Moving Boundaries Within Offshore Drilling Pareto's 18th annual Oil & Offshore Conference, Oslo, 31 th August 2011

Transcription

1 Moving Boundaries Within Offshore Drilling Pareto's 18th annual Oil & Offshore Conference, Oslo, 31 th August 2011 Michael Boysen Nielsen Maersk Drilling

2 Maersk Drilling s Strategy Maersk Drilling will focus on Ultra Deepwater floaters and Ultra Harsh Environment Jack-ups Overall Goal Deliver top quartile industry returns Differentiation Strategy Maersk Drilling will deliver higher drilling performance & lower well cost for our customers Rig Segments Maersk Drilling will pursue its competitive advantage in the following rig segments: Ultra deepwater floaters Ultra harsh jack-ups Slide no. 2

3 About Our Fleet

4 Maersk Drilling s fleet 16 drilling rigs, 6 newbuildings, 1 unit on management contract, 10 drilling barges & a 50/50 JV Jack-ups 4 MSC CJ50-X100MC Delivered MSC CJ70-150MC Delivered Baker Pacific Class 375 Delivered MSC CJ62-120/2 Hitachi Delivered BMC 350 Delivered 1984 Semisubmersible Newbuildings Other 3 DWSS-21 Delivered DSS 20-CAS-M Delivered MSC CJ70-X150MD Delivery Samsung K96 Drillships Delivery x Barges 50/50 Joint Venture Maersk Drilling is focusing on modern innovative high-end equipment Slide no. 4

5 Maersk Drilling is a global player Denmark Copenhagen NW Europe 5 Ultra Harsh Jackups 4 Harsh Jackups Established in ,200 employees (5,300 in EDC) Caspian Sea 1 Mid-water Semi SE Asia 2 Premium Jackups US GoM 1 Ultra Deepwater Semi Egyptian Drilling Company (50/50 Joint Venture) 61 land and workover rigs 5 Jackups Under construction: 2 Ultra Harsh Jackups 4 Ultra Deepwater Drillships Venezuela 10 Drilling Barges Australia 1 Ultra Deepwater Semi 1 Standard Semis (management) W Africa 1 Ultra Deepwater Semi 1 Ultra Harsh Jackup Slide no. 5

6 West African drilling experience Maersk Deliverer Uptime 2011 performance to date : -473 days since last LTA days since last reportable incident (injuries, dropped objects, spills) - No personnel injuries/ TRC - 3 dropped objects > 40J energy - >500 Synergi (StOP) cards in average per month - 1 (minor) unintended spill to the environment - Total crew turnover YTD, 5% - Tripping DP above stands/hr (unrestricted) - Running casing at up to 6-7 stands/hr (9 5/8 ) - Consistently running riser/ BOP with approx 4,5-5 joints/hr - Outstanding maintenance < 200 hrs at end of every month % 95.00% 90.00% 85.00% 80.00% 75.00% 70.00% Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 In Maersk Drilling all employees have the right and obligation to stop a potentially unsafe job - always! In Maersk Drilling all employees have the right and obligation to stop a potentially unsafe job always!

7 % Maersk Drilling s backlog 100 Contract backlog Maersk Drilling Peer group average Remaining Strong foundation creating leverage for growth Slide no. 7

8 Performance based compensation structure We offer to reduce the Operating Rate in exchange for the opportunity to earn additional revenue whenever a predefined target is outperformed The rationale behind performance based compensation? It s a win-win you pay for what you get, and we get paid what we deserve! Total well costs Standard drilling service Maersk high efficiency drilling service The extra value created to our customers by our drilling services compared to standard drilling services Outperforming conventional rigs Slide no. 8

9 LTI frequency consistently below industry level Lost Time Incident (LTI) Frequency per Million Work Exposure Hours (Maersk Drilling incl. Administration; IADC Industry Total) Note: LTI Frequency Rate is calculated on basis of lost time incidents per million work exposure hours (ie. actual number of hours worked) While performance has been going up, the LTI statistics have consistently been going down Slide no. 9

10 About Strategic Growth

11 Strong market fundamentals Strong Deepwater oil market offers the fundamentals most compelling will drive growth E&P story spendings the offshore space Slide no. 11

12 Deepwater reserves Slide no. 12

13 Rigs Deepwater demand to increase Strong Highest oil growth market in fundamentals water depth +5,000ft will drive E&P spendings ,501+ ft 5,001-7,500 ft 3,001-5,000 ft < 3,001 ft Global Floating Rig Demand By Well Water Depth (Mid-case) Q04 1Q06 1Q08 1Q10 1Q12 1Q14 1Q16 1Q18 Slide no. 13

14 Maersk Drilling wants to grow the business significantly The key elements of Maersk Drilling s growth ambition by 2016 APMM Group ambition Interim statement 17 August 2011; Maersk Drilling will be prioritized for investment in further growth. Fleet size 30 units (compared to 16 in 2011) Market position Achieve Top 5 position in the ultra deepwater market Sustain market leading position in the ultra harsh jack-up market Slide no. 14

15 Recent orders placed by Maersk Drilling DEEPWATER ADVANCED I, II, III & IV XL ENHANCED I & II Contract for four ultra deepwater drillships Option for two additional units Delivery through 2014 To be built at Samsung Heavy Industries Total investment approximately USD 2.6 billion Order for two high-specification, ultra harsh environment jack-ups Delivery in Q and Q2 of 2014 To be built at Keppel FELS in Singapore Total investment approximately USD 1.2 billion Maersk Drilling s growth plan is well under way with the ordering of 6 newbuildings Slide no. 15

16 Pushing technology frontier forward New generation of rigs Prepared for the requirements of tomorrow Innovation is crucial For meeting tomorrow s challenges - We invest heavily in forward thinking initiatives This applies in the concepts, processes, products and services we offer How we stand out Maximised uptime and drilling efficiency High level of safety Optimum working environment Deliver higher drilling performance & lower well cost for our customers Slide no. 16

17 Maersk Drilling is designing the drilling rig of the future Over the next six months Maersk Drilling will establish a rig specification for the future deepwater drilling rig Experienced project team established Shipyards shortlisted Gathering of ideas from crew on existing rigs and throughout the organisation Workshops will be carried out taking advantage of the know-how and insight available Input for improvements and future requirements will be gathered from existing and potential clients, design houses, shipyards, suppliers, and 3 rd party experts Rise to the challenge Slide no. 17

18 Questions?