joe O’Kane
1445 Update on Petrofac Training Joe O’Kane
1515 Overall PFM introduction Gordon EastUpdate on developments at Dubai Petroleum Peter Leach
1600 Coffee Break
Agenda – Tuesday, 25 November 2008
1615 Facilities Management introduction/update Robin Watson
1630 Brownfield update Bill Bayliss
1645 Caltec/Eclipse – Production Enhancement Gordon East
1715 Questions and answers All
1745 Recap of Day 1, outline of Day 2 & Close Keith Roberts
1800 Depart Dubai Petroleum
Day 1 participants - Petrofac
Keith Roberts Chief financial officer
Joe O’Kane Regional manager Petrofac TrainingRussia, Central and Southern Asia
Gordon East Managing director Petrofac Facilities Management
Peter Leach Operations manager Dubai Petroleum
Robin Watson Director, operations management Petrofac Facilities Management
Bill Bayliss VP, Brownfield Petrofac Facilities Management
Day 1 participants - analysts
Mark Breslin McCall Aitken McKenzie
Alex Brooks UBS
Alejandro Demichelis Merrill Lynch
Andrew Dobbing JP Morgan Cazenove
Emmanuel Gautrot Adia
Malcolm Graham Wood HansonWesthouse
Peter Hitchens Kaupthing
Craig Howie Blue Oar
Peter Hutton NCB
Catherine Leveau Natixis Securities
Iain Macarthur Arbuthnot
Christyan Malek Deutsche Bank
Keith Morris Evolution Securities
Iqbal Nasim Nomura
Jan Pstrokonski Simmons & Company
Martijn Rats Morgan Stanley
Colin Smith Dresdner Kleinwort
Ben Snow Arden Partners
Katherine Tonks Credit Suisse
Andrew Whittock Oriel Securities
Location of fire exits & muster point
Tour of training facility
Joe O’Kane – Regional manager, Russia, Central and Southern Asia, Petrofac Training
Karim Osseiran – corporate projects manager, Petrofac Training
Update on Petrofac Training
Joe O’Kane – Regional manager, Russia, Central and Southern Asia
Petrofac Training
Petrofac Training
A leading provider of training and consultancy solutions to the international oil & gas industry
Reputation stems from close to 30 years of experience in providing leading and innovative training solutions to meet industry needs
Extensive portfolio covering safety, emergency response & crisismanagement, operations, technical training, and consultancy
Five operating regions
Four hundred highly experienced and competent personnel
More than 40,000 delegates trained annually
Training centres – 2008 developments update
UK, Scotland – Altens, Aberdeen; Montrose; Marine, Aberdeen and Dundee; Emergency Response Service Centre (ERSC), Aberdeen
Azerbaijan – Baku Safety Training Facility, Baku; Caspian Technical Training Centre (CTTC), Sangachal Terminal
UAE - Dubai Petroleum Training Centre (DPTC)
Singapore, Jurong Island – Chemical Process Technology Centre (CPTC)
Sakhalin Island – Sakhalin Technical Training Centre (STTC)
Malaysia, Kuala Lumpur – Major Emergency Management (MEM) Suite
Americas – Houston Training Centre, Houston; Trinidad Training Centre, MSTC, Lafayette; Shell Robert, Louisiana
Baku Training Centre
Baku Training Centre
New safety training facility launched in 2008
Opened in response to increased demand for safety training services
Extensive facilities include:
– Mobile confined space training unit– Internal facilities for LOLER training– CBT suite– Rigging frame– Forklift– Scaffolding tower– Abrasive wheels facility– Twenty five-ton crane for Banksman training– Major emergency management simulator– Six classrooms
Dubai Petroleum Training Centre
Dubai Petroleum Training Centre
Located at Dubai Petroleum site in Dubai
Managed and operated by Petrofac Training under a five-year Training Management Agreement (TMA) with the Government of Dubai
Offers comprehensive safety and technical training
– Practical training area of approximately 1,500 square metres– Mobile helicopter underwater escape training unit– Mobile confined space training unit– Rigging & lifting frame– Scaffolding area– Four fully equipped classrooms
Chemical Process Technology Centre
Chemical Process Technology Centre
Located on Jurong Island, Singapore
Managed and operated by Petrofac Training under a five-year Training Management Agreement with the Singapore Economic Development Board
Extensive facilities include – Live hydrocarbon processing plant– Specialist equipment laboratories– Classrooms, CBT suite, 200-seat auditorium
Training available at the centre includes– Operations and technical– Health & safety– Critical incident management– Competence assurance management
Workforce Development Agency
Sakhalin Technical Training Centre
Sakhalin Technical Training Centre
Located on Sakhalin Island, Russia
Expanded centre launched in June 2008 to meet an increased demand for competent workforces in Sakhalin
Operated by Petrofac Training’s technical training business, PKT
Can deliver health & safety, emergency response training, fire training and technical training
Customers include Exxon Neftegas Limited (ENL) and Sakhalin Energy Investment Company Limited (SEIC)
Training is delivered to standards of competence required by Russian Federation of Mandatory and Vocational Training
Houston Training Centre
Houston Training Centre
Located in Houston, Texas
Launched in May 2008, facility is equipped to meet emergency response and health & safety training needs
Contains state-of-the-art Major Emergency Management simulator
Training available includes:
– Health & safety– Critical Incident Management Training (CIMT)– Management development training– “Soft skills”
Major Emergency Management Simulator
Major Emergency Management Simulator
Fourth Major Emergency Management Simulator in the UK opened
Located at Altens Training Centre in Aberdeen
Built in response to increased demand for Major Emergency Management courses and assessments for offshore installation managers (OIMs) and control room operators (CROs)
Modern facility using industry leading digital recording technology to assist with delegate feedback, and record evidence of competence
Will be accredited to provide formal assessment of OIMs and CROs to OPITO standards
Emergency Response Service Centre (ERSC)
Emergency Response Service Centre (ERSC)
Pioneering centre provides a complete emergency response solution for a number of operators in the UKCS
Currently provide service to over 20 operators in the UKCS
Six new customers have been added during 2008
Twelve members of staff offer 24 hour 365 day readiness
Responded to 125 incidents during 2008
Full response team called out on six occasions in 2008
Key Contracts and Alliances
Harweel
Training Management Solutions
BP Operating Essentials and Assessors
Global Alliances
Harweel
Appointed to design and deliver a competence-led technical training solution, build on Petrofac Engineering and Construction relationship with PDO
Training programme was developed to take account of specific site requirements
Petrofac Training facilities in the UK and the CPTC were utilised as part of the training programme
Groups of graduates and experienced delegates completed tailoredprogrammes
Delegates achieved levels of operational competency for early stages of commissioning through into operations
Training Management Solutions (TMS)
One-year contract extension to provide a key European exploration and production company with an outsourced training management solution
– Service covers training management in the UK, Norway and The Netherlands– The initial contract has led to a nine-year relationship following three
contract extensions
New contract to extend existing customer’s TMS to their operations in Ireland
Several extensions and new contracts with operators and servicescompanies in the UKCS
BP Operating Essentials and Assessors
Petrofac Training awarded contract to provide technical work stream for BP Operation Essentials (OE) programme
Global delivery of training at BP sites
Training will take place over an extended period of time
Awarded contract for worldwide provision of BP global assessors
Global Alliances
Atlas Interactive, Aberdeen based e-learning company
– Enables Petrofac Training to deliver generic and customised e-learning courses worldwide
– Provides a highly compelling learning proposition for current and future customers
Pisys, Aberdeen-based software company
– Provide multi-purpose training simulators that are in use world-wide– Enables Petrofac Training to improve Major Emergency Management training
globally
Business Lab
– Agreement to use their Corporate Learning Signature product– Provides a mechanism that interactively gathers and visually displays
companies key learning capacity strengths and barriers
Overall PFM introduction and update on
developments at Dubai Petroleum
Gordon East, managing director
Peter Leach, operations manager
Location
Field location map
Dubai Petroleum timeline
Discovery and developmentDiscovery – 1966First Oil - 1970 (Fateh Field)Production Sharing Contract with Dubai Government– Conoco Operator – Partners - Wintershall, Repsol, Total, RWE
Peak production rates – late 80sProjected field life 2018-2035+
Transition timeline2005 – Petrofac due diligence2006 – Dubai Petroleum Establishment DPE created by Royal
Decree– Field Management Agreement (FMA) signed between DPE
and PetrofacOctober 2006 - transition starts2 April 2007 - field operational handover
Asset Overview
Fateh
SW Fateh NUI
Falah
Asset scale
Fifty miles offshore Dubai120 – 190-feet water depth
AssetsEighty-five jackets407 wells Fifty-two gas turbines– one Bcf/d gas compression
500 miles pipelinesThree Khazzan storage tanksOne floating storage tankerThree jack-up drilling rigs One mobile work platform Personnel – 600 on boardLogistics– 13-vessel marine fleet, four helicoptersAverage asset age > 25 years up to 38 years
Storage and Offloading
Khazzan
Al Wasel FSO
In-field storage and export
Three Khazzans
One floating storage unit “Al Wasel“
– Major refurbishment during 2007 transition– Technically challenging dry dock refit
– Petrofac Brownfield Project
Dubai Petroleum transition highlights
2 April 2007 – a successful transition
– No accidents/incidents– Production levels maintained – Integrity and operational continuity preserved
Key 2007 focus areas
– Safety – Preservation of strong culture
– Production– Maintenance – Production enhancement “arresting the base decline”
– Integrity– Laying the foundations for 2008
2007 – nine months of consolidation
Safety
– No major incidents or accidents, overall safety performance improved
Production
– 2007 production target delivered for 2007– Material reduction in base well decline achieved
Commercial
– First phase of incentivised performance delivered against 12 key performance indicators– Focused on production, cost and safety
2007 – nine months of consolidation (cont)
Major Innovations
– Gas turbine overhauls and upgrades
– Development drilling programme established– Two jack-up drilling rigs active – eight wells drilled– Third high-performance rig contracted – Hydraulic workover unit drilling
– Fast-track Rashid Asmari gas project– Delivered five months from start to first gas
– Al Wasel FSU refurbishment and reinstallation
– Marine fleet upgrades– Modernisation of marine fleet
Development drilling units 2007
Noble Mark Burns
Noble Roy Rhodes
Hydraulic Workover Unit
2008 – a year of transformation and acceleration
Safety
– Helicopter incident in September 2008
Operations
– Significant reorganisation, focused on – Adapting to client drivers and requirements– Turbo machinery – specialist group (Plant Asset Management
International)– Production efficiency and integrity
– Increased non-rig well intervention – three to eight units
Development drilling programme
– Three jack-up drilling rigs – 20-plus wells drilled and worked over– Hydraulic workover unit – two wells – Mobile well intervention platform
2008 – a year of transformation and acceleration
Integrity
– Development of integrity management system – Baseline data acquisition – pipelines, jackets, vessels
Projects
– SWF Asmari Gas project - two wells drilled and facilities installed – Falah B platform upgrades/new Fateh in-field water injection pipelines
Commercial
– KPI drivers reduced to five and simplified and realigned to transformation phase
Innovations
Operations– Gas turbine upgrades and efficiencies– Production performance management focus
– Loss management and optimisation
Drilling/wells– Rotary steerable assemblies – New mud systems/slot recovery on old platforms– ESP installations
Integrity– Risk base inspection – Pipeline intelligent pigging programme
Project– Offshore gas management opportunities
2008 field development
Maersk Resilient
Kawawa Work Platform
2009 - the way ahead
Asset drivers
– Economic climate– Integrity maintenance – Organisation and contract evolution
Asset opportunities
– Debottlenecking technologies– Near-field exploration– Organisational development – Cost focus
Future development options
– Conventional reserves– Enhanced oil recovery – CO2 injection
Coffee Break
Facilities management update
Robin Watson, director, operations management
Some 17 Assets are under Petrofac care
Interoil PNG Refinery
Northern ProducerGalley Field
Montrose & Arbroath
Kittiwake
Heather & Thistle
Dubai Petroleum
1997 2003 2005 2007
Bacton & Hewett
2008
Chergui
Northern Producer
Banff
Facilities Management
Eleven years as Duty Holder in the UKCS
Nine current operational safety cases, plus one Control of MajorAccident Hazards (COMAH)
OPITO-accredited competency programme
Sixteen major transitions since 1997
Seventeen assets under Petrofac management
More than 150 trainees and 20 graduate engineers
Fully accredited graduate engineer training programme (IMechE)
Contract and supply chain management of more than 600 contracts
Investment in process and systems throughout 2008
Continued differentiation through 2008
2008 successes – Northern Producer
Northern Producer (NP): history
– Northern Producer is a converted semi-submersible drilling rig, built in 1974
– Petrofac was Duty Holder and facilities manager for the vessel from 1997 to 2007 on the Galley field
– Galley cessation of production and decommissioning programme managed by Petrofac
Northern Producer: Don assets
– March 2008; Northern Producer contracted as the Don field floating production facility
– Petrofac awarded contract to manage the life extension programmewithin yard
– Recruitment of crew (60%-plus of Galley crew returned to NP)– Management systems implementation
2008 successes – Northern Producer - before
2008 successes – Northern Producer - after
Before
After
Petrofac, through Energy Developments, operates and has a 45% interest in the Chergui Concession; ETAP, the national petroleum company holds the balance
Located approximately 200km south of Tunis, Tunisia; the centralprocessing facility and current wells are located onshore on Kerkennah Islands
2008 successes – Chergui gas plant
Chergui parameters
– Discovered by BG in 1992– First commercial gas August 2008 (reserves of 70
BCF)– US$110mm total project investment – Initial Rate of 17.5 to 20mmscf/d – Ongoing equipment commissioning
2008 successes – The Chergui gas plant
Operations Management engaged in the pre-operational, commissioning and ongoing management of the operation
– Pre-operational activities– Pre-operations plan– Resource histogram– Budget
– Operations Management – RACI definition (responsible, accountable, consulted, informed)– Resource allocation – Systems support
2008 successes – Chergui gas plant
Extension of Kittiwake Facilities Management Agreement (FMA) forfurther two years
Delivery of Northern Producer to site
Delivery of fully commissioned, fully staffed Chergui gas plant
Continued differentiation of our service offering in the market
Systems consolidation
– Cross-asset implementation of the Asset Integrity Management System (AIMS)– Investment in and implementation of the Petrofac Operations Management
System (POMS)
2008 successes – Operations Management
Petrofac Brownfield update
Bill Bayliss, VP Brownfield
What we focus on
Construction/Commissioning/ De-commissioning
Major Modifications Repair Orders/ Minor Modifications
Removal ofExisting Plant
FEED/Detail Design
Shutdown Management/Co-ordination
Conceptual
Project Management
Continued growth focus for 2009
AlgeriaOman
BiokoIsland
Aberdeen Stavanger
Woking
EgyptTunisia
QatarAbu Dhabi
Norway
Dubai
Romania
Gabon
HSEQ/new technology
HSEQ
Three years without an LTI for over 6.5 million exposed man hoursQuality improvement plan – key items for implementation in progress
New Technology
Datawright/Mpower integration project –commenced roll-out on Lundin contractWIPDMS – Phase 1 of system configuration complete – roll-out to commence end of October 2008 on Venture; 5% reduction in norms by January 2009
PB HSE Performance
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General
General
Opened Abu Dhabi office August 2008
Opened Norway office June 2008
Supported by Chennai office
400 people onshore, 200 people offshore
Negotiations (ongoing)
Venture contract - expires end 2008
Lundin contract - expires end Q1 2009
Oxy Jarn Yaphour
Sales and marketing
Recent awards
ADCO NEB consultancy
Marathon Power Generation project
Oxy Jarn Yaphour contract extended by one year to align with new MOU signed by ADNOC
Marathon EG LNG – four new studies
CNR shutdown activities
ADCO Plant
Marathon PowerGeneration Project3D Drawing
Petrofac Shutdown Teamon Murchison, CNR
Marathon EG LNG
Sales and marketing
Key tenders (submitted/in progress)
ADMA OPCO ZCSC – de-mothballing
ZADCO GTP
ZADCO – water injection
Statoil Hydro – various studies
Zakum Field
ZADCO GTP
StatoilHydroKvitebjørn FieldNorway
Caltec/Eclipse
Production Enhancement
Gordon East, managing director
Eclipse
Acquisition of Eclipse, specialist production engineering company
Life-of-field services including:
– Field development– Production modelling and optimisation – Well life cycle risk management– Petroleum engineering functional consulting
Eclipse
Acquired for initial consideration of £7 million
Fifty employees
Five offices worldwide: Aberdeen, London, Stavanger, Houston, Dubai
Customers include
– BG Group– BHP Billiton– Nexen– Shell– Petro-Canada
Caltec
Acquisition of production technology specialist, Caltec
Products aimed at enhancement of production from mature fields
Wellcom system, boosting production flowrates by lowering wellhead pressures
I-SEP system which allows the partial separation of gas, oil, water and solids
I-SEP compact separation technologies
Production boosting using jet pump
technology
Caltec
Acquired for initial consideration of £15 million
Eighteen employees
Based in Cranfield, UK and office in Aberdeen
Innovation production solutions throughout Europe, GoM, North America, FSU, Middle East, South East Asia and Africa
Customers
Caltec has developed relationships with blue chip customers
– BP – mainly North Sea, exclusive review of all potential North Sea field applications
– Shell – Nigeria, seen by Shell as their ‘standard world class facilities of the future’, 70 identified opportunities. Pilot plant procured
– Statoil – trials underway for new line in oil/water separation, potential to retrofit Gullfaks operation at 200MBD second phase development
Capabilities
Production engineering
Well construction and engineering
Reservoir management
Operations
Asset integrity, management and performance
Field development
Technologies directly associated with production improvement
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Further evolution….
Integrated production offerings
Production performance improvement
Leading-edge drilling and well engineering
Reservoir management and field development
Asset integrity management and performance
Commercial innovation
Focused technology development
Questions and answers
Recap of Day 1,
Outline of Day 2 & Close