Petrofac Limited · OTC:POFCY
Petrofac — Corporate Update (November 2008)
75 slides from Petrofac's corporate update, Nov 25, 2008
Slide 1: Investor Trip November 2008
Investor Trip November 2008 Day 1 Operations Services
Slide 2: Day 1 – Welcome
Day 1 – Tuesday, 25 November 2008 Welcome Keith Roberts, chief financial officer
Slide 3: Agenda – Tuesday, 25 November 2008
Agenda – Tuesday, 25 November 2008 1300 Arrivals at Dubai Petroleum (lunch) 1350 Welcome Keith Roberts 1400 Tour of training facility Joe O’Kane 1445 Update on Petrofac Training Joe O’Kane 1515 Overall PFM introduction Gordon East Update on developments at Dubai Petroleum Peter Leach 1600 Coffee Bre
Slide 4: Agenda – Tuesday, 25 November 2008
Agenda – Tuesday, 25 November 2008 1615 Facilities Management introduction/update Robin Watson 1630 Brownfield update Bill Bayliss 1645 Caltec/Eclipse – Production Enhancement Gordon East 1715 Questions and answers All 1745 Recap of Day 1, outline of Day 2 & Close Keith Roberts 1800 Depart Dubai Pet
Slide 5: Day 1 participants - Petrofac
Day 1 participants - Petrofac Keith Roberts Chief financial officer Joe O’Kane Regional manager Petrofac Training Russia, Central and Southern Asia Gordon East Managing director Petrofac Facilities Management Peter Leach Operations manager Dubai Petroleum Robin Watson Director, operations management
Slide 6: Day 1 participants - analysts
Day 1 participants - analysts Mark Breslin McCall Aitken McKenzie Iain Macarthur Arbuthnot Alex Brooks UBS Christyan Malek Deutsche Bank Alejandro Demichelis Merrill Lynch Keith Morris Evolution Securities Andrew Dobbing JP Morgan Cazenove Iqbal Nasim Nomura Emmanuel Gautrot Adia Jan Pstrokonski Sim
Slide 7: Location of fire exits & muster point
Location of fire exits & muster point
Slide 8: Tour of training facility
Tour of training facility Joe O’Kane – Regional manager, Russia, Central and Southern Asia, Petrofac Training Karim Osseiran – corporate projects manager, Petrofac Training
Slide 9: Update on Petrofac Training
Update on Petrofac Training Joe O’Kane – Regional manager, Russia, Central and Southern Asia Petrofac Training
Slide 10: Petrofac Training
Petrofac Training A leading provider of training and consultancy solutions to the international oil & gas industry Reputation stems from close to 30 years of experience in providing leading and innovative training solutions to meet industry needs Extensive portfolio covering safety, emergency respon
Slide 11: Training centres – 2008 developments update
Training centres – 2008 developments update UK, Scotland – Altens, Aberdeen; Montrose; Marine, Aberdeen and Dundee; Emergency Response Service Centre (ERSC), Aberdeen Azerbaijan – Baku Safety Training Facility, Baku; Caspian Technical Training Centre (CTTC), Sangachal Terminal UAE - Dubai Petroleum
Slide 12: Baku Training Centre
Baku Training Centre
Slide 13: Baku Training Centre
Baku Training Centre New safety training facility launched in 2008 Opened in response to increased demand for safety training services Extensive facilities include: – Mobile confined space training unit – Internal facilities for LOLER training – CBT suite – Rigging frame – Forklift – Scaffolding tow
Slide 14: Dubai Petroleum Training Centre
Dubai Petroleum Training Centre
Slide 15: Dubai Petroleum Training Centre
Dubai Petroleum Training Centre Located at Dubai Petroleum site in Dubai Managed and operated by Petrofac Training under a five-year Training Management Agreement (TMA) with the Government of Dubai Offers comprehensive safety and technical training – Practical training area of approximately 1,500 sq
Slide 16: Chemical Process Technology Centre
Chemical Process Technology Centre
Slide 17: Chemical Process Technology Centre
Chemical Process Technology Centre Located on Jurong Island, Singapore Managed and operated by Petrofac Training under a five-year Training Management Agreement with the Singapore Economic Development Board Extensive facilities include – Live hydrocarbon processing plant – Specialist equipment labor
Slide 18: Sakhalin Technical Training Centre
Sakhalin Technical Training Centre
Slide 19: Sakhalin Technical Training Centre
Sakhalin Technical Training Centre Located on Sakhalin Island, Russia Expanded centre launched in June 2008 to meet an increased demand for competent workforces in Sakhalin Operated by Petrofac Training’s technical training business, PKT Can deliver health & safety, emergency response training, fire
Slide 20: Houston Training Centre
Houston Training Centre
Slide 21: Houston Training Centre
Houston Training Centre Located in Houston, Texas Launched in May 2008, facility is equipped to meet emergency response and health & safety training needs Contains state-of-the-art Major Emergency Management simulator Training available includes: – Health & safety – Critical Incident Management Trai
Slide 22: Major Emergency Management Simulator
Major Emergency Management Simulator
Slide 23: Major Emergency Management Simulator
Major Emergency Management Simulator Fourth Major Emergency Management Simulator in the UK opened Located at Altens Training Centre in Aberdeen Built in response to increased demand for Major Emergency Management courses and assessments for offshore installation managers (OIMs) and control room oper
Slide 24: Emergency Response Service Centre (ERSC)
Emergency Response Service Centre (ERSC)
Slide 25: Emergency Response Service Centre (ERSC)
Emergency Response Service Centre (ERSC) Pioneering centre provides a complete emergency response solution for a number of operators in the UKCS Currently provide service to over 20 operators in the UKCS Six new customers have been added during 2008 Twelve members of staff offer 24 hour 365 day read
Slide 26: Key Contracts and Alliances
Key Contracts and Alliances Harweel Training Management Solutions BP Operating Essentials and Assessors Global Alliances
Slide 27: Harweel
Harweel Appointed to design and deliver a competence-led technical training solution, build on Petrofac Engineering and Construction relationship with PDO Training programme was developed to take account of specific site requirements Petrofac Training facilities in the UK and the CPTC were utilised
Slide 28: Training Management Solutions (TMS)
Training Management Solutions (TMS) One-year contract extension to provide a key European exploration and production company with an outsourced training management solution – Service covers training management in the UK, Norway and The Netherlands – The initial contract has led to a nine-year relati
Slide 29: BP Operating Essentials and Assessors
BP Operating Essentials and Assessors Petrofac Training awarded contract to provide technical work stream for BP Operation Essentials (OE) programme Global delivery of training at BP sites Training will take place over an extended period of time Awarded contract for worldwide provision of BP global
Slide 30: Global Alliances
Global Alliances Atlas Interactive, Aberdeen based e-learning company – Enables Petrofac Training to deliver generic and customised e-learning courses worldwide – Provides a highly compelling learning proposition for current and future customers Pisys, Aberdeen-based software company – Provide multi
Slide 31: Overall PFM introduction and update on developments at Dubai Petroleum
Overall PFM introduction and update on developments at Dubai Petroleum Gordon East, managing director Peter Leach, operations manager
Slide 32: Location
Location
Slide 33: Field location map
Petrofac P Field location map SIR ABU NU'AIR sem eam, > (SHARJAH) - ie ~ - ) Geem-1 I A same Tettess
Slide 34: Dubai Petroleum timeline
Dubai Petroleum timeline Discovery and development Discovery – 1966 First Oil - 1970 (Fateh Field) Production Sharing Contract with Dubai Government – Conoco Operator – Partners - Wintershall, Repsol, Total, RWE Peak production rates – late 80s Projected field life 2018-2035+ Transition timeline 200
Slide 35: Asset Overview
Asset Overview Falah Fateh SW Fateh NUI
Slide 36: Asset scale
Asset scale Fifty miles offshore Dubai 120 – 190-feet water depth Assets Eighty-five jackets 407 wells Fifty-two gas turbines – one Bcf/d gas compression 500 miles pipelines Three Khazzan storage tanks One floating storage tanker Three jack-up drilling rigs One mobile work platform Personnel – 600 o
Slide 37: Storage and Offloading
Storage and Offloading In-field storage and export Three Khazzans One floating storage unit “Al Wasel“ – Major refurbishment during 2007 transition – Technically challenging dry dock refit – Petrofac Brownfield Project Al Wasel FSO Khazzan
Slide 38: Dubai Petroleum transition highlights
Dubai Petroleum transition highlights 2 April 2007 – a successful transition – No accidents/incidents – Production levels maintained – Integrity and operational continuity preserved Key 2007 focus areas – Safety – Preservation of strong culture – Production – Maintenance – Production enhancement “ar
Slide 39: 2007 – nine months of consolidation
2007 – nine months of consolidation Safety – No major incidents or accidents, overall safety performance improved Production – 2007 production target delivered for 2007 – Material reduction in base well decline achieved Commercial – First phase of incentivised performance delivered against 12 key pe
Slide 40: 2007 – nine months of consolidation (cont)
2007 – nine months of consolidation (cont) Major Innovations – Gas turbine overhauls and upgrades – Development drilling programme established – Two jack-up drilling rigs active – eight wells drilled – Third high-performance rig contracted – Hydraulic workover unit drilling – Fast-track Rashid Asmar
Slide 41: Development drilling units 2007
Development drilling units 2007 Noble Mark Burns Hydraulic Workover Unit Noble Roy Rhodes
Slide 42: 2008 – a year of transformation and acceleration
2008 – a year of transformation and acceleration Safety – Helicopter incident in September 2008 Operations – Significant reorganisation, focused on – Adapting to client drivers and requirements – Turbo machinery – specialist group (Plant Asset Management International) – Production efficiency and in
Slide 43: 2008 – a year of transformation and acceleration
2008 – a year of transformation and acceleration Integrity – Development of integrity management system – Baseline data acquisition – pipelines, jackets, vessels Projects – SWF Asmari Gas project - two wells drilled and facilities installed – Falah B platform upgrades/new Fateh in-field water inject
Slide 44: Innovations
Innovations Operations – Gas turbine upgrades and efficiencies – Production performance management focus – Loss management and optimisation Drilling/wells – Rotary steerable assemblies – New mud systems/slot recovery on old platforms – ESP installations Integrity – Risk base inspection – Pipeline in
Slide 45: 2008 field development
2008 field development Kawawa Work Platform Maersk Resilient
Slide 46: 2009 - the way ahead
2009 - the way ahead Asset drivers – Economic climate – Integrity maintenance – Organisation and contract evolution Asset opportunities – Debottlenecking technologies – Near-field exploration – Organisational development – Cost focus Future development options – Conventional reserves – Enhanced oil
Slide 47: Coffee Break
Petrofac P Coffee Break
Slide 48: Facilities management update
Facilities management update Robin Watson, director, operations management
Slide 49: Facilities Management
Facilities Management Bacton & Hewett Northern Producer Interoil PNG Dubai Petroleum Northern Producer Galley Field Refinery 1997 2003 2005 2007 2008 Some 17 Assets are under Petrofac care Montrose & Arbroath Heather & Thistle Banff Chergui Kittiwake
Slide 50: Continued differentiation through 2008
Continued differentiation through 2008 Eleven years as Duty Holder in the UKCS Nine current operational safety cases, plus one Control of Major Accident Hazards (COMAH) OPITO-accredited competency programme Sixteen major transitions since 1997 Seventeen assets under Petrofac management More than 150
Slide 51: 2008 successes – Northern Producer
2008 successes – Northern Producer Northern Producer (NP): history – Northern Producer is a converted semi-submersible drilling rig, built in 1974 – Petrofac was Duty Holder and facilities manager for the vessel from 1997 to 2007 on the Galley field – Galley cessation of production and decommissioni
Slide 52: 2008 successes – Northern Producer - before
2008 successes – Northern Producer - before
Slide 53: 2008 successes – Northern Producer - after
2008 successes – Northern Producer - after Before After
Slide 54: 2008 successes – Chergui gas plant
2008 successes – Chergui gas plant Petrofac, through Energy Developments, operates and has a 45% interest in the Chergui Concession; ETAP, the national petroleum company holds the balance Located approximately 200km south of Tunis, Tunisia; the central processing facility and current wells are locat
Slide 55: 2008 successes – The Chergui gas plant
2008 successes – The Chergui gas plant Chergui parameters – Discovered by BG in 1992 – First commercial gas August 2008 (reserves of 70 BCF) – US$110mm total project investment – Initial Rate of 17.5 to 20mmscf/d – Ongoing equipment commissioning
Slide 56: 2008 successes – Chergui gas plant
2008 successes – Chergui gas plant Operations Management engaged in the pre-operational, commissioning and ongoing management of the operation – Pre-operational activities – Pre-operations plan – Resource histogram – Budget – Operations Management – RACI definition (responsible, accountable, consult
Slide 57: 2008 successes – Operations Management
2008 successes – Operations Management Extension of Kittiwake Facilities Management Agreement (FMA) for further two years Delivery of Northern Producer to site Delivery of fully commissioned, fully staffed Chergui gas plant Continued differentiation of our service offering in the market Systems cons
Slide 58: Petrofac Brownfield update
Petrofac Brownfield update Bill Bayliss, VP Brownfield
Slide 59: What we focus on
What we focus on FEED/Detail Design Conceptual Repair Orders/ Major Modifications Minor Modifications Shutdown Management/ Removal of Co-ordination Existing Plant Construction/Commissioning/ Project Management De-commissioning
Slide 60: Continued growth focus for 2009
Continued growth focus for 2009 Norway Aberdeen Stavanger Woking Romania Tunisia Algeria Egypt Oman Bioko Gabon Island Qatar Dubai Abu Dhabi
Slide 61: HSEQ/new technology
HSEQ/new technology PB HSE Performance HSEQ 0.60 300000 Indicators/200 000 M/Hours Monthly Exposure Manhours 0.50 250000 0.40 200000 0.30 150000 Three years without an LTI for over 6.5 0.20 0.10 100000 50000 million exposed man hours 0.00 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 0 Quality imp
Slide 62: General
General General Opened Abu Dhabi office August 2008 Opened Norway office June 2008 Supported by Chennai office 400 people onshore, 200 people offshore Negotiations (ongoing) Venture contract - expires end 2008 Lundin contract - expires end Q1 2009
Slide 63: Sales and marketing
Sales and marketing Recent awards ADCO NEB consultancy Marathon EG LNG Marathon Power Generation project ADCO Plant Oxy Jarn Yaphour contract extended by one year to align with new MOU signed by ADNOC Oxy Jarn Yaphour Marathon EG LNG – four new studies CNR shutdown activities Marathon Power Petrofac
Slide 64: Sales and marketing
Sales and marketing Key tenders (submitted/in progress) ADMA OPCO ZCSC – de-mothballing ZADCO GTP ZADCO GTP ZADCO – water injection Statoil Hydro – various studies Zakum Field StatoilHydro Kvitebjørn Field Norway
Slide 65: Caltec/Eclipse Production Enhancement
Caltec/Eclipse Production Enhancement Gordon East, managing director
Slide 66: Eclipse
Eclipse Acquisition of Eclipse, specialist production engineering company Life-of-field services including: – Field development – Production modelling and optimisation – Well life cycle risk management – Petroleum engineering functional consulting
Slide 67: Eclipse
Eclipse Acquired for initial consideration of £7 million Fifty employees Five offices worldwide: Aberdeen, London, Stavanger, Houston, Dubai Customers include – BG Group – BHP Billiton – Nexen – Shell – Petro-Canada
Slide 68: Caltec
Caltec Acquisition of production technology specialist, Caltec Products aimed at enhancement of production from mature fields Wellcom system, boosting production flowrates by lowering wellhead pressures I-SEP system which allows the partial separation of gas, oil, water and solids Production boostin
Slide 69: Caltec
Caltec Acquired for initial consideration of £15 million Eighteen employees Based in Cranfield, UK and office in Aberdeen Innovation production solutions throughout Europe, GoM, North America, FSU, Middle East, South East Asia and Africa
Slide 70: Customers
Customers Caltec has developed relationships with blue chip customers – BP – mainly North Sea, exclusive review of all potential North Sea field applications – Shell – Nigeria, seen by Shell as their ‘standard world class facilities of the future’, 70 identified opportunities. Pilot plant procured –
Slide 71: Capabilities
Capabilities Production engineering Well construction and engineering Reservoir management Operations Asset integrity, management and performance Field development Technologies directly associated with production improvement
Slide 72: Further evolution….
Further evolution…. duty holder / integrated manpower supply production facilities mgmt 30 offering original operator 25 20 new entrant established 15 entrant 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 cessation of production extended by commodity prices & prudent DH mgmt
Slide 73: Integrated production offerings
Integrated production offerings Production performance improvement Leading-edge drilling and well engineering Reservoir management and field development Asset integrity management and performance Commercial innovation Focused technology development
Slide 74: Questions and answers
Petrofac P Questions and answers
Slide 75: Recap of Day 1, Outline of Day 2 & Close
Recap of Day 1, Outline of Day 2 & Close