From Compliancy to Sustainable Strategy

Transcription

1 From Compliancy to Sustainable Strategy

2 Agenda Introduction Seismic: A Key Technology for E&P sector CGGVeritas ESG issues Conclusion: From Compliancy to Sustainable Strategy Annexes 2

3 Introduction What are seismic technologies? Seismic technologies image the invisible Equivalent of the ultrasounds used for medical imaging Using acoustic energy and analyzing reflected waves in water and on land Seismic provides a visualization of the sub-surface In multiple dimensions: 2D, 3D Time monitoring with 4D Contributing to static and dynamic modeling of hydrocarbon reservoirs or mineral deposits Only technology which provides wells measurements Can be used for other fields like water search, CO2 capture and storage, etc.. Imaging a reservoir BroadSeis Technology to image complex geologies 3

4 CGGVeritas: A Fully Integrated Seismic Provider 2011 Revenue Breakdown Equipment: Sercel, the industry leader 15% 28% Leadership based on technology and installed base 14% $3.2B Excellent financial performance expected to continue Services: a leadership position in high-end technology 12% 31% Marine: a high-end BroadSeis TM fleet well positioned in the progressively strengthening market Land: a leadership position in select markets: Middle East, Arctic and Shallow Water/OBC Multi-client: a recent high-quality 3D library offshore in the GoM, North Sea and Brazil and onshore in North American shale plays Processing: a unique technology leadership position Exploration Delineation Development Production 4

5 Key 2011 Financial Figures Revenue : $3.2 billion Capex : $626 million Opinc : $210 million Employees : worldwide EBITDA : $852 million Group Net debt at $1.411 billion Breakdown of Revenues By Region Breakdown of Revenues By Clients 22% 20% 36% 22% Majors 23% 20% 28% National Oil Companies 14% 12% Small/Medium Independents Large Independents 31% 45% 5

6 Agenda Introduction Seismic: A Key Technology for E&P sector CGGVeritas ESG issues Conclusion: From Compliancy to Sustainable Strategy Annexes 6

7 Seismic: A Key Technology for E&P sector Strong E&P challenges Reserve replacement remains low Reservoirs continue to mature Exploration is increasingly difficult End of easy oil : challenging environments increase the cost of exploration Excluding : Iraq, Nigeria and Venezuela. Source : IEA reports Global OPEC spare capacity 778 Mounting public pressure to conduct more responsible, wellcontrolled and risk-free exploration New sensitive exploration areas Post Macondo new regulation framework Public Image & Reputation Investor community 634 Source: EIA, Morgan Stanley Research As Complexity Increases, US Wells Are Becoming Significantly More Expensive to Drill 7

8 Seismic: The Benefits of Seismic Technology for Exploration Lowering the cost of exploration Exploration Success Rates: from 10% to >50% Reducing drilling costs While mitigating drilling risks Identifying hazards Assessing uncertainties improves safety Source: Barclays Research Source : Barclays Research (1) Most Most important important technologies technologies influencing influencing E&P business E&P (5 y av. business of survey answer Limiting environmental footprint Contributing to reduce our clients footprint De-risking the exploration & drilling operations Source: Apache JP Morgan Investor Meeting, December 8 th 2010 Apache SPE Business Development Group presentation 19 th January 2011 Global Drilling results vs Cumulative 3D Seismic 8

9 Seismic: The Benefits of Seismic Technology for Production Sustainable management of Reservoirs Optimizing Reservoir Production Permanent Monitoring of Reservoirs Extending the life of field Limiting environmental footprint Identifying suitable CO2 storage sites The Dukhan Field characterization to optimize the reservoir production Improving the sustainability of reservoirs IEA Roadmap for Carbon Capture & Storage by

10 Seismic: The Benefits of Seismic Technology for Unconventional Resources Key issues Unconventional gas is required to offset declining conventional resources European and Asian economies are turning to unconventional gas to reduce current dependence on gas imports Integrated solution in the Shale Gas Exploitation Showing optimum drilling & fracturing process with reservoir characterization Source: Vision Gain 2011 Leading National Shale Gas Market 10

11 Seismic: The Benefits of Seismic Technology for New Sensitive Exploration Zones A Run for the Arctic resources Global warming is opening new business and economic opportunities Potential of 30% and 13% worldwide reserve in oil and natural gas 84% of this potential located in the Arctic Sea A very fragile ecosystem No international legal framework 4 million inhabitants and 30 ethnic minorities Unique biodiversity International Zones of the Arctic CGGVeritas: 40 years experience in North America & Arctic Environment 11 3 ice vessels, 2 meeting NDV clean notation Environmental Risk Assessment Apply Industry Standard for Marine Environment Protection Community Relationship Management Plan (CRPM) to respect the population s rights

12 Agenda Introduction Seismic: A Key Technology for E&P sector CGGVeritas ESG issues Conclusion: From Compliancy to Sustainable Strategy Annexes 12

13 CGGVeritas ESG issues: Long Term Management of the Complexity of our Diversified Activities Addressing specific issues Marine Acquisition Land Acquisition Processing Sercel «Floating» Plant issues «Construction» issues «IT business» issues «Industrial» issues Operations Risk Management - HSE - HSE - Development of dedicated centers - HSE & quality Local & Environmental Impact - Environmental impact - Dialogue with communities - Dialogue with communities - Energy Efficiency - Environmental footprint of plant sites/eco-design HR/Innovation - Talent retention - Local Content - Skills & competenties - Technology skills - BroadSeis - EmphaSeis - Geovation - Solid Streamer Addressing corporate issues Financial & Communication Risks

14 Stringent HSE standards: Key for Operational Success Integrated Management System supported by a dedicated organization 120 correspondents across the world Regular Monitoring of Local Practices through audits HSE audits including Social Responsibility issues since 2010 Proprietary Real Time Web based Reporting Continuing Training program HSE policy communicated to all stakeholders Organized by CGGVeritas University and on sites Performance 2011: LTIF 0,44/TRCF 3,18/ SR 0, Objectives: LTIF <0,30 / TRCF <2,70 / SR:<0,005 HSE meeting Marine Emergency Prepardness Training 14

15 Structured and disciplined approach to assessing and managing the uncertainties that the Group faces Each risk is linked to a corporate governance issue and monitored by its dedicated Board Committee Specific tools to identify the main risks of the Group: Group Risk Matrix, Human Risk Matrix and Scorecard Systems (Country and Subcontractors Risk Management) including SD issues Risks Assessment and Management are part of our activities project management Systems of Audits including SD issues to monitor our Entreprise Risk Management 15 Risk Management: Identify, Manage and Mitigate risks Risks Identification Operational Financial Communication Technologic HR Evaluation et Gestion des Risques «Management System» Governance and Board of Directors HSE/DD Committee Audit Committee Technology Committee Appointment and Remuneration Committee

16 Local Commitment for the Economic Development of the «hosting» Countries Local employment & Local purchase Favoring local employment especially for long term projects Purchasing Code of Conduct HSE Training Sharing of skills and know-how Long-term partnerships with our local JVs Canada: 99% Mexico:83% USA: 98% Peru: 1547 vs 10 expatriates Brazil: 69% UK: 98% Egypt: 520 vs 30 expatriates Argentina: 100% Examples of local employment Permanent operations Land operations in 2011 Norway: 93% France: 98% Angola: 76% India: 95% China: 99% Thailand: 800 vs 10 expatriates Australia: 100% Community Relationship Management Plan (CRMP) 16 Identification of our activity s social impact on local communities Use of tools to map local stakeholders and to open a dialogue with them Development of indicators to monitor our social performance Example of a Communication to inform the communities of CGGVeritas operations

17 Environment & Biodiversity Impact: Going Beyond Regulation Environment Policy Tailored Environmental Risk Assessment & Environmental Management Plan Promote environmental best practices Train, inform and mobilize employees Environmental criteria included in the product development cycle Technology innovation to produce ecofriendly equipment Product end-of-life recycling offer for clients Mitigation of transient disturbance Minimizing soil and seabed disturbance Monitoring fauna displacements and change of behaviour patterns Joint Industry Program to address knowledge gaps on E&P offshore s impact on marine life Marine Mammal Observer Oil Spill Prevention in Alaska 17

18 Marine: Fleet Upgrade & Future Outlook 2 to 4 streamers 8 streamers 10 streamers 2/3D Princess Pacific Finder Amadeus Viking II Vantage Viking Vessel Profile 12+ streamers 2 New X-Bow vessels meeting DNV-Clean Notation Oceanic Vega Vanquish Challenger Average age of the fleet reduced to 10,5 years vs 18 years All 3D high capacity vessels equipped with solid streamers by the end of June 2012 Oceanic Sirius Champion Geo Voyager 89% use of marine diesel oil Compliant with international convention MARPOL (concerning sea pollution) Oceanic Endeavour Alizé Symphony Permanent installation on board to treat water and to separate wastes Oceanic Phoenix Vision 18

19 Innovation: Human Capital People: Key success driver 81% of senior executives and engineers in the Services Promotion of «experts» Participation in educational programs organized by SEG and the EAGE Sponsorship of geophysical projects with a socially responsible content carried out by students all over the world Wide Azimuth Acquisition 3D Innovation Sercel 428 Nautilus V1 Creation of CGGVeritas 2D Innovation Sercel 408 Sentinel HPVA Reflection Seismic Sercel 388 Kirchhoff PSDM Digital Innovation Processing on Micro Long Offset Marine Acquisition 3D SRME/CBM BroadSeis RTM 3D Gather 19

20 Innovation: Human Capital RH priorities: Attract and retain talents Recruitment: long-term relationships with schools and universities worldwide Significant intern mobility opportunities Identification of «key potentials» Competitive remuneration based on an average of competitors remuneration and Energy sector Training: CGGVeritas University promotes individual development and professionalism Social Dialogue CGGVeritas celebrates its 80th anniversary in Perth Worldwide commitment to ensure the representation of employees and the respect of non-discrimination Regular Employee satisfaction survey Integrity and Commitment Our focus on performance and passion for innovation are powered by people and delivered with integrity Promoting best practices inside the Group 20 E-learning sessions of our Code of Ethics and our Business Code of Conduct CGGVeritas University Centers across the world

21 Agenda Introduction Seismic: A Key Technology for E&P sector CGGVeritas ESG issues Conclusion: From Compliancy to Sustainable Strategy Annexes 21

22 We Apply our own Standards Based on the Industry Standards (OGP and IAGC) Example: Regional Marine Mammal Mitigation Guidelines Implemented During Seismic Surveys: Some countries have defined Guidelines and others don t: problems of non consistent regulation Our Group Standards -Observer Requirement: 1-2 MMO -Required Observation : 30 min -Source Exclusion zone: 500m -Ramp up Operations: Yes -Night-time Source use: Permitted -Use of Passive Acoustics: Integration on several vessels USA/GOM Mitigation Measures USA/GOM UK Mitigation Measures -Observer Requirement: 1-2 MMO -Required Observation : 30 min -Source Exclusion zone: 500m -Ramp up Operations: Yes -Night-time Source use: Permitted -Use of Passive Acoustics: During hours of darkness, or low visibility -Observer Requirement: 2 MMO -Required Observation : 30 min -Source Exclusion zone: 500m -Ramp up Operations: Yes but not at night -Night-time Source use: Yes -Use of Passive Acoustics: Encouraged Australia USA/GOM Mitigation Measures -Observer Requirement: independent MMO -Required Observation : 30 min -Source Exclusion zone: 500m-1000m -Ramp up Operations: Yes -Night-time Source use: Infra-Red binoculars -Use of Passive Acoustics: Not required 22

23 We Launch Initiatives to Go Beyond Regulation Protect the hosting countries wealth Participation of Ethnologists and Biologists to our surveys Marine: Reducing Fuel Consumption Evaluating the potential of an organic additive X-Bee Land: Taking into account the operation environment Desert Environment: Reducing the water consumption by installing smart grid and raising employees and local people awareness with posters Forest Environment: Respecting the food-chain law by designing non-straight seismic lines and by replanting trees Closing a camp: Erase our footprint Processing: Reducing the Use of Air Conditioning 23 Use of oil bath to cool down the computers Eco-cool free-air cooling systems

24 Conclusion Our SD strategy based on 80 years of experience is recognized by clients, local population, employees and investors. We are committed to respect our sustainable roadmap in reducing our footprint and going along with our clients to develop a more responsible E&P activity 24

25 Agenda Introduction Seismic: A Key Technology for E&P sector Our ESG issues Conclusion: From compliancy to sustainable strategy Annexes 25

26 Annexes Summary of the Oil and Gas Field Development Lifecycle 1. Seismic Equipment & Services -Land & Marine data acquisition -Data Processing 4% of E&P budget ($16bn) 2. Contract Drilling 3. Drilling-Related Products & Services 4. Formation Evaluation 5. Completion & Stimulation Services 6. Infrastructure Installation 7. Production & Well Maintenance 8. Oilfield Equipment 9. Logistics 26

27 Annexes Sustainable commitment history Foundation of CGG CGG became CGGVeritas UN Global Compact member 1st Communication 3rd Communication On Progress On Progress Creation of HSE & SD Committee Listed on DJSI, Ethibel and ASPI Creation of Ethics Committee 2nd Communication On Progress Launch of the 1st SD report 27 Business Code of Conduction