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Repsol Sinopec Resources UK While you wait… 1 ‣ write down one question ‣ we’ll collect them in a moment… ‣ …and address some of them later
Repsol Sinopec Resources UK
While you wait…
1
‣ write down one question
‣ we’ll collect them in a moment…
‣ …and address some of them later
Repsol Sinopec Resources UK 2
Share Fair Floor Plan
Repsol Sinopec Resources UK
Who are we?
3
We are an organisation committed
to safe, sustained, cost-effective
production and to responsible
stewardship of a mature North Sea
operating portfolio.
Repsol Sinopec Resources UK Limited
is an oil and gas exploration and
production company operating in the
North Sea.
Repsol Sinopec Resources UK
Company Timeline
4
Talisman Energy Inc. established
The company acquires three
producing fields from BP Exploration - the
Beatrice, Buchan and Clyde fields
First oil produced from the Hannay and
Halley fields
Talisman extended its portfolio in 2006 to
include 100% ownership of the
Fulmar and Auk fields
Sinopec International Petroleum Exploration
and Production Corporation (Sinopec),
Sinopec acquired a 49% equity interest in Talisman's UK North
Sea business. Renamed as Talisman Sinopec Energy UK Limited
Maersk Oil UK Limited received approval to
develop the Flyndre & Cawdor fields. The fields will be co-developed as a subsea tie-back to the
Clyde platform
Talisman announced that its Board of
Directors approved a transaction relating to
the acquisition of Talisman by Repsol.
Here in the North Sea, the transaction meant
that Repsol would acquire Talisman’s 51%
interest in TSEUK
Talisman Sinopec Energy UK Limited renamed as Repsol
Sinopec Resources UK Limited
1994 1997 2002
2018
2006 2012
2014 2015 2016
First oil achieved from Montrose Area
Redevelopment and from the Maersk Oil-
operated Flyndredevelopment
2017
Continue to control
costs to create a
platform for further
investment in core
assets
Optimise costs for
decommissioning of
other assets
Repsol Sinopec Resources UK
Our shareholders
5
‣ In 2015 the then-
Talisman Energy Inc
announced that its Board
of Directors had
approved a transaction
relating to the acquisition
of Talisman by Repsol
‣ This included its 51%
equity interest in what
was formerly Talisman
Sinopec UK and is now
known as Repsol
Sinopec Resources UK
Repsol Sinopec Resources UK
Our shareholders
6
‣ Addax Petroleum is a subsidiary of the Sinopec Group, one of the largest oil
and gas producers in China, the biggest oil refiner in Asia and the third largest
worldwide.
‣ In July 2012, Talisman Energy Inc. announced that it had reached an
agreement in the North Sea with Sinopec International Petroleum Exploration
and Production Corporation (Sinopec), whereby Sinopec acquired a 49%
equity interest in Talisman's UK North Sea business
‣ Addax Petroleum's mission is to create value through successful exploration,
development and production of oil and gas resources whilst contributing to the
socio-economic development of its host societies and maintaining
environmental sustainability
‣ The Company aims to grow its business through reinvestment and strategic
acquisitions in Africa, the Middle East, the North Sea and any other areas with
proven potential, supported by long-lasting relationships with all its
stakeholders
Countries of operation:
Nigeria, Gabon, Cameroon,
Kurdistan Region of Iraq
and UK North Sea
Service offices in Geneva
(Switzerland) and Houston
(USA)
Shareholder Sinopec
Group headquartered in
Beijing (China)
Repsol Sinopec Resources UK 7
Beatrice
‣ Headquartered in Aberdeen, Scotland
‣ We have interests in 52 fields, of which we
operate 41, on the UK Continental Shelf
‣ We have a total of 11 offshore installations
(ten fixed and one floating)
‣ We also have onshore terminals at Flotta in
Orkney and at Nigg Bay in the Cromarty
Firth
UK Operations
Now being dismantled in Shetland
Repsol Sinopec Resources UK
2010 – 2017 Production
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2016
42.3
2015
39.9
2014
32.2
2013
35.8
2012
52.8
2011
71.5
2010
76.8
2017
52.0
Enoch/Blane
Auk
Non-Operated
Quad 16
Clyde/Orion
Saltire
Fulmar
Bleo Holm
Buchan
MonArb
Piper
Tartan
Claymore
‣ 2017 is based on 8 months
of actuals 4 months of
forecast
0
10
20
30
40
50
60
70
80
Repsol Sinopec Resources UK
2015 to 2017: transforming our business
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‣ We have:
- Successfully completed our major capital projects MAR and Flyndre
- Taken the Buchan asset off station and it is being dismantled in Shetland
- Shutdown Beatrice and Saltire which are both planned for decommissioning
‣ We have also:
We have made great progress but we still have work to do to fulfil our potential as a sustainable
business in a ‘lower for longer’ environment.
Reduced lifting cost per
barrel by 57% between
2014 - 2016
Reduced lifting cost per
barrel from $116 to $37
Improved production
efficiency by 17%Improved production
efficiency from 33% to
66%
Reduced lifting cost per
barrel by 57% between
2014 - 2016
Improved HSE
performance
Repsol Sinopec Resources UK
2015
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8 Tier 1 contractors =
80% of annual spend
CPM model not
mandated or
standardised
Contractor categorisation
driven by HSE tiering
alone
New contracting strategies reducing
reliance on single contractors -
increased competition - 27 Tier 1
contractors=80% of annual spend)
Requirement to provide CPM data to
move contractors in or out of a
category
New Services Criticality and
Contract Tier Assessment Tools
driven by HSE, Business, Supply
Chain and Operational elements
New SharePoint Site to facilitate
reporting
Journey so far…………..
We’ve moved from a single contractor
multi-asset approach to a multi-contractor
approach.
2017
Supply Chain Transformation
Repsol Sinopec Resources UK
PROCESS
Contractor categorisation driven by Services Criticality Assessment and Contract
Tier Assessment Tool:
– Includes HSE, Business, Supply Chain and Operational elements
– Tier specific KPI Scorecard, meeting cadence and terms of reference developed
– Repsol Sinopec is reviewing its use of FPAL for bid lists and pre-qualification in line with
the OGUK Task Finish Group on Supplier Qualification and Certification Services in the
UKCS. We do not subscribe to Verify and commission our own HSE and Quality audits
as needed
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Safe efficient
operations
PROCESS
PEOPLEREPORTING
Contract Performance Management (CPM)
HD BAND = 207 - 139 MD BAND = 138 - 92 LD BAND = 91 - 23
CPM REQUIREMENT FULL LITE VERSION(S) FPAL ONLY
SCORECARD DETAILED DETAILED / LITE DETAIL ON-LINE FEEDBACK ONLY
INTERNAL PRE-MEETING MONTHLY QUARTERLY / BI-ANNUALLY NOT REQUIRED
MEETING WITH CONTRACTOR MONTHLY QUARTERLY / BI-ANNUALLY NOT REQUIRED
LITE V1 = 138 - 114
LITE V2 = 113 - 91
Repsol Sinopec Resources UK
Forward work plans / tendering activity
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SERVICE / DESCRIPTION ESTIMATED TENDER DATE
PROVISION OF BULK HOSES Q4 2017
PROVISION OF PIPE FITTINGS AND FLANGES Q4 2017
PROVISION OF HVAC SERVICES Q4 2017
PROVISION MEDICAL SUPPLIES Q4 2017
PROVISION OF BUSINESS TRAVEL SERVICES Q4 2017
PROVISION OF PRESSURE GAUGES Q4 2017
PRE-DECOMMISSIONING ENVIRONMENTAL AND SUBSEA
SURVEYQ4 2017
HEAVY DUTY JACKUP UNIT Q4 2017
GALLEY SUBSEA WELL REINSTATEMENT Q4 2017
BUCHAN PLUGGING AND/OR ABANDONMENT TBC 2018
MONROSE HYDRAULIC WORKOVER UNIT TBC 2018
PROVISION OF FILTRATION PRODUCTS Q1 2018
PROVISION OF MOBILE COMMUNICATIONS Q1 2018
PROVISION OF HOSES AND FITTINGS Q1 2018
PROVISION OF INDUSTRIAL, MEDICAL AND SPECIALIST
GASESQ1 2018
PROVISION OF PRINTER AND REPROGRAPHIC SERVICES Q2 2018
PROVISION OF PRINTER MAINTENANCE AND SUPPLY Q2 2018
PROVISION OF OFFICE STATIONERY Q2 2018
PROVISION OF MECHNICAL INTEGRITY SERVICES Q2 2018
PROVISION OF MARINE MANAGEMENT SERVICES Q2 2018
PROVISION OF LIFEBOAT MAINTENANCE SERVICES Q3 2018
Repsol Sinopec Resources UK
Can you tick our boxes?
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‣ Identify and raise any potential solutions which can help unlock full
potential of the UKCS
‣ Be focused on quality, delivery and performance
‣ Bring innovative technology and services to operations and
decommissioning
‣ Commercial innovation – willing to adopt new commercial models
‣ Spend our money as if it were your own and be willing to work with
agreed KPIs
Repsol Sinopec Resources UK
…then we can tick yours
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‣ Committed to engage with contractor community in a consistent and
rigorous fashion
‣ Be open to new ways of working
‣ Aspire to follow Oil & Gas UK Supply Chain Code of Practice
‣ Share feedback on weakness areas or where things aren’t going to
plan
‣ Engage in performance 2 way feedback
‣ Continuous improvement through Performance Management metrics
Repsol Sinopec Resources UK
Thank you
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Submitted questions
