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Transcript of FMC Kongsberg Sub sea - Global actor with base in Norway John Bjarne Bye.pdf · FMC Kongsberg Sub...
FMC Kongsberg Sub sea -Global actor with base in Norway
John Bjarne Bye
Strategic Sourcing Leader, FMC Eastern Hemisphere
Agenda
• Introduction to FMC
• FMC Global Presence
• Present and future engagement
• Opportunities for the Supply Chain
• How the Supply Chain engage with the FMC organication
• Key Contacts to pursue business
Introduction to FMC TechnologiesIntroduction to FMC Technologies
• Subsea Trees
• Subsea Controls
• Subsea Production Systems
• Surface Wellheads
• Separation Systems
• Fluid Control
• Loading Systems
FMC Technologies at a Glance2006 Revenue: $3.8 Billion
Energy
Systems
77 %
Airport
• Citrus Extractors
• Freezing Systems
• Food Processing Systems
• Loaders
• Deicers
• Boarding Bridges
• RampSnake
• Loading Systems
• Measurement Solutions
Airport
Systems
9 %FoodTech
14 %
Revenue from Continuing Operations
Business Area Subsea
Evolution of Subsea Production Systems
Pressure
Dynamics
AGC
Subsea Product Lines – Well Established
1980
Bonito
RJS-39
189m
1,613 ft1,613 ft
619 ft619 ft
Kvaerner961 ft
Kvaerner961 ft
1983
Piraúna
RJS-232
293m
1,256 ft1,256 ft
1985
Marimbá
RJS-284
383m
1992
Marlim
MRL-9
781m
1988
Placid
Green
Canyon 31
684m
ABBABB
1994
Marlim
MRL-4 1997
1988
Marimbá
RJS-376D
492m
1980
Bonito
RJS-39
189m
Strong Deepwater Track Record
ABB5,605 ft
ABB5,605 ft
6,080 ft6,080 ft
2,561 ft2,561 ft
3,368 ft3,368 ft
ABB2,244 ft
ABB2,244 ft
MRL-4
1027m1997
Marlim Sul
MLS-3
1709m1997
Shell Mensa
1618m
5,308 ft5,308 ft
1999
Roncador
RJS-436
1853m2000
Petrobras
Roncador
1877m
ABB6,157 ft
ABB6,157 ft
2004
Shell
Coulomb
2316m
7,600 ft7,600 ft
Cameron7,209 ft
Cameron7,209 ft
2002
Marathon
Camden
Hills
2197m
$2.2
$3.8
$2.0
$2.5
$3.1
$2.0
$2.5
$3.0
$3.5
$4.0
Strong Financial ResultsEnergy Systems Driving Growth
200
250
300
350
400
Segment Operating Profit$M$B
Revenue
$0.0
$0.5
$1.0
$1.5
2002 2003 2004 2005 20060
50
100
150
2002 2003 2004 2005 2006(Adj. Op. Profit)
Airport FoodTech Energy Systems
1
$2.00
$3.01
$3.90 - $4.10
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
Strong Financial ResultsUpward Trend in Income from Continuing Operations
Adjusted Income from Continuing Operations per Diluted Share
$1.41
$0.81 $1.00
$0.00
$0.50
$1.00
$1.50
$2.00
2002 2003 2004 2005 2006 2007 Est(Adjusted Income)
1
1 See Appendix II for reconciliation of 2004 and 2005 adjusted income per diluted share (non-GAAP measure) to U.S. GAAP.
1
(Adjusted Income)
1 600
1 800
2 000
Subsea Production SystemsSubsea is Our Largest And Fastest Growing Business
2006 FTI Revenues Subsea Revenue
1,700
0
200
400
600
800
1 000
1 200
1 400
2001 2002 2003 2004 2005 2006
Subsea
47 %
All Others
53 %
$M
500
400
500
600
700
800
Subsea Tree ForecastNo. of Subsea Trees
800
0
100
200
300
400
2003 2004 2005 2006 2007 2008 2009 2010
Year
No. of Subsea Trees
200
Cameron
26 %
FTI
40 %
2002-2006Unit Market Share
Subsea Production SystemsMarket Leader
Aker
Kvaerner
13 %
Dril Quip
4 %
Vetco Gray
17 %
Source: Quest Offshore Resources
FMC global presenceFMC global presence
HoustonHouston
KongsbergKongsberg
DunfermlineDunfermline
Global Presence - Plants
SingaporeSingapore
Rio De JaneiroRio De Janeiro
St. John’sSt. John’sAberdeenAberdeen
KristiansundKristiansund
Port Harcourt /OnnePort Harcourt /Onne
HoustonHouston
BergenBergen
Global Service Bases
NouakchottNouakchott
AbijanAbijan
MacaeMacae
Eq. GuineaEq. Guinea
LuandaLuanda
PerthPerth
Port Harcourt /OnnePort Harcourt /OnneAbijanAbijan
Local Establishment – Angola
Key Contacts to pursue businessKey Contacts to pursue business
Global Standardisering
NORWAY
LIBYA
USA
CANADA
UK
MAURITANIA
IVORY COAST
NIGERIA
EQ. GUINEA
ANGOLA
SOUTH AFRICA
CHINA
AUSTRALIA
BRAZIL CONGO
Local Fabrication and Assembly
5050505050505050
10101010
90909090
“The Norway Case” “The Angola case” “The Brazil case”
70
30
Non-NorwegianContent
NorwegianContent
Norwegian Contentin Angola
90909090
Norwegian Content in Brazil
Norwegian Contentin the North Sea
Content
Current ProjectsFuture OpportunitiesFuture Opportunities
Current Projects
• Gjøa• ASAP Oil• Pluto• Ormen Lange
FMC EH is currently engaged in more than 30 EPC projects
The largest being:
• Pluto• Ormen Lange• Tyrihans• Block-18• Alve• Sigrid• Yttergryta• RLWI MK-2• Norne Sat
Contract Awards YTD
Project Customer Region
• Gjøa Statoil NCS
• Urd Statoil NCS
• Vega Hydro NCS
• Troll O2 Hydro NCS• Troll O2 Hydro NCS
Targeted New Projects
33 %8 %
5 %
9 %
33 %
12 %
We are pursuing more than $3 Billion worth of new projects
200
300
400
500
600
700
800
Actual
Russia
UKCS
NCS + Canada
GoM + Mexico
Brazil + T&T + Ven.
Global Market Potential – Subsea Tree AwardsForecast by FMC Sales Staff Note: GoM and
UKCS only show ”target” markets
Quest Base Case
0
100
200
2004 2005 2006 2007 2008 2009 2010 2011
Brazil + T&T + Ven.
Asia Pacific
Africa
Global ss tree market share by inbound years 2004 – 2006 (Total 1260 trees)
Global ss tree market share by inbound year 2006 (Total 467 trees)
Africa – XT Market Potential
Client \ Year 2007 2008 2009 2010 2011
PERIOD
TOTAL
Total 49 69 80 32 17 247
BP 48 42 27 117
Chevron 11 12 10 23 8 64
Shell 38 19 15 72
Eni-Agip 9 9 2 2 22
Exxon Mobil 19 1 1 21
Woodside 11 6 17 100
150
200
250
Woodside 11 6 17
Devon 8 8 16
Hess 4 9 13
Murphy 12 12
Additional Projects EH 13 19 48 66 56 202
Additional Projects WH 2 2
Unidentified Projects 2 16 57 75
TOTAL PR. YEAR 123 188 230 182 157 880
EH Clients ForecastWR Clients ForecastUnidentified Actual 2006
■
■
■
■
0
50
100
2006 2007 2008 2009 2010 2011
Russia – Market Potential & Strategy
• Gazprom searching for a way to involve IOCs in Shtokman development due to need for know-how and project management
• Gazprom realize need for training in subsea technology of own personnel
25
30
35
40
XT Market PotentialForecast 2007 – 2011■
0
5
10
15
20
25
2007 2008 2009 2010 2011
UKCS – XT Target Market Potential
Client \ Year 2007 2008 2009 2010 2011 PERIOD TOTAL
Chevron 2 12 15 14 4 47
Talisman 5 8 8 8 5 34
Venture 7 4 6 5 3 25
Total 9 4 6 3 22
Oilexco 1 5 4 4 4 18
Ithaca 6 2 6 2 2 18
Additional Projects 12 21 13 14 13 73
Unidentified ProjectsUnidentified Projects
TOTAL PR. YEAR 33 61 56 53 34 237
Forecast 2007 – 2011Actual 2006
■
■
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011
Not considered in the forecast: • Shallow water market • Competitors’ frame agreements, i.e. Shell,
BP, Maersk, Nexen
Note: Forecast = Only target market vs. Actual 2006 = Total overall market
NCS – XT Market Potential
Client \ Year 2007 2008 2009 2010 2011 PERIOD TOTAL
Statoil 32 63 42 12 12 161
Hydro 28 23 29 80
Eni 3 12 12 27
BP 17 17
Additional Projects 14 9 18 20 61
Unidentified Projects 15 25 20 60
TOTAL PR. YEAR 80 112 95 55 64 406
Forecast 2007 – 2011Actual 2006
■
■
0
20
40
60
80
100
120
2006 2007 2008 2009 2010 2011
Asia Pacific – XT Market Potential
Client \ Year 2007 2008 2009 2010 2011
PERIOD
TOTAL
Woodside Australia 10 10
Woodside Australia 39 12 6 12 69
Shell Malaysia 14 6 15 12 47
CVX Australia 12 12
CVX Australia 10 17 27
CVX Indonesia 4 2 24 2 32
ONGC India 12 12 2480808080
100100100100
120120120120
140140140140
ONGC India 12 12 24
Inpex Australia 22 22
CNOOC China 3 4 6 7 20
Reliance India 20 20
Conoco Malaysia 20 20
BHP Australia 8 8 16
Exxon Australia 5 5
BP Vietnam 2 3 5
Additional Projects 34 12 10 10 10 76
Unidentified 15 20 18 30 50 133
TOTAL PR. YEAR 94 133 110 100 101 538
0000
20202020
40404040
60606060
2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011
■
■
■
System EH (Joint EH-Singapore)
Singapore
Actual 2006
Venezuela – Market Potential & Strategy
• Government pushing to exploit vast offshore gas reserves in northeastern V.
• Escalating campaign to wrest control away from IOCs
XT Market PotentialForecast 2007 – 2011■
25
30
Forecast 2007 – 2011■
0
5
10
15
20
2007 2008 2009 2010 2011
GoM – XT Target Market Potential
Client \ Year 2007 2008 2009 2010 2011
PERIOD
TOTAL
BP 23 20 17 8 68
Shell 26 9 15 12 3 65
Anadarko 9 17 15 8 49
Chevron 35 35
Petrobras 4 12 12 28
LLOG 2 6 6 6 6 2640
60
80
100
120
140
LLOG 2 6 6 6 6 26
ERT 5 7 4 4 4 24
Nexen 9 1 10
Devon 2 4 2 8
Hess 1 3 2 2 8
Eni 4 1 1 1 1 8
Additional Projects 5 17 6 4 3 35
Unidentified Projects 15 15 15 45
TOTAL PR. YEAR 79 129 94 62 45 409
Forecast 2007 – 2011Actual 2006
■
■
0
20
2006 2007 2008 2009 2010 2011
Notes: • Competitors’ frame agreements not considered in the forecast • New forecasting model for projecting beyond 2-3 years will be implemented
Brazil – XT Market Potential
Client \ Year 2007 2008 2009 2010 2011 PERIOD TOTAL
Petrobras 60 50 41 62 26 299
Shell 20 20
BG Trinidad & Tobago 7 3 3 3 13
Additional Projects
Unidentified Projects 15 10 10 30
TOTAL PR. YEAR 60 72 74 75 59 332
100
Brazil Forecast 2007 – 2011Trinidad & T. Forecast 2007 – 2011Actual 2006 (1 XT = T&T)
■
■
■
0
20
40
60
80
100
2006 2007 2008 2009 2010 2011
Atlantic Canada – Market Potential & Strategy
• The current short term subsea market for FMC is limited to field expansions on Terra Nova (Frame Agreement with Petro Canada)
• Potential subsea business related to expansions on White Rose & Hibernia
• Potential subsea developments of both Tor Bay and fields in other areas
12
14
16
XT Market PotentialForecast 2007 – 2011Actual 2006
■
■
0
2
4
6
8
10
12
2006 2007 2008 2009 2010 2011
Key opportunities for the Supply ChainKey opportunities for the Supply Chain
Typical Cost-of-Sales Breakdown
Material
~70%*
Cleary, purchased material represents the single largest element of our costs
Other COS
30%*
* Actual values may vary by business unit
BP Block 18 - Subsea Production System Angola National fabrication overview
PGB’s
17 t. per unit
44 units in Angola
Manifold & WSSM’s
45 to 80 t.. per unit
6-7 Units in Angola
XT Guide Frame
25 units in Angola
44 units in Angola
WI and Prod. Trees
35 t. per unit
25 XT Assy in Angola
WI and Prod. Jumpers
Overall weight 15 t. unit
20 production/23 InjectionFabrication in Angola
SIT (Optional)
7 weeks duration
Local Establishment – Angola
Key Contacts to pursue businessKey Contacts to pursue business
How the Supply Chain engage with the FMC organicationFMC organication
Strategic Procurement
Date: 30.04.2007
Rev.11
Appr.: AAJM
Activities performed by
tactical procurement
• Strategic procurement focus long term• Strategic Procurement focus on developing suppliers to make them a part of FMC’s pool of Preferred Suppliers
EH Strategic Sourcing Challenge
EH XT Projected Capacity vs.
Forecasted Shipments
120115
88
75
20
40
60
80
100
120
EH SCM Projected Capacity vs.
Forecasted Shipments
268
244
210
169150
200
250
300
350
0
20
2004 2005 2006 2007 2008XT Mfg Capacity
XT Forecast Shipments
169
100
150
2004 2005 2006 2007 2008
SCM Mfg Capacity
SCM Forecast Shipments
• Improve the Understanding of Supply Chain Constraints• Re-engineer Supply Chains to Meet Capacity Challenges
Strategic Commodity/Process Selection
Sp
en
d B
erg
en
Sp
en
d S
ub
-Su
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On
ly S
up
pli
er
Avail
.
Cri
tical
Tech
no
log
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Vo
lum
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ssu
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Qu
ali
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ssu
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Deli
very
/Lead
Issu
e
Co
st
Issu
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Cli
en
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eq
u.
Lo
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Co
nte
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Dem
an
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Glo
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Can
did
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s
Lo
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Co
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pp
ort
.
Sin
gle
So
urc
ed
Low Hanging Fruits"Hu
rt"
Co
mp
on
en
ts
Reason for Hurt
$0 $0 x x Agreemen YES Cost is $0 $0 x x x x Agreemen YES Volume in $0 $0 x x x Agreemen YES Cost is $0 $0 x x x x Consolida YES Capacity
$1 380 000 $0 x x x x x YES Last
Spend By Facility Strategic Reason Strategic Options
$1 380 000 $0 x x x x x YES Last $0 $0 x x Frame YES Capacity, $0 $2 254 000 x x x Consolidate Volume and Have Kongsberg insulate trees in NorwayYES Capacity & Cost$0 $0 x x x x x Improve YES Lead time $0 $0 x x x x x Improve YES Lead time $0 $0 x x x x x Improve YES Lead time $0 $0 x x x x x x x Frame YES Capacity $0 $0 x X x x x FMC 1" YES
$0 $0 x x x x YES
$0 $0 x x x x x YES Capacity $0 $0 x x x x YES Volume$0 $0 x x x x YES Volume, $0 $0 x Agreemen YES Delivery $0 $0 x x x x x X Agreemen YES All of The $0 $0 x x x x x x YES All of The $0 $0 x X x x Agreement to be established. Qualify a second supplier ongoingYES Volume$0 $0 x x x x x Presently a frame agreement with HalliburtonYES Lead Time is high$0 $0 x x x x Presently YES Volume$0 $0 x x x Frame Agreement with X-cel under re-evaluationYES Delivery$0 $0 x x x x x x x Dialogue with Kongsberg on AggregationYES
$0 $0 x x x YES Obsolete $0 $0 x x x x Need to YES Volume & $0 $0 x X X x x x x YES Volume$0 $0 x x Agreemen YES Volume$0 $0 x x Agreemen YES Volume$0 $0 x x x Agreemen YES Lead $0 $0 x x x Establish YES Volume/S
Supply Chain Progress PlanControls
Pending
Updated: 17.04.2007 Not started
Ongoing
Completed
Initiative # Strategic Initiative Responsible Priority Target DateCost
ReductionPresent Target Present Target Issues
Supply
Agreement
Quality
Program
Supplier Development
Process
Mgmt. Visits
0001 Multi-Phase Meters W. Prestegård 1 Q1 / 2007 TBA40-50
weeks26 weeks 29 pcs 40 pcs Lt, Ot, Q Framo/Roxar 12.05.2006
0062 Optical Connector J. B. Bye 1 Q3 / 2007 Co, Ca, Q ODI / Seacon TBA
0063 Steel Flying Leads J. R. Johnsrud 1 Q1 / 2007 TBA Co, Ca, Ot TBA
0004 Control Valves A. Hjelle 1 Q3 / 2007 TBA14-16 weeks
12 weeks 4000 pcs 8000 pcs Co, Ca, SiRotator
08.11.2006
0006 Hydraulic Couplers A. Hjelle 1 Q3 / 2007 TBA8-12
weeks8 weeks 45000 pcs 60000 pcs Ot, Co, Ca, Si HTS 08.05.06
0007 SCM Manifold Block A. Hjelle 1 Q1 / 2007 TBA 14 weeks 6 weeks 200 pcs 400 pcs Co, Ca, Si TBA
Supply Chain Lead Time Annual Capacity Supply Chain Program
0064 eTech cost optimalisation O. Fjeldberg 1 Q3 / 2007 TBA Co N/A
0065 Hydraulic Jumpers O. Fjeldberg 1 Q2 / 2007 TBA Ca, Si, Co TBA
0038 WO Umbilical / Winch T. Knatterud 1 Q1 / 2007 10 % 52 weeks< 25
weeks12 20 Ca, Co, Ot TBA
0048Cost optimalisation of the new KS 600 series electronics
J. B. Bye 1 Q3 / 2007 TBA Co TBA TBA TBA N/A
0053 Small bore tubing O. R. Johnrud 1 Q1 / 2007 TBA Ca, Co, Lt TBA
0054 RLWI MK2, Controls T. Knatterud 1 Q2 / 2008 N/A Np N/A
0068 HPU Norway T. Knatterud 1 Q2 / 2007 5-10% 30 weeks 25 weeks 5 pcs >12 pcs Ca, Q, Co TBA
WOCS Norway T. Knatterud 1 Q2 / 2007 20 % 36 weeks 30 weeks 4 pcs >10 pcs Ca, Q, Co
FMC Supply ChainStrategies
Goals & Objectives Goals & Objectives 2007
23.03.2007 Low Cost Sourcing Strategy 2007
23.03.2007
Key Contacts to pursue Key Contacts to pursue business
Key Contacts
• TMI (Manifolds/Connection): Bjø[email protected]
• Control/Topside: [email protected]
• Completion/Workover/XT: [email protected]
• Strategic Sourcing Mngr: [email protected]
• Supplier development: [email protected]• Supplier development: [email protected]
• Russia: [email protected]
• Tel: +47 32286700
Good Luck!