How To Build A Major Oil And Gas Project

Transcription

1 NORSK OFFSHORE DAG 2004 Gjennomgang av aktuelle internasjonale prosjekter Oslo, May Christian Nygaard, VP Technology Dept, Paris

2 2 1. INTRODUCTION 2. STATE OF THE ART 3. TYPICAL PROJECTS 4. LOCAL CONTENT 5. WORKING RELATIONSHIP 6. THE WAY FORWARD

3 TECHNIP WORKFORCE INTRODUCTION 3 USA United Kingdom France Iberian Peninsula 290 Scandinavia Benelux 450 Germany Italy Russia 100 Abu Dhabi 620 India 670 Asia-Pacific Colombia 150 Venezuela 190 Africa 150 Brazil Australia 190 OFFSHORE: 50 % ONSHORE/DOWNSTREAM: 45 % INDUSTRIES: 5 %

4 PRODUCTS & CAPABILITIES INTRODUCTION 4 Project Management Facilities Eng. Field Development Planning Marine pipeline systems Floating Systems Eng. & Construction Subsea Eng. Risers Eng. and Manufacturing. Early presence through conceptual plus front-end engineering; Genesis

5 TECHNIP PLATFORM PRODUCTS INTRODUCTION 5 TPG 500 & Derivatives TPG 500 TPG 500 MFC IDV (Inst. & Decomm.) Jack Deck FPSO s & Deck Installation FPSO S FPSO JACK DECK UNIDECK/FLOATOVER Floaters SPARS SEMI EDP MCF

6 PRODUCTION SYSTEMS & RECORDS STATE OF THE ART 6 WATERDEPTH, REACH & LOCATION FIXED JACKET 412 m GOM COMPLIANT TOWER 535 m GOM MINI TLP 1400 m GOM CONV TLP 1400 m GOM SEMI SUBM m GOM TRUSS SPAR 1750 m GOM SUBSEA TIEBACK 90 km GOM FPSO 1800 m BRAZIL

7 STATE OF THE ART STATE OF THE ART 7 Na Kika Semi, GOM Roncador Sem, Brazil Thunder Horse Semi,GOM SCR Water depth: 2148 m 18 SCR for export Firsts: Subsea well completion with Smart Wells PIP Risers Electrical Heated Ready Water depth 2300 m 71 Steel Catenary Risers or flexibles Largest semi 40,000 t topsides Waterdepth 1920 m 18 wells under platform HTHP Design 177 deg C 15,000 psi Tree Contract: $250Mill

8 FLOW ASSURANCE STATE OF THE ART 8 Insulated Pipe in Pipe planned for Dalia FPSO Electrically heated pipelines: Na-Kika (Shell, GOM) Norway (3 actively heated pipeline projects)

9 FLEXIBLE PIPES STATE OF THE ART 9 Water Depth Pressure Diameter Temperature 1800 m, Brazil Up to 12,000psi Up to 19 inch 130 o C

10 GOM FLOATERS INSTALLED TYPICAL PROJECTS Current TLP Depth Limit Thunder Horse Topsides Weight, tons Spars Semis Mini-TLPs TLPs Ursa Auger Holst ein Mars Diana Ram,/ Powell MadDog Genesis Kizomba (E-TLP) Magnolia Front runner Gunnison Marco Polo Horn Mt n. Marlin Devils Tower Nept une West Senu Jolliet Medusa Boomvang/ Nansen Red Hawk Prince Typhoon Mat t erhorn Morpet h Allegheny Atlantis Large Na Topside Kika Wet Tree Market Minimal Facilities Market Water Depth, ft.

11 DEEP WATER CHALLENGES TYPICAL PROJECTS 11 Drilling Challenges Platform vs. MODU Higher pore pressures and fracture gradients drilling Subsea challenges Control Flow Assurance Installation Risers Intervention Wet vs. Dry Trees Weight management Dynamics on risers, moorings & casing near mudline

12 SPAR TRACK RECORD TYPICAL PROJECTS 12 Proprietary Item an extremely sucessfull story

13 LARGE PROJECTS COMPARISON TYPICAL PROJECTS 13 West Africa : «Dalia FPSO» Recoverables: 1 billion BOE Production: 240,000b/d Water depth: 1400 m Project Value: $ 3.4 billion Gulf of Mexico «Thunder Horse Semi» Recoverables:1 bill BOE Production: 250,000 b/d Water depth: 1920 m Project Value: $ 3 billion North Sea «Ormen Lange» Recoverables: 2500 bill BOE Production: 70 mill stm 3 /d Water depth: 900 m Project Value: $ 8.2 billion

14 ..BUT SMALLER PROJECTS ALSO BEING PURSUED Red Hawk Field Development TYPICAL PROJECTS Gulf of Mexico «Red Hawk, Cell Spar» Recoverables: 60 mill BOE Production: 20,000 b/d Water depth: 1615 m Project Value: $ 200 million 14

15 CONSORTIUM EXAMPLE DALIA FPSO + SURF TYPICAL PROJECTS 15 CLIENT TBS JOINT VENTURE Type of participation: Consortium - DMP (Lead) TBS Joint Venture (Leader): Location: Angola Water Depth: 1,200-1,500m Completion: Q Scope of work: EPC of Topsides + Integration + SURF (Leader) 45% Saipem 27.5% CONTRACTORS 27.5%

16 CONSORTIUM EXAMPLE - AMENAM (AMP2) TYPICAL PROJECTS 16 Elf Petroleum Nigeria Ltd JOINT VENTURE SUBCONTRACTORS DELTATEK Detail eng. NMA/COSCO, CHINA Topside transport SEMCORP, MALAYSIA Topside fabrication SAIPEM, NIGERIA Jacket fabrication Location: Nigeria Water depth:40 m Installation technology: Unideck TPG Scope of work: EPC Modification to AMP1 New LP compression module AMP2 New gas compression and injection platform Connecting bridge to AMP2 AMP1 Completion: Q1 2006

17 CONSORTIUM EXAMPLE - EAST AREA EPC1 - A Lagos TYPICAL PROJECTS 17 Client Mobil Producing Nigeria Unlimited CONSORTIUM NIGERIA Location: Nigeria Water Depth: 26-30m Completion: Q Area of Interest Nigeria SOUTH ATLANTIC East Area Platform OCEAN AFRICA Installation Technology: Unideck TPG Scope, EPCI SUBCONTRACTORS Living quarters NETCO (Nigeria) Detail eng. GRINAKER LTA (Nigeria) Fabrication of jacket piles and bridges Port Harcourt Eket & QIT WECO Flare Fabrication MSE (Malaysia) Jacket Fabrication CONSAFE (UK) LQ Fabrication HEEREMA (Netherlands/Nigeria) Marine Activities Installation East Area

18 BAOBAB SURF - IVORY COAST TYPICAL PROJECTS 18 CSO Deep Blue Client: CNR International, Petroci & Svenska Petroleum Waterdepth: 980-1,300m EPCI Scope: 40 km of Rigid pipelines: 7,5 km of Flexible Risers: Installation of free issue: 2 x 170te manifolds 1 x 75te WI Manifold 14 diverless spools 13 km of umbilicals.

19 TECHNIP LOCAL PRESENCE LOCAL CONTENT 19

20 WORKING RELATIONSHIP WORK RELATIONS 20 Reality Most oil companies are enjoying record profits, many oil service companies are incurring heavy losses on projects Today s situation An unhappy and unhealthy situation for everybody: The E&C industry is in turmoil Nevertheless, finding and development costs are rising

21 GROWING IMBALANCE WORK RELATIONS 21 NET EARNINGS USD in Billions A) 10 largest oil companies B) 10 largest E&C companies Source: Bloomberg

22 GROWING IMBALANCE WORK RELATIONS 22 SHAREHOLDERS EQUITY USD in Billions A) 10 largest oil companies B) 10 largest E&C companies 8 9 Source: Bloomberg

23 Statoil Occidental SHAREHOLDERS EQUITY: MAIN OIL COMPANIES USD in Millions YE 1994 YE 2003 WORK RELATIONS Exxon Mobil BP Royal Dutch / Shell Total ChevronTexaco ConocoPhillips ENI Repsol

24 SHAREHOLDERS EQUITY: MAIN E&C COMPANIES WORK RELATIONS 24 USD in Millions YE 1998 YE Halliburton Technip Saipem Fluor JGC IHC Caland Jacobs Stolt Offshore McDermott Foster Wheeler Technip 1998 includes Coflexip Saipem 1998 includes Bouygues OS Source: Bloomberg

25 TRENDS IN FINDING & DEVELOPMENT WORK RELATIONS 25 $ / Boe 6.48 Oops! 7.12 Doing OK Source: ABN Amro

26 «FOOD FOR THOUGHT» WORK RELATIONS 26 Average size of the 5 largest contracts is $ 6~700 mill per contract or equivalent to ~ 1/3 of Technip s equity Liability exposure equal to 15% of contract value was acceptable on small projects. The same 15% exposure on a mega-project can kill an E&C company. Contractors are asked to: Act as a commercial bank, provide insurance coverage for clients risk & be a currency gambler Organize bidding, then re- (re) - bidding (as if the cost of bidding were not material for E&C companies) Trend of awarding contracts based on lowest price (even if it is obviously a dumping offer) and irrespective of experience etc.

27 THE WAY FORWARD THE WAY FORWARD 27 Payment in multi-currencies in line with contractor s cost structure Provide to contractor a neutral, if not positive, cash flow Provide to contractor insurance coverage for major risks Compensate cost increases linked to major economic disruptions (steel prices ) Stop the extravaganza on liabilities: cap on liabilities per project not exceed 1% of a world-class contractor equity Let business people run the show (rather than lawyers) Forget short-termism and focus on long-term partnerships