www.agr.comwww.agr.com
PILOT SHARE FAIR 2014
AGRInnovative/Experienced/Flexible
Gordon PattersonLyanna Farquhar
5th November 2014
www.agr.comwww.agr.com
DISCLAIMER STATEMENT
This presentation contains forward-looking statements with respect to the operations of AGR. It incorporates our current (November 2014) view of future activities, some of which remain subject to further study and internal and external (partner and client) approval. Hence actual activities may differ materially from those expressed or implied from this presentation, and readers should not place undue reliance on said forward-looking statements. AGR does not guarantee the validity of the information contained in this presentation and such information is released for indicative purposes only.
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Contents
1. Introduction to AGR
2. AGR’s Worldwide Footprint
3. AGR’s UK/West Africa Organisation
4. HSEQ
5. Logistics
6. AGR Operations
» Experience & Tech/Core Competencies
» Supply Chain Management
» Control of Well Insurance
6. Rig Market – Current Events
7. AGR Activity Overview
8. AGR Contacts
www.agr.comwww.agr.com
1. Introduction to AGR
Effective 1st September 2014 the AGR Group was acquired by European private equity firm – Silverfleet. Unlike previous owner, new owner is seeking to expand the business on an international scale – exciting times @ AGR.
AGR provides value-adding services and solutions to customers through its innovation, experience and flexibility. We pride ourselves on quickly supplying the highest quality and most cost-effective integrated services within the following areas………
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AGR Capabilities
Consultancy• 300+ consultants• Database of 9000+
Reservoir Management• Global player• Delivers over 200 reservoir studies/year
• A&D: Expert Advisory Services
Well Management• Outsourced Drilling• 522 Wells delivered over 13 years
Training• 25 000 people trainedin 45 countries
• 200 courses p.a.
Integrated LogisticsSolutions• Logistics• Procurement• Drilling cost control
Expert Rig Sourcing• Dedicated team• Handle negotiations and contracting
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OVERVIEW OF AGR GROUP
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Solid financial platform market leading position
Footprint in key markets internationally
Revenue, NOK Billion
World’s premier independent well & reservoir management group400 Staff + over 300 well consultants on placement.Managed drilling of 521 wells as at end October 2014
AGR offices
www.agr.comwww.agr.com
Working towards full compliance with the Supply Chain Code of Practice to…
In support of the Code, our preferred suppliers are registered with FPAL.
For more information or to register your company go to www.FPAL.com
• Improve performance
• Eliminate unnecessary costs
• Add value and boost competitiveness
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In addition, we are also signed up to PILOT Forward Workplan
A web-based information-sharing website to provide up to date information on business opportunities for the Supply Chain.
Visit the FPAL website to see our information online:http://www.fpal.com/
- Then click on ‘Forward Workplan’
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AGR Well Management - Organigram
EVP WELL MANAGEMENT UK /WEST AFRICA /ME
Ian Burdis NORWAYREGION MANAGER
Steiner Berg
MIDDLE EASTREGION MANAGER
Iain Morrison
S.E ASIAREGION MANAGER
Bruce Roebuck
N.AMERICA REGION MANAGER
Scott Thetford
BD & SUPPORTChris Rayburn
Kay Elliott
ENGINEERING MANAGER
Mark Peacock
OPERATIONS MANAGER
Simon Lucas
DRILLLING OPERATIONS
RESOURCE
MATERIALS &LOGISTICS RESOURCE
WELL ENGINEERING RESOURCE
F U
N C
T I O
N A
L S
U P
PO
R T
INTEGRATED LOGISTICSSOLUTIONS
Lyanna Farquhar
OFFSHORERESOURCE
PA/OFFICE MANAGERAlison Fyfe
OFFICE ADMIN/RECEPTIONBeccy Simpson
HSEQTove Magnusson
(Norway)
HUMAN RESOURCESBirgitte Ronnenberg
(Norway)Eilidh Fearn
Louisa Wiltshire
CONTRACTS & PROCUREMENT
Gordon PattersonJim McManusJulie Simpson
STRATEGIC COMMUNICATIONS
Maria Djomina
INFORMATION TECHNOLOGY
MANAGERMike Christensen
ADMINISTRATION
FINANCERob Fraser
HSEQ MANAGERGavin Kerr
SUPPORT SERVICES
CENTER OF EXCELLENCE
BUSINESS DEVELOPMENT Nick Chilcott
CONSULTANCYKirsty CrookRyan Watson
HSEQ Resource
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4. HSEQAGR believe planning is key to successful HSEQ, Logistics and operational performance...
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HSEQ for Remote Ops – Plan Well Ahead
• Desktop Review
– Country Risk Assessment – Piracy / Government Stability / Terrorism / Security / Virus Epidemics
– Drilling & Environmental Permitting
– Spill Response Strategy
• Reconnaissance Visit
– Review country infrastructure, base and port facilities
– Absolutely critical for efficient Materials and Logistics planning but also for HSE
• Discuss permitting process with Government
• Understand lead times and approvals process
– Waste facilities – what can go where and what will they do with it?
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Environmental Issues
• EIA & OSCP can take a long time! (6-12m+)
– You must start EIA and OSCP as soon as possible
– Engagement of a local consultant can help… and hinder!
– Prepare a Terms of Reference and present it to Government, it provides a baseline that the EIA can be judged against
• Review Spill andWaste Management Strategy
• Rig Discharge - Skip and ship is very expensive and logistically challenging OBM v WBM decision
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AGR operate an integrated Management System
ISO9001:2008 (Quality) – AccreditedISO14001:2004 Environment) – AccreditedOHSAS 18001:2007 (Safety) - Fully Compliant
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5. AGR Integrated Logistics Solutions
Provides reliable Logistics, Procurement & Drilling Cost Control Support for International Oil & Gas Projects
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Integrated Logistics Solutions
UK and International Operations support
• Marine and Aviation support
• Personnel logistics
• Dedicated project personnel
• Procurement
• Ability to provide customs support
• Control of client inventory and storage
• Drilling Cost Control
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6. AGR OperationsStatistics
Capabilities
Rig Sourcing
Decommissioning
AGR Supply Chain
Control of Well Insurance
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AGR Statistics
521AGR have drilled...
24Countries...<=> 12%
106Clients in...
wells...
for...
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AGR Capabilities
Well ManagementComplete
well management
Well construction
studies
Casing and completion
design
Well construction
planning
Logistics capability
Operatorship applications
for new entrants
Procurement and
contracting of all services
HSE and emergency
preparedness
Rig site operations supervision and
management
De-commissioning & Abandonment
Rig Sourcing
www.agr.comwww.agr.com
What rig sourcing services can AGR provide?
• Rig only
– Studies re availability / suitability
– Contract on back-to-back principle
– Brokerage re sublet etc
• Rig with full or partial well management
• Rig teams in Aberdeen, Stavanger and Oslo
• Extensive experience of rig -intake for AGR’s Client’s projects
• Worldwide outlook and presence
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Decommissioning
• Growth in Well Abandonment
• 930 wells to P&A over the next decade at a cost of £6.4billion*
• E&P Company non-core activity
• AGR have extensive experience of P&A operations in UK
• Potential to initiate multi-client campaigns to reduce cost & deliver value
* Oil & Gas UK Decommissioning Insight 2014
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AGR SUPPLY CHAIN
AGR Supply Chain Management encompasses:
• Developing a Contracting &
Procurement strategy
• Managing 3rd Party Services
• Managing Materials and Logistics
support
• Lead local relationship management
• Lever combined spending power for better pricing
Working towards full compliance with the Supply Chain Code of Practice to…
In support of the Code, our preferred suppliers are registered with FPAL.
For more information or to register your company go to www.FPAL.com
www.agr.comwww.agr.com
AGR’s Drilling Supply Chain Philosophy
• Safety of Operations
• Preservation of Environment
• Quality of Service
• Quality of Personnel
• Security of Supply
• Competitive Pricing
• Timely Delivery
• Beneficial Reciprocal Relationships
• Non-Adversarial Behaviour
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Oil & Gas UK has awarded AGR Bronze (2009), Silver (2010;
2011;) Gold (2012; 2013;) Bronze (2014) level of Supply
Chain Compliance.
which has:-
• speed of invoice
payments;
• transparency of forward
work planning;
• use of standardised
contracts;
– as compliance yardsticks.
SUPPLY CHAIN - AGR RECOGNITION
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AGR Supply Chain - Contracting with AGR
To secure a Contract to provide Services to AGR the following applies:
• Contractor/Supplier must be registered on FPAL
• Likely a tender process will take place -achieves transparency to AGR’s Clients & JOA compliance
• LOGIC (CRINE) Standard T’s & C’s utilised– both UKCS and overseas wherever possible
• Tender evaluation, recommendation to award and placement of Contract
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Well M
anagem
ent
Control of Well (CoW) Insurance
AGR Clients have access to preferential rates for Control of Well Insurance. This exclusive facility is available when AGR’s Well Delivery Process is employed, due to recognition of AGR’s track record of over 500 wells having been safely and efficiently drilled globally.
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Control-of-well Insurance
AGR has become recognised by the Insurance Underwriting community, as a company with:
• a strong HSEQ focus - inextricably linked to positive performance
enhancing procedures;
• a safe proven track record of over 521 wells;
• a solid future order book;
• a global well management approach utilising standard processes &
procedures;
• unique management processes;
• an experienced and dedicated workforce.
CoW Insurance footage rates for “AGR wells” are lower than for
Operators without such a track record - this saving can stretch to
millions of dollars - delivering exceptional value for AGR’s
Clients.
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Rig Market – Current Events
• Softening UK market conditions due to reduced demand - especially for floaters
• Increasing rig availability, including many sublet opportunities
• Potential for Norwegian sector floaters entering UK
• Reducing day rates - especially floaters
• One well contracts and options now accepted by drilling rig contractors once again
• Opportunity to drill more readily achievable - at reduced cost and tailored rig contract term
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Rig Market – Current Events
• For upstream companies which have generally been cutting back spending in the face of investor pressure, this is a time of uncertainty – and worry.
• Total investment in oil & gas in 2015 is expected to fall by 8%.
• Rigs – Norwegian Consultancy Rystad Energy say rig market expected to be balanced again in 2020.
• Shale is substituting the need for projects above USD $85 per barrel – ultra-deepwater rigs will compete in deepwater market & the mid-water market in many regions.
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Rig Market – Current Events
• 6th generation dayrates could slide to $425k to $475k with 5th generation dropping to USD $325k.
• Future of Jack Ups for 2015/2016 looks like falling rates -as new build arrivals increase.
• The Paragon, Shelf and Hercules effect - minimising Jack-Up retirements – what about semis in future?
• How a boost in Rig demand might happen:
– Higher oil prices;
– More efficient field developments;
– Halt new build orders & more conversions;
– Cold stacking of rigs;
– Scrapping of rigs;
• Seadrill CFO September 2014 quote - “Going to be tough for next couple of years. Going to get worse before it gets better.”
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Summary
• UK exploration drilling activity currently restrained
• Opportunity for smaller E&Ps due to reduced drilling costs
• Expansion of international activity/projects – for everycompany involved with Oil & Gas UK
• AGR Entering new markets
– Rig Sourcing
– Integrated Logistics Solutions
– Decommissioning/Well Abandonment
– Geographical expansion
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CONTACT US....
Contact AGR Well Management or Reservoir Management; UK, West Africa & ME, at the following office:
Union Plaza1 Union WyndAberdeen AB10 1SL
Tel: +44(0)1224 629000
Gordon Patterson: ContractsLyanna Farquhar: Integrated Logistics SolutionsNick Chilcott: Business DevelopmentChris Rayburn Business DevelopmentMark Peacock: Well Engineering – Well Management Mark Cullen: Reservoir ManagementEilidh Fearn: Human ResourcesChris Ferrier: Software SolutionsKirsty Crook: Consultancy Solutions
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