Quarter II 2011 Short Form 20 April (2)
Transcript of Quarter II 2011 Short Form 20 April (2)
An introduction to Petrofac
Quarter II, 2011
Values
Petrofac is a culturally diverse, international company, united by shared values.
Petrofac people are:
• safe
• ethical
• innovative
• cost-conscious
• responsive to customers
and always focus relentlessly on delivering results.
What we do? And where?
• Petrofac is a leading provider of facilities solutions to the international oil & gas
industry
• We design and build oil & gas infrastructure; operate, maintain, and manage
facilities and deliver competence-led training; and where we can leverage our
service capability, develop and co-invest in upstream and infrastructure projects
• We have 30 years’ experience of supporting oil & gas production and processing
and a successful track record of several hundred projects
• Our key markets are the Middle East and Africa, CIS and Asia Pacific and UK
Continental Shelf: these markets account for 70% of the world’s proven oil
reserves and 85% of its proven gas reserves
HSSE
Petrofac is committed to HSSE excellence
On behalf of the Board of Petrofac Limited:
Ayman Asfari
Group Chief Executive Officer
HSSE
Vision
• Petrofac will be acknowledged by our industry as a standard setter in HSSE management,
an expert in delivering high HSSE performance from diverse workforces in challenging
operational environments.
Commitment
• Petrofac Board of Directors has ultimate responsibility for health, safety and environmental
performance. This responsibility and the Board’s commitment to the achievement of
HSSE excellence are the foundations of our Business Management System.
• We are committed to a target of zero accidents. We will ensure that our activities are not
injurious to health and endeavour to minimise adverse impact on the environment.
• All Petrofac employees and contractors are required to meet these commitments as an
integral part of their work.
Our golden rules of safety
It is an achievable and sustainable expectation of every one of our members of
staff world-wide that they should be able to go home at the end of the working day
without having suffered or caused harm.
2007 2008 2009 2010 2011 YTD
RIFR 0.35 0.32 0.36 0.18 0.12
LTIFR 0.067 0.033 0.020 0.026 0.013
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
Incid
ent
Rate
/200,0
00 M
anhours
HSSE statistics summary for Petrofac Group
OGP* 2009 (RIFR)
~ 0.35
OGP* 2009 (LTIFR)
~ 0.09
*OGP – association of oil & gas producers
AT A GLANCE
Petrofac is a culturally diverse,
international company, united by shared
values
Group history
Revenue – US$ millions
2001 - Petrofac
Engineering, London
1997 - Petrofac
Resources, London (now
Petrofac Energy Developments
– {PED})
1991 - Petrofac
International, Sharjah, UAE
Ayman Asfari joins as CEO
2003 – Petrofac
Mumbai
2008 – Petrofac Emirates
& Petrofac Saudi Arabia
1981 - Petrofac
Inc, Tyler Texas
2007 –
Petrofac, Chennai,
Petrofac
IKPT, Jakarta, Petrofac, Beiji
ng
2002 - Petrofac Facilities
Management, established (now Offshore
Engineering & Operations), Aberdeen
(acquisition)
Also, Incorporation of Petrofac Ltd
2004 - Petrofac Training
established (now Training
Services) (acquisition)
2010 – PED demerge UKCS assets,
acquisition of CO2DeepStore and TNEI:
strategic step into renewables sector
2005 - Petrofac Limited
listed on London Stock
Exchange
2005
2006
2007
2008
2009
2010
1485
1864
2440
3330
3655
4400
Petrofac at a glance
• Financial
– a constituent of the FTSE100 Index
– approximate market capitalisation of approximately US$8 billion
– 2010 revenue US$4.4 billion
– largest of the oil services sector listed in the UK by market capitalisation
– sector leading backlog: outstanding revenue visibility
– a long-term record of delivering exceptional growth and returns for shareholders
• Personnel
– around 14,000 personnel representing approximately 60 nationalities
• Performance
– Worldwide Engineering News - Record (ENR) Survey 2009 rated Petrofac again
in the top 10 international contractors in the oil & gas industry
Petrofac at a glance
• Operations
– delivers life-of-asset services through seven business units
– currently executing projects with a combined value in excess of US$10 billion
– strong position in Middle East/ North Africa and with National Oil Companies
who have been continuing to invest in spite of the recessionary environment
– deep experience in operating and improving mature production – increasing
rates of depletion are a big challenge
• Locations
– major operating centres in UAE, the UK and India supported by a network of
20 offices around the globe
Operating locations
Milan Abu Dhabi
BeijingLondon
Woking
Aberdeen
Moscow
Doha
Houston
Sharjah
Mumbai
Chennai
Jakarta
Kuala LumpurLagos
Ahmadi
Algiers
Tunis
Damascus
Bishkek
Khartoum
Atyrau
Sakhalin
Khobar
Iraq
Main operational centres
Other operating locations
Corporate services
Singapore
Baku
Muscat
Petrofac – organisational structure
Petrofac IKPT
Petrofac Emirates
Petrofac
Saudi Arabia
E&C Ventures
(EPC)
Marwan Chedid
Engineering &
Construction (EPC)
S S Sarma
Offshore projects
Operations
Production
Solutions
Gordon East
Plant Asset Management
SPD
(Well operations)
Eclipse
(Petroleum Technology)
Caltec
(Production Technology)
Engineering
Services
Rajesh Verma
Woking
Mumbai
Chennai
Offshore Engineering
& Operations
Bill Dunnett
Training
Paul Groves
Energy
Developments
Rob Jewkes
Group Chief Operating
Officer
Maroun Semaan
Technical Integrity
Assurance
Group Chief Executive
Ayman Asfari
Sharjah
Qatar
Upstream
Energy Infrastructure
Floating Production
Chief
Executive, Energy
Developments &
Production SolutionsAndy Inglis
Investment in upstream opportunities based on proven hydrocarbon reserves
and in oil & gas infrastructure, leveraging our core skills
Competency consultancy, delivery and assurance
Design of training facilities / business planning and operations
Technical O&M, HSE, emergency response and crisis management training
Offshore Projects
Operations
Engineering Procurement & Construction (EPC)
Project management
Lump sum EPC
Engineering &
Construction
Engineering &
Construction Ventures
Engineering Services Consultancy
Front End Engineering Design (FEED)
Project Management Consultancy (PMC)
Offshore Engineering
& Operations
Training Services
Production Solutions
Energy Developments
Facilities management
Production enhancement
Improved reservoir recovery
Well engineering & well consultancy
Production modelling & optimisation
Business units - services
Petrofac – group personnel
Other
Groups
Mumbai &
ChennaiWoking UAE Jakarta (IKPT)
Construction /
sites
worldwide
UK International UK International UK International UK International
Senior Management 2 12 10 2 0 24 0 2 8 15 5 5 5 29 119
Project & Construction Managers 0 8 78 4 55 22 12 1 4 1 4 5 10 0 204
Engineering, Design & Drafting 1556 179 1739 193 39 402 26 1 1 0 0 0 4136
Project Controls
(Planning / Scheduling)
14 12 96 2 64 0 0 188
Procurement Services & Logistics 0 7 223 1 96 98 18 1 77 0 23 544
QA/QC/HSE 8 5 172 6 464 96 10 1 14 1 25 0 7 0 809
Fabrication Shop 0
Commissioning, Start-up and
Operations
26 0 43 153 222
Construction 0 0 30 667 697
Contract Admin. Sales & Marketing,
Proposals, Regional Staff, Consultancy
Management, IT support, Local staff
etc.
69 34 615 22 627 281 68 113 55 27 51 22 125 33 2142
Technical Operational Services 0 0 0 0 2597 751 142 92 90 849 6 350 0 4877
TOTAL 1675 257 3006 230 2165 3520 885 260 174 135 1011 38 520 62 13938
62 139381146 558
Technical & Support Services
Petrofac
Group
TotalPetrofac E&C and Engineering Services
Petrofac Offshore
Engineering &
Operations
Petrofac Training
Services
Petrofac
Energy Developments
Petrofac Production
Solution
7333 4405 434
Behaving responsibly
• Underpinned by its core values and code of business conduct, Petrofac
promotes responsible and ethical behaviour in its four key social
responsibility areas:
– Community - investment in the community to general improved social
capacity outcomes
– Workplace - support working practices that prioritise the welfare and
diversity of employees
– Marketplace – focuses on ethical supplier management
– Environment – implements sustainable operational practices
Executing projects
onshore and offshore
around the globe
Focused relentlessly on delivering results
Engineering &
Construction
Engineering & Construction (E&C)
Engineering & Construction Ventures (E&CV)
• Oil & Gas
– oil & gas gathering and production facilities
– crude separation / stabilisation
– gas processing / compression
– LPG / NGL recovery including turbo-expander plants
– liquefaction of Natural Gas & cryogenic facilities for LNG transportation &
storage
– high pressure water & gas re-injection
– sulphur recovery
– oil terminals & pumping stations
– flowlines and pipeline systems
E&C, E&CV
• Refining
– crude distillation units and vacuum distillation units
– distillate and LPG treating units
– catalytic reformers
– hydrotreating
– isomerization units
– alkylation units
– acid gas removal units
– sulphur recovery units
– sour water stripping units
– crude desalters / electrostatic treaters
– asphalt plants
– hydrogen plants
– offsites and utilities
E&C
Middle East
• Bahrain
• Kuwait
• Iraq
• Oman
• Qatar
• Syria
North Africa
• Algeria
• Egypt
• Libya
• Tunisia
CIS
• Azerbaijan
• Georgia
• Kazakhstan
• Kyrgyzstan
• Russia
Sub-Sahara Africa (potential)
• Angola
• Ghana
• Mozambique
• Nigeria
• South Africa
• Uganda
Focussing on lump sum EPC projects in existing Petrofac markets
E&CV
• Taking Petrofac into new markets through
– Petrofac Emirates (joint venture with Mubadala Petroleum Services
Company)
– Petrofac Saudi Arabia
– Petrofac IKPT
• Focusing on Lump sum EPC contracts in
– UAE
– Saudi Arabia
– Turkmenistan
– Malaysia
– LNG worldwide through our strategic joint venture with IKPT
EPC capability
• Integrated EPC service
• Project management
• In-house design and engineering
• Procurement of materials and equipment
• Transportation of materials to site
• Fabrication and onsite construction
• Commissioning and start up
LUMP SUM EPCProject Management
Engineering Procurement Fabrication & Construction Commissioning & Startup
PROJECT COUNTRY PROJECT VALUE SCOPE
Turkmengas - South Yoloten gas field project Turkmenistan US$ 3,979 mm FEED/EPC
Agip KOC -Kashagan field development Kazakhstan US$ 2,500 mm EP&CM
ADCO – Asab field development project UAE US$ 2,452 mm EPC
El Merk - Central Processing Facilities (CPF) Algeria US$ 2,216 mm EPC
Gasco - NGL4 , Ruwais, integrated gas development project UAE US$ 2,100 mm EPC
PDO - Harweel field development project Oman US$ 1,400 mm FEED/EPC
ISG – Southern fields development project Algeria US$ 1,200 mm EPC
AGT - pipelines and pumping stations Georgia & Azerbaijan US$ 1,140 mm EPC, JV
Total – Laggan Tormore gas plant project United Kingdom (Scotland) US$ 800 mm EPC
KOC – facilities upgrade project Kuwait US$ 800 mm EPC
ISG - In Salah Gas compression project Algeria US$ 665 mm EPC
Ohanet gas development project Algeria US$ 660 mm EPC, JV
QP, gas sweetening facilities Qatar >US$ 600 mm EPC
Karachaganak - fourth stabilisation & sweetening train project Kazakhstan US$ 600 mm FEED/EPCM
Petro Canada - Ebla gas plant project Syria US$ 565 mm EPC
KOC – 40” gas pipeline Kuwait US$ 550 mm EPC
Saudi Aramco – Karan utilities and offsites Saudi Arabia Undisclosed EPC
BG - Hasdrubal terminal project Tunisia US$ 475 mm EPC
HPC - Jihar development project Syria US$ 433 mm EPC
KOC - Water injection project Kuwait US$ 430 mm EPC
KOC – Pipeline project Kuwait US$ 400 mm EPC
PDO - Kauther depletion compression project Oman >US$ 350 mm EPC
Petronas – Sepat offshore early production system Malaysia US$ 280 mm EPC
Shell – Majnoon early production system Iraq >US$ 240 mm EPC
Recently completed & current, EPC projects
Engineering Services
Business unit offering – Engineering Services
(ES)Engineering Services (ES)
• Specialist expertise in:
– consultancy, feasibility studies, front-end engineering and design (FEED)
– detailed engineering, health safety and environmental studies
– value engineering, operability and operational enhancement studies
• Encompassing:
– onshore / offshore, oil & gas plants, LNG plants & refineries
– full-field development plans with associated technical, commercial and risk
studies
– process engineering and flow assurance
– project analysis: costs, schedules and risk management
– health, safety and environmental studies
– HAZOP, HAZID, ALARP, SIL, RAM, QRA
– full project management and services (PMS) from project concept through
delivery
Business unit offering – Engineering Services
(ES)Engineering Services (ES)
Industry recognised subject matter experts in:
• Process:
– Oil & gas processing
– Dynamic simulation
– Flow assurance
– LNG
– Coal to liquids
– Gas to liquids
– Carbon capture
– Distillation
– Refining
• Safety:
– Quantitative risk analysis (QRA)
– Consequence and dispersion modeling
• Mechanical:
– Rotating machinery
– Heat transfer
• Civil/structural:
– Geotechnical
– Concrete and steel structures
– Earthquakes
CLIENT/PROJECT COUNTRY VALUE
Karachaganak - Phase III – FEED / early works Kazakhstan US$ 280 mm
BP / Rusia - Kovykta regional gasification project Russia US$ 60 mm
SonaHess - El Gassi oil optimisation project Algeria US$ 16 mm
Karachaganak - Fourth stabilisation and sweetening
train – FEED
Kazakhstan US$ 14 mm
Total - Kharyaga phase III FEED Russia US$ 12 mm
OMV - Strasshof field development Austria US$ 6 mm
BG – Hasdrubal field development, concept/FEED Tunisia US$ 5 mm
TNK BP- Rospan Field Development Russia US$ 5 mm
Lundin – Oudna field development Tunisia US$ 4 mm
Statoil - South Zagros development Iran US$ 2 mm
Engineering services, major references
Offshore Engineering
& Operations
Offshore Engineering & Operations
Pre-operations
support
- Logistics
- Supply chain
management
- Mechanical
services
- Metering
Duty Holder and
operations support
- Management of HSE
regulatory compliance
- Transition
management
- Logistics/ supply
chain management
- Mechanical and
metering services
Modifications and
maintenance
-
Conceptual, FEED, d
etail design
- Commissioning and
decommissioning
- Shutdown
management
- Subsea step-outs
- Maintenance
Offshore projects
- Lump sum EPC
- Conceptual
- FEED and detail
design
- Project management
- Commissioning
…across a range of assets and locations
United Kingdom Middle East and North Africa
Malaysia
Cendor
E&C contract
Grove
Forties
Topaz
Auk North
Ninian
Murchison
GPIII
Sharjah Govt: Sajaa
Gas Plant
Laggan-Tormore gas plant
Operations – current contracts
• BP
– maintenance services for all UK offshore assets and Dimlington
Plant (2010 – 2015)
• Sharjah government
– facilities management of Sajaa gas plant and related assets, UAE
• EnQuest
– duty holder of the Northern Producer since 1997, now operating on
the Don field, UKCS
– duty holder of Thistle and Heather platforms, UKCS
• Centrica
– duty holder of Kittiwake
– project support and manpower services for Morecambe Bay assets,
East Irish Sea
• Eni
– duty holder of Bacton onshore terminal and Hewett offshore
platform
• Marathon
– engineering, construction, operations and maintenance services to
Braes, UKCS
Skilled and competent
people
Building contracting models to fit customers’
operational requirements
Manpower supply Supervised teams Performance management
contracts
Skilled and competent
people
Direct management
Experienced
supervision
Skilled and competent
people
Skilled and competent
people
Experienced
supervision
Direct management
Experienced
supervision
Duty Holder/JVO
Duty Holder
Responsibility
Rew
ard
Current projects
• Total
– EPC for gas processing plant for Laggan and Tormore
fields, Shetland, UK
• Maersk
– engineering services for Maersk’s UKCS offshore assets
• Apache
– engineering and construction services for Forties field,
UKCS
• Talisman
– Claymore compression upgrade, UKCS
• Centrica
– engineering and construction services for offshore
modifications, Kittiwake, UKCS
• EnQuest
– engineering and construction services for offshore
modifications – Northern Producer
Training Services
Training Services overview
• A leading provider of competence-led operations, production, technical, HSE,
emergency response and crisis management training services with over 30
years’ experience
• Over 450 highly experienced trainers and assessors
• Training centres in: Aberdeen, Montrose, Baku, Singapore, Sakhalin, Houston,
Homs, Hassi Messaoud
Services include:
Competency consultancy
• Training appraisal studies
• Training needs analysis
• Design of training interventions
(curriculum)
• Design of training facilities /
business planning and
operations readiness
Competency delivery
• New hires - foundation development
programmes for school leavers, technical
diploma holders and engineering degree
holders
• Existing staff - re-skilling and up-skilling
development programmes
• Training centre operations and
management
• Train the trainers and workforce
nationalization programmes
Competency assurance
• Assessment and verification
• Accreditation
• Tracking, recording and reporting
Competency consultancy
• Training appraisal studies
• Training needs analysis
• Design of training interventions
(curriculum)
• Design of training facilities /
business planning and
operations readiness
Competency delivery
• New hires - foundation development
programmes for school leavers, technical
diploma holders and engineering degree
holders
• Existing staff - re-skilling and up-skilling
development programmes
• Training centre operations and
management
• Train the trainers and workforce
nationalization programmes
Competency assurance
• Assessment and verification
• Accreditation
• Tracking, recording and reporting
Caspian Technical Training Centre (CTTC) - Baku Chemical Process Technology Centre (CPTC) -
Singapore
Survival training - UKEmergency response &
crisis management
USA / UK / Singapore / UAE
Training facilities
Fire training - UK
National workforce development
• Developing safe and competent national workforces
– “Petrofac competent workforce scheme”
• Structured competence based training to meet client requirements
– “competence drives training”
• Learning outcomes designed to ensure both generic and clients site specific
process applications are delivered
• Behavioural safety, health & environmental training delivered as a common
thread throughout the life of the programme
• Programme can be structured in stages depending on existing skill level
– pathway to competence
Production Solutions
Production Solutions (PS)
• Co-investment through risk service and production enhancement contracts
• Plant Asset Management (PAM)
– specialist consulting in maintenance and integrity, structural
integrity, supply chain management
– operational and project management consultancy
• Well construction and operations (SPD)
– well construction, well engineering and well consultancy
• Petroleum technology (Eclipse)
– field development optimization
– production modelling and optimisation
– well life cycle risk management
– Production optimisation software - PetroAtlas
• Production technology (Caltec)
– production enhancement solutions by the application of novel boosting
and compact in-line separation technologies
PS - integrated investment projects
• Production enhancement contract:
• Tariffs on mature field redevelopment
– Petrofac takes over operations and invests to
improve efficiencies and enhance reservoir
production
– repayment from negotiated tariffs for
baseline/incremental production
• risk service contract eg. new well tie-back, where PS:
– pays share of drilling/tieback costs
– repaid a negotiated multiple of its costs once production
starts-can be phased over time.
– involvement complete once payback achieved. Period
can be extended to provide operational services
Services and funding capability joined: services provided at risk, and repaid out of
production in a range of commercial arrangements to suit the asset, partners and
regulatory situations
Risk Service Contract
-80.0
-60.0
-40.0
-20.0
0.0
20.0
40.0
60.0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Cas
hfl
ow
, $
MM
.
Partner Cashflow
PS Cash Flow
Energy Developments
Energy Developments
Co-investment and asset management
• Co-investment, as equity or quasi-equity, in oil & gas
production, processing and transportation assets
• Leveraging the group’s extensive engineering and operations capability
to better understand and help mitigate development risks, enhancing
project returns in complete alignment with partners
• Technical, operational, commercial and asset management skills
brought alongside the strong financial resources of the group
• By combining the group’s facilities and infrastructure services with the
capability to assess the balance of reservoir and development
risks, Energy Developments pursues both upstream, discovered but
undeveloped oil & gas assets and downstream infrastructure, including
refineries, pipelines, oil terminals, storage facilities and gas processing
facilities
• Energy Developments’ investment portfolio consists: Block
PM304, offshore Malaysia; Berantai field development offshore
Malaysia, Chergui concession in Tunisia; the Gateway gas storage
project in the East Irish Sea; the Kyrgyz refinery in Kyrgyzstan, and the
Ohanet gas field in Algeria.
The Petrofac co-investment model
“Petrofac provides innovative and integrated solutions to the
global oil & gas industry. We invest in projects in which we
can apply our know-how, execution capability and financial
resources to create value and align with our customers”
Petrofac Energy Developments (PED) aims to act as "the integrator" - to
provide an alternative, attractive and flexible mechanism to deliver
services to our customers.
Expanding our
portfolio -
renewables & carbon capture
newenergy
• During 2010 Petrofac made a strategic step into the low carbon and renewables
energy sector by acquiring two specialist businesses which, combined with
Petrofac’s extensive portfolio, leverage the extension of our services into the
offshore wind and carbon capture and storage sectors
• Offshore wind
– TNEI
• a specialist consultancy supporting the energy, power and renewables
sectors providing services in the areas of power transmission and
distribution, planning and environmental consent and energy
management
• Carbon capture and storage
– CO2DeepStore
• co-investors in transport and storage aspects of carbon capture and
storage (CCS) projects, to deliver a CO2 storage service to major
emitters
David Lufkin
Head of Business Development
+971 6 574 0999
Kaye Krause-Whiteing
Group Marketing Director
+971 6 574 0999
For further details contact