Worldwide Technip in Nigeria Strategy for Nigerian content
Technip profile Technip is a world leader in project management, engineering and construction for the energy industry. With a workforce of 40,000 around the world, we constantly offer the best solutions and most innovative technologies to our clients to meet the world s energy challenges. We operate in three main businesses: Subsea In subsea hydrocarbon development, Technip s activities include the design, manufacture and installation of rigid and flexible subsea pipelines and umbilicals. Thanks to its portfolio of technologies and industrial and operational assets, Technip offers a unique vertically integrated model in the industry. The Group has 3 flexible pipe manufacturing plants, 4 umbilical production units, 9 logistics and pipeline assembly bases, and 1 construction yard. Technip s worldwide leadership is supported by a modern fleet of vessels for subsea construction, pipelay development (rigid and flexible pipes using S-Lay, J-Lay or Reeled technology) and heavy lift applications. Offshore In the Offshore business segment Technip performs engineering, procurement, construction, installation, commissioning and the refurbishment/upgrading of offshore facilities for the oil and gas industry. Technip provides these services for fixed platforms in shallow water with conventional sub-structures and self-installing platforms such as the TPG 500 and for deepwater facilities including Spar, semi-submersible, TLP, FPSO and FLNG units. Technip is a world leader in floatover installation of topsides and its R&D effort is focused technology transfer for local content and new frontier areas such as ultra-deepwater and the Arctic. Onshore Technip covers the full range of onshore facilities for the oil and gas chain, petrochemicals and other energy industries (nuclear, renewables including biofuels and offshore wind). It holds many proprietary cuttingedge technologies and is the leader in the design and construction of LNG and gas treatment plants as well as ethylene, hydrogen and syngas units. Technip is also one of the key actors in refining and petrochemical units, and has developed a leadership position in the fertilizer industry. Moreover, the Group is very active in non-energy activities such as mining and metals, life sciences, buildings and infrastructures. 2
Technip in Nigeria Lagos Port Harcourt Abuja The Technip group has been carrying out projects in Nigeria since the mid-seventies. Neptune Maritime Nigeria Ltd, an affiliate of Technip, has been operating in the region since 1995 with an offshore/ onshore logistics base at Port Harcourt. In 2000, Technip was incorporated in Nigeria and in July 2003, it became Technip Offshore Nigeria Limited. Currently, the Technip group is present in Nigeria through three companies: Neptune Maritime Nigeria Ltd As previously mentioned, Neptune Maritime Nigeria Ltd, an oil field services base in Port Harcourt, began operations in 1995, providing offshore/onshore logistic services, and construction activities. Many offshore structures have been fabricated there. It currently employs around 40 people, of which more than 98 % are Nigerian. A leaflet with more details of this base is available. Technip Offshore Nigeria Limited In 2000, Technip established an office in Victoria Island, Lagos. It provides commercial assistance to affiliate members of the Group worldwide, and miscellaneous support services, both onshore and offshore. It is also involved in administration activities, logistics sourcing, business development and project support. It guarantees development of partnerships with local contractors. It is proactive and also responsive in providing high network solutions and support to the peculiar needs of its clientele. Crestech Engineering Limited In 2003, Technip signed a cooperation agreement with a Nigerian Company to provide engineering services for offshore oil and gas activities in Nigeria. The success of the cooperation with Technip led to the decision to create CresTech, a Technip affiliate, using the resources involved in this cooperation agreement, with the engineering and management methods, standards and procedures of Technip. CresTech was incorporated on July 3, 2007. CresTech shareholders are Technip Offshore Nigeria Ltd (39%) a Nigerian company fully owned by Technip, and HighCrest (61%), a Holding owned by Nigerian nationals. CresTech benefits from first-class engineering offices, modern IT and communication systems, and state-of-the-art design and engineering software including 3D modeling tools and process simulations. Shortly upon its creation, Crestech has demonstrated its capabilities by setting new benchmarks for in-country engineering services: 2008: major brownfield project perfomed within budget and schedule, with a high level of client satisfaction. 2009-2010: first FEED of FPSO fully done in Nigeria, in cooperation with the national engineering company. Crestech has been certified by BV for compliance to ISO 9001:2000 and OHSAS 18001 standards. Quality, Health, Safety and the Environment Quality and the health of personnel, working on job sites, as well as environmental protection are Technip's top priorities in local communities. At every stage of project execution, these concerns are taken into consideration and are an integral part of operations. Technip cooperates with governments, clients, authorities and professional bodies to promote workable standards and codes of practice and legislation in relation to Health, Safety & Environmental issues. Technip is committed to: Minimizing the environmental impact of its activities Optimizing process safety risk analysis and systems Eliminating short and long-term health threats Striving for a "zero accident" work place We believe in continuous improvement and sustainable development in our efforts to meet the needs of the present without compromising the ability of future generations to meet their own needs. HSE Management considerations are integrated in all our activities and decision processes. Technip in Nigeria 3
Neptune Maritime Nigeria Ltd base Technip offices in Lagos Business ethics Professional excellence and integrity are fundamental values at Technip. We believe in conducting our business with the highest standards of honesty, integrity and fairness. Community development Since the commencement in 1960 of oil exploration activities in Nigeria, in the Niger Delta Region, the relationship between oil producing companies and their host communities has continued to grow. As part of its social responsibility strategy, Neptune Maritime Nigeria Ltd identifies with the goals and aspirations of its immediate community in Rumuolumeni. Technip has initiated a Community Development Program which aims to: Promote sustainable development in the host community by being responsive to the needs of the community. Identify the peculiar needs of the host community, offering assistance as the opportunity arises. Work out modalities to subsidise the educational requirements of the indigenous students in the host community. Local content Partnership with local contractors The Nigerian authorities have instituted a local content policy guideline, to empower and boost indigenous participation in the execution of projects in the upstream sector of the economy. By encouraging indigenous participation in an industry that is crucial for Nigeria's economic development, Technip Offshore Nigeria Limited demonstrates its commitment to meeting the current and projected Nigerian policies. Local Content Policy This directive corresponds to Technip Offshore Nigeria Limited s policy of technology transfer and knowledge sharing, as it recognises the importance of the active involvement of local nationals, as an avenue of cultural sensitivity in its area of operations. Technip Offshore Nigeria Limited believes in offering opportunities for success to all suppliers, partners and subcontractors in a spirit of fair competition and mutually rewarding collaboration. Consequently, modalities have been worked out for Nigerian companies to work in partnership with Technip Offshore Nigeria Limited, in executing several services and supplies for projects for the following: ExxonMobil's East Area 1A project, which started in June 2003, included significant portions of the construction scope that were carried out in the country. The work of the local contractors included detail design engineering, as well as fabrication of bridges, flare structure, fabrication of living quarters jackets, and piles, including hook up and other marine activities. Shell Nigeria Exploration and Production Company's (SNEPCO) Bonga field in the OML 118 in South West Warri, which offshore operations began in July 2003, where Technip was SBM's sub-contractor, with envisioned local participation. As part of the Chevron Agbami subsea field development project completed in late 2008, Nigerian support was provided through engineering, logistics and pre-commissioning services. Technip also trained its Nigerian engineers and technicians to subsea pipeline end-fitting preparation. In the Nigerian Agip Exploration's ABO extension project in the OPL 316 and Oyo field development in OML 120 completed in 2009, services of local technicians in various specialties were effectively utilised. For the Total Akpo FPSO project, the fabrication of the helideck, flare tower, module upper deck and risers protectors was subcontracted to a Nigerian yard. This scope represents approximately 2,000 tonnes of structural works and some 630,000 manhours. All these projects demonstrate that Technip Offshore Nigeria Limited is committed to partnering with local contractors to ensure added value by complying with the cardinal principles for local content policy. 4 Technip in Nigeria
Recruitment and training Recruitment and training program The creation of the engineering centre of Technip in Nigeria has considerably increased our training capacity and efforts, with the aim to establish sustainable autonomous engineering and EPC project support capabilities in Nigeria. Objectives, schedule and type of training The key objectives of the training programs are: Build Nigerian Nationals capability. Create the skill base to increase Local Content in the Engineering and Detailed Design of Oil & Gas projects. Develop individuals so that they can aspire to management roles in the future. Training and development programs are developed on a yearly basis, and are made up of the following: Mentoring by Expatriate specialists General training Engineering chain training On the job training Additional soft skills training Specialist focused, discipline and software training Training on the values of the Group: integrity, professionalism, respect of HSE rules, social responsibility. Training and development tailored to the requirement of the individual engineer. Training encompasses mobilisation of Nigerian staff into major projects for specific assignments. In 2009, as an illustration, up to 20 engineers were mobilised on Akpo FPSO project during towing, commissioning and hook-up. Capacity building Training is dedicated to our permanent Nigerian staff with the aim to build capacity of our setup in Nigeria. Additionally, collaboration agreements have been put in place with selected Nigerian universities through which the best students are offered training in our engineering premises during 6 months. We integrate regularly graduated engineers from NYSC (National Youth Service Corps) for their oneyear compulsory service. This enables to identify high potential resources at a very early stage for future recruitment. Technip in Nigeria 5
Key references Abo field layout Amenam platform Bonga field layout Bonga BOOR installation Technip has recorded strings of successes in the execution of various Engineering, Procurement, Construction and Commissioning contracts in Nigeria. Total Akpo Development In May 2005, Technip as leader, in consortium with Hyundai Heavy Industries (HHI), was awarded by Total Upstream Nigeria Limited, a lump sum turnkey contract for the engineering, procurement, supply, construction and offshore commissioning of the Floating, Production, Storage and Offloading unit (FPSO) of the deepwater Akpo development (anchored in 1,325 m water depth). Engineering and fabrication of various components and structures (around 2,000 tonnes) of the FPSO topsides were performed in Nigeria. First oil was achieved in March 2009. Nigerian Agip Exploration Oyo field In 2008, Technip was awarded an EPC contract for the development of the Oyo oil field located in block OML 120/121, at water depths reaching 410 m. Offshore operations were completed in 2009. Total E&P Nigeria Limited - OFON 2 fixed platform Technip was awarded a turnkey contract by Total Exploration Nigeria Limited for the loadout, transport and installation of the topsides of the OFP2 fixed platform on the Ofon field. This field is located 60 km off the Nigeria South-Eastern coast, at a water depth of 40meters. The contract comprises the engineering, supply of equipment required for the installation, loadout of the 16,000-tonne topsides onto a self propelled vessel, transport of the topsides from South Korea to Nigeria and installation operations of the topsides using Technip`s proprietary Unideck floatover method. Offshore transport operations started January 2013 and the installation completed by January 2014. Total EGINA FPSO Award: 2009 Client: TOTAL Upstream Nigeria Crestech was in charge of FEED for the 2 MMbbl storage FPSO (hull & topsides). The scope was shared with another Nigerian based Engineering Company. Crestech scope included overall Project Management, interfaces management, FPSO process & safety design, all systems definition, hull engineering and pipe rack design. Total OFON Phase 2 Wellhead Platforms Detail Design Award: 2011 Client: OFON Phase 2 Wellhead Platforms Detail Design Crestech was in charge of Detailed Engineering for 2 Wellhead Platforms and 2 Interconnecting Bridges. Crestech detail design scope includes: 2 no. Interconnecting bridges at OFON CPF, 2 no. Wellhead platforms jackets and topsides involving Safety reviews, HAZOP, 3D CAD modelling, structural design analysis, piping isometric production, weight control, transportation analysis, mechanical, E&I design and fabrication support engineering. 6 Technip in Nigeria
Akpo FPSO East Area platform floatover Agbami field layout Esso ERHA North Phase 2 Detail Design Award: 2012 Client: Esso E&P Nigeria Ltd (EEPNL) Crestech was in charge of Detail engineering of brownfield modifications on the existing Erha FPSO Topsides and Subsea systems (new production, water injection & gas lift lines, new riser base gas lift module, new pig launcher/ receiver, new TUTAs, new chemical injection skids & HPU, new pipe runs, E&I trays + supports, and expansion of ICSS for above modifications. Laser scanning of the entire FPSO topsides to create as-built 3D CAD model for development in detail design). EGINA Buoy OLT Detail Design Award: 2013 Client: NOV Nigeria Oil & Gas Ltd The OLT Buoy is a weather-vaning facility to load shuttle tankers from the FPSO storgae tanks. Crestech scope includes 3D modelling using Inventor and interface management. To be completed by the first quarter of 2015. Total IKIKE FEED Award: 2013 Client: Total E&P Nigeria Ltd (TEPNG) Crestech was in charge of FEED Engineering for a stand alone, not normally manned drilling wellhead platform. IKIKE platform is tied back to AMENAM offshore facilities where the produced fluids are processed. Crestech scope includes overall Project Management, Amenam tie-ins, process & safety design and multi-discipline 3D CAD computer modelling. Contract completion was done at the end of August 2014. OFON-2 Fixed Platform EGINA FPSO EGINA Buoy OLT Detail Design Technip in Nigeria 7
HEADQUARTERS Technip 89 avenue de la Grande Armée 75773 Paris Cedex 16 France Phone: +33 (0)1 47 78 24 00 CONTACTS Technip Offshore Nigeria Limited 4/6 Ajose Adeogun Street, Victoria Island, Lagos Nigeria Contact: Steve Lynch Managing Director & CEO E-mail: slynch@technip.com Phone: +234 1 462 98 09 Neptune Maritime Nigeria Ltd PMB 17, Trans Amadi Port Harcourt, Rivers State Nigeria Contact: Steve Lynch Country Manager E-mail: slynch@technip.com Phone: +234 1 462 98 09 Crestech Engineering Limited 4/6 Ajose Adeogun Street Victoria Island - Lagos - Nigeria Contact: Samuel Bamidele Business Development Manager E-mail: sbamidele@crestechengineering.com Phone: +234 1 4 62 96 25 www.technip.com This document is the property of Technip and is not intended to be a binding contractual document. Any information contained herein shall not result in any binding obligation on the part of Technip, or any of its affiliates, and is provided for information purposes only. Technip - Group Communications - September 2014 - Photo credits: Technip.