challenging times require transformation welcome to io

Transcription

1 challenging times require transformation welcome to io

2 introducing io 2 out of 3 projects over budget, delayed or cancelled 1 Today s upstream oil & gas industry continues to face uncertainty and challenge. Whether the oil price is lower for longer or not, industry inefficiencies, cheaper onshore reserves, scarce finance, and high operating costs have combined to place a strain on operators and contractors alike. This results in existing projects being stalled, and new finds, often in deep or ultra deepwater, being uneconomic to develop using current practises because of high uncertainty. 65% 50% of senior executives constrained by a lack of delivery effectiveness in major projects 3 This is precisely why io oil & gas consulting was formed as an independent joint venture by GE Oil & Gas and McDermott to spearhead change and fundamentally transform how projects are approached and developed. This will enable the industry to not just survive in times of depressed oil prices, but to thrive by becoming economically sustainable in the long run. We believe the conversation should be about getting projects viable at $20-30 a barrel, not about waiting for a higher price. We work with several clients on that basis. of project failures due to non-technical issues including people, organisation and governance 2 challenging times 73% businesses challenged to better assess risk and returns of major programmes 4 80% costs related to supply chain management 5 At io we deliver much-needed certainty for clients by starting with the end in mind, working in direct partnership with operators to reach their specific objectives. We offer the formidable combination of being an independent consultancy offering a range of services from objective counsel through to advising on constructing transformative business models. In engineering expertise we are unrivalled in our unique offer of deep sector knowledge and full field development, and we offer extensive understanding of the contractor community. As a consultancy we are also able tailor our solutions, capabilities and skillsets according to each client s requirements. All of this puts io in the unique position of being able to develop and deploy powerful execution-ready solutions at scale and with pace. The io way is our unique and differentiated philosophy, influenced and inspired by other transformative industries, designed to tackle projects with fresh ideas in a bold and innovative way to find better, more commercially viable solutions for projects. Indeed, we have helped secure clients cost savings of 30-40%, allowing them to move their projects forward. Our clients include IOCs, NOCs and independent operators, governments and financial institutions, with projects across the globe. If you are looking to get projects moving by maximising certainty of economically viable solutions and would like to work with a partner consultancy that can challenge conventional wisdom, deliver tangible results to make your projects viable, or offer independent advisory services, then do get in touch and find out how io can help you. call for bold solutions 1 EY East Coast Offshore, February Credit Suisse, from Spotlight on oil and gas megaprojects, 2014 EY Survey 3, 4 EY East Coast Offshore, February From Projects to Programs: An Oil and Gas Industry Perspective Booz Allen Hamilton, 2004 Best wishes, Dan Jackson, CEO io oil & gas consulting

3 2 out of 3 projects over budget, delayed or cancelled 1 50% 65% of senior executives constrained by a lack of delivery effectiveness in major projects 3 of project failures due to non-technical issues including people, organisation and governance 2 73% businesses challenged to better assess risk and returns of major programmes 4 challenging times 80% call for bold solutions costs related to supply chain management 5 1 EY East Coast Offshore, February Credit Suisse, from Spotlight on oil and gas megaprojects, 2014 EY Survey 3, 4 EY East Coast Offshore, February From Projects to Programs: An Oil and Gas Industry Perspective Booz Allen Hamilton, 2004

4 we are we have a big idea and big ambition to deliver certainty Our clients can rely on our unique relationship with GE Oil & Gas and McDermott. Whilst not bound to use products or services of our parent companies, we do have the ability to harness the strengths of both if this benefits the client strong EPC knowledge from McDermott, and cutting-edge equipment and technology from GE. Our priority is always to find the best solution for our clients from the whole of the contracting community. We work in a holistic fashion across all aspects of a project as well as across the full field development in the broadest sense; subsurface, subsea and facilities and using an approach that: / leverages our independent consultancy experience enabling io to provide impartial and objective counsel to executive management teams and challenge the status quo. / breaks down silos, working in partnership with clients, acting as a project architect to provide better planning and problem solving. / utilises the latest knowledge and know-how, drawing on our teams extensive experience from the upstream sector and beyond, including full field engineering through to commercial knowledge and project management expertise. / recognises the value of data security and confidentiality. io takes protecting client sensitive information seriously with appropriate systems and processes in place. / deploys the advanced technical and engineering capabilities of our specialists across the full field. / provides access to the whole contractor community. io acts as a single point of contact to facilitate contractor-led end-to-end solutions, saving operators time and mitigating risks by reducing conflicts in design, materials, delivery and communications. / considers alternative financing models to help deliver viable business cases. typical io projects: / early stage pre FEED (select and concept) through to FEED / capex/opex rationalisation and build own/operate models / FID challenging economics / optimisation and value engineering / marginal projects with high strategic value / greenfield/brownfield development architecture (late-life) / supply chain strategy / contracting models / partner alignment reviews / financing options / asset portfolio strategy

5 we start with the end in mind Consulting overview At io we help clients get their project blueprint right by starting with the end in mind. In order to do this, our bespoke consulting approach is built around three important strands: systems thinking, economic modelling, and consortium building and management. systems thinking We employ io s unique integrated asset approach (IAA) which uses systems thinking to start with the end in mind, identifying the key levers impacting projects to deliver the best business case solutions. The approach is holistic and full field in nature, encompassing the plan, build and operate phases and allows for rapid concept option comparison to form deep understanding of project variables and interdependencies. economic modelling io brings specialist expertise in building economic models allowing rigorous business case development and assurance for our clients. We incorporate high level what-if and sensitivity analysis techniques into our calculations and aligning them with the project drivers and investment hurdles (NPV, IRR, D-cost, capital efficiency, payback). We also carry out value chain analysis, assessing project and system relationships including transportation, refining and marketing. In addition, we work alongside operators to ensure the best business decisions are executed, offering peer-review, audit and assurance capabilities to that end. consortium building and management io can assist with consortium building and management on behalf of clients, such as identifying and screening potential consortium members, development of commercial models and negotiating contracts. io can also provide an Owners Engineer service for clients and can help with capital solutions in terms of sourcing equity and debt financing or preparing evaluation materials.

6 working from concept to completion Engineering overview At io, we pride ourselves on the full field engineering expertise we have at our disposal. engineering studies io epitomises a fresh approach to engineering studies (concept and FEED), bringing contractorled solutions and technological understanding into play that enables us to drive down costs for clients and remove over-specification. Typical io studies include: / subsurface and flow assurance / reservoir drainage strategies / appraisal and testing / production architecture layouts / facilities outline / phase development planning / contractor-led solutions / constructability assessments / technology readiness / optimisation studies / costing scheduling studies / integration, risk and gap analysis / specialist studies full field development planning Our capability for delivering a full field development solution is in a class of its own as it looks at the whole system, from subsurface to facilities, to unlock value for operators. integrated implementation io works with operators in an integrated fashion to ensure complete alignment to find the best value solution for clients. To do this, io often carries out an io way workshop, which identifies the key levers impacting the viability of a project concept, while the contents of the io toolbox help illuminate the whole process in more detail, leading to the creation of an optimal blueprint for project execution.

7 with a laser-like focus... Benefits of io s approach to delivering optimum business cases...to let s deliver talk best we can transform value solutions the industry together The io way brings a laser-like focus to areas that have a genuinely significant impact on project commerciality. This allows io to improve financial viability, remove risk, create value for operators and deliver certainty in an uncertain world. The benefits of io s inclusive approach are comprehensive and diverse: / identifying and removing inefficiencies to creative solutions for financing options and driving sizeable cost savings / understanding key performance drivers and cost outputs to deliver solutions with the best economic value / delivering visibility on project drivers and economic variables / maximising investment returns by balancing reservoir performance and project costs / improving project planning and blueprint to deliver projects with certainty / identifying complexity and streamlining across the full field to deliver certainty in reservoir economics

8 with a laser-like focus... let s talk we can transform the industry together Benefits of io s approach to delivering optimum business cases The io way brings a laser-like focus to areas that have a genuinely significant impact on project commerciality. This allows io to improve financial viability, remove risk, create value for operators and deliver certainty in an uncertain world. The benefits of io s inclusive approach are comprehensive and diverse: / identifying and removing inefficiencies to creative solutions for financing options and driving sizeable cost savings / understanding key performance drivers and cost outputs to deliver solutions with the best economic value / delivering visibility on project drivers and economic variables / maximising investment returns by balancing reservoir performance and project costs / improving project planning and blueprint to deliver projects with certainty / identifying complexity and streamlining across the full field to deliver certainty in reservoir economics

9 There are lots of ways to connect with us and find out how we can help your business: In order to bring powerful thinking to life, we post interesting articles, insights and commentary pieces to iooilandgas.com/powerful-thinking Follow us on Twitter to get first access to news, updates and industry London io oil & gas consulting +44 (0) The Shard, 32 London Bridge Street London, SE1 9SG Houston io oil & gas consulting +00 (1) Gessner Road, Suite 540 Houston, TX June join us If you are interested in working for us, look for the latest job opportunities on: linkedin.com/company/io-oil-&-gas or your CV to: