Equinor ASA · OSL:EQNR
Equinor ASA — Statoil — Statoil IR Autumn Conference 2015
28 slides from Equinor ASA's conference presentation, Nov 23, 2015
Slide 1: Statoil IR Autumn Conference
Statoil IR Autumn Conference 23 November 2015, Oslo
Slide 2: Procurement and supplier relations
Procurement and supplier relations Jon Arnt Jacobsen, SVP
Slide 3: Supplier performance key to our success
Supplier performance key to our success Strong relationships with high-quality suppliers drives sustainable competitiveness The majority of Statoil’s yearly expenditures arises from suppliers Statoil procurement 2014 in NOK Bn 3
Slide 4: Safety and security – achieved together
Safety and security – achieved together Serious incident frequency Number of serious incidents per million work-hours, last 12 months 2,5 2,2 2 1,9 1,5 1,4 1 1,1 1,0 0,8 0,5 0,6 0,5 0 2008 2009 2010 2011 2012 2013 2014 3Q 2015 4
Slide 5: Building blocks for future competitiveness
Building blocks for future competitiveness 1 Further standardisation 2 Targeted technology development “Subsea plug and play” 3 Operational excellence 4 Capitalising on market opportunities 5
Slide 6: Responses and actions
Responses and actions Capitalising on the current market Internal Joint improvement New contract models Renegotiations and improvements programmes and incentives retendering • STEP • Engineering • Increased use of • Focused approach: integrated deliveries potential and risk • Contract management • M
Slide 7: Significant improvement within drilling and well
Significant improvement within drilling and well Average days per well Average meter per day 30 50 Long term competitiveness % % Average days per completion Non productive time An industry leader on cost and efficiency Standardised solutions Perfect well approach 45 2.5 Supplier cooperation
Slide 8: Expectations go both ways
Expectations go both ways COMPETITIVE COST LEVEL.. ..with joint responsibility for total value chain cost and improvements.. ..and with the right governing mechanisms in place Supplier Structured follow-up Incentives and KPI’s Fact-based evaluation and reward 8
Slide 9: Thank you
Thank you
Slide 10: Forward-looking statements
Forward-looking statements This presentation contains certain forward-looking statements that involve risks and uncertainties. In some These forward-looking statements reflect current views about future events and are, by their nature, subject cases, we use words such as "ambition", "continue", "cou
Slide 11: Re-establishing a high performance and competitive MMO Industry
Re-establishing a high performance and competitive MMO Industry Terese Kvinge, SVP, PRO Brownfield
Slide 12: Increased Oil Recovery on NCS – utilizing existing infrastructure
Increased Oil Recovery on NCS – utilizing existing infrastructure Low pressure production > 1,2 billion boe Troll: 522 mboe Åsgard: 280 mboe Kvitebjørn: 220 mboe Kristin: 160 mboe Gullfaks: 22 mboe Heidrun: 7,5 mbo 12
Slide 13: 2000 – 2013 MMO Industry
2000 – 2013 MMO Industry From good to poor performance….. • 100% more engineering hours used…. • 80% more installation hours used…. • Significantly growth in sub deliveries during execution 2000 2013 13
Slide 14: Top key elements in creating a high performance culture
Top 10 key elements in creating a high performance culture Our Challenge: Create a high performance culture within the Norwegian MMO Industry # 1 – Clearly define what winning looks like #2 – Spell out your “preferred culture” #3 – Set stretch targets #4 – Connect to the big picture #5 – Develop an
Slide 15: MMO Common Improvement Agenda
MMO Common Improvement Agenda A Joint MMO Industry initiative to Improve our competitiveness and predictability Front End Loading Offshore readiness & Life cycle information Sub Suppliers & Engineering Efficiency efficiency 15
Slide 16: Improving with suppliers
Improving with suppliers Front End Loading – Common MMO FEL toolbox • Maximize reuse of existing infrastructure / equipment • Chase «good enough» technical solutions • Increased use of industry standard instead of customized solutions • Involvement of critical sub suppliers in early phase • Increase
Slide 17: Enable our suppliers
Enable our suppliers to deliver: - Cost efficient projects based on industry standard - Minimum solutions from the start - right the first time a - Simplified documentation, tagging and follow-up You are accountable. Make sure suppliers spend our money wisely. 17
Slide 18: Improving with MMO suppliers
Improving with MMO suppliers Transparancy wrt performance Competitiveness benchmark Engineering efficiency benchmark Contractor avg. cost performance vs. early 2000 level Engineering efficiency vs. early 2000 level Projects sanctioned in 2011-2015 included Projects sanctioned in 2011-2015 included P
Slide 19: Improving with MMO suppliers
Improving with MMO suppliers Measuring improvements - Efficiency in execution (by sanction year) Total contract cost efficiency compared to early Engineering hour efficiency compared to early Installation hour efficiency compared to early 2000 level (0%) 2000 level (0%) 2000 level (0%) 2014-15 proje
Slide 20: Way forward - Standardisation opportunities
Way forward - Standardisation opportunities LPP production – from tailor made to standardised Degree of standardisation Tailor made LPP production Standardised equipment / Standardised LPP building blocks module 20
Slide 21: =) © _~ =~ Cc MH — }+—
=) © _~ =~ Cc MH — }+— 21
Slide 22: Forward-looking statements
Forward-looking statements This presentation contains certain forward-looking statements that involve risks and uncertainties. In some These forward-looking statements reflect current views about future events and are, by their nature, subject cases, we use words such as "ambition", "continue", "cou
Slide 23: Efficiency in exploration drilling
Efficiency in exploration drilling The story of a world class performance Dagfinn Alm, Advisor Exploration
Slide 24: A world class performance
A world class performance 155 days less spent – 1 billion NOK saved 6706/11-1 6706/11-2 6706/12-3 6706/12-2 6706/12-1 Ægir/Vema Gymir Roald Rygg Snefrid Nord Snefrid Sør 1200 W S 1400 1600 Actual: Budget: 1800 111.6 days 81.4 days 2000 Target: 52.2 days 2200 Actual: 49.3 days 2400 UPPER NISE 2600 28
Slide 25: The components of a world class performance
The components of a world class performance Treat it as Continuity Understand Mindset Execution your own and risk money experience 25
Slide 26: Efficiency in exploration drilling
Efficiency in exploration drilling The story of a world class performance Dagfinn Alm Advisor Exploration dalm@statoil.com Tel: +4791893712 www.statoil.com
Slide 27: Forward-looking statements
Forward-looking statements This presentation contains certain forward-looking statements that involve risks and uncertainties. In some These forward-looking statements reflect current views about future events and are, by their nature, subject cases, we use words such as "ambition", "continue", "cou
Slide 28: Statoil IR Autumn Conference
Statoil IR Autumn Conference 23 November 2015, Oslo