FPSO Europe Roundtables-3.5

25 October 2016Millennium Gloucester Hotel, London

The FPSO Europe Roundtables are an exclusive day of closed-door, solution-oriented discussions for senior stakeholders from oil companies, FPSO contractors and financiers to engage in open and honest industry dialogue.

CLOSED-DOOR, SOLUTION-ORIENTED DISCUSSIONS FOR EUROPE’S FPSO LEADERS

www.fpsoeuroperoundtables.com

Pierre CarassusDirector, LNG Shipping and OffshoreSOCIETE GENERALE

Antoine Saint OliveHead of Offshore InfrastructureNATIXIS

Erwin NederkoornGlobal Head Offshore Oil/Gas ServicesING Bank

Hugo DiogoHead of EnergyABN AMRO

Project Financing

COMPLIMENTARY BY INVITATION ONLY EVENT*

Kevin BourgeoisProject DirectorENQUEST

Khalid LachhebHead of Contracts & ClaimsTOTAL

Contracts & Risk

Peter BurridgeNaval Architect/Structural TA-3MAERSK OIL

David HartellSenior Development ManagerPREMIER OIL

Market Intelligence Partners

Simon BradburyChief Operating OfficerTHE STEAM OIL PRODUCTION COMPANY

FPSO Redeployment

*Participation is complimentary for oil companies and FPSO contractors. £39 admin fee applies.

Francis ArmengaudVP Engineering, BU FloatersSAIPEM

Severine BaudicGroup Engineering & Technical DirectorSBM OFFSHORE

Engineering & Conceptualisation

Maintenance & OPEX Reduction

2 T: +65 6722 9388 | F: +65 6720 3804 | E: [email protected] | W: www.fpsoeuroperoundtables.com

WELCOME TO THE FPSO EUROPE ROUNDTABLESDear FPSO Colleague,

Following the success of the 2nd annual FPSO Europe Congress, came feedback from both oil operators and FPSO contractors that there would be significant value in holding closed-door, face-to-face roundtable discussions for senior decision makers to discuss key issues that emerged from the Congress.

This October, you have the unique opportunity to continue those conversations and participate in a series of in-depth discussions between your industry peers and subject-matter experts.

I’m delighted to welcome you to the FPSO Europe Roundtables, your closed-door industry platform for interactive, insightful and open discussions with Europe’s key FPSO stakeholders.

No doubt you have felt market pressures over the past 12 months, and now more than ever oil companies, vessel contractors, banks and other stakeholders are open to engaging as a community to advance robust and cost-effective FPSO projects.

So take your seat at the table and join us at the FPSO Roundtables to meet key players, have your voice heard and help shape the future of the industry.

Best,

Jasmine WhitingProject DirectorFPSO Europe Roundtables

NO POWERPOINTS.

NOPITCHES. JUST CRITICAL AND INSIGHTFUL PERSPECTIVES AND TAKEAWAYS DESIGNED BY THE FPSO INDUSTRY FOR THE FPSO INDUSTRY.

Featuring 8 roundtables led by industry experts, the FPSO Europe Roundtables are unlike any other event. As an exclusive, by-invitation-only event for oil companies and vessel contractors, participation is complimentary* pending approval. Get in touch today to secure your seat at the table!

*£39 administrative fee applies

Who will you meet at the FPSO Europe Roundtables?70+ specially selected key stakeholders from across the FPSO industry, including:

¢ C-Level / MD / SVP / Executive

Directors . ................................................ 10%

¢ Engineering / Construction / Technical

/ Maintenance / Asset Integrity

Managers . ............................................... 25%

¢ Development / Production / Projects /

Operations Directors & Managers ....35%

¢ Commercial / Contracts / Tenders

/ Procurement / Legal Directors &

Managers . ...............................................30%

Oil Operators .................35%

Vessel Owners...............35%

Shipyards and EPCs ... 20%

Banks, Law Firms,

Consultants ....................10%

Job Function FPSO Primary Market Profile


AGENDA AT-A-GLANCE

8:30 Registration&Coffee

8:50 Welcome Address by Chairman

9:00 Outlook for Oil Markets and FPSO Projects in 2017 and Beyond While oil markets have made a tentative rally from the lows of early 2016, the industry is by no means out of the woods. This

session will analyse global oil price trends and their effect on investment appetite and FPSO projects ahead. Reviewing the current oil price scenario: has the market finally bottomed out? How is US shale production impacting investment decisions offshore? Assessing the implications of a prolonged low oil price on FPSO project investment, contracting, execution and operations Examining the global FPSO market climate and appetite for 2017 and beyond with a focus on the North Sea and West Africa

Mark MacLean, Senior Vice President & Head of UK, Rystad Energy

9:30 Panel Discussion: Bringing FPSO Projects To Fruition Through Reassessing Contracts & Financing Mechanisms As the enduring medium-term reality for the hydrocarbons industry, the low oil price environment has forced all FPSO stakeholders

to take a hard look at their current processes and plans for the future. This panel discussion will review the biggest issues in reducing FPSO project costs and explore the various contracting and financing solutions in bringing projects to fruition.

How are oil companies assessing potential field developments for 2017 and beyond, and is the FPSO supply chain capable of assuming the risks and costs of new projects?

How is the investment appetite for FPSO projects and what kind of financing alternatives are available? Cost Reduction: Are we looking at the right places? Where can costs be reduced in the debt financing and contracting

phases? What are the key stakeholder perspectives on optimal contracting models, and how can the risk profile for all stakeholders

be better balanced?

Panelists: David Hartell Khalid Lachheb Hugo Diogo Erwin Nederkoorn Senior Development Manager Head of Contracts & Claims Head of Energy Global Head Offshore Oil/Gas Services Premier Oil Total ABN AMRO ING Bank

10:15 Morning Refreshment Break

10:45 Roundtable Session 1

Delegates will be pre-assigned to the first roundtable discussion based on job function. Each table will seat between 7-10 participants, to facilitate a healthy and engaging discussion.


Delegates will be free to choose the roundtable of their choice. Each table will seat between 7-10 participants, to facilitate a healthy and engaging discussion. Please see pages 4-6 for the full list of roundtable topics and hosts.

12:45 Lunch & Networking Break





15:45 Closing Remarks from Chairman

16:00 Happy Hour Begins Unwind over a drink or two and get to know your FPSO peers better at our free-flow FPSO Roundtables happy hour!

17:00 End of Happy Hour & Roundtables Dialogue


ROUNDTABLETOPICS

70+ specially invited delegates will participate in a series of in-depth discussions with vessel owners, oil operators, EPCs, financiers, and other key stakeholders to address critical issues in propelling robust and cost-effective projects forward amidst the current market reality.

Each of the 8 roundtables will be hosted by subject matter experts and leading industry players, who will initiate and moderate the discussions on their respective tables. Discussion sessions will occur simultaneously during 4 allocated sessions over the course of one day. Invited delegates will be free to pick and choose up to 4 roundtables according to their professional expertise and interests.

Building Innovative Risk-Sharing Mechanisms into Contracts to Propel FPSO Projects ForwardRecognising which party in an FPSO contract assumes more project risk is often a subjective debate. FPSO contractors see prescriptive requirements as barriers to timely and cost-effective projects, while oil companies are reluctant to relinquish control that could compromise the billions of dollars invested in their field development. This roundtable will discuss how to structure FPSO contracts to make them more palatable for oil operators and FPSO contractors.

Exploring innovative ways to share project scope and risk, such as assuming oil price risk with fluctuating returns or re-assessment of fixed charter rates: where are the opportunities?

Identifying and agreeing to a realistic quantification of risk between parties

Assessing mechanisms to developing a win-win contracting model: liquidated damages and bank guarantees; programme management vs extension of time; time at large vs time bar clauses

Making the most of contract renegotiations for existing projects: balancing lease contract lengths and day rates with upside allowance for vessel contractors

Roundtable Host: Khalid LachhebHead of Contracts & ClaimsTotal

Developing “Bankable” FPSO Projects from a Financier’s Perspective

Banks often claim that financing is readily available for FPSO projects that can demonstrate a robust balance sheet and contract. However, FPSO contract structures can only be discussed within what financiers consider commercially sound. This roundtable will discuss how financiers measure project bankability and what they require from an FPSO project and contracting model in order to reach FID.

How can the FPSO supply chain work collaboratively to obtain financing for operators and advance projects? How can debt financing be reduced through working together?

Overcoming challenges such as a lack of bank guarantees for smaller operators, JV partners in less financially stable regions and mitigating the risk of project overruns

Assessing more collaborative ways to reduce costs through financial streamlining vs. vessel contractors proposing a financing and execution plan for approval or rejection by the client

Exploring innovative opportunities to obtain financing for small-to-mid-cap oil companies: does private equity have confidence in the offshore sector?

Roundtable Hosts:Pierre CarassusDirectorLNG Shipping and OffshoreSociete Generale

Antoine Saint OliveHead of Offshore InfrastructureNatixis

Developing an Equitable Model of Risk Sharing Across the Supply Chain From conceptualisation to contracting and execution, much of the front-end activity in an FPSO project revolves around risk. This session will discuss how oil companies perceive, plan and manage the risk-related costs of both traditional and alternative FPSO award models. It will further look at opportunities for risk reduction and equitable risk sharing in the supply chain through trust and collaboration.

Understanding project risks and associated costs: country-based (local content, regulatory compliance and political stability), execution and technical

Assessing available risk-management strategies: pros and cons of transfer, insurance and budget provision

Mitigating the compounding of costs down the supply chain – where some 50 percent of project costs are held – through early engagement with subcontractors and supply chain innovation

Roundtable Host: Kevin BourgeoisProject DirectorEnQuest

ROUNDTABLE 1 ROUNDTABLE 2 ROUNDTABLE 3


ROUNDTABLETOPICS



Commercialising FPSO Redeployment as an Alternative Solution for Marginal Field DevelopmentsOnce one of the notable benefits of FPSOs as a field development solution, the concept of redeployment has fallen out of favour over the past several years as $100/bbl oil prices allowed clients to spring for increasingly complex vessels. Yet through balancing the field development plan with FPSO deliverables, redeployment can be a robust and cost-effective field development solution. This discussion will explore some of the challenges of FPSO redeployment as well as the key elements of a successful redeployment strategy.

Assessing project risk and understanding when a redeployment makes sense

What benefits can a redeployed FPSO offer small-to-mid-cap oil companies? How strong is the appetite to adopting one?

Understanding the FPSO modifications and upgrades necessary to ensure a productive and sustainable service life

Balancing oil company and FPSO contractor expectations and the necessary field development concessions to gain maximum asset value from a redeployment

Understanding the regulatory requirements to redeploying an FPSO, particularly in the North Sea

Roundtable Host: Simon BradburyChief Operating OfficerThe Steam Oil Production Company

Aligning Project Conceptualisation and Execution to Reduce CostsAn FPSO project conceptualised in the front-end planning stage of a development can often vary widely from what is executed in practice. If spiralling timelines and costs are to be held under control, it is essential that conceptualisation and execution are aligned in order to deliver a robust and cost-effective FPSO project. This roundtable will examine how engineering and technical strategies can be incorporated into the entire project execution plan to optimise FPSO execution and reduce costs.

Developing a holistic project picture during conceptualisation to establish a clear path for where costs can be reduced in the overall project execution

Establishing a strong basis of design before beginning project execution

Creating clear communication across all stakeholders and breaking silos between drilling, subsea and FPSO contractors

Roundtable Host: Severine BaudicGroup Engineering& Technical DirectorSBMOffshore

Reducing CAPEX through Value Engineering in Early Concept DevelopmentAs the design of FPSOs became increasingly complex over the past several years, corresponding escalation of costs have strained project budgets, particularly in light of current market conditions. This round table will address how the FPSO industry can leverage value engineering through early collaboration between oil companies and contractors return to reduce CAPEX and hold down OPEX on FPSO projects.

What aspects of FPSO design can be refined and improved to enhance operational efficiency and cut costs?

How can CAPEX be reduced through lighter, more compact topsides?

Can new technologies be applied to simplify design, standardise and reduce overall expenditure?

In what ways can stakeholders identify and align technical and budgetary targets to monitor progress and work towards common goals?

Discuss how FPSO design and engineering philosophies can be aligned in the early phase of concept development with functional, cost-effective objectives in mind.

Roundtable Host: Franics ArmengaudVP Engineering, BU FloatersSAIPEM

ROUNDTABLE 4 ROUNDTABLE 5 ROUNDTABLE 6




Reducing OPEXthrough Robust Front-End Planning

Increasing market pressures often see CAPEX as the first target for cost reduction, with OPEX rising unchecked over the course of the vessel lifecycle. Yet the most significant opportunity for OPEX reduction lies in the front-end planning phase. This roundtable will explore the design and planning factors that can ensure efficient FPSO operations without exceeding OPEX budgets.

What can be done in the design phase to ensure OPEX is held under control?

How can personnel on board be reduced through automation and digitisation?

Optimising equipment selection and supplier relationships to keep OPEX in check: how “healthcare contracts” can reduce costs in design, commissioning and installation

Roundtable Host: David HartellSenior Development ManagerPremier Oil

Optimising FPSO Inspection, Repair and Asset Integrity to Ensure Safety & Operational Productivity

Just as “every car on the road is a used car,” every operational FPSO – especially those in the mid-late stage of their lifecycle – requires strategic inspection and maintenance if it is to continue sustainable productivity. Yet lack of maintenance can result in increased planned or unplanned downtime, impacting FPSO operating efficiency and productivity. This roundtable will discuss how to optimise FPSO inspection, repair and maintenance and increase service life.

Developing an early asset integrity framework through alignment of client and contractor expectations and deliverables

Operating strategies to increase maintenance intervals while extending asset life for reliable, cost-effective service on mature FPSOs

What role can remote inspection play in the optimisation of safety and production efficiency on mature FPSOs?

Roundtable Hosts: Peter BurridgeNaval Architect/Structural TA-3Maersk Oil

Conrad De SouzaSpecialist Structural Integrity Inspector - Energy Division – OffshoreUK HSE

ROUNDTABLETOPICS

ROUNDTABLE 7 ROUNDTABLE 8

Nicolas Philippe, Offshore Field Manager, TOTAL

The FPSO Roundtables are a unique opportunity to exchange with FPSO professionals from the entire value chain. It provides you with a much-needed helicopter view.

Paul Hesketh, Principal, MPE

Excellent programme structure, highly informative and left me feeling enthused, positive and prepared to make changes for the better. Very professionally run event.

Krishna Kumar, Interface Manager, ENQUEST

A good event to exchange ideas and to understand the intricacies and important issues related to FPSOs


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www.fpsoworldcongress.com

INDOMITABLEFPSOs: IN THE AGE OF UNCERTAINTY

Brought to you by:

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2015 PROFILING REPORT | A SNAPSHOT OF THE FPSO MARKET IN 2015/2016

T: (65) 6720 9388 | F: (65) 6720 3804 | [email protected] | www.fpsoworldcongress.com

2015 PROFILING REPORTA SNAPSHOT OF THE FPSO MARKET IN 2015/2016

2015 has proved to be a challenging year for the FPSO industry. The fall in oil prices has severely

impacted the market, meaning that industry stakeholders now need to work together in order

to establish mutually beneficial, sustainable business models and weather the storm.

To discover what the key industry players are planning over the short to mid-term, we have

compiled the findings from our latest survey conducted with the attendees for our upcoming

event, the FPSO World Congress 2015. The following graphs provide insights into the

top challenges faced by the industry amid low oil prices, the market outlook for 2016 and

investment priorities for some of the biggest companies operating in the industry.www.fpsoworldcongress.com

THE FPSO MARKET IN 2016/2017

PROFILING REPORT

2015-2016 has proved to be a challenging year for the FPSO industry.

Sustained low oil prices have severely impacted the market, and

industry stakeholders are finding it critical to work together in order to

establish sustainable business models to push FPSO projects forward.As the industry looks for opportunity in the downturn, it is now a top

priority to reassess the conventional way of conducting business and

delivery of on-time, on-budget FPSO projects.To discover what the key FPSO industry players are planning over

the short to mid-term, we have compiled the findings from our latest

survey conducted with the attendees of our upcoming event, the 17th

Annual FPSO World Congress 2016. The following graphs provide

insights into the top challenges faced by the industry amid low oil

prices, the market outlook for 2016-2017 and investment priorities for

some of the biggest companies operating in the industry.

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www.fpsoasia.com/

The floating production, storage and offloading (FPSO) sector is likely to see

between $80-$120 billion-worth of investment through 2019, and that is

with the oil industry experiencing its worst downturn in a generation.With challenging times ahead, we drew upon the best bellwether in times of

industry upheaval - our vast and growing membership of FPSO professionals

- to see where you believed that 2015 was going to take us. Below is what we

found, according to you, the citizens of the global FPSO community:

$80 - $120 billion through2019

FPSOs - Weathering The Storm Or Sinking Beneath The Waves?

THE HERE & NOW

What percentage of your FPSO projects are conversions vs. new builds?

62%75-100%

5%0-25%

6%25-50%

17%50-75%

18%Americas

15%North Sea

27%Asia Pacific

29%Africa

11%Other

Where is your current geographical focus in terms of FPSO projects?

Which phase are your projects predominantly in?

PreFEED/FEED Execution Operational

40% 46% 14%

Keep your finger on the pulse with the latest market news and trends, industry reports, infographics and much more...

Visit www.fpsoeuroperoundtables.com today.

HAVE YOU VISITED OUR DEDICATED FPSO

DOWNLOAD CENTRE?

AN EXCLUSIVEBY INVITATIONONLY EVENTThe by-invitation-only FPSO Europe Roundtables are deliberately designed to facilitate face-to-face, interactive discussions between you and your peers. We qualify all attendees on job function and responsibility to ensure that you meet and engage with key FPSO decision-makers that add value to these discussions.

REGISTER! To request a complimentary invitation, please contact me directly at +65 6722 9388 or [email protected]. Get in touch today, as spaces are limited and issued on a first come, first served basis.

THE WORLD’S LARGEST NETWORK FOR THE FPSO COMMUNITY

An international resource and content centre for the FPSO professional, FPSO Network delivers the latest insightful and unbiased information pertaining to the entire FPSO value chain. FPSO Network, part of IQPC and associated with the world-famous FPSO Congress series, maintains the largest international database of FPSO professionals offering strategic partners, members, and contributors an unparalleled opportunity to network, share ideas and disseminate best practice information in designing, executing, delivering and operating FPSOs across the world. The FPSO Network provides research, training, and networking for oil company, vessel contractor, EPC, shipyard, financing, legal and solution provider professionals from over 50 countries around the world. Whether you come from an oil operator, upcoming vessel contractor or established solution provider, FPSO Network offers you the opportunity to connect, collaborate and communicate with the global FPSO community. Launched over a year ago the FPSO Network now has over 10,000 members. To find out more please [email protected]

www.fpsonetwork.com


PARTNERSHIPOPPORTUNITIES

HOW TO BECOME A MARKETINTELLIGENCE PARTNER

The FPSO Europe Roundtables is Not Your Ordinary Event— Can You Add Value to the Discussions?

Other than pre-qualified and handpicked solution providers who can prove that they add value to the roundtable discussions, this event is closed to vendors

Discussions will center around efficiency optimization, cost reduction and pushing forward projects in the current market environment, with leading project directors and decision-makers highlighting their challenges over 8 tables

Why is This Event Valuable to You?

Position your company as a credible and valued partner to 70 of your hottest prospects from oil companies, vessel contractors and EPCs

Respond to critical challenges in the FPSO industry by demonstrating how you add value in face-to-face discussions

Meet and interact with key prospects in the market including Total, Premier Oil, Enquest, SBM Offshore, and many more

Becoming a Market Intelligence Partner:

Partnership opportunities are deliberately limited for this exclusive roundtable dialogue. Again, whether your company qualifies to attend will depend on whether you can add value to our roundtable discussions.

Send us an executive summary of your company and track record to see if our VIPs and end-user delegates approve of your participation. Call us at +65 6722 9388or email [email protected] for more details.

FPSO Europe Roundtables-3.5

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Transcript of FPSO Europe Roundtables-3.5