Business Opportunities in India, Kazakhstan and Azerbaijan

5th July, 2017 - Newcastle

Business Opportunities in India, Kazakhstan and Azerbaijan

15:00 – 15:15 Coffee/Tea on arrival

15:15 Trish Banks - Welcome and Introduction

15:25 Jonathan Spencer, Department for International Trade

15:55 Simon Crosby, Department for International Trade

16:25 – 17:00 Networking

Subsea UK’s Profile

• Founded in 2004 as an industry partnership with government

• Self-sustaining, privately funded trade body, owned and governed by our members

• Champions for the UK subsea supply chain through:

o Supporting business development

o Innovation & technology

o Skills & future talent

o Diversification

o Exports & International Business

Subsea Industry Sectors

Tidal

Subsea Mining

Defence Oil & GasOcean Science

WaveOffshore Wind

Our membership profile

Around 300 members

oOperators

oMain contractors

o Engineering houses

oManufacturers

o Sub-suppliers

oComponent suppliers

oAcademia

o Support services

Scale and region

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Subsea UK Membership Scales…

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Website and Magazine

Excellent communication tools for members.

o Subsea UK News magazineo 28,000+ subscribers (2,000+ print, 26,000+ electronic)

oResource archive

oWebsite attracts ~10,000 unique visitors monthly

oOnline industry News Hub

o Subsea UK member company directoryo Include your company video

Tell us your news

We’ll post any subsea news / press releases about your company that you’d like to promote.

Please ensure your key contact details, including media contacts, are up to date in the directory.

Also on this page:

o Info about features and advertising in the magazine

o Subscribe to the e-newsletter

o News archives

SubseaIntel

Subsea UK’s market intelligence tool.

o 1,200+ global subsea oil & gas projects

o 70+ renewable projects

o 650+ discoveries

o 1500+ contracts

o 600+ vessels

o Data on decommissioning

o Updated daily

o Free access for members only

Working with other organisations

Forging and maintaining strong relationships with other organisations.

These are just some of the partnerships and collaborations Subsea UK is involved with currently.

Future talent

Learning material and resources for school children, students, teachers and further education.

Subsea channel

Five packs available to download, or on USB.

Future talent

Inside Industry

Careers information for school children

SubseaTarget.com

Resource for students, graduates and job-changers getting into subsea

Fundamentals of Subsea

National Subsea Research Initiative

o The focal point for research and development for the UK subsea industry.

o Enhancing the UK’s position as the leading technology provider for the subsea industry

o Subsea UK’s technology arm

o Matchmaker aims to partner end users with technology researchers and developers in the appropriate fields.

Industrial Need

(End User)

Suppliers Offering

Academic Capability

Subsea UK supports…

o Five MSc students studying Subsea Engineering at Aberdeen, Cranfield, Newcastle, Robert Gordon and Strathclyde Universities.

o Schools participating in the MATE ROV Regional Finals in Scotland. MATE ROV is an annual competition which sees pupils from across Scotland put underwater robots they have designed a built to the test. The competition aims to engage students in STEM and expose them to science and technology careers and encourages them to develop and apply technical, teamwork, and problem solving skills.

Mintlaw Academy: Winners of the MATE ROV 2016 competition

Apprenticeships

o Subsea UK has put together a support service package which will help ease the complexity and give some financial support in the cost of taking on and developing apprentices.

o The support scheme, which can be tailored to suit the specific needs of individual companies, addresses the key areas highlighted by SMEs which inhibit businesses from taking on apprentices.

o These include the recruitment process, construction of education and training plans, setting clear roles and responsibilities for on-the-job training, conducting assessments, and paying apprentices a training allowance.

Introduction to Subsea Engineering

o The course has four modules and is delivered online, via the University's Virtual Learning Environment, CampusMoodle. Access to the programme is for 8 weeks, with the recommendation that students allow between 40 and 60 hours learning time in total.

o The cost is £300 for Subsea UK members.

Subsea UK events

There’s always time for networking – you never know who you might meet.

Our events offer members the opportunity to showcase their companies by exhibiting and presenting.

We can organise lunch and learn sessions in Subsea UK’s office.

Subsea UK members always benefit from discounted rates at our events.

Events are organised across the UK and globally.

Industry events

Promoting members’ events (open days, training events, etc), as well as other organisations’ events which may be of interest to our members.

Subsea Expo

Subsea Springboard

The Subsea UK Awards

DIT Drinks Reception

Conference Plenary Session

International Business

Exchange

Energise Your Future

Past events

Huge archive of material from previous events, presentation material, photographs, videos, news follow-up, etc.

Subsea UK international events

Subsea international market

Global regional hubs

o Europe – UK / Norway

oNorth America – Gulf of Mexico and Mexico

o South America – Brazil

oAsia Pacific – Malaysia / Singapore / Indonesia / Australia

Global business

Subsea UK are Trade Challenge Partners with the Department for International Trade (DIT)

Global Business is a members-only resource, providing information and contacts to support exporting.

We also work closely with the DIT and SDI, DIT’s Scottish arm.

Department for International Trade

• Trade & investment, UKEF and Trade Policy

• 1,200 staff in over 100 overseas markets, 400 UK regions, working locally to support UK businesses and overseas investors

• HVCs major initiative. Identifies, prioritises large scale overseas procurement projects and helps UK companies access these. To qualify for HVO status, a project must have accessible value to the UK of at least £250m

• Industry & Government working together to build competitive and innovative UK O&G supply chain that delivers and sustains jobs, exports and economic benefits for the UK:-

• Increase the value of exports and the volume of exporters

Decommission

MaintainOperateConstructProcureEngineerConsult

Brazil

East Africa

Kazakhstan

Iraq

Mexico

Nigeria

Norway

Saudi Arabia

Azerbaijan

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an early stage

High Value Campaigns

India

Oman

Azerbaijan

• UK the single largest investor in Azerbaijan

• currently more than 450 UK companies doing business in Azerbaijan

• Benefits for UK businesses exporting to Azerbaijan: Stable Government, Rapidly developing market

• Challenges include: lack of transparency, inconsistency in applying regulation/licensing, Not in WTO, Corruption remains an issue

• Oil and Gas a key industry for Azerbaijan

Azerbaijan HVC2016-2019

• Capital and Operational spend: £17.4 billion• UK Accessible Value: £8.7 billion• Export Value: £5.9 billion

Shah Deniz II (BP)

• Most important BP asset globally • 25 bn cubic meters of gas per year (SD I & SDII)• Sale to Turkey and Europe through Southern Gas Corridor

Absharon Development Plan

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BakuOnshore facilities: onshore terminal plus 7km lines

(terminal → existing pipelines)

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This Document is the property of TOTAL.It shall not be stored, reproduced or disclosed to others without written authorisation from the company.

Contractor name:

Project name & Logo

Revision Memo

Syst. / S-Syst.:

Company Ref:

Contractor Ref:

N° contracts/RFS:

Doc type: Discipline:

Company name & Logo

Exploration Production

DateRev Status

Scale:Revision:

Folio:

Electronic Filename:

Contractor name & Logo

Approved byIssued by Checked by

_ _ _

TOTAL E&P AZERBAIJAN B.V.ABSHERON FIELD DEVELOPMENT 2013 Conceptual

SINGLE STAGE SEPARATION PLATFORM

SOUTH ELEVATION

Plot plan (dwg)AZ_ABS_04_021_000030_01.DWG

AZ ABS_04 021 00003001

00 16/04/2013 First issue DUCHEMIN_

01 17/09/2013 UPDATE DUCHEMIN_

Azeri-Chirag-Gunashli Field

• complex of oil fields in the Caspian Sea, about 120 kilometres off the coast of Azerbaijan.

• Largest oilfield in Azeri Caspian

• First offshore PSA, signedover 30 years ago –

‘Contract of the Century’

• PSA Due for extension

OGPC

DIT Partnership Programme

• Unique cooperation with SOCAR , BP (with participation of Total ) • UK Azerbaijan Partnership Programme launched in Baku Nov 2015:

• Niyazi Safarov Deputy Minister of Economy and Industry• Rovnag Abdullyev ,Socar President • Gordon Birrell BP’s Regional President for Azerbaijan, – Georgia and Turkey

• Irfan Siddiq, Her Majesty’s Ambassador in Baku

• Tahir Taghizade, Ambassador of the Republic of Azerbaijan

– to the United Kingdom of Great Britain and Northern Ireland

• Strategy: understand political landscape and drivers; ascertain scope and timing of each project, identify local skills shortages.

• DIT has initiatives underway to target major awards and ensure UK supply chain companies are ready to compete

• Establishment of a UK Azerbaijan working group :

Initial Focus

Maintenance and Operational Support Manufacturing and Fabrication Vocational Training

India

Positives

• One of the worlds fastest growing economies • English widely spoken• common legal and administrative history• UK exported goods & services worth £8.6 bn to India in 2014, UK is the third largest investor in India

Negatives • price-competitive• regulatory constraints, local sourcing requirements and import tariffs can be a problem • intellectual property protection (IP)• risk of delays due to administrative requirements• Local skills and infrastructure can be a challenge• bribery and corruption

India

• ONGC announced a $10 billion investment into exploration & production in the east coast region, with $5 billion for the 98/2 fields in the KG Basin, already committed

• On 16.6.17 Reliance & BP (30% partner) announced investment of $6 billion for KG-D6 block (3 producinjg fields) and other areas to develop differentiated fuels, low-carbon energy businesses in India.

• Three projects, over three to five years in deepwater gas fields, expected to bring onstream 30-35 million cubic metres (1 billion cubic feet) of gas a day over 2020-22.

India HVC

• DIT/SUBSEA UK visited in April 17

• Working with ONGC/RIL

• sessions in New Delhi, Kakinada and Mumbai

• Workshop themed ‘Improving Capital Efficiency for Deep Water Oil & Gas Development’.

• £788mn new business under discussion by some companies

Kazakhstan

Strengths of Kazakhstan’s market include:

• stable economy• easy to start a business• strong regulatory environment for companies• developing a transparent and effective business culture• tax and other preferences for investors

Oil & gas contributes around 30% GDP, 70% of exports and 20% of budget revenues.

2 giant onshore fields - Tengiz and Karachaganak produce 40% of Kazakhstan’s total output. Kashagan Field and Pearls block are offshore fields in N Caspian Sea.

Offshore oil and gas fields

Kashagan Offshore Oil FieldClose to Atyrau in N Caspian

Discovered 2000.

Worlds largest discovery in last 30 years

Est. 13,000 mn barrels recoverable

Kazakhstan HVC

• DIT set up task force to bring in UK plc to increase capacity – all operators involved. NCOC etc

• DIT activity adds ’GtoG’ strengths • Ministerial support gains high level attention from Government & oil cos.• Work to create opportunity by guiding state organisations in developing international standards and practices.• Positioning UK cos to get partners through work with shell. • Operators give us early warning on demand and capability – we find co’s to fill gap and help them find local partners.

Delivered through Strategic Relationships with

• Ministry of Investment & Development• Ministry of Energy • NADLoC (LC department)• Shell Kazakhstan, • BG Kazakhstan

Next Steps

INDIA: Offshore Europe India Day (5 September) (presentations, meetings and site visits) with PossIndian ministerial presence

Azerbaijan: Azerbaijan activity at Offshore Europe, 6 September.

Kazakhstan: programme of Workshops and meetings 17-21 July 2017

Jonathan.spencer@trade.gsi.gov.uk

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Simon Crosby

DIT North East

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Who Are We?

DIT is the Government Department that supports

companies in the UK doing business internationally

and overseas organisations seeking to locate in the UK

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• To increase the number of North East companies

engaged in international trade

• To increase the depth and diversity of international

activity by North East companies already engaged in

international trade – more sustainable exporters

Our Mission

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How Can DIT Help?

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▪ Export Opportunities Service – FREE –

https://www.exportingisgreat.gov.uk/ - 1800

opportunities

▪ Overseas Market Introduction Service – activity

to your detailed brief, carried out by one of the 150

teams around the world.

▪ Trade Missions – organised market visits

with pre-planned programmes

▪ Funding – up to £2000 (NE LEP area)

▪ Free Advice – local adviser to help

Find Customers

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• Port reconstruction and engineering – Ukraine

• Marine services & supplies – Brazil

• Subsea and decommissioning services – Brazil

• Subsea pipeline – India

• Offshore rig inspection – UAE

• Offshore mooring jetty – Cyprus

WWW.EXPORTINGISGREAT.COM

LIVE Export Opportunities

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Support Around the World...

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• Valve manufacturer/supplier – find a commission Agent in

Russia

• Provider of engineering personnel – find a representative in

Norway

• Training company – identify/warm an Agent in Indonesia

• Project management company – provide overview of energy

market in Canada and arrange appointments with end

users/EPC contractors

Local Companies Recently Helped...

Championing the UK subsea sector across the world

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