Worley Limited · ASX:WOR
Worley — WorleyParsons — Investor Day (October 2011)
162 slides from Worley's investor day presentation, Oct 25, 2011
Slide 1: HSE Management of Contractors
For personal use only HSE Management of Contractors Marian McLean Director - Delivery Integrity
Slide 2: Management of contractors
Management of contractors For personal use only u Increasing level of Improve contracts u Contractor = WorleyParsons (HSE performance reporting) u Legal ‘duty of care’ u If HSE well managed, generally things are well managed on all fronts
Slide 3: Expectation alignment
Expectation alignment For personal use only u Alignment on • Scope of work • Key HSE risks • Primacy contract categories • Realistic project schedule • Gap analysis and bridging document
Slide 4: Leadership – site visits
Leadership – site visits For personal use only u We don’t • Do a general walkabout without a clear focus • Tick of numerous action items of no real value u We do • TALK TO PEOPLE • Ask them how it’s going • Listen to what they say • Ask what we can do to help • Deliver on every promise made
Slide 5: Changing behaviours
Changing behaviours For personal use only u Changing safety cultures from reactive to proactive u Establishing ‘safety pioneers’ across locations globally u Investment and implementation of major programs to increase awareness and change unsafe behaviours
Slide 6: Evaluating contractor performance
Evaluating contractor performance For personal use only u HSE Plan implementation u Work method statement effectiveness u Commitment from senior management u Quality and effectiveness of communication u Performance against KPIs u Recommendation for future work
Slide 7: Performance statistics
Performance statistics For personal use only WorleyParsons’ Contractor Safety Performance 0.5 0.4 0.4 0.3 0.3 0.2 0.2 0.1 0.1 0.0 2008 2009 2010 2011 YTD Industry Comparison of Contractor Safety Performance LWCFR TRCFR 1.8 1.6 1.4 1.2 1.0 APPEA 0.8 OPG 0.6 WP 0.4 0.2 0.0 LWCFR TRCFR LWCFR TRCFR LWCF
Slide 8: For personal use only
_ DEVELOPED DEVELOPING “WORLD WORLD : me\ \S + Yom
Slide 9: Introduction
For personal use only Introduction John Grill Chief Executive Officer
Slide 10: 1500 year celebration
1500 year celebration For personal use only
Slide 11: Differentiators
For personal use only Differentiators
Slide 12: Global reach – local operations
Global reach – local operations For personal use only 35,100 people 143 offices 43 countries
Slide 13: Leadership team
For personal use only Leadership team
Slide 14: Group outlook
Group outlook For personal use only “Subject to the markets for our services remaining strong, we expect to achieve good growth in 2012 compared to 2011 underlying earnings. We are projecting that current year earnings will be weighted to the second half of the financial year but expect our first ha
Slide 15: For personal use only
For personal use only
Slide 16: Development – Global and sector strategy
For personal use only Development – Global and sector strategy Iain Ross Group Managing Director - Development
Slide 17: Agenda
Agenda For personal use only u Restructure role u Focus areas u Global industry outlook u Hydrocarbons u Power u Infrastructure u Minerals & Metals
Slide 18: Restructure role
For personal use only Restructure role
Slide 19: Global industry outlook
Global industry outlook For personal use only u Key global themes: • Continuing economic volatility • Instability in the Middle East • Ongoing investment by China across the global resource market • Continued uncertainty about carbon pricing and desire for sustainable solutions • Fukushima ripple ef
Slide 20: Efficiency and optimisation of assets
For personal use only u Efficiency and optimisation of assets u Sustainable solutions u Technical innovation u Global leverage u Private multinationals
Slide 21: Monetising resource assets
For personal use only u Monetising resource assets u Desire for energy sovereignty u Building technical capability u Major infrastructure investment u State owned multinationals
Slide 22: Hydrocarbons sector dynamics
Hydrocarbons For personal use only Sector dynamics u Difficult Oil – Arctic and heavy oil u LNG – greenfield, floating and regasification u Unconventional gas u Rapid emergence of Brazil & Kazakhstan u Sustaining capital services
Slide 23: Hydrocarbons Strategy
Hydrocarbons Strategy For personal use only Response u Continue to build capacity in offshore oil and gas market and heavy oil/ oil sands u Execution of LNG in Australia is a primary focus u Work closely with the NOCs to deliver a broad range of services
Slide 24: Power sector dynamics
Power For personal use only Sector dynamics u Developed nations - reduced energy consumption and drive toward smart energy u Sustaining capital services in fossil fuel power u Developing nations - new build nuclear
Slide 25: Power Strategy
Power Strategy For personal use only Response u Follow growth in Asia, Middle East, Latin America and Africa u Focus on asset optimisation and network integration in developed nations u Continue to lead energy storage and carbon capture & sequestration markets u Extend leadership in new build nuclea
Slide 26: Infrastructure sector dynamics
Infrastructure For personal use only Sector dynamics u Growing population, urbanisation and industrialisation of developing nations u Water scarcity u Aging infrastructure within developed nations requiring restoration u Lack of infrastructure for stranded resources
Slide 27: Infrastructure Strategy
Infrastructure Strategy For personal use only Response u Focused on infrastructure and environmental needs for • pit to port • water management • ports of the future • master planning • remediation and decommissioning of facilities
Slide 28: Minerals & Metals sector dynamics
Minerals & Metals For personal use only Sector dynamics u Resurgence of iron ore projects u Innovative solutions required to bring Tier 2, 3 resources to market u Tier 1 regional and global service agreements u Continued need for investment in sustaining capital services
Slide 29: Minerals & Metals Strategy
Minerals & Metals Strategy For personal use only Response u Continue expansion in South America and Africa u Further embed unique pit to port infrastructure solutions for stranded resources u Broaden service offering in global agreement contracts
Slide 30: For personal use only
For personal use only
Slide 31: Operations
For personal use only Operations Stuart Bradie Group Managing Director - Operations
Slide 32: Agenda
Agenda For personal use only u Restructure rationale u Development group u Finance, People and Delivery support groups u Operations u Local delivery – global support u Doing what we do better u People u Benefits and outcomes
Slide 33: Restructure Rationale
Restructure Rationale For personal use only u WorleyParsons is uniquely differentiated through the breadth and depth of its global footprint u We will capitalise on this by embedding 1. Enhanced ability to service our customers globally 2. Efficiency and consistency of delivery 3. Increased focus on
Slide 34: Development group
Development group For personal use only Development Group Global Relationships I&E HC M&M Power u Service our global customers • Industry shift to global relationships • Global Customer Relationships (CRM) • Non business as usual
Slide 35: Finance, People and Delivery Support groups
Finance, People and Delivery Support groups For personal use only u Efficiency and consistency of delivery • Tight/Loose • Targeted and fit for purpose business support • Reputation (via Delivery Assurance) • Global best practice Delivery Finance People Support Group Group Group
Slide 36: Operations
Operations For personal use only Operations I&E HC M&M Power Select Local Locations Deliver customer Regional relationships Managing Finance People Deliver Improve Directors u Focus on locations • Differentiated sustainable business model • Where we make our money • Where we deliver our projects • I
Slide 37: Local delivery – global support
Local delivery – global support For personal use only Development Group Global I&E HC M&M Power Relationships Global Support Operations I&E HC M&M Power Select Local Locations Deliver customer Regional relationships Managing Directors Finance People Deliver Improve Global Support Delivery Finance Pe
Slide 38: Doing what we do better
Doing what we do better For personal use only u Global customers u Multi-location / cross-regional project delivery u Globally consistent and efficient tools, systems and work processes Ma’aden Phosphate, Saudi Arabia u Best practices First DAP shiploading – 23 September 2011 u Workshare Sectors Exe
Slide 39: People
People For personal use only u Increased focus on locations • Closer to our people • Talent identification and recognition • Cultural understanding enhanced u More regions / growing number of locations • More opportunities for our future leaders u Complex and challenging multi- location projects • E
Slide 40: Outcomes and benefits
Outcomes and benefits For personal use only u Increased chargeability in 2H Kazakhstan u Margins Perth • Increase of 2.8% in 2H u Improved cash performance in 2H Calgary u Match fit • Up Malaysia • Down u Head room for growth u Differentiated u Finding our future leaders
Slide 41: For personal use only
For personal use only
Slide 42: Delivery Support Group
For personal use only Delivery Support Group David Steele Group Managing Director - Deliver
Slide 43: Agenda
Agenda For personal use only u Delivery Support group u Overview of services u Consulting Practices u Select u Deliver u Improve
Slide 44: Delivery Support group
Delivery Support group For personal use only u Platform Leaders for Projects, Improve and Consulting Practices who have responsibility for the delivery platforms for these service types u Functional Leads who have responsibility for supporting the delivery platforms u System / Tools Leads who are th
Slide 45: Overview of services
For personal use only Overview of services
Slide 46: Consulting and EcoNomics
Consulting and EcoNomicsTM For personal use only Profitably embeds environmental, social, and financial sustainability into project delivery across the asset lifecycle Delivering technical consulting services to our customers either from within larger project teams or via stand alone engagements
Slide 47: Consulting – APLNG
Consulting For personal use only Customer: Australia Pacific APLNG LNG Engineering Project: Environmental Excellence Award impact assessment Offices: Brisbane and Perth Scope: u EIS studies u Site selection of key infrastructure u Stakeholder engagement The WorleyParsons, ConocoPhillips and Origin p
Slide 48: Consulting – Anglo American
Consulting For personal use only Customer: Anglo American Metallurgical Coal (AAMC) Project: Mine water desalination project Office: Brisbane Scope: u Fast track concept design and Class 2 estimate u EPCM awarded
Slide 49: Consulting – Mongolia
Consulting For personal use only Customer: Mongolia Project: Mongolia industrialisation and downstream processing study Office: Sydney and Ulaanbaatar Scope: u Advisory services u Strategic planning u Implementation pathways
Slide 50: Select – Kazakhmys
Select For personal use only Customer: Kazakhmys Project: Bozymchak Cu/Au mine definitive feasibility study Office: Almaty, London and Calgary Scope: u Prepare feasibility studies to permit fast track design, construction and commissioning of mine and processing plant u Risk management
Slide 51: Deliver – SAMREF
Deliver For personal use only Customer: Saudi Aramco Mobil Refining Company (SAMREF) Project: Clean fuels project Office: Al Khobar, Yanbu, Beijing and Monrovia Scope: u FEED u EPCM u Project management • Design team – 800 • Construction team – 4,000 • Man-hours – 4 million
Slide 52: Deliver – TengizChevroil
Deliver For personal use only Customer: TengizChevroil Project: Sour gas project Office: Atyrau, London, Houston and Philippines Scope: u Identify u Select u Define for SGI u EPCM for SGI and SGP
Slide 53: Deliver – Jubilee first oil
Deliver For personal use only Customer: Anadarko, Kosmos, Tullow Oil Plc Project: Jubilee first oil Office: Houston and Accara Scope: u Conceptual engineering / pre-FEED u FEED u Detailed Design u Procurement
Slide 54: Improve – Pacific National
Improve For personal use only Customer: Pacific National Project: PN rail alliance Office: Melbourne and China Scope: u Engineering and project delivery u Project management u Developing, maintaining and applying engineering standards u Coordinating and scheduling of capital projects u Business deve
Slide 55: Improve – Tennessee Valley Authority
Improve For personal use only Customer: Tennessee Valley Authority Project: TVA alliance Office: Reading and Chattanooga Scope: u 30,000 MW total installed capacity u Operation and maintenance u Modification services u Construction modification
Slide 56: Summary
Summary For personal use only Project APLNG EIA Mine Dewatering Project Industrialisation Study Bozymchak Cu/Au Mine Clean Fuels Project Sour Gas Project Jubilee First Oil Pacific National Alliance TVA Alliance
Slide 57: For personal use only
WorleyParsons resources & energy DEVELOPING WORLD
Slide 58: Global Minerals & Metals Relationships
For personal use only Global Minerals & Metals Relationships Mark Southey Managing Director – Minerals & Metals
Slide 59: Agenda
Agenda For personal use only u Industry trends u Tier 1 customer drivers and our response u Key global customer relationships
Slide 60: Industry trends
Industry trends For personal use only u Strategic mega projects in vogue u Developing world focus u Outlook strong u Skill shortages u Tight project finance u Industry consolidation u Delineation between customer groups u Realisation of new resource key to success
Slide 61: Importance of Tier customers
Importance of Tier 1 customers For personal use only u Sustained investment u Hold a disproportionate share of the spend u Provide insulation to market volatility u Critical for long term growth and success u Take a strategic approach to supply chain management u Seeking delivery assurance partners
Slide 62: Customers strategic thinking
Customers strategic thinking For personal use only
Slide 63: Responding to the challenge
Responding to the challenge For personal use only u Leveraging our global – local operating model u Fully integrated pit to port project delivery approach u Focusing on key commodity groups u Investment in global customer relationships
Slide 64: Global service agreements
Global service agreements For personal use only u Several global agreements u Agreements vary considerably • Enterprise wide • Commodity or business • Expansion • Sustaining capital u Many other opportunities u Confirmation of global status as ‘Partner of Choice’
Slide 65: BHP Billiton (iron ore)
BHP Billiton (iron ore) For personal use only u Structured integration with BHP systems and processes u Long term master framework agreement for Growth Program EPCM services across port, rail, mining and power u Current work includes • Yarnima Power Station • Port Hedland Tug Harbour u Secured susta
Slide 66: Vale
Vale For personal use only u From minor to major customer in three years u S11D iron ore project • One of the world’s largest iron-ore developments • Project based in Brazil, design being completed in Canada, Australia and Brazil u Global framework agreement now in place u Currently involved in proj
Slide 67: BASF
BASF For personal use only u Secured two long term engineering services agreement for Asia and North America region u EPCM execution model u Technology neutral u Currently executing multiple projects in • China • Singapore • Brazil u Major synergy benefits u Several other agreements in place
Slide 68: Conclusion
Conclusion For personal use only u Investing in global relationships …. Program starting to deliver u Global relationship focus is allowing our customers to get more value from WorleyParsons u Strengthening our market position for sustainable growth
Slide 69: For personal use only
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Slide 70: Water Security and Restoration
For personal use only Water Security and Restoration Gordon Cowe Managing Director – Infrastructure & Environment
Slide 71: Agenda
Agenda For personal use only u Infrastructure & Environment strategy u Water security • Objectives • Global issue • Case Studies u Restoration • Customer challenges • Market • Value offering • Case Studies
Slide 72: Introduction
Introduction For personal use only u Fastest growing CSG in u Rapidly expanding global footprint WorleyParsons • Over 53% of revenue currently derived • Revenue increased 50% in 2011 outside ANZ FY11 Aggregated Revenue % by Region ANZ Canada E&A USLAC AME u Major Growth Opportunities in: • Resource
Slide 73: Strategy
Strategy For personal use only u Global CRM u Early entry into resource development opportunities u Global Businesses • Water Security • Unconventional gas • Pit to port • Master planning • Ports • Transport • Environmental • Geosciences • Restoration
Slide 74: Why Water Security?
Why Water Security? For personal use only u Water security issues • South Africa • Chile and Peru • India and Mongolia • Middle East • US and Canada • Australia and NZ u Hydrocarbons and mining projects • Water supply and produced water management
Slide 75: Water security objectives
Water security objectives For personal use only u Support customer’s earliest identification of risks and solutions associated with security of water u Utilise market leadership capability with EcoNomics™ tools u Provide advisory, consulting, engineering, project delivery and through asset life supp
Slide 76: Water security – Government of Alberta
Water security For personal use only Government of Alberta Department of Environment u Developing an adaptive management approach for evaluation and management of groundwater resources in the Athabasca oil sands region • Management • Monitoring • Modelling u Vulnerability and risk mapping
Slide 77: Water security – Chevron / ExxonMobil
Water security For personal use only Chevron / ExxonMobil Kazakh Government u Second generation oil and gas handling plant u 300,000 barrels of oil per day u No water source u Strict environmental regulations requiring zero discharge u Delivered a 2.3ML/d zero discharge waste water treatment / recyc
Slide 78: Why Restoration?
Why Restoration? For personal use only u Long term sustainability requirements and objectives u Rapidly changing regulatory requirements u Increasing expectations of shareholders u Facility end of life and retaining value u Environmental and social constraints u Assets in complex and sensitive setti
Slide 79: Restoration services
Restoration services For personal use only Liability management and remediation u Business risk and asset management solutions u Improve end of life decision making u Remediation EcoNomics™ Decommissioning u Enhancing program planning u Sequencing complicated aspects of restoration u Contaminated la
Slide 80: Restoration – global issue
Restoration – global issue For personal use only
Slide 81: Size of the restoration market
Size of the restoration market For personal use only
Slide 82: Liability management and remediation
Liability management and remediation For personal use only BP environmental consulting and engineering services u Three year North America agreement u Optimize environmental spend and contractual risk u Consistency and simplification
Slide 83: Decommissioning
Decommissioning For personal use only PowerGen power station decommissioning and redevelopment u An oil fired power station decommissioned for a new commercial property development u Responsible for • Detailed site investigation • Risk based remediation strategy • Remediation approach to heavy metal
Slide 84: Response and recovery
Response and recovery For personal use only Southern California Edison (SCE) u Provides services to nearly 14 million people, 180 cities, 5,000 large businesses and 280,000 small businesses u Review and update of their damage assessment plan u Provision of engineers to support the recovery of the SC
Slide 85: Supporting changing needs
Supporting changing needs For personal use only
Slide 86: For personal use only
«DEVELOPED DEVELOPING -WORLD WORLD
Slide 87: Improve
For personal use only Improve Graeme Henderson Managing Director - Improve
Slide 88: Agenda
Agenda For personal use only u Introduction u Explanation of Improve u Improve – growth of value u Customer attractiveness u Why we focus on Improve u Improve financial value u What makes us unique u Our progress u The future – industry focus u Future geographic growth focus This image cannot curren
Slide 89: Introduction
Introduction For personal use only This image cannot currently be displayed.
Slide 90: Explanation of Improve
Explanation of Improve For personal use only u CoSyn contract • Relationship between Syncrude and WorleyParsons (COLT) • Long-term multi-disciplined contract including engineering and procurement commenced 1991 • Large project work pull through eg Aurora Tailings Dam 2011 2011 1996 20 year I3 ideas
Slide 91: Improve – growth of value
Improve – growth of value For personal use only Accumulated I3 Project Value Since 2000, CoSyn has achieved $607.1 million in project related value This image cannot currently be displayed.
Slide 92: Customer attractiveness
Customer attractiveness For personal use only This image cannot currently be displayed.
Slide 93: Why we focus on Improve
Why we focus on Improve For personal use only u Builds deep relationships u Understand our customers’ business u Improves HSE capability u Underpins our global operations u Creates long term financial value u We have a sustainable competitive advantage This image cannot currently be displayed.
Slide 94: Improve financial value
Improve financial value For personal use only u Return on assets u Return on equity u Use of assets and funds u Integration and reliable cash flow u Reimbursable contracts This image cannot currently be displayed.
Slide 95: What makes us unique
What makes us unique For personal use only u Unequalled geographic footprint u Global/cross region agreements with seven Tier 1 customers u Diverse industries = potential for leading practice sharing u Distinct but complementary business streams – Improve and Deliver u Unique expertise drives value
Slide 96: What makes us unique – BP
What makes us unique For personal use only u Three global agreements with BP u BP GoM commenced in 2009 and has grown to 400 people u BP Trinidad and Brazil u Relationships = growth 1998 BP Kwinana Refinery, Australia 1997 BP Chemicals 2008 BP 2010 BP Malaysia GUPCO 2009 BP Gulf of Trinidad 2011 200
Slide 97: Our progress
Our progress For personal use only This image cannot currently be displayed.
Slide 98: The future – industry focus
The future – industry focus For personal use only Rail Coal Ports Iron ore Water Aluminium Unconventional Gas LNG Fossil Fuels Nuclear Heavy Oil Refining Conventional Oil & Gas This image cannot currently be displayed.
Slide 99: Future geographic growth focus
Future geographic growth focus For personal use only Minerals Power Hydrocarbons - Hydrocarbons - UCG & LPG & Metals Upstream Downstream This image cannot currently be displayed.
Slide 100: For personal use only
For personal use only This image cannot currently be displayed.
Slide 101: For personal use only
For personal use only This image cannot currently be displayed.
Slide 102: Power developments and opportunities
For personal use only Power developments and opportunities Chris Ashton Managing Director - Power
Slide 103: Agenda
Agenda For personal use only u Key trends u Improve and the developed world u Customer challenges u Nuclear power post Fukushima u Nuclear projects u Smart Grid
Slide 104: Key trends
Key trends For personal use only ► Gas emerging as a World Power Generation long term fuel of choice ► Power networks experiencing rapid growth ► Nuclear power continues to be strong ► Coal still a dominant fuel in the emerging economies ► Polarity in demand growth ► Renewable energy remains importa
Slide 105: Improve and the developed world
Improve and the developed world For personal use only World net electricity generation by region, 1990-2035 (trillion kilowatt-hours) u Demand growth projections remain low over the long term u Utilities view market conditions as an opportunity to change business models u Focus on existing generatin
Slide 106: Improve and the developed world
Improve and the developed world For personal use only u Continued focus on US, Australia and Canada – good position for growth: • Currently >40% of global power business • Strong base in North America, and continued growth in Australia • Existing long term, quality customer base in each country
Slide 107: Customer challenges
Customer challenges For personal use only u Asset maintenance – diverse services capability – not just engineering but includes maintenance and outages, integrated services, operations and maintenance u Technology alignment with customers fleet – coal, gas, nuclear, hydro, solar, wind, transmission
Slide 108: Improve fossil fuel
Improve fossil fuel For personal use only Project: Fossil / Hydro / Nuclear fleet Project: Fossil / Hydro engineering engineering Customer: Ontario Power Generation Customer: Tennessee Valley Authority (OPG) (TVA)
Slide 109: Nuclear power post Fukushima
Nuclear power post Fukushima For personal use only France US It would be “obviously out of the question to phase out nuclear power.” ~ Nicolas Sarkozy “Nuclear power will continue to be an important part of our energy mix, both in the United States and around the world. Its role grows more valuable
Slide 110: Nuclear power post Fukushima
Nuclear power post Fukushima For personal use only China Japan Japan’s incoming prime China will temporarily suspend minister, Yoshihiko Noda, told approval for nuclear power reporters he was determined to projects, including those that restart the country’s idled nuclear have already begun prelimin
Slide 111: Nuclear power post Fukushima
Nuclear power post Fukushima For personal use only Russia Turkey Russian Energy Secretary, Sergei Kiriyenko said that Russia’s model of nuclear cooperation includes assisting new entrant nations to develop “clear regulatory frameworks in accordance with the requirements and recommendations of the IA
Slide 112: Nuclear power post Fukushima
Nuclear power post Fukushima For personal use only Generation I design (Fukushima) Generation III+ design u 1960 – 70’s vintage design u 40 years of design evolution u Safety systems limited to u Step changes in available technologies available at that time technologies and safety philosophy
Slide 113: Implications
Implications For personal use only u Opportunity for new build Generation III+ projects u Upgrade opportunity on existing facilities will take several years u Decommissioning, decontamination, demolition and disposal (D4) process for shutdown plants
Slide 114: Nuclear projects
Nuclear projects For personal use only u Bulgaria – Belene NPP owners engineer u Jordan – NPP consultancy u Egypt – NPP consultancy u Armenia – NPP consultancy u Turkey – Akkuyu NPP consultancy u Japan – Fukushima stress test assessment u Bulgaria – KNPP stress tests programs u Uzbekistan – CSP inte
Slide 115: Improve nuclear project
Improve nuclear project For personal use only u APS – Palo Verde nuclear generating station u PG&E – Diablo Canyon power plant u PSG&E – Salem generating station u SCE&G – V.C. summer nuclear generating station u TVA – Watts Bar, Sequoyah, Bellefonte and Browns Ferry
Slide 116: Smart Grid
Smart Grid For personal use only consumerenergyreport.com
Slide 117: Smart Grid – a disruptive technology?
Smart Grid – a disruptive technology? For personal use only u Not a future technology, set to become ‘business as usual’ u Impacts on all levels of power • Generation • Transmission and distribution and • All WorleyParsons customer sectors 17
Slide 118: Summary
Summary For personal use only u Polarity evident in the markets u Fossil fuel Improve market continues to expand u Nuclear market will continue to grow and we are well positioned u Network and infrastructure upgrades to support Smart Grid plans will diversify the business
Slide 119: For personal use only
ay uy “DEVELOPED DEVELOPING ORLD WORLD : we
Slide 120: South Africa / KV3 developments and opportunities
For personal use only South Africa / KV3 developments and opportunities Francois Jacobs Chief Executive Officer, WorleyParsons RSA
Slide 121: Agenda
Agenda For personal use only u Historical overview u Merger created u Forward plan u Africa perspective u Infrastructure market drivers u Our core sectors • Infrastructure • Power • Minerals & Metals • Hydrocarbons
Slide 122: Historical overview
Historical overview For personal use only u WorleyParsons acquires 50% of Pangaea u 2011 – WorleyParsons acquires KV3 and remainder of Pangaea u 1977 – KV3 founded as Vorster, van der Westhuizen & Partners u Focus on consulting engineering services to the public sector u 2001 empowerment deal
Slide 123: Historical overview
Historical overview For personal use only u KV3 grown to become a leading consulting company u Provides multidisciplinary consulting services
Slide 124: Merger created
Merger created For personal use only u Strong multi-sector business • Four core sectors • 24 offices • Over 1,300 people u Pursuit of larger and more specialized projects u Multi-sector African hub • Centres of excellence • Projects in 15 countries u Draw on KV3 public sector experience for sub saha
Slide 125: Broad Based Black Economic Empowerment (BBBEE)
Broad Based Black Economic Empowerment (BBBEE) For personal use only u Business imperative u Addressing the legacy of the past u Investment in our country and our personnel u Benefit from doing it Dr Franklin Sonn right WorleyParsons RSA u Level 3 construction Chairman charter contributor u BBBEE tr
Slide 126: African perspective
African perspective For personal use only u Second largest continent u Different cultures u Poor infrastructure cuts growth by 2% per annum u Forecast USD93b each year • Currently USD45bn • 50% on power u Priority: regional integration u Africanization - South Africans welcome u South Africa - Afric
Slide 127: Infrastructure market drivers
Infrastructure market drivers For personal use only u Focus on infrastructure - new and upgrades u Budget of USD120b over the next 3 years u Construction industry moving out of slump and WorleyParsons RSA not affected u Significant projects won through combined capabilities
Slide 128: Infrastructure
Infrastructure For personal use only Roads u Major road upgrades • Provincial roads department • SANRAL N2 Wild Coast Road Rail u Rail infrastructure depleted • Cape Town airport rail • Transnet coal and iron ore lines Airports u All major airports upgraded recently • Upgrades Cape Town and Johannes
Slide 129: Power
Power For personal use only u Current projects • Medupi and Kusile power stations • Kalahari solar park u Opportunities • Eskom coal power stations and Improve independent power producers • Renewable energy • Nuclear - government
Slide 130: Hydrocarbons
Hydrocarbons For personal use only u Current projects • Transnet New Multi Products Pipeline • Sasol VOC brownfields upgrade u Opportunities • Improve • Continuous growth • Large Sasol projects • Cleans fuels upgrade to Euro 4 Standard
Slide 131: Minerals & Metals
Minerals & Metals For personal use only u Current projects • Sasol Shondoni colliery mine • Rio Tinto Simandou pit to port u Opportunities • Projects throughout Africa for Tier 1 companies
Slide 132: For personal use only
ay uy “DEVELOPED DEVELOPING ORLD WORLD : we
Slide 133: Oil sands and construction in Canada
For personal use only Oil sands and construction in Canada Randy Karren Regional Managing Director - Canada
Slide 134: Agenda
Agenda For personal use only ► Background ► Business trends ► Breadth of services ► Project diversity ► Integrated solutions ► Key differentiators ► Contract models ► Recent projects ► Future opportunities
Slide 135: Background
Background For personal use only ► Oil Sands - major capital investment driving Canadian economy ► Land locked geographical region ► Environmental sustainability discussions now in public forum ► Heavy oil has many operators, while oil sands mining is restricted to major resource companies ► Most ma
Slide 136: Business trends
Business trends For personal use only ► Cost certainty is driving lump sum strategies ► Chinese investment is increasing ► Construction labor shortages are prevalent ► Job market has returned to overheated status ► Customers strong preference is to mirror EPC execution team with their own team ► Hei
Slide 137: Breadth of services
Breadth of services For personal use only ► Engineering and design ► Procurement ► Module fabrication and pre-assembly ► Construction management ► Field construction ► Completions
Slide 138: Project diversity
Project diversity For personal use only ► Oil sands processing ► Heavy oil processing ► Tailings management ► Water treatment and water management planning ► Pipeline and pipeline facilities
Slide 139: Integrated solutions
Integrated solutions For personal use only u Significant resources in place, 5000 people u Market is busy and growing saturated u Many global customers now in oil sands u Significant workshare opportunity for global company u Cost competitive solutions are needed
Slide 140: Key differentiators
Key differentiators For personal use only ► Long-standing involvement in heavy oil and oil sands ► Full EPC project delivery capability ► Fabrication and construction productivity ► Long-term, stable work force ► WorleyParsons differentiators
Slide 141: Contract models
Contract models For personal use only ► Reimbursable (cost plus fee) ► Fixed fee / reimbursable cost ► Unit rate per quantity fabricated and/or installed ► Converted lump sum at high level quantity certainty ► Full lump sum ► Variations and permutations of above models
Slide 142: Recent projects – MEG Energy
Recent projects For personal use only Customer: MEG Energy Project: Christina Lake phase 2B Scope: Fabrication and module assembly megenergy.com
Slide 143: Recent projects – Husky Oil
Recent projects For personal use only Customer: Husky Oil Project: Sunrise wellpads and gathering Scope: EPC WorleyParsons Cord fabrication facility
Slide 144: Recent projects – Imperial Oil / Syncrude
Recent projects For personal use only Customer: Imperial Oil / Syncrude Project: Aurora tailings management Scope: EPC
Slide 145: Future opportunities
Future opportunities For personal use only ► Integrated Improve model ► Improve construction services ► Water management ► Tailings management ► High value project delivery
Slide 146: For personal use only
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Slide 147: FLNG and unconventional gas
For personal use only FLNG and unconventional gas Brian Evans Managing Director - Hydrocarbons
Slide 148: Agenda
Agenda For personal use only u Hydrocarbons strategy u Unconventional gas • Types • Global distribution • Experience u Floating LNG • LNG process • Advantages • Challenges • Capability • Experience
Slide 149: Hydrocarbons strategy
Hydrocarbons strategy For personal use only u HSE performance u Global CRM u Maintaining leadership in EPCM delivery u Expanding our Improve offering u Advancing leadership in arctic, heavy oil and enhanced recovery markets u Driving value solutions for the global gas market • Delivery of end to end
Slide 150: Unconventional gas overview
Unconventional gas overview For personal use only u Different approach to conventional gas reservoirs • high number of wells • spread over a large development region u Technology advancement • horizontal drilling • fracture stimulation • de-watering u Long term planning impact
Slide 151: Unconventional gas
Unconventional gas For personal use only u European governments encouraging investment • ExxonMobil – Germany and Poland • ConocoPhillips – Poland • Shell – Ukraine and Sweden • Chevron – Poland, Romania and potentially Bulgaria • Total and Hess in France u China opens competition for 1,275tcf • BP
Slide 152: Unconventional gas – Global Opportunities
Unconventional gas Global Opportunities For personal use only Source: Global Data / Advanced Resources International, Inc. / PESA News
Slide 153: Unconventional gas – Global Opportunities
Unconventional gas Global Opportunities For personal use only Source: Global Data / Advanced Resources International, Inc. / PESA News
Slide 154: Unconventional gas – Global Opportunities
Unconventional gas Global Opportunities For personal use only Source: Global Data / Advanced Resources International, Inc. / PESA News
Slide 155: An array of differentiators
An array of differentiators For personal use only u Lean engineering concept u Full life-cycle integrated water management solutions u Modularisation experience u Local presence u EcoNomics™ and environmental capability in-house u Continuity of team
Slide 156: BP Khazzan - Oman tight gas project
BP Khazzan - Oman tight gas project For personal use only u Early Production (experimental) phase completed in Oman. u London has just commenced FEED which will go to mid-2012 • 330 wells, 8 -10 drilling rigs being supported by ~1,000 personnel • ~500km of gathering system once fully installed • ~10
Slide 157: LNG chain
LNG chain For personal use only Source: DRAGONLNG
Slide 158: Floating LNG advantages
Floating LNG advantages For personal use only u Numerous stranded and remote gas fields u Offshore access and ease of mobility u Cost savings from onshore infrastructure and pipelines u Potentially reduced carbon footprint u Shorter construction schedule
Slide 159: FLNG challenges
FLNG challenges For personal use only u Safety • Gas transfer in bad weather • Space and fire safety compliance u Technical • Absorption / fractionation columns • Main cryogenic heat exchangers • Sloshing in tanks u Commercial • Risk sharing in owning and trading LNG • Maintenance of production leve
Slide 160: Broad base of capability
Broad base of capability For personal use only u World leader in offshore engineering u INTECSEA provides deepwater and hull specialists u Early study work u Project experience with FLEX FLNG • Topsides scope • Weight >20,000 tonne • Gas Feed 300 MMSCFDNG • Capacity up to 2.0 mtpa
Slide 161: Summary
Summary For personal use only u WorleyParsons is extending our project portfolio u Two strong and emerging hydrocarbons horizons u Staked-out leadership positions in each u Globally leveraging footprint and applicable experience and capabilities in new ways u Applying the strength of the broader Hyd
Slide 162: For personal use only
ay uy “DEVELOPED DEVELOPING ORLD WORLD : we