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transcript
Marketing Presentation Page 1
Pareto Securities’ 15th annualOil & Offshore Conference
September 10, 2009
Marketing Presentation Page 2
KFELS N-Class harsh environment jack-up drilling/production rigs
Marketing Presentation Page 3
Company Introduction
Rig Concept and Design
Market/Financials
Summary
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2
TABLE OF CONTENTS / AGENDA
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4
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SKDP established September 2006 and located in Kristiansand, Norway
49% Owned by Skeie Technology AS, 5% by Keppel O & M and 46% by external investors
Commercial and technical services hired from Skeie Technology
Operational Management: Skeie Rig Management with support from Pier Offshore Management Services
Signed contract for design and construction of three KFELS Class N Jack-up Unit with delivery Q1-2010, Q3-2010 and Q4-2010
OTC listed in Oslo
COMPANY INTRODUCTION – Skeie Drilling & Production ASA (SKDP)
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COMPANY SET-UP
Skeie Technology AS
Skeie D&P
ProdJack 1 ProdJack 2 ProdJack 3
Skeie RigManagement AS
(ex Offshore Production Services AS)
Norsupply AS
Pier Offshore Management
Services ASOSM
Consultants AS
Business Management Agreement
Head Management
Agreement
Sub Management Agreement
Supervision Agreement
Sub Supervision Agreement
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CONSTRUCTION PROGRESSD J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D N D J F M A M J J A S O N D N D
Contract signed - Rig #1 - Rig #2 - Rig #3
Engineering - Rig #1 - Rig #2 - Rig #3
Procurement - Rig #1 - Rig #2 - Rig #3
Major deliveries - Rig #1 - Rig #2 - Rig #3
Construction - Rig #1 - Rig #2 - Rig #3
Fabrication/assembly - Rig #1 - Rig #2 - Rig #3
Erection - Rig #1 - Rig #2 - Rig #3
Mechanical - Rig #1 - Rig #2 - Rig #3
Testing/commissioning - Rig #1 - Rig #2 - Rig #3
Delivery - Rig #1 - Rig #2 - Rig #3
2007 2008 2009 2010
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OPERATIONS PREPARATIONS
• Skeie Rig Management (wholly owned SKDP subsidiary) to operate the rigs with support from Pier Offshore.
• Key onshore and offshore management positions and section leaders already recruited
• Training and competency development programs under development
• QHSE management systems established
• Maintenance systems
• Logisitcs (spare parts)
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Company Introduction
Rig Concept and Design
Market/Financials
Summary
TABLE OF CONTENTS / AGENDA
1
2
3
4
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New N-Class
Standard Jack-up – ”no” clearance between the legs w/jacking system and cantilever
RIG CONCEPT AND DESIGN RIG CONCEPT AND DESIGN
COMBINED DRILLING AND PRODUCTION OPERATIONS
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Drill Floor located on the substructure above the cantilever.
Cantilever capable of being skidded fore and aft with center line (primary Cantilever position) of rotary up to 75 ft (22.86m) aft of sternIt can be relocated 26 (7,92m) ft to port (secondary Cantilever position)
The Drill Floor can be skidded 20 ft (6.1m) port and starboard of the Cantilever centerline both in primary position and in secondary position
Max operation envelop over a pre-
installed Jacket/Wellhead Platform:75 ft aft of Transom, 20 ft to starboard of hull centerline and 46 ft to port of hull centerline.
RIG CONCEPT AND DESIGN RIG CONCEPT AND DESIGN
SPECIFICATIONS FOR DRILLING OPERATIONS
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RIG CONCEPT AND DESIGN RIG CONCEPT AND DESIGN
COMBINED DRILLING AND PRODUCTION OPERATIONS
The Cantilever and Drill Floor can be repositioned 26ft (7.92M) to the Port side of the Vessel, to allow space for installation of a future production process module.
LimitsArea: 12,918 sq ft (1,200M2) Height: 52.5ft (16M)
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RIG CONCEPT AND DESIGN RIG CONCEPT AND DESIGN
PRODUCTION CONCEPTS WITH STANDARD UNITS/EQUIPMENT
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RIG CONCEPT AND DESIGN RIG CONCEPT AND DESIGN
ALTERNATIVE PRODUCTION
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Source: Company, ODS Petrodata
TECHNICAL COMPARISON WITH PEERS AS DRILLING RIGS
MSC CJ70-X150A 1)
DNV492
40,000
291/336/3867390
15,000
46,793
15,7234,600
1 000 tons/2x1150 HP3
14,4845,200120
RIG DESIGN Keppel N-Class MSC CJ70-X150A MSC CJ62-S120Class DNV DNV DNV
Operating water depth (ft) 400 (430) 492 380
Drilling depts (ft) 35,000 30,000 30,000
Hull size (ft) (LxBxD) 264/289/35 291/336/38 256/296/35
Leg length (ft) 598 673 541
Cantilever outreach (ft) 75 90 60
BOP (psi rating) 15,000 15,000 15,000
Mud Pumps 3 (space for 4) 4 3Liquid mud capacity (bbls) 6,600 6,793 5,400Bulk mud capacity (bbls) 15,892 15,723 14,027Drawworks (hp) 4,600 4,600 3,000Top Drive 1 000 tons/2x1150 HP 750 tons/1150 HP 750 tons/2x1150 HPCranes 3 3 3Main Power(hp) 13,050 14,484 6,880Variable Deck Load (st) 4,535 4,600 3,693Accomodation 120 120 115
1) Enhanced version of the existing CJ-70 design with increased drilling depth, increased variable deck load and 1000 t top drive.
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Company Introduction
Rig Concept and Design
Market/Financials
Summary
1
2
TABLE OF CONTENTS / AGENDA
3
4
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Skeie Drilling & Production (SKDP)Turnkey contract with the world’s leading jackup builder
Turnkey contracts signed with Keppel FELS for construction of 3 ultra harsh environment jackup rigs
Deliveries in March, August and December 2010
All in average delivered cost of ~USDm 477 per unit (total USDm 1.430)
All 3 units are fully financed with 11 % equity and 89% in debt (incl. convertible bonds)
Low construction risk at Keppel Fels - the world’s leading jackup builder
Favorable payment schedule: 50% at delivery for the first 2 units, 35% for the third unit
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Financial Highlights
• All rigs fully financed- Equity- Convertible bonds- Secured bonds (2. priority)- Senior secured loan facility (1. priority)
• Bond loans may be replaced once the rigs are secured contracts
• New rig of equal design up approx. 120 MUSD per rig (3x120=360 MUSD)
• Delivery time new rig equal design end 2011, beginning 2012
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Skeie Drilling & Production (SKDP)combined drilling/production units
The jackups are purposed built for the NCS and other harsh environment areas Superior deck-load capacity Deeper water capabilities Significantly larger air-gap than a standard jackup (up to 62 meters) Big drilling envelope – up to 64 wells without moving the rig
Dual mode value enhancing for oil companies. Provides early cash flow from smaller fields Increases oil recovery rates A combined mode contract could bode for even longer contracts. Oil companies likely to pay for upgrade and
downtime related to this
Two existing jack ups and one under construction of the CJ70 design with similar capabilities for drilling & production
Maersk Innovator and Maersk Inspirer PetroProd has one under construction The construction cost for the SKDP rigs is significantly lower than a new CJ70, > 100 MUSD
Operators prefer jackups for semis Jackups give less risk for downtime caused by harsh weather Blow Out Preventer (BOP) on deck compared to BOP on seabed for floaters, thus reduced operational risks The North Sea part of the NCS is to a large extent shallow water
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Strong markets with several near term contract opportunities –Limited no. of rigs approved for NCS
Currently 6 jackups operating on the NCS.
Hereof 5 units operating as drilling rigs
Hereof 2 units matching the capabilities to the SKDP rigs: Maersk Inspirer, rebuilt for drilling & production and Maersk Innovator operating as drilling rig, but can be rebuilt for drilling & production
Extremely difficult for existing rigs to be approved for NCS
There is one CJ70 unit to be constructed for PetroProd suited for drilling & production
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Contract Status Jackups, Norway
Rowan Gorilla VI: AOC declined. Rowan has re-submitted AOC application in April/May 2008.
Mobilization from UK to be delayed
BG: - Planned mobilization to Norway around Q1 2009, depending on well in progress in UK
2009 2010 2011NAME CURRENT OPERATOR FOLLOWING
OPERATORSAREA CURRENT
COUNTRYCONTRACTOR WD
(ft) COMMENT
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
SKDP 1 UNDER CONSTRUCTION SEA SGP Skeie D&P 430 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2PetroProd UNDER CONSTRUCTION SEA SGP Larsen O&G 492 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2West Epsilon StatoilHydro NOS NORWAY Seadrill 400 c c c c c c c c c c c c c c c c c c c c c cSKDP 3 UNDER CONSTRUCTION SEA SGP Skeie D&P 430 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2Maersk Guardian Dong Talisman NOS NORWAY Maersk Contractors 350 DONG, Talisman 150d, then Talisman 2yrs from Q1 09c c c c c c c c c c c c c c c c c c c c c c c c cRowan Gorilla 06 BG CNR/BG NOS UK/NOR/UK Rowan Companies 400 BGhas 1 yr rolling options. c c c c c c c c c c c c c c c c c c 1 1 1 1 1 1 1 1 1 1 1Maersk Gallant ConocoPhillips Lundin/ConocoPhillipsNOS NORWAY Maersk Contractors 400 c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c cMaersk Giant Talisman NOS NORWAY Maersk Contractors 350 Varg, Yme c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c 1Maersk Inspirer StatoilHydro NOS NORWAY Maersk Contractors 490 Expected to be 5-8 years c c c c c c c c c c c c c c c c c c c c c c c c c c c 1 1 1 1 1 1 1 1 1SKDP 2 UNDER CONSTRUCTION/Skeie EnergySkeie Energy SEA SGP/NOR Skeie D&P 430 3-5 years + 2 x 1 y opts 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Maersk Innovator ConocoPhillips NOS NORWAY Maersk Contractors 490 c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c
FIRM CONTRACT cOPTION 1
YARD / UNDER CONSTRUCTION 2
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Norway Jackups Supply & Demand: 2005-2013
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jan.2005 jul.2005 jan.2006 jul.2006 jan.2007 jul.2007 jan.2008 jul.2008 jan.2009 jul.2009 jan.2010 jul.2010 jan.2011 jul.2011 jan.2012 jul.2012
Existing contracts Options RequirementsPossibles Supply Including Rowan Gorilla VI
SKDP 1, PetroProd 1 & SKDP 2 & 3 due out of the yard.
©2008©2008
Last Updated: 29.08.08
Rowan Gorilla VI - Uncertain supplyAOC Declined
AOC resubmitted in Q2 08, to be clarified around YE 08
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Source: Pareto
JU demand Norway: ConocoPhillips took Innovator and Gallant this week….needs another rig for min 5Y according to the demand below
Source: Pareto Research
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Oil production
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Replacement Rate, Oil Reserves vs Exploration Drilling Ratio vs Oil Price
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20 %
40 %
60 %
80 %
100 %
120 %
140 %
160 %
180 %
200 %
jul.94 jul.95 jul.96 jul.97 jul.98 jul.99 jul.00 jul.01 jul.02 jul.03 jul.04 jul.05 jul.06 jul.07
Repl. Rate/Expl. Ratio
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Oil Price
Oil Price Replacement Rate, Oil Reserves Expl. DrillingSource: SEB Enskilda, Company Research
©2008©2008
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Summary
• Contract signed with Skeie Energy for rig # 2 for minimum 3 years
• SKDP prequalified by major oil companies
• Several bids submitted for NCS operators. Together with a number of new prospects for 2010-2011 SKDP maintains its optimism that alle three rigs will be on contract within the end of 2008.
• Extremely difficult and costly to enter NCS for existing rigs
• Identical newbuild N-Class rigs have a price increase of more than USDm 120 with delivery 4th quarter 2011
• Full financing of all three rigs in place, 1st priority bank loans completed
• Equity issue ≈ 28 MUSD medio September 2008 (bond loan agreement)100% underwrited by Skeie Technology and Keppel O & M
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Contact details:Skeie Drilling & Production ASA
Tordenskjoldsgate 9 4612 Kristiansand Norway
Telephone: +47 38 04 19 40Fax: +47 38 04 19 41