TechnipFMC How we have adjusted to fit a new landscape
Transcript of TechnipFMC How we have adjusted to fit a new landscape
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TechnipFMC – How we have adjusted to fit a new landscape
09.08.2017
Håkon Andresen
Sales & Business Development Manager | Subsea Projects Norway
This document and all information herein are confidential, and may not be used,
reproduced or distributed without prior authorization of TechnipFMC.
TechnipFMC – Changing the landscape of the Oil & Gas Industry
09.08.2017
Håkon Andresen
Sales & Business Development Manager | Subsea Projects Norway
Innovative subsea solutions | 3
Driving Sustainable improvement
A call for change
Now more than ever, the industry needs significant
and sustainable cost improvements in the way
hydrocarbons are produced and transformed.
We are driving this change by bringing together a
new generation of technologies and solutions to
deliver smarter designs and improved results.
We aren’t just imagining a better way to transform
our clients’ project economics, we are making it
happen.
4
Table of Content
1. TechnipFMC at a glance
2. The new industry challenge
3. Working differently with our Clients
4. Integration, Innovation & Simplification
5. Summary
CONFIDENTIAL
ONSHORE/OFFSHORE
SURFACE
Broadest portfolio of solutions for the production and transformation of oil and gas
Subsea
Subsea products
‣ Trees, manifolds, control, templates,
flowline systems, umbilicals & flexibles
‣ Subsea processing
‣ ROVs and manipulator systems
Subsea projects
‣ Field architecture, integrated design
‣ Engineering, procurement
Subsea services
‣ Drilling systems
SUBSEA
7
Significant global scale
CONFIDENTIAL
Source: Company Filings; EUR/USD average exchange rate of 1.1066 for the twelve months ended Dec 31, 2016
Largest oilfield service and equipment companies by 2016 revenue ($B)
Footnote: (1) Revenue for full year 2016; Source: Form 8-K filed with the SEC on Feb 24, 2017
(1)
27,8
15,9
13,812,9
11,09,8
7,35,8
8
TechnipFMC operates in 48 countries around the world
Houston, TXOperational
headquarters
LondonOperational
headquarters
ParisOperational
headquarters
Africa
Algeria
Angola
Cameroon
Congo
Egypt
Gabon
Ghana
Mozambique
Nigeria
Tunisia
Asia, Australasia
and Middle East
Azerbaijan
Australia
China
India
Indonesia
Iraq
Kazakhstan
Kuwait
Malaysia
New Caledonia
Oman
Pakistan
Qatar
Russian
Federation
Saudi Arabia
Singapore
Thailand
United Arab
Emirates
Vietnam
Europe
Bulgaria
Finland
France
Germany
Greece
Italy
Netherlands
Norway
Poland
Portugal
Spain
United Kingdom
North America
Canada
United States
South America
Argentina
Brazil
Colombia
Mexico
Venezuela
Unique worldwide footprint
Tackling the industry challenges…
“OLDER” “NEWER”
Deeper
Resource shortage
Unfriendly environment
Complex reservoir/
HT/HP
Cost inflation
Cost squeeze
Distressed supply chain
Lack of projects
Cash shortage
Inefficiencies
…through innovative solutions in many domains
New Business models
Seamless Integration
Standardization/ Modularization
New Technologies
Digital TransformationCustomer
Engagement
Driving value for clients
Accelerate and integrate
technology innovations
Unlock possibilities to
transform project economics
Develop better integrated
offerings across all operations
Capturing the iEPCI value
Early engagement and SURF + SPS integration is catchnig momentum!
Concept Pre-FEED FEED
SPS
SURF
First
oil
Concept Pre-FEED FEEDFirst
oil
Integrated
SPS and
SURF
Tender
Tender Tender / Negotiated
Traditional SPS
and SURF
approach
Integrated EPCI
approach
Competition Award
Accelerated
First Oil
Situation snapshot: Norway August 2017
2iEPCI™ project awarded
to TechnipFMC
3FEED design
competitions
2Pre-FEED design
competition
5Bids where the Operators
are expecting iEPCI™
offers
5SURF + SPS Integrated
studies
15Studies under preparation
in total
Challenge
- Remote
- Deep water
- Short installation season
Solution
- 8 well template in one lift using
monohull vessel
- Optimizing location of FPSO
gave redused pipe and umbilical
lengths
- Redused lenght opened up for
altarnative flexible pipes
- Savings on logistics and
spoolbase
Example – Early involvment of supplier in planning
- Early engagement -«Everything can be challenged»
- Integrated approach Customer/Supplier
• Flow assurance
• Field architecture
• Pipeline design
• Vessel capabilities
• Installation friendly equipment
From 3 to 1 installation seasons
Two scenarios • UWP with deviated drilling• Subsea solution with 3 well centers
Assumptions:• 4 well template • Infield URF cost included • OPEX not considred
Base case - UWP
Alternative case - subsea
Potential of early involvmentPrecise cost and delievry times may impact concept
~6
WHP
# wells
Faci
lity/
Sub
sea
and
dri
ll co
st
Subsea
Uncertainty in subsea estimates
8-102-4
Uncertainty in cost estimates may lead to sub-optimalt concept selection
18
A new Client relationship
Challenging existing truths
Trust based
Shared objectives
Unlocking new opportunities
Maintaining competition
New risk/upside sharing models
Better visibility – optimised planning
CONFIDENTIAL
Conventional 8-Well Development
Flowline loops
Numerous connections
Numerous interfaces / contractors
Numerous schedule constraints
Redesigning subsea through an integrated approach…
TODAY: PRODUCTS
to redefine subsea project economics
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Bullet
Bullet
Bullet
Redesigning subsea through an integrated approach…
Integration as a Cost Driver – SPS +
SURF Integrated subsea system
Improved flow assurance
Simplified field layout
Reduced equipment costs
Fewer interfaces
Reduced n° of flowlines and risers
Intelligent & active systems to increase
production
TOMORROW: SYSTEMS
Redesigning subsea through an integrated approach…
Integrated flexible pipe termination heads
Optimiszation of hardware
Integrated
termination head
Traditional
termination head
iEPCI Satellite System for Marginal Fields
Value Proposition
• Lower break-even cost on marginal subsea fields
• A single partner: drill the well and we assist with the rest
• Accelerated production through faster delivery
• Reduced risk through iEPCI™
• Reduced delivery time
• Easier installation
• Optimized design across SPS and SURF
• Delivered on the seabed
• Integrated technologies
System building blocks
• Conventional wellhead system
• 5” VXT 10k psi –configurable
• Electro-hydraulic subsea control module (SCM KS200e)• Structure for overtrawlability
• UCON H8 connector• Cobra head
• Flexible 6” Flowline (incl. weak link)
• Max Temperature 90 °C
• Umbilical – steel tubes (incl. weak link)
• UCON H8 connector• Cobra head
Benefits
• Optimized system solution for
efficient installation
• Streamlined execution by early
identification of critical interfaces
and LLIs
• One project team from HW
delivery to installation at seabed
• Optimized offshore logistics and
mobilization including tooling
• Scope moved from rig to vessel
installation
• Potential to de-couple rig and
vessel schedule
Integrated offshore campaign
OPTIONAL
NCS Case study iEPCI Satellite system reduces single well tie-back 36%* compared to traditional solution
*project dependent
0 %
20 %
40 %
60 %
80 %
100 %
120 %
Traditional Satellite Scope simplification Optimized installation Execution synergies iEPCI Satellite system
Other customer benefits;• Early engagement
• Mitigated and reduced contract
risks
• Reduced overall schedule
risk
• «Make Good» liability
during installation
• No SPS-SURF interface
risks (VO)
• Warranty starts at delivery
point at seabed
• Simplfied follow-up by customer
~36%
• XT installation and well opening from
vessel
• Pre-comm/comm (partially) from vessel
• Protection structure installed from vessel
• Minimum POB, one offshore team
• Pre-engineered “building blocks” = reduced FEED
• Less work with interfaces due to integrated SPS &
SURF
• Accelerated execution through iEPCI project
model
• Optimized subsea architecture
• Umbilical and Flowline design optimizations
• XT optimization and spec reduction
• Protection Structure, smaller footprint
Statoil, Head of Project
Development:
“By rethinking our concept
along with license partners
and suppliers, we have
arrived at a solution that
costs almost 50% less than
the original concept. At the
same time, we have been
able to increase the
recoverable resources
significantly”
Field discovered in 1986,
investment decision made
30 years later!
Trestakk iEPCI® Project for Statoil
Trestakk iEPCI® Summary
Project Summary
• Tie-back production to Åsgard A
• 5 wells; 1 template with 2 production and 2 gas injection wells and 1 satellite production well
• Control via a new umbilical from existing template
• Main marine season 2018
Main optimizations
• Routing of umbilicals, flowlines & use of direct tie-ins
• reduced lengths
• Structure design (template and satellite)
• Tailor made for installation vessel
• Flexible jumpers (instead of spools, with integrated heads)
• Optimized Marine Operations and simplified RFO
• Reduced Project Management and Client Teams
Summary Trestakk iFEED®
Cost improvements Q3 2015 to Q4 2016
Scope
optimization
iEPCI®
Benchmark
price before
optimization
iEPCI®
contract
value
Total cost improvement: 18% of iEPCI® price
at start of optimization study Q3 2015
Q3 15Q1 16-
Q3 16
Net scope
changes post
start iFEED®
Q4 16Q3 15 –
Q3 16
Q3 15 –
Q4 16
Net market
effects
100%
18%
2%5%
75%
Simplification
Tomorrow: Fully optimized solutions
Next Generation XT
Compact
Manifold
Next Generation Controls
Goal is to deliver dramatic reduction in
hardware and total installed costs
Key points – What do we do differently?
Getting closer to our clients
Unlock opportunities and lift the right project through to
execution
New contract models – Design competitions and target
price
Integration
Optimising field architecture and execution
Reduce interface cost and risk
Innovation
Use existing technology and products in new ways
Simplification
Smaller
Lighter
Fewer parts
One vision. One purpose.
Vision
To enhance the performance of the world’s energy industry
Purpose
Bringing together the scope, know-how and determination to transform our clients’ project economics