Exploring Growth in the LiftboatMarket · Exploring Growth in the LiftboatMarket Chan Eng Yew CEO,...
Transcript of Exploring Growth in the LiftboatMarket · Exploring Growth in the LiftboatMarket Chan Eng Yew CEO,...
Asian Offshore Support Journal Conference 20158 September 2015
Exploring Growth in
the Liftboat Market
Chan Eng Yew
CEO, TRIYARDS Group
Macro overview
Developments in the Oil & Gas Industry in 2015
Oil prices down by 65% since Jun 2014; reaching lowest levels since the Global Financial Crisis
Extensive capex and cost reductions by major Oil & Gas players; massive lay-offs/ restructuring
announced globally in anticipation of protracted downturn
US$41.59(24 Aug 2015)
Sources: DNB, IHS, Reuters3
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Indonesia, Malaysia and Brunei lead the oil and
gas production in SEA while potential growth lies
in countries such as Vietnam and Myanmar.
Southeast Asia – A Region of Diverse Growth and Resource Needs
Source: IEA
Crude oil prices drive E&P activities and demand for liftboats – viable in SEA countries despite
current oil prices due to relatively low breakeven cost
Demand for energy in SEA is expected to grow by 80% through 2035
Drivers for Oil & Gas Production in SEA
Sources: IEA, IHS, OECD5
Drivers for liftboat demand in
Southeast Asia
Key Features and Applications of Liftboats
Key Features Applications
• Self-propelled, self-elevating offshore
working platform for shallow water
applications
• Multi-purpose
• Large, open deck space
• Equipped with crane
• Stable platform for construction &
maintenance of offshore production
platforms
• Capable of carrying equipment and
supplies
• Combines capabilities of: i. Conventional crane/ deck barge
ii. Legs and jacking system of MODU
iii. Propulsion of standard workboat
• Construction / installation /
commissioning of offshore platforms
• Operations, maintenance and
modifications of offshore platforms
• Upgrading of offshore platforms
• Oil well intervention
• Removal of old platforms / P+A /
decommissioning
• Windfarm installation / maintenance
• Accommodation / living quarters for
construction and service crews
Sources: Aries Marine, EXIM Bank7
Proven concept with NOCs and IOCsSAFETY/
STABILITY
MOBILITY
COMPETITIVE DAY RATE
OPERATION UPTIME
Exploration Field Construction ProductionMaintenance
Modifications & Operations
Decommissioning
- SEUs typically
not active in
this phase
- Accommodation
- Crane Support
(Construction)
- Accommodation
- Well Services / Intervention
- Enhanced Oil Recovery (EOR)
- Modification & Maintenance
- Accommodation
- Crane Support
(Removals)
Addressable Markets for SEA
Cost effective solution – applicable across wide spectrum of the offshore industry, from O&G
field construction to decommissioning; and renewables assets
Why Are Liftboats an Attractive Proposition?
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• Liftboats of >150ft had
been built since 1990s
• Capable for operations in
deeper waters
• Can be used for offshore oil
& gas / renewable energy
applications
Evolution of Liftboats Over The Years
Sources: Elevating Boats Inc.; High Waves: History of the Offshore Liftboat, Offshore Magazine, Jan 1999; Innovative Designs on Accommodation Jack-ups from GustoMSC , Mar 2015
• First liftboats were simple
in design
• Only had 4 legs with 2 mud
mats that retracted into the
hull for smooth water flow
• Elevated by cables &
pulleys
• Seismographic surveys/
support for fixed platforms
1950’s – Jehu Post 2000’s – Teras Fortress 21980’s – Dolphin
• Introduction of hydraulics/
rack & pinion jacking
system
• 3-legged concept
• Working depths of 150ft or
less
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Source: DW SEU Report 2014
3257
1717
697
487392
1507 35 36 31
0%
5%
10%
0
500
1000
1500
2000
2500
3000
3500
N. America SEA Middle East
and North
Africa
West Africa NW Europe
Installed O&G platforms Liftboat supply
6250 49
34 32
160
10891
27 26
0
50
100
150
200
SEA Middle East
and North
Africa
NW Europe West Africa N. America
Average water
depth (m)
Average POB
Young market in SEA with high opportunity due to the small amount of
supply at the moment
SEU in SEA are typically higher spec – with higher water depth rating
and more accommodation berths
92% 88%82% 78%
61%
0%
20%
40%
60%
80%
100%
Middle East
and North
Africa
SEA N. America NW Europe West Africa
Shallow water spending as % of total E&P spending
M. East and SEA expected to show highest demand growth for SEUs
Demand driven by shallow water production, which is less affected by capex moderation.
High potential in SEA due to limited units currently in supply.
Demand Outlook
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Market OutlookRegion No. of SEUs No. of platforms Ratio of platforms
per SEU
North
America (GOM)
APAC
Potential Market Size
~250
~28
(by 2018)
~3,200
~1,700
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61
~100 SEUs
Resilience amid low oil prices
Sources: Credit Suisse, Macquarie
� Compared to a sharp decline in utilisation for
global rig fleet, demand for liftboats relatively
resilient.
� Gulf Marine Services recorded >95% utilisation for
liftboat fleet
� TRIYARDS announced 5 newbuild liftboat
contracts in 2015 despite weak demand for
drilling rigs
� Compared to a sharp decline in utilisation for
global rig fleet, demand for liftboats relatively
resilient.
� Gulf Marine Services recorded >95% utilisation for
liftboat fleet
� TRIYARDS announced 5 newbuild liftboat
contracts in 2015 despite weak demand for
drilling rigs
Market Potential – A Bright Spot within a Depressed Offshore Market?
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Assessing the Competitive Landscape
and Barriers to Entry
Potential / New EntrantsEstablished Players
Key Considerations for Operators
• Under-penetrated market in APAC
• Low capex outlay compared to jackup rigs
• Resilient charter rates (between US$20-80k/day) vs. jackup rigs and traditional OSVs (which have
declined >30% since 2014) depending on vessel specs and working depth
• Various fabrication yards with newbuild capabilities, such as TRIYARDS
• Stringent pre-Q and operational requirements by field operators most significant barrier of entry
• Potential increase in competition due to low barriers to entry and traditional OSV players
entering the market amidst low OSV charter rates/ utilisation
APAC / Middle East Operators
International Operators
Assessing the Competitive Landscape and Barriers to Entry
Source: Credit Suisse 13
Sources: Douglas Westwood, EXIM Bank
With more oil platforms
requiring upgrading,
maintenance &
replacement, the demand
for liftboats is improving
particularly in Southeast
Asia.
As a niche market that has
been under penetrated,
offshore service providers
are taking opportunities to
enter the market.
Demand for jack-up units, particularly in the Middle East
and South East Asia markets, has increased in recent
years. Jack-ups increasingly replacing vessels/barges for
construction and maintenance duties at shallow water
field in these regions.
Regional Segmentation to 2020
Assessing the Competitive Landscape and Barriers to Entry
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Outlook for Liftboat and
Chartering Strategies
• SEA region driven by commercials;
• Low cost alternatives create sustainable business model;
• Long term contracts on offer with low OPEX obligations;
• Occasional high day rate/ technically challenging projects
Outlook for Liftboat Business & Chartering Strategies
Source: Ryan Stewart – The Business Case for Flotels
Southeast Asia – Regional Profile
• Shallow/ Medium water depth: DP/ Moored monohulls, jack-up units, DP/ Moored semi-
subs
• Deep water: DP/ Moored semi-subs, DP/ Moored monohull units
Preferred Technology
• Maximisation on PoB, inc. 2 & 4 men cabins
• DP2 generally accepted, as is moored
Service Required
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Vessels Suitable for Southeast Asia Market
BH335
• ABS Class Self-Propelled & Self-
Elevating unit accompanied with a
large deck area and high capacity
cranes
• A true workhorse for shallow water
field services, such as:
1) Work over
2) Coiled tubing
3) Wire-line operations
4) Platform maintenance and upgrade
programs
5) Accommodation for 160 (BH335) /
250 men (BH450)
BH450
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Enhanced Design & Future
Developments
Liftboats of the Future
State-of-the-art, customisable solutions, capable of operating in deeper waters and harsh environments
(such as the BH-series and variants) propelling TRIYARDS as a regional market leader
BH335
BH450
BH300 BH320
BH336 TSU475
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Liftboats of the Future
• Compact and lightweight
innovative cantilever design
• Modular unit
• Integrated coiled tubing and
wireline support
• Capacity for pipe / equipment
storage on cantilever
• Large hoisting capacity
Source: Gannett Offshore
Innovative designs key differentiators to
stay ahead of competition
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Conclusion
• Asia Pacific liftboat market remains under-penetrated compared to US GoM
and West Africa
• Demand improving in Southeast Asia due to more platforms requiring
upgrading, maintenance and replacement
• Utilisation and charter rates relatively resilient vs. jackup rigs and OSVs amid
low oil price environment
• Lower capex requirements and barriers to entry present opportunities for
new entrants to build up fleet rapidly
• Liftboats with higher specifications and capabilities for operating in deeper
waters and harsh environments key differentiators to stay ahead of
competition
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Business overview
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� Headquartered in Singapore and listed on the SGX Mainboard
� Provides integrated full-service engineering, fabrication and ship construction solutions
� Skilled labor and engineering capabilities
� Strong track records in the fabrication of self elevating units (SEUs) in Southeast Asia
� Diversified and rapidly expanding client base
� Headquartered in Singapore and listed on the SGX Mainboard
� Provides integrated full-service engineering, fabrication and ship construction solutions
� Skilled labor and engineering capabilities
� Strong track records in the fabrication of self elevating units (SEUs) in Southeast Asia
� Diversified and rapidly expanding client base
Business Overview
Integrated Fabrication Solutions Provider
Exploration and Field Development
Production and Services
Transportation Refining
Our track records since 2007
Offshore Service Platform (SEU)& Drilling Rig (TDU)
Offshore Support & Construction Vessels / Multi-Purpose Support
Vessel/ Wind-farm Support & Accommodation
Offshore Fabrication
Offshore Heavy Lift Equipment (Knuckle Boom Crane, Leg
Encircling Crane)
Ship Repair & Conversion
Aluminum Support Vessel
Military/Paramilitary
Patrol Boats
Industrial/ Renewable Energy Fabrication
Type of
assets
Unit(s)
deliveredPrincipal specification
Indicative
Market Value
Liftboats/ 9 Up to 450 ft leg length USD 55-90m
SEUs Service Speed : 6 knot
Compliant to southern north sea
MPSV 1 Ice Class, DP3 USD500m
3000 Mt Crane, 239 pax
AHTS 1 92 m, DP2 USD 50-60m
250 ton bollard pull
PSV 2 3,500 DWT, DP2 USD 25-30m
Oil Tanker 2 6,000 DWT, DP1 USD 10-15m
Offshore fabrication projects in aggregate market value of
approximately USD 10m
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Business Overview
Current Ongoing Projects
Industrial Projects
TRIYARDS Group is currently involved in the construction of a multitude of newbuild projects, including
9 liftboats
FPSO Turret (LHS)
Liftboat No. 1 (BH320-L4T - RHS)Liftboat No. 2 (M300-L4P) Liftboat No. 3 (BH300-L4T)
Liftboat No. 4 (BH335) 40m Aluminium Crew Boat
22.
Q&A