Investor Trip November 2008 - Petrofac€¦ · Pisys, Aberdeen-based software company – Provide...

transcript

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

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

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

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

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

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

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

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)

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

SW Fateh NUI

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

Chergui

Northern Producer

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

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

Romania

HSEQ/new technology

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

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

100000

150000

200000

250000

300000

Manhours OVERALL LTIF OVERALL RIFR

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

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

original operator

new entrant

cessation of productionextended by commodity prices & prudent DH mgmt

establishedentrant

manpower supplyintegratedproduction

offering

duty holder / facilities mgmt

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

Investor Trip November 2008 - Petrofac€¦ · Pisys, Aberdeen-based software company – Provide...

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