Scotland the global home of oil and gas

transcript

Scotland the global home for Oil & Gas

Maggie McGinlayDirector of Energy and Clean

TechnologiesScottish Enterprise

24th July 2014

Scotland the global home for Oil & Gas

KEY STRENGTHS

More than

224,000 are employed by over

2,000 companies in Scotland’s

Oil & Gas sector

Business Base

The Scottish Oil & Gas supply chain creates a

diverse range of jobs and attracts the

best talent

Supply of Skilled Labour

Higher education system closely interlinked with the Oil & Gas industry

Education and Training

A well developed transport system

Infrastructure

Oil & Gas Industry Leadership Group

Thank you

Maggie McGinlayDirector of Energy and Clean

Technologies

Email: margaret.mcginlay@scotent.co.ukTel: +44 (01)224 252158

Fergus Ewing MSPScottish

Government

With nearly 300 members Subsea UK acts for the entire supply chain bringing together operators, contractors, suppliers and people in the industry

Subsea Industry Sectors

Oil & Gas

Defence

Wave and Tidal

Ocean Science Offshore Wind

Subsea UK Profile

• Founded in 2004; industry partnership with government• Self sustaining privately funded trade body• Champions for the UK Subsea supply chain through:

– Supporting Business Development– Innovation & Technology– Skills & Future Talent– Diversification – Exports & International Business

• The voice of the subsea industry

• Business development support

• Promote growth - UK and overseas

• Unique networking opportunities

• Exports & international support

• Skills and talent for the future

Championing the UK Subsea Sector Across the World

Subsea Companies in the UK

Total UK Subsea Sector Output

• Over £8.9 billion - equal to 45% of world subsea market (£20 billion)

• Growth is due to both export and domestic market.

• North East Scotland dominates output due to presence of large contractors.

Subsea UK Business Report

UK Subsea Sector Exports

Subsea UK Business Report

53,000 People Directly Employed

• Does not include an additional 13,000 employees who work for non-subsea companies that provide raw materials or support to the industry.

Future Growth and Trends

Global Subsea Output - 2013 to 2018• Predicted to grow by 100% over five years• £20 billion to £40 billion • Opportunity for UK companies• Challenge to retain 45% share of global

market

Subsea - International Markets

• Global Regional Hubs• Europe - UK• North America - USA• South America - Brazil• Asia - Malaysia/Singapore

Exports & International Business

Strategic collaboration

• Inward/Outward Missions

• Host Joint Events

• Doing Business Overseas Guides

West Africa

• Not a country• Region within a continent

• Three countries• Angola• Nigeria• Ghana

• Three mini reports

Guide Structure1. INTRODUCTION 2. GENERAL OVERVIEW OF WEST AFRICA 3. ENERGY INDUSTRY ACTIVITIES 4. SUBSEA ACTIVITY 5. SUBSEA SUPPLY CHAIN6. MARKET ENTRY 7. LEGAL AND CORPORATE8. CONDUCTING BUSINESS IN WEST AFRICA 9. CASE STUDIES 10.QUICK REFERENCE GUIDE 11. SUMMARY 12.USEFUL INFORMATION SOURCES

Case Studies

• Angola

• Ghana

• Nigeria

For more information please contact:

+44(0)845 505 3535admin@subseauk.com

Or visit

www.subseauk.com

Championing the UK Subsea Sector across the World

Quad 204 projectTony Boyle, Project General ManagerJuly 2014

How big is the field?• First prod July 1998; oil initially in place

2.15bn bbls• Produced 350million barrels & 160 bcf to-

date• Enormous potential remaining; we plan to

produce >400 million barrels over 25 yrs• Daily current UKCS production = 1.1million

bbls• Quad204 production = 130,000 bbls• (12% of UKCS total)

Extremely harsh environment

In the news... Where are we?

Quad 204

Fast facts• 5 flow lines: 54 km CRA clad

flowlines• 2 dynamic and 5 static

umbilicals• Largest ever riser bend

stiffeners• 21 new flexible risers• 20 mooring lines• 86 riser and mooring piles• 73 large and small

structures• Extensive upgrade to

control distribution network

Project progress

First mooring pile installed

Deepsea Aberdeen

Deep Energy - Technip

Satellite view of Glasgow area

Contains Ordnance Survey data © Crown copyright and database right 2014

Roadmap of Glasgow area

Quad 204 seabed architecture

Reservoir limits

Seabed depth in perspective

Evanton Spool Base

Sullom Voe Terminal

BP HQ, Dyce

Technip Office, Westhill

Babcock, Rosyth

Lerwick Supply Base

Oceaneering, Rosyth

Project footprint

Thank you

Babcock International BP QUAD 204 ProjectIan Donnelly Managing Director, Energy and

Marine Services - July 2014

Main presentation titlecan sit on two linesWith a further description underneath

BP Quad 204 is the largest order placed in the UK for subsea structures. The BP Quad 204 project is part of a huge re-investment programme in the Schehallion and Loyal fields.

Babcock scope is to build 73 structures. These comprise of 31 control distribution structures and 42 fluid handling structures. These complex steel structures range in weight from 12 tonne to 131 tonne (total 2500 tonne) and are a maximum of 13m wide and 9.2m high.

BP Quad 204 represents an important opportunity for Babcock, in the development of the Energy & Marine Services Business Unit growth in the Oil and Gas sector.

QUAD 204 Project

Babcock International the UK’s leading engineering support services company

Marine & Technology Support

Services

OIL & GAS

Emergency Services

RENEWABLES

Defence & Security

Communications

Education

Nuclear

COMMERCIAL MARINE

Airports

FTSE 100 (2012)

£3.5bn revenue £11.5bn order book

Managing customer assets worth c. £42bn

c29,000 skilled employees worldwide

Marine & Technology OrganisationArchie Bethel

Marine & TechnologyDivisional Chief Executive

John HowieManaging Director

Naval Marine

Jon HallManaging Director

Technology

Dennis GilbertManaging Director

Strategic Development

Iain UrquhartManaging DirectorCorporate Services

Ian DonnellyManaging DirectorEnergy & Marine

Services

Mark DixonPresident

Babcock Canada

Craig LockhartChief Executive

Babcock Pty

Oil & Gas

Renewables

Commercial Marine

Non-tidal basin2.5 hectare

up to 14m depth

42m tidal entrance36m non-tidal

entranceCommercial port

operations

3 dry docks

Earmarked container port area

Dedicated Project Office and Test Bay Facilitiesfor BP Quad 204

25 Fabrication workshops 800m2

to 1900m2

Build hall &Synchrolift

(5 bays each 73m x 15m x 30m (l x w x h))

Babcock Rosyth

Multiple Complex Sub Sea Assemblies

Sub Sea Installation Valve Control Distribution Assembly

Flow line Termination Assembly Manifold Assembly

Babcock TeamMore than 200 resources:

- Project Management

- Manufacture Eng / Des

- Production Eng

- Welding Technolgy

- Procurement and Subcontract Management

- Fabrication and Assembly

- System Integration Testing Support

Key MilestonesContract Award

- December 2012

- Mobilisation Jan / Mar 2013

Deliveries ( May / July 2014)- 30 Flow Termination

Assemblies- 10 Umbilical End Termination

Connection Assemblies

Deliveries ( 2014/15 )- Balance of all Assemblies- Completion August 2015

Main presentation titlecan sit on two linesWith a further description underneathFully Integrated Teamwork

The Oil and Gas Innovation CentreOverview

Paul de LeeuwJuly 24th, 2014

Industry context

The ChallengeWorld class industry

• 42 billion barrels of oil equivalent (boe) have already been produced

• Some 12 to 24 billion boe remain to be produced

• Support c. 440,000 jobs in the UK

• Increasing exploration success rate to >35%

• Increasing average oil recovery factor to >50%

• Increasing production efficiency to >80%

• Decreasing the cost of decommissioning

Industry demand

Industry TechnologyFacilitator

Other Technology Centres

• New Innovation Centre based in Aberdeen

• Funding secured- £10.6m over next 5 years- £1.7m for capital equipment- Target leveraged spend of c. £26m

• Key delivery mechanism for the industry

• Linking industry needs to university capabilities and ‘know-how’

Introducing the new Oil and Gas Innovation Centre

OGIC will be focusing on 8 key technology areas *

Improving Explorationoutcomes

Well Construction, Drilling and

Completions

Enhanced Recovery Asset Integrity and

Life Extension

Shale Gas Exploitation Subsea Production

OptimisationDecommissionin

• Aligned to industry agenda and ‘demand’ led

• Focused on maximising economic recovery, total value added and addressing production decline

* Key technology areas to be further defined by the new Technology Leadership Board in 2014/15

OGIC will stimulate innovation and collaboration

How we will do thisWhat we aim to do

• Connecting communities- 2300+ operators & service

companies- 12 universities- 450+ academic staff

• Targeting c. 100 projects overnext 5 years

• Guidance to companies

• Support and funding- Early stage assistance (<£40k)- Project support (£40k - £500k)

• Focus on demand driven innovation

What’s next

We are open for business

Initial focus will be on the North Sea- significant potential to leverage this

Seeking innovative organisations to participate

info@ogic.co.uk

The Oil and Gas Innovation CentreOverview

Paul de LeeuwJuly 24th, 2014

info@ogic.co.uk

Scotland the global home of oil and gas

Economy & Finance