Will the changing role of NOC s affect how we are. Kaj H. Fredriksen

Transcription

1 Will the changing role of NOC s affect how we are operating in the future? Kaj H. Fredriksen UTC 2008, 4th-5th h June, Bergen

2 Presentation Overview FMC Technologies at a glance What the researchers are telling us FMC & NOC s - The last 50 years FMC & NOC s - Today FMC & NOC s The competitive environment Summary

3 FMC Technologies at a Glance 1884 Bean Spray Pump Company 1920s Food Machinery Company

4 FMC Technologies at a Glance Defence Gold Chemicals Agriculture Energy Aircraft Handling Systems Food Processing

5 FMC Technologies at a Glance 2007 Revenue: $4.6 Billion Energy Production Segment Subsea Trees & Controls Subsea Manifolds Subsea Processing Systems Surface Wellheads Energy Systems 79% Energy Processing Segment Fluid Control Loading Systems Measurement Solutions Airport Systems 8 % FoodTech 13 % Announced intention to spin-off Airport and FoodTech in mid-2008 Loaders Deicers Boarding Bridges RampSnake Citrus Extractors Freezing Systems Food Processing Systems 5

6 FMC Technologies at a Glance 1957 FMC acquires Oil Centre Tools Houston

7 FMC Technologies at a Glance Anchorage Edmonton St. John s Bergen Aberdeen Kongsberg Dunfermline Stavanger St Petersburg Calgary Halifax Sens Houston Algiers Cairo Nouakchott Villahermosa Maracaibo Lagos Abidjan Eq. Guinea Pointe Noire Luanda Muscat Johor Jakarta Singapore Macae Rio De Janeiro Perth 2007 FMC strategically positioned to meet the needs of our customers

8 The Research A New Environment?

9 Research the new environment Oil Reserves Held by New Russian Companies Full IOC Access NOC Oil Reserves (Equity Access) 6% 11% 6% <25% of Oil Accessible WW Proven Oil Reserves: 1,148 bill. bbl NOC Oil Reserves (Limited Equity Access) 77% Source: Robin West, PFC Energy The service industry in a time of change, presentation, 20 April 2006

10 Research the new environment a buoyant oil price has removed the need for external financing of some major projects Source of comment : Anon, Accenture, the national oil company transforming the competitive landscape for global energy, p2, 2006

11 Research the new environment NOC national goals: Wealth creation for the nation Industrialisation and economic development Source of comment : Amy Myers Jaffe Rice University The changing role of National Oil Source of comment : Amy Myers Jaffe, Rice University The changing role of National Oil Companies in International Energy Markets Presentation, March

12 Research the new environment the emerging role of service companies as a pseudo-substitute substitute for IOC s NOC IOC Service Companies Source of comment : Anon, Accenture, the national oil company transforming the competitive landscape for global energy, p9, 2006

13 Research the new environment FMC senior management meeting October 2007

14 Research the new environment Dunfermline Kongsberg Houston Rio De Janeiro Singapore

15 Research the new environment Metering & Control Systems Surface Well Systems Light Well Intervention Subsea Drilling Systems Standard Subsea Trees Subsea Processing Smart Well Control Systems Subsea Template Systems Subsea Manifold Guidelineless Deepwater Trees ROV Tie-In Systems

16 Research the new environment National Oil Companies Creating a new environment? or Creating a more competitive environment?

17 FMC & National Oil Companies The last 50 years

18 FMC & NOC s - The last 50 years FMC Objectives: Expand Internationally Move into offshore sector

19 FMC & NOC s - The last 50 years Restricted * Access Rio De Janeiro 1960 * high import * tariffs

20 FMC & NOC s - The last 50 years 1956 CBV established in Santo Cristo - Rio 1960 Market entry Brazil thru licence agreement 1960 Signing of licence agreement CBV & OTC (FMC) Houston

21 FMC & NOC s - The last 50 years CBV Surface Wellhead Brazil industry standard

22 FMC & NOC s - The last 50 years 1974 Petrobras make discovery in Campos basin

23 FMC & NOC s - The last 50 years 1977 First subsea tree for Petrobras Espada Field

24 FMC & NOC s - The last 50 years

25 FMC & NOC s - The last 50 years After 38 years 1998 FMC buys CBV 2007 FMC CBV mainly localised positions

26 FMC & NOC s - The last 50 years Singapore neutral hub for Middle & Far East

27 FMC & NOC s - The last 50 years 1980s Malaysia PSCs - Petronas manage procurement & service contracts Pi Priority it local * l companies 1988 FMC Malaysia Pasir Gudang 30 years Far East Transition Nationals to management positions 1975 FMC Singapore (key hub) 1986 FMC Jakarta - Santana 1975 to 1980s Market entry Far East thru local manufacture

28 FMC & NOC s - The last 50 years 1975 skilled Oil & Gas personnel scarce Scarce resources command higher salaries Aberdeen Home of UK Oil & Gas Industry North Sea 1975 FMC Dunfermline UK (key hub)

29 FMC & NOC s - The last 50 years technicians labourers inspectors test engineers welders machinists 1975 Scotland's central belt existing engineering and manufacturing skills Costs approximately 11.5% lower than Aberdeen

30 FMC & NOC s - The last 50 years US Personnel expatriated to transfer technologies to UK 19 years UK Transition UK personnel to management positions 1985 Dunfermline s 1st subsea tree installed Phillip s Hewitt field 1975 Market entry UK thru existing industrial base May 2007 UK Prime Minister Gordon Brown Talks with apprentices

31 FMC & NOC s - The last 50 years Kongsberg Norway 1987 Market Entry Norway Alliance / JV with indigenous company

32 FMC & NOC s - The last 50 years 1972 to 1994 Norway s local content policy Preference to Norwegian suppliers Must be competitive Research Co-operation operation Incentives Knowledge Transfer Incentives 1972 to 1994 Norwegian content essential to operate in Norway

33 FMC & NOC s - The last 50 years X-Mas * trees 1987 FMC & kongsberg alliance * System capability * Tie-in in systems Topside * controls * Wellheads manifolds * Manifolds * Subsea * controls HIPPS * 1994 FMC kongsberg Subsea * A.S Knowledge transfer & research co-operation * operation *5K 15K *

34 FMC & NOC s - The last 50 years 1994 Statoil s 5 year subsea supply & service agreement 1994 Statoil - a contributor to our standardisation of technology

35 FMC & NOC s - The last 50 years *UK Norway * 1995 to 1997 UK technicians train & supervise * Norwegian technician i to assemble & test completions X/Mas * Tree Kongsberg Tubing * Hanger Dunfermline Tree * Cap Technology transfer to Norway * Final Assembly * and test

36 FMC & NOC s - The last 50 years Improved Oil Recovery Technologies * Game Changing Innovations Statoil * Tordis Subsea Processing Technologies * Light well intervention g technologies * Thru Tubing * Rotary Drilling 2000 Statoil A driver behind * our future technologies

37 FMC & National Oil Companies Today

38 FMC & NOC s - Today Increases with Today New Frontiers*bring New Challenges Current Minimum Min Mauritania EG Ivory Coast Execution support Libya y Current Maximum Egypt C Congo Manifold + Suction Anchors + Guidebases + Xmas Tree Assembly y Angola Nigeria Industrial Capability Lead Time Projects/Well Count Policy Induced Resource Scarcity? * S th Africa South Af i Max

39 FMC & NOC s - Today Since 1999 FMC invested * US $18m in Angola FMC Workshops / Office * / Storage 18,588m2 Developing Angolese * manufacture Developing Angolese * Employees Sonangol driver - maximise * local content

40 FMC & NOC s - Today 200 FMC Angola * Employees * Expatriate to Angolan ratio 70% (original target 60%) Original commitment 44 Angolans * Total Angolans Expats Goal 97% localised * positions Sonangol driver - maximise * local content

41 Investing in Angolan * Manufacture Total Girassol / Jasmin 45 well development * * Total Rosa BP Greater Plutonia 23 well development 45 well development * Loc cal Content t Co ntribution 2004/5 * * 2005/ * Jumper fabrication Investment * in base Jumper + manifold fabrication + PGB * Jumper + manifold fabrication + PGB + Xmas * tree assembly Sonangol driver - maximise local content maximise * local content

42 FMC & NOC s - Today Kits from * UK Modular * Kit Tree Final Assembly * & test Kits from * US Luanda Final inspection * BP Greater Plutonia * local content plan Sonangol driver - maximise * local content * shipment

43 FMC & NOC s - Today 6 months training * Angola recruitment * & selection diplomas * 9 to 12 months Training * in Europe

44 FMC & NOC s - Today * 1st BP tree assembled in Angola 2nd BP tree assembled in Angola pre installation * checks on rig 2nd BP tree assembled in Angola installed at 1,400m * on sea bed

45 FMC & NOC s - Today Over time policies increase local content * % Jumpers * Manufacturing * PGB,s Mauritanian Fabricators COMECA Limited resources * Supplier development * $ Angolan Fabricators Petromar Sonamet Algoa Freidlander Metalurgica De Viana Manifold * systems New / local sub-suppliers suppliers require dedicated QA personnel to avoid compromising quality Limited * capacity * Increase * price $ Policy created scarcity of resources - Generally * equipment costs increase 2.5 to 4 times

46 FMC & NOC s - Today 140 FMC Angola local * staff turnover Angola licence * round Angola licence * round Total Locals Total Left Licence * rounds Loss of experienced staff to * IOC s & NOC s job security * IOC / NOC security higher * salaries * Duration of licence * Service company security * duration of project Without sustainable business project specific service costs increase

47 FMC & National Oil Companies The New Environment

48 FMC & NOC s The new environment Approx 30 mins FMC Nusajaya Malaysia New facility to support Petronas * subsea business Expansion * Existing * FMC Singapore Expansion for growing NOC/ IOC * subsea business in far East

49 FMC & NOC s The new environment Drilling * Avoiding * Ice Bergs Interventions * Gazprom - Technology studies for Shtokman and other Arctic offshore developments in * Barent & Kara seas

50 FMC & NOC s The new environment Offshore Russia The future is * local content September 2007 official opening of FMC * Polytechnic Centre 1st group of students commence 6 month post graduate module * in subsea technology Good advice from FMC s director of sales & business development * Study hard and you to can have a business card like mine 2006 joint venture investment FMC & St Petersburg Polytechnical University *

51 In Summary

52 In Summary * 1 st FMC Licence agreement * CBV FMC buy * OCT * st surface tree FMC Singapore Neutral * NOC FMC Malaysia location Local manufacturing * Petronas FMC Dunfermline UK Existing * Manufacturing infrastructure t Petrobras discover * oil Campos Basin 1 st 1 st * 1 st st diverless tree st Subsea tree * UK FMC Kos alliance * FMC Indonesia Local manufacturing * Petramina 1 st * st guideless tree Improved oil recovery studies Technology standardisation * * FMC buys * KOS st FMC Subsea tree * 1 st deepwater 1 record * st subsea manifold * Technolog y transfer * to Norway Establish FMC Angola * Local content FMC buys * CBV LWI implementation * Technolog y transfer * to Angola FMC Polytechnic * Opened Russia Technology studies * Russia Malaysia subsea * facility Worlds 1 st subsea processing * system installed

53 In Summary The changing environment & 1957 to 2007 NOC policies 50 Years of experience! Challenging g / Manageable Ready to tackle the future FMC / NOC technology studies A mutually beneficial relationship Service company / NOC technology studies Encourage all NOC s. Reserves are harder to find WARNING: Good service companies are a limited resource

54 Thank you