Welltec Pareto Offshore Conference September 4, 2013

Transcription

1 Welltec Pareto Offshore Conference September 4, 2013

2 Agenda for today s presentation 1. Introduction to Welltec 2. Welltec Well Intervention Services 3. Welltec Flex Well Completion 4. Q&A s

3 1. Introduction to Welltec

4 Introduction to Welltec Strong financial performance in a highly attractive market Leading provider of robotic well intervention services and completions solutions for the upstream oil and gas industry based on leading proprietary technology - Over 1,000 employees with establishments in more than 25 countries - Service more than 240 existing clients including most IOCs, key NOCs and independent oil and gas companies - Over 120 patent families Significant value creation for our clients reflected in Welltec s performance and growth prospects Attractive addressable market in well interventions : - In recent years, the addressable market has shown stable growth of more than 15% annually and is expected to reach USD 18bn by Interventions using robotic technology expected to gain further market share Recently entered the market for well completions High double digit revenue and EBITDA growth and strong cash flow Key Historical Financials (DKK in millions) Quarterly Financials (DKK in millions) 58% 52% 48% 43% 43% 56% 58% 53% 49% 47% % 54% 47% 48% 47% 49% 46% 47% 38% 36% ,3% ,2% ,8% ,9% ,4% ,2% ,8% ,0% ,6% ,2% A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Revenue (DKKm) EBITDA (DKKm) EBITDA margin (%) 3

5 Introduction to Welltec With operations in all major oil & gas regions Welltec has a truly global footprint 12% Americas 34% Q % 23% 32% EMEAR APAC 35% = Activities 4

6 Introduction to Welltec Welltec s key value proposition addresses the DNA of the oil & gas industry Welltec in the Oil and Gas Industry Welltec s robotic technology addresses the key market trends of maturing fields, increasing depletion rates and more sophisticated well designs Welltec s cutting edge solutions enable clients to unlock more production and deal with reservoir complexities and uncertainties with a greater number of options The premium attached to Welltec s technology is continuing to gain momentum, as the fundamental market drivers remain undiminished Welltec in the Well Intervention Market Welltec s technology allows for safer, more cost efficient interventions in increasingly complex wells and in the most hostile environments Welltec s Well Tractor pioneered the well intervention market with significant added value compared to conventional methods With continuous innovation and introduction of new tools and technologies, Welltec is established as a leading provider of superior robotic solutions Welltec continues to be at the forefront of the future market standard within advanced well interventions Well optimization Oil production volume Production gain from completions Original production profile Production without Interventions or completion Production gain from interventions Improved production profile Active well management through well interventions can increase recovery and production rates significantly Time (years) 5

7 2. Welltec Well Intervention Services

8 Welltec Well Intervention Services Welltec s Well Intervention Services programme covers a wide range of tools and services designed for smooth intervention Tractors Intervention tools Diagnostics Well Tractor Coiled Tubing Well Tractor Well Stroker Well Key Well Cleaner Well Miller Well Release Device Well Cutter Well Diagnostics WELLTEC HARDWARE SCANNER Vehicles Sledge hammer Wrench Vacuum cleaner Power drill Safety harness Power saw The Doctor Solutions Conveyance solutions Wireline services Mechanical solutions Clean-out solutions Milling solutions Subsea intervention Deliver well intervention tools to the desired location with high precision Enabling downhole logging and complicated interventions without labour-intensive and heavy equipment Solutions for safe and efficient well management and maintenance Solutions range from removing large quantities of sand and debris to cleaning of safety valves, mandrels and profiles Removal or penetration of malfunctioning downhole valves and other barriers Solution programme adapted for riserless well intervention on offshore installations 7

9 Welltec Well Intervention Services Welltec Riserless Lightweight Well Intervention (RLWI) operating on electrical wireline conveyance offers multiple benefits Increasing number of subsea wells and declining onshore production rates - Increased need for subsea well intervention and production management Added complexity of offshore wells with subsea installations - Has historically limited the ability to benefit from active well intervention programs The Welltec Riserless Lightweight Well Intervention program is specifically designed for subsea interventions in extreme environments - The technology provides the industry with subsea intervention capabilities comparable to onshore well intervention - Faster and more costs efficient operations - Surface readouts data collection for diagnostics of well conditions - Fewer people on board and less equipment to mobilize reducing health, safety and environmental (HSE) risks - Increased scope of subsea intervention services The RWLI program is based on Robotic Intervention technology with tractor based electrical e-line conveyance Welltec Riserless Well Intervention Specially designed vessels provide location access and dynamic positioning from which to perform interventions A subsea lubricator provides static and dynamic barriers and the wellbore access Electric-line, tractor conveyed (in horizontal and deviated wells) or mechanical services, such as milling, mechanical manipulations, and cleanouts to improve well productivity and recovery rates Increased intervention capability Reduced intervention costs Reduced HSE risk Increased production and recover Increased Net Present Value 8

10 Welltec Well Intervention Services Lightweight robotic intervention technology trumps the conventional heavy intervention methods on all key parameters Superior product offering is gradually replacing conventional technologies Snubbing and rig technology Coiled tubing intervention Robotic intervention technology Technology Direct cost Low High Low High Low High Production downtime 0 days 45 days 0 days 45 days 0 days 45 days Intrusion Risk related to safety/environment Low High Low High Low High Low High Low High Low High Welltec is the leader amongst our colleagues in the industry Estimated no. of Tractors (indexed) Cased Hole Tractors Conveyance Clean-out Milling Mechanical Services Subsea Conveyance Clean-out Milling Mechanical services Subsea Open Hole Tractors Perforating Tractors Clean-Out Tool Milling Tool Plug Setting Shifting Tool Subsea RLWI ( ) ( ) 53 ( ) ( ) ( ) ( ) 9

11 3. Welltec Flex Well Completion

12 Welltec Flex Well Completion Our Completion Solutions addresses key industry challenges and the new agenda for service providers The Flex-Well Completion Solution is a response to key industry movements: - Increased reservoir and geological complexity - Increased activity in remote, hostile and offshore environments - Increased number horizontal and multi lateral wells - Increased well depth and horizontal displacement increased number of extended reach wells - Increased regulatory focus on recovery / geopolitical effects of resources The End of the Day s of the Easy-Oil, sets a new agenda for service providers: - Accelerated technological development - Improved well and reservoir management - Maximizing production- and recovery rates - Improved well economics and cash flow management Forces at work New agenda for service providers Reservoir and geological complexity Technological development Increased focus on integrity and HSE Challenging environments Conduct change with operators Capex and opex Well and reservoir management Total life of well Increased regulation Complex well structures Production and recovery rates Welltec Flex-Well Completion Solution addresses these challenges by providing: - Improved well economics - Increased Health, Safety and Environmental issues - Increased flexibility - Increased benefit from future technology Welltec Flex- Well Solution Welltec Flex-Well Completion Solutions Improved Net Present Value Reduced completion risk Increased flexibility 11

13 Welltec Flex Well Completion Reduced completion complexity Welltec Completion Products Product Application Well Integrity Solutions - Zonal Isolation (WAB ZI) - Cement Assurance (WAB CA) - Drill Down Liners for Lost Circulation (WAB CA) - Flow Control (WFV ) - Data Monitoring (WDM ) Well Productivity Solutions - Isolation of production zones (WAB ZI) - Improved reservoir contact - Zonal stimulation - Flow Control (WFV ) - Data Monitoring (WDM ) Reduced operational risk Reduced capex Optimised production Low capex exposure via - Safe drilling - Less hardware - Less rig time Operation without electric/hydraulic surface control reduces operational risk Less completion complexity increases deployment success rate No cementing cost or perforation cost No time to allow for swelling No control wires or hydraulic tubes needed to control downhole intelligent well devices solutions and consequently no double casing needed Reduced rig time and possibility of applying automated rigs for liner and completion deployment Low upfront capex unlocks possibility of committing opex to optimise production as reservoir evolves Completion design without electric/hydraulic lines unlocks possibility of doing side-tracking and multi-lateral well throughout life-of-well Autonomous water ingress control makes the well self-regulating with respect to water production 12

14 Welltec Flex Well Completion Our Completion Solution is designed for increased production- and recovery rates during total life of well Increased reservoir contact - Cement-less lower completion improves well reservoir contact - Multiple zonal isolation allows for improved production and water management - Flexible design allows for sidetracking and multiple laterals over life of well Increased inner diameter of completion - Single skin design and use of non degradable metallic expandable packers (WAB s) eliminates restrictions in wells - Opens up for slim well construction and maximum production capacity and allows longer laterals to be drilled - Allows for increased initial production Improved intervention and stimulation capabilities - Full access to e-line interventions without restrictions - Designed for tractor based intervention - Targeted zonal stimulation - Forward compatibility with latest technology deployed on e-line during life of well Production Impact on individual wells Production gain (increased recovery rates) Oil production value curve in double skin, completed wells with control-wiring Improved intervention and stimulation capabilities Improved reservoir contact and optimized production flow Time Oil production curve with Welltec completed wells Increased production- and recovery rates Significantly improved Net Present Value 13

15 Welltec Flex Well Completion The lower complexity of our Completion Solution significantly reduces the operational risk profile of the well and improves HSE Flex-well Completion Solution reduces operational risk during Intelligent well Completion Flex-Well Completion - Fewer man-hours during completion increase HSE benefits, reduces risk of incidents and reduces environmental footprint Technology - Lower complexity and lighter downhole equipment, improves equipment failure resilience ~3-4 weeks ~1-2 days - Use of non-degradable alloys improves well integrity over lifeof-well Completion time Days Week s Days Weeks - Possibility to use standard horizontal X-mas trees, as an alternative to Vertical Lower complexity and easier completion creates multiple benefits throughout life-of-well, - Facilitates use of sidetracking and multi-laterals - Multiple production zones, enables cut-off of dead zones Operational risk Number of flow lines Low High Low High Minimum 2-3 per zone 0 Low High Low High Cost per zone Less Mor e Less Mor e HSE risk Low High Low High Reduced Completion complexity Reduced risk profile of well Lower Cost of Capital Increased Net Present Value 14

16 Welltec Flex Well Completion Our Completion solution is perfectly integrated with our Well Intervention Services Integration with Welltec Intervention Services can further add to the positive impact on production rates Allows for maximum benefit from active well management and intervention Good well management can have massive impact on production rates - Supported by a study published by McKinsey & Co. in 2009 based on a benchmark of 40 wells in the North Sea - Suggests additional 16% production volume delivered by active well and reservoir management Welltec s Robotic Intervention Services addresses the majority of these intervention activities Impact on production rates from active well management Gas-lift valve replacement 0,2% Injector cleaning 0,3% Acid stimulation 1,0% Clean-outs 1,4% Well conversion 1,1% Recompletion 1,1% Pump resize 0,8% Tubing optimization 0,8% Lift conversion 0,8% Additional perforation 0,8% Water and gas shut-off 2,4% Sand control 0,5% Zone change 1,4% Fracturing 1,6% Side track 1,8% Total 16% Addressable by Welltec Intervention Services Active well and reservoir management Significantly improved Net Present Value 15

17 Questions? Please contact: Jesper Helmuth Larsen, Chief Financial Officer Morten Græsbøll Ottesen, Investor Relations Director and visit and thank you for your time 16