CHRYSAOR SUBSEA UK LUNCH AND LEARN 23 RD MAY 2017

Transcription

1 JE CHRYSAOR SUBSEA UK LUNCH AND LEARN 23 RD MAY 2017

2 AGENDA Overview of Assets Acquired Key Metrics Chrysaor Key Players Transition Process Mechanics Subsea Overview and Way Forward Supplier Engagement Plans 1 1

3 Non-Operated Operated CHRYSAOR ACQUISITION OF $3.0BN UK NORTH SEA ASSET PACKAGE FROM SHELL Chrysaor to Establish the Leading UK Independent Asset Location Map Package of Assets Being Acquired Asset Interest Operator Everest 100% Shell Lomond 100% Shell Greater Armada Area 76.4% Shell Beryl Area 39.4% Apache Bressay 18.4% Statoil Buzzard 21.73% Nexen Elgin/ Franklin 14.1%% Total Erskine 32% Chevron J-Block 30.5% Conoco Phillips Schiehallion 10% BP Chrysaor to become the UK s leading independent oil & gas company focused on the North Sea and delivering profitable near-term, medium-term and full cycle growth 2 2

4 KEY POINTS Acquisition costs $8.50bbl staff to TUPE across Chrysaor will be Production and Wells/Pipelines Operator Wood Group and Lloyds Register provide support Intention is to INVEST in portfolio and in other UKCS opportunities 3 3

5 CHRYSAOR OVERVIEW & MANAGEMENT TEAM Highlights Chrysaor to become 3 rd largest producer and 4 th largest reserves base in UK North Sea Chrysaor to become Production, Installation, Well & Pipeline Operator Diversified portfolio with interests in 4 of the 10 largest production hubs in the UK North Sea Portfolio includes interests in Buzzard, Schiehallion, Elgin-Franklin & Beryl as well as J Block Equity provided by Harbour Energy an investment vehicle backed by EIG which specializes in energy and related infrastructure with USD 14.3bn AUM Board will be led post-acquisition by Linda Cook, former Shell Executive Committee member and CEO of Harbour Energy Other Board members include Steve Farris former CEO of Apache & Andrew Jamieson ex-shell 2P Reserves: c.350 mmboe 2016 Production: 115 kboepd Phil Kirk (CEO) Key Management Founded Chrysaor in 2007 Previously co-founder & managing director of CH4 Member of the board of Oil & Gas UK, ex-member of the Wood Review Interim Advisory Panel & OGA Program Board, Co-Chair of OGA UK Exploration Board, member of (Pilot/Fiscal) MER UK Forum Bob Fennell (Operations Director) Joined Chrysaor late 2016 Chartered Engineer with MSc/DIC in Petroleum Engineering Extensive experience in Operations Management at Nexen including VP Operations Yemen, Director UK Operations, VP Global Deepwater, VP Oil Sands Mark Aldrich (HSEQ Manager) Joined Chrysaor in January 2011 Masters in risk management and safety technology from Aston University, NEBOSH OHS Diploma, chartered member of the Institute of Occupational Safety and Health Responsible for UK HSEQ at Maersk Contractors, International EHS Manager at Burlington Res & Group HSEQ Manager for E.ON Ruhrgas Karl Tolson (Wells Director) Co-Founder of Chrysaor in st class MEng in Civil & Geotechnical Eng from Newcastle University Extensive experience in drilling, completions, well service & management at CH4 and Petrofac as Drilling Manager Leads the Oil & Gas UK work group on Relief Well Planning Andy Patience (Director, Projects) Joined Chrysaor in 2009 Bsc in Quantity Surveying & Qualified Chartered QS Extensive procurement and Project delivery/pre-development experience with major operators Up to 400 Transferring Staff <$15/boe unit operating costs John McKenzie (Wells and Subsea Manager) Joined Chrysaor in July 2016 Extensive experience in subsea intervention, IRM and underwater construction 34 years experience in the UK and overseas with major Oil and Gas Operators Paul Campbell (Transition Contracts Manager) Joined Chrysaor March 2017 Qualified Solicitor with 12 years experience in both private practice and corporate law 14 years Oil & Gas experience including 12 years operator at Apache, Repsol and Maersk 4 4

6 TRANSITION WORKSTREAMS HR Transfer of staff Training Competency Management Pensions & Benefits Personnel Logistics Payroll HR Policies Corinne Kelt / Angela Craig Operations & Maintenance Production & Maintenance Operatorship Handover Hydrocarbon Accounting Work Programs/budgets Bob Fennell/ Alan Paton HSEQ Safety Case Approvals, permits, consents Regulatory requirements BMS Mark Aldrich/ Louise Laszlo Communications Internal communications External Communications Stakeholder management Andrew Vickers/ Padraig McCloskey IT Systems Infrastructure Communications Tom Dinnis/ Austyn Davidson Finance & Corporate Services Accounting Commercial Cost Management Rob White/ Simon Williams Surface Technical/Surface Projects Brownfield Engineering Conceptual Engineering David Ellix /Yee Yee Low Wells & Subsea Wells data Subsea data Well & Subsea Integrity Management Karl Tolson / Stuart Dickson Subsurface Technical/Subsurface Resourcing Production Geoscience, Reservoir Engineering & Production Technology Subsurface data Reservoir Applications Skills inventory & development Robert Podduibiuk / Andrew Vaughan Supply Chain Contracts Materials & Inventory Management Procurement Logistics Andy Patience / Callum Finlayson Outside Operated Assets. OCM/TCM Meetings. AFE s. HMS interfaces. Accounting Rory Edwards/Chris Paul 5 5

7 TRANSITION INDICATIVE TIMELINE Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Transition Preparation SPA Signing SPA 31 st Jan Transition Arrangements Operational Duty Holder Handover 31 st October Chrysaor Operations 2-Way Planning Transition Implementation Transformation Transition Preparation Establish Chrysaor transition team Engage with Shell Establish WG/LR Senergy transition support team Prepare transition strategy including objectives, Guiding Principles, deliverables and schedule Finalise level 1 plan Phase 1: 2-Way Planning Detailed joint transition planning with Chrysaor and Shell Staff and contractor engagement with effective communications Define and begin to set up the Chrysaor Operating capability and organisation Duration 31 st January 28th February 2017 Phase 2: Transition Implementation Implementation of the joint transition plan agreed in phase 2 Application of an assurance process to ensure effective delivery to transition objectives Focus on the safe and effective delivery of ongoing operations Regular communications with all stakeholders Duration 1 st March - 31 st October 2017 Transfer of Operatorship 6 6

8 WELLS AND SUBSEA PORTFOLIO Fifty Wells Three Primary Structures Three Operated Subsea Tiebacks plus Third Parties Seven Subsea Wells currently ~400km of pipe and flowline Targeting drilling 2 subsea wells at Armada as soon as deal closes 7 7

9 WELLS AND SUBSEA INDICATIVE TIMELINE Operational Duty Holder Handover 31 st October Discover and Baseline Plan and Prepare Optimise Redevelop Discover and Baseline Optimisation Redevelopment Asset Status Modelling Issues and Opportunities Integrity Production Optimisation Flow Assurance Economic Remediation Add hydrocarbons Side Tracks Tie-backs Innovation and Technology 8 8

10 CHRYSAOR S SUPPLY CHAIN APPROACH Transition incumbents with 1-3yr contracts 100+contracts to place by end September-simplified process being adopted Short Term Transformation from Q Not Before Currently subscribing to FPAL 9 9

11 CHRYSAOR S SUPPLY CHAIN APPROACH Strategic review finalised early 2018 Engaging with Supply Chain in 2018 to understand capabilities and explore value adding initiatives Longer Term Initial focus will be on higher value/business critical activities Contracts will be heavily relationship based, linked to good performance 10 10

12 WORKING WITH CHRYSAOR GENUINE collaboration/relationships based on performance (safety, total cost + uptime) Receptive to INNOVATION technical & commercial Recognition that everyone needs to make money for SUSTAINABILITY but we must jointly strive for high performance SUPPLIER RELATIONSHIP MANAGEMENT will be important not looking to build a large organisation + will rely heavily on supply chain Adopting LOGIC standard templates with special additional clauses 11 11