© 2017 Oceaneering International, Inc. All rights reserved.  ‐ Rev 3

Johan TønsbergManager,  Business Development, IntegrityQ4 2017

The future of EPC contracting

EPC today and to come

Themes:

1) EPC.  Contract and companiesContract structure, remuneration, companies (Client and Contractor)

2) «Think OPEX when designing CAPEX»

The future of EPC contracting

Themes:

1) EPC.  Contract and companiesContract structure, remuneration, companies (Client and Contractor)

2) «Think OPEX when designing CAPEX»

The future of EPC contracting

Contract type & structureEPC, .. E + PC, .. EPma + FC, .. EPCI, .. EPCI + H&C, .. EPCI + H&C + M&M, .. + De‐com, ..

Remuneration structureLump‐sum, .. Re‐imbursable, .. Schedule of rates, .. Bill of material, .. Milestone payments/bonuses, ..Payment based on asset uptime (ops perf), .. and/or o&g production, .. and/or o&g profit (alliance), ..   

Company structures, and consolidationsOperator (client).  Example: «Aker BP» (BP Norway + Det Norske + Aker, 30%), .. a «vertical alliance»  Operator (client).  «Energy provider» rather than «E&P Operator»EPC contractor (customer).  Opportunities for diversification (horizontal) – via alliance or consolidationEPC contractor (customer).  Opportunities for vertical alliances

The future of EPC contracting

Themes:

1) EPC.  Contract and companiesContract structure, remuneration, companies (Operator and contractor)

2) «Think OPEX when designing CAPEX»

Use of data in decision‐making

Our services & products in Oil & Gas

23%Remotely Operated

Vehicles 30%Subsea Products

21%Subsea Projects12%

Asset Integrity

14%Advanced

Technologies

Oceaneering.com/asset‐integrity

In-Service Inspection:

Conventional NDTCrane and LiftingVendor InspectionAccess Services Subsea InspectionInspection ManagementSurface & Insulation Management Pipeline Construction NDT

Special Inspection Services:

Advanced Ultrasonic TestingTube InspectionElectromagnetic TestingGuided Wave Testing Tank InspectionAdvanced Visual TestingVisual / Thermal Imaging

Asset Integrity

IntegrityMgmt:

Optimizing inspect & maintenance :Risk, Reliability MaintenanceData Analytics & -ModelingField-life extensionFloating SystemsSubsea Integrity ManagementProcess Plant IntegrityFabric Maintenance ManagementStructural Integrity“Inform” (digitalization)

BP, Statoil, Shell, etc.

« Think OPEX when designing CAPEX »

CAPEX$

OPEX

TimeAsset life, e.g. 40 yearsOperate, Maintain, Inspect

Concept, FEED, Construct (EPC),

Install, Commission

No data-based optimization of inspections & maintenance

Data-based optimization of inspections & maintenance -introduced and initiated after design & construction of the asset

Data-based optimization of inspections & maintenance -introduced and initiated before design & construction of the asset, and continued throughout life-of field/asset

Optimizing inspection & maintenance : Predictive & Risk-based inspection & maintenance Data analytics, planning & optimizing inspection & maintenance planning Data modelling, with use of our unique, intellectual database (statistic data) etc.

“Think OPEX when designing CAPEX”Assets are often designed, engineered and constructed without much consideration to how they shall best be maintained and inspected during the operational life-time of the asset

There are several reasons for this - for example

1) Project managers only responsible for CAPEX2) OPEX budgets not in place - or even thought of - when building the asset

Opportunities for optimizing the the long-term integrity of the asset are often “overlooked” when designing, engineering and constructing asset (e.g. related to inspection and maintenance).

Experience and analysis shows that there are significant opportunities for enabling long-term OPEX cost-savings when designing, engineering and constructing assets. This is all about “Total Cost of Ownership” (TCO) of the asset itself.

The opportunities during concept- & design phase are many: a) design simple, b) choice of material, c) design based on a strategy & plan for inspection & maintenance, d) allow most effective access to various parts and areas, etc.

By simply taking OPEX-optimization into account during concept-studies and designing of assets, we have seen examples and evidence of cost-savings potential up to

• 40% of OPEX related to inspections during the lifetime of the asset, and up to • 20-30 % of OPEX related to general maintenance & modifications during the lifetime of the asset

Ref. Oceaneering Asset Integrity, www.oceaneering.com/asset-integrity

ref. Johan Tonsberg, Oct 2017

« Think OPEX when designing CAPEX »

CAPEX$

OPEX

TimeAsset life, e.g. 40 yearsOperate, Maintain, Inspect

Concept, FEED, Construct (EPC),

Install, Commission

No data-based optimization of inspections & maintenance

Data-based optimization of inspections & maintenance -introduced and initiated after design & construction of the asset

Data-based optimization of inspections & maintenance -introduced and initiated before design & construction of the asset, and continued throughout life-of field/asset

Optimizing inspection & maintenance : Predictive & Risk-based inspection & maintenance Data analytics, planning & optimizing inspection & maintenance planning Data modelling, with use of our unique, intellectual database (statistic data) etc.

a) choice of material, b) design simple, c) design based on a strategy & plan for inspection & maintenance, d) allow most effective access to various parts and areas, e) “tack” components, incl. sensors, f) maintenance & inspect plan, g) create “digital twin”, h) initiate digital live monitoring, h) initiate data analytics & modeling, etc., etc.

The future of EPC contracting

Themes:

1) EPC.  Contract and companiesContract structure, remuneration, companies (Operator and contractor)

2) «Think OPEX when designing CAPEX»