Oil & Gas MENA and Azerbaijan

Transcription

1 Oil & Gas MENA and Azerbaijan Alan McLean and Richard Rippon-Swaine London, 30 October

2 Oil & Gas - MENA The market Substantial investment in energy-based projects over next 5 years Growing affluence of population combined with expansion of state provided services Syria Iraq Re-building effort in conflict affected countries Jordan Kuwait Gas increasingly important to meet internal growth Libya Egypt Saudi Arabia Qatar UAE Oil and gas important to fund infrastructure expansion with growing investment also in alternative energy, power and water Oman Opportunities differ by country (commodity, maturity, need for refurbishment etc) Yemen Surplus revenues being generated for sovereign wealth funds for investment purposes Areas of highest activity: upstream, refining and gas processing Kuwait and Saudi potentially the largest markets for AMEC Need for local content continues Requirements differ country-to-country 2 2

3 Oil & Gas - MENA The market - regional drivers and trends Syria Iraq Market looking to Iraq opportunity Kuwait Refining largest projects depending on 4th refinery and clean fuel projects CAPEX forecast to 2015 $90bn ($38bn upstream; $36bn downstream) Libya Drive to regain pre-conflict production levels Egypt Saudi Arabia Petrochemicals drive volumes refinery conversions and speciality chemicals projects Yemen Oman Focus on tight gas production and asset support CAPEX forecast to 2015 $8.3bn (excluding Khazzan) Qatar Moratorium on North field not due to lift till 2015 Limited LNG & GTL CAPEX activity CAPEX forecast to 2015 $15-$20bn UAE Investment in offshore will increase O&G production CAPEX forecast to 2015 $50bn Opportunities differ by country* - $300bn CAPEX in total *See appendix for opportunity by country and customer 3 3

4 Oil & Gas - MENA AMEC s position Market position Top 3 provider in consultancy, project management consultancy and FEED services in core countries Profile Countries People Clients Markets Services Iraq, Kuwait, Libya, Qatar, Saudi Arabia, UAE (operating in region for 30+ years) Approximately 1,000 people Key IOCs/NOCs and others Oil & gas, mining, clean energy, environmental & infrastructure Typically act as owner s engineer Value-based, life of asset services Long history and track record platform for growth See appendix for further details on position and opportunity by country 4 4

5 Oil & Gas - MENA AMEC s business model and core services Existing foundation Incremental growth Incremental growth Expanding position Project management consultancy (PMC) Engineering services In-region FEED capability Out of region multimarket expertise Kuwait and UAE Integrated services Across oil & gas, mining, clean energy, environment & infrastructure markets Organic and focused acquisition Qatar Asset support Saudi and Iraq Asset development NOCs and IOCs Across region Transitioning from oil & gas dominated business to multi-market 5 5

6 Oil & Gas - MENA Strategy for growth Middle East is key to Vision 2015 Grow organically and via focused acquisition Key areas: Iraq, Libya, Qatar, Kuwait, Saudi Arabia, UAE Multi-market approach Full suite of integrated services Focus on project management services and engineering Specialist engineering PMC services Select lump sum engineering Geographic focus supporting multi-market growth 6 6

7 Oil & Gas - MENA ZADCO 1 Upper Zakum 750 PMC contract Project overview Zakum 4 th largest oil field in the world - Upper Zakum covers 1,200 km 2 of Gulf (c$20bl) Increase offshore capacity from 500k to 750k bbl/day by sustain until 2025 Replacement of 60km subsea oil pipeline; reclamation of 4 artificial islands in shallow water to provide drilling pads and production facilities, asset modifications Development of the east and west areas of the field Expansion of onshore/offshore gas treatment facilities AMEC s scope as PMC contractor Largest oil-related PMC contract ever awarded by ZADCO In year 5 of PMC contract (currently c. $100m worth of work) Engineering, technical consultancy, project management (PM) services Concept stage through FEED, design, construction management (CM) and commissioning on the multi-billion dollar Upper Zakum full field development programme Approx 120 AMEC employees on the project, expected to grow to 200+ people AMEC adding value Excellent HSE performance Long-term view of quality and integrity from day one Running to schedule and budget Assets will deliver to customer objective of production capacity uptime > 94% Robust resourcing strategy in place: right people/ right place Provide development opportunities for UAE nationals to build PM skills Customer focused delivery on schedule and budget 1. Part of ADNOC group 7 7

8 Oil & Gas - MENA Kuwait Oil Company (KOC) PMC Contract Project overview KOC is seeking to increase national oil production by 100% by 2020, following destruction caused during the Iraq war AMEC s scope as PMC contractor Integral part of the KOC capital project organisation in Kuwait since 2004 Consultancy services in PM, FEED, contract and CM Portfolio of managed contracts includes 12 capital projects (total value $6bn) Brownfield upgrades to over 30 facilities in North and South Kuwait, as well as existing gathering centres and booster stations AMEC adding value Excellent HSE performance project team for Gathering Centre (GC24) awarded Safety Winners Program by KOC for implementing AMEC Safety Standards 85 million managed contractor man hours without a LTI* achieved by innovative and rigorous HSE management and supervision GC24 (value $750m) in North Kuwait, project completed 6 months ahead of schedule Managing over 17,000 contractor, sub-contractor and vendor personnel Long-term view of quality and integrity from day one Running to schedule and budget Tapping into AMEC s specialist capabilities: PI, qedi, S2V Work sharing: FEED done out of Kuwait and London Provide development opportunities for Kuwait Nationals to build PM skills Contract extension through to 2013 Customer focused delivery excellent HSE performance 8

9 Oil & Gas - Azerbaijan The market Market size 1 Oil production: 46 million tonnes 2 (approx mbpy) Gas production: 909 TCF 3 2 major fields Azeri-Chirag-Deepwater Gunashli (ACG) oil field Shah Deniz (SD) gas and condensate field BP-led Shah Deniz-2 field expected to be the major natural-gas supplier to the Southern Corridor Gas Pipeline project Future opportunities: Absheron, Shafag-Asiman, Nakhichevan PSA 4 Pipelines and infrastructure Oil and gas exported to Europe Three export pipelines: Baku-Tbilisi- Ceyhan (oil), South Caucasus Pipeline (gas) and Western Route Export Pipeline (oil) Key players Oil companies: International Oil Companies (IOCs) work through production sharing agreements (PSA) and JVs with SOCAR (National Oil Company) Engineering: KBR (greenfield engineering), McDermott (fabrication) AIOC 5 BP (34.15%) operator Chevron (11.3%) Inpex (11%) SOCAR (13.24%) Statoil (8.6%) Exxon (8.0%) TPAO (6.8%) Itochu (4.3%) Hess (2.7%) Opportunity for greenfield and brownfield activities 1) source: SOCAR website as at 29 Oct 2012, 2) See appendix 3) trillion cubic feet, 4) Project Sharing Agreement 5) Joint operating company: Azerbaijan International Operating Company source Wood MacKenzie, BP Sustainability report for

10 Oil & Gas - Azerbaijan AMEC s position Market Position Tier 1 provider of engineering and construction management for brownfield and greenfield upstream projects BP s preferred contractor in country for brownfield engineering (offshore and onshore) Baku Profile Clients Mix of IOCs and SOCAR - BP operator for ACG and Shah Deniz PSA 3 projects 1) BP ECMS, 2) Chirag oil project, 3) COP 1 brownfield Services Brownfield engineering (onshore and offshore), procurement, project management, construction management, environmental consultancy Differentiators Delivery of multiple projects; 11 years of asset support services; fabrication of 3 major topsides Strength of relationship with customer and local partners (ATA 2 ) Strong Azerbaijani local content (430 people half Azerbaijani nationals) 11 years without Lost Time Incident (LTI) Working and delivering safely in Azerbaijan for 15 years 1) Chirag Oil Project, 2) Consortium between AMEC, Tekfen, Azfen 10 10

11 Oil & Gas - Azerbaijan BP BP ECMS (framework contract delivered under BP global agreement) Project overview Framework contract with variety of studies and projects covering: 8 offshore platforms in ACG and SD fields 1 onshore oil & gas processing terminal 3 export pipelines New asset, Chirag Oil Project West Chirag, where AMEC is providing project management, will be brought on production during the contract term Completion date: March 2016 (+ 2 x 4 year options) AMEC scope and services Engineering construction management services (ECMS) Project management Design and implementation of modifications Brownfield engineering support services (on and offshore) Construction management and commissioning Highlights 11 year delivery of EMS contract to BP 11 years without a single LTI AzSPU Engineering 2005 award for outstanding performance 2011 ECMS contract renewed - includes both on and offshore scope Strong and growing customer relationship 11 11

12 Oil & Gas - Azerbaijan AIOC - BP Chirag Oil Project West Chirag (COP-WC) Project overview Fabrication of a new asset (20,000te), Chirag Oil Project West Chirag, where AMEC execute project management of the fabrication in consortium with Tekfen and Azfen Ready for sail-away date: 31 March 2013 (plus follow-on hook-up support) AMEC scope and services in consortium (ATA) Project management of the fabrication Fabrication engineering executed in Jakarta Construction management and supervision Hook-up support to BP Brownfield integration into the PCWU facility Highlights This is the 3rd platform for AIOC executed in partnership with Tekfen and Azfen spanning a relationship of 10 years 15 million man hours without a single LTI AMEC Global HSSE award for safety performance 100% in-country fabrication first of its kind Project on schedule at 90% complete On schedule, delivered safely 12 12

13 Oil & Gas - Azerbaijan Strategy for growth Future Position Tier 1 provider of FEED, detailed design, EPCM, construction management and brownfield engineering services Regional delivery, supported by global centres of excellence Expanded customer portfolios with new oil and gas fields developments and PSAs eg Nakhichevan, Absheron, Umid blocks Strategy Deliver ongoing projects to the best standards and achieve growth Secure Shah Deniz 2 project Target selective large-scale and complex assets with UK engineering operations and MMC AMEC (local entity) in Azerbaijan Target specific IOCs and the NOC for new oil and gas fields development Work across markets and geographies to maximise delivery Deploy wider AMEC services and markets (Environment & Infrastructure, Mining) Maintain and grow local content development Proven delivery positions for future growth 13 13

14 Oil & Gas MENA and Azerbaijan Appendix London, 30 October

15 Appendix - MENA Opportunity by country Iraq Libya Kuwait Oman Qatar Saudi Arabia UAE Attractiveness (n low, nnnn high) AMEC opportunity By market Upstream, midstream, downstream Onshore/ offshore Project opportunities Key customers nn nnn nnnn n nnnn nnn nnnn Oil & Gas Clean Energy E&I* nnn Oil & Gas Clean Energy E&I* nnn Oil & Gas E&I* nn Upstream Upstream Significant onshore up / mid / downstream Oil & Gas E&I* nn Upstream Oil & Gas Mining E&I* nnn Significant midstream, upstream Oil & Gas Clean Energy Mining E&I* nnnn Significant onshore upstream Oil & Gas Clean Energy E&I* nnn Significant upstream + mid / downstream Onshore Both Both Onshore Both Onshore Both Upstream field developments Field rehabilitation Water & infrastructure projects IOC led consortia Upstream field development Pipelines Brownfield remediation Re-entry NOC and IOCs Redevelopment activity Gas trains New refineries & upgrades Undeveloped northern area KOC, KNPC, KJO Production enhancement Gas developments NOC consortia and mining Upstream production, Asset support Brownfield engineering Water projects NOC, IOC, mining and E&I* Production increases Onshore upstream Infrastructure Mining NOC and Mining Upstream development Refinery development & upgrade Nuclear NOC and IOC PSA clients Opportunities differ by country *Environment & Infrastructure 15 15

16 Appendix - MENA Target customers by country Libya Kuwait Qatar Saudi Arabia UAE Iraq AMEC s position 30 years in Libya focus on re-entry and develop incountry engineering Strongest position In-country engineering and PMC In JV with Black Cat focus on asset support including brownfield engineering, AMEC E&I has existing infrastructure projects Technical services to O&G market; consulting services and engineering studies for mining PMC and FEED services for O&G; consulting services for nuclear Engineering and environmental services to Oil & Gas market. One- AMEC approach: E&I and S2V NOCs ZOC, WAHA, Harouge, Agoco KOC: PMC & major upstream projects 2013 Al-Khafji Joint operations KNPC: eng and PM services Qatar Petroleum Saudi Aramco, Sabic, Ma daan ADMA-OPCO:, Adgas, Zadco, Adco SOC, NOC and others IOCs Shell, Chevron, Total, BP, Verenex, Repsol, Wintershall NOC dominated market ExxonMobil, Total, Oxy, Maersk, Shell, Qatargas NOC consortia dominated market BP Sharjah, Conoco Phillips Kogas BP Shell Examples Provision of technical services, FEED engineering, detailed design and consultancy services FEED and detailed design for gas and oil field developments Distributed engineering in AMEC London Old Street for complex FDP Contracts for offshore brownfield modifications OSBV crucial markets for Shell and Dolphin access platforms New market entry for feasibility engineering and PMC services PMC for various customers, engineering scope increasing One-AMEC approach for asset support projects (S2V, Pi, qedi) Commissioning and completion support within southern Iraq FDP planning and engineering for new field development Expanding beyond strong position in core markets 16 16

17 Appendix - MENA History of AMEC in MENA AMEC Intl Ltd. Nasr-1 & UL-1 PMC for EPC (UAE) KNPC- 5 th Gas Train Study & FEED at Mina Al Ahmadi (Kuwait) MAPEL inspection services (Libya) Oilfield rehabilitation (Kuwait) Berri ethane plant - EPC (Saudi Arabia) KNPC, General Eng Services (Kuwait) Black Cat JV (Qatar) ADCO Energy Efficiency Improvement All Fields (UAE) 1970s KWSA engineering services (Saudi Arabia) Haradh GOSP - PMS (Saudi Arabia) KOC southern oilfields PMC (Kuwait) ZADCO Major Projects PM Contract (UAE) Harouge. FEED Engineering (Libya) OXY DD Engineer Services Contract (Qatar) Wafra Joint Operations (Saudi Chevron & Kuwait Gulf Oil Co.) FEED- Central Gas Utilisation Project (Kuwait) 17 17

18 Appendix Azerbaijan History of oil & gas 1850s: Azerbaijan is one of the oldest oil producing regions in the world, starting with a flow of foreign investments in 19th century 1875: the Nobel brothers began their activities in Azerbaijan's oil industry 1920: 109 public companies in Azerbaijan, 37 British owned (worth approx 100 million) 1994: the first PSA, the contract of the century signed between SOCAR 1 and AIOC : oil production reached 46 million tonnes (approx mbpy); gas production 909 TCF *source for charts: SOCAR Annual Report

19 Appendix - Azerbaijan AMEC in Azerbaijan 1997: AMEC was the first British-owned E&C contractor to establish permanent presence in Azerbaijan 1997: AMEC provided specialist support to BP Exploration (Shah Deniz) Limited for upgrade of Shelf 5 semi-submersible drilling rig 2002: AMEC entered first consortium agreement with local partners Tekfen and Azfen for fabrication of compression, water injection project (C&WP) topside 2010: BP awarded AMEC-Tekfen-AZFEN (ATA) consortium 5-year Master Services Agreement (MSA) for fabrication work 2011: BP renewed the offshore brownfield engineering contract (EMS) for next 13 years including onshore scope AMEC Baku office, 1997 AMEC Baku office,

20 Appendix - Azerbaijan AMEC projects history Shelf 5 / Istiglal AIOC Chirag Water Injection BTC Project Production Compression Water Injection and Utilities - PCWU Project PCWU COP Brownfield ongoing BP Shah Deniz AIOC Azeri-Chirag- Gunashli fields phase 3 BP EMS Project; extended and then renewed to ECMS Compression Water Injection Platform - C&WP Project Chirag Oil Project-West Chirag for ACG phase

21 Appendix - Azerbaijan AMEC-Tekfen-Azfen consortium (ATA) ATA consortium made up of AMEC, Tekfen (a Turkish contracting and construction company) and Azfen JV (joint venture between Tekfen and SOCAR) Azfen: fabrication facility and local Azeri trades personnel TEKFEN: supervision and local labour AMEC: yard design and development, project management, engineering, training and HSE, systems and procedures 2010: ATA consortium awarded 5-year MSA for fabrication work for BP AIOC Current COP-WC-PDQ topside will be the largest offshore structure ever built in Baku, load-out weight in excess of 20,000mt CWP - 14, 250 tonnes PCWU- 14,500 tonnes COP-WC excess of 20,000 tonnes Working in partnership with local companies 21 21

22 Appendix - Azerbaijan ATA construction facility The ATA construction facility is located on Janub Kyorpyusu (South Bridge) on the coast of the Caspian Sea, south west of Baku 2002: the yard (which includes facilities to fabricate, construct and commission topsides) constructed by ATA consortium 2010: yard upgraded to enable fabrication of topsides up to 25,500 tonnes Two large topsides built at yard; currently building third platform for AIOC : Compression and water injection platform (C&WP) : Process, compression, water injection and utilities platform (PCWU) ongoing: Chirag Oil Project-West Chirag (COP-WC) topsides project After development World class fabrication facility 1) PSA between BP, Chevron, SOCAR (state), Inpex, Statoil, TPAO, Itochu, Hess 22 22

23 Appendix - Azerbaijan ATA fabrication yard (2002) 23 23

24 Appendix - Azerbaijan ATA fabrication yard (2003) 24 24

25 Appendix - Azerbaijan ATA fabrication yard (2011) 25 25

26 Appendix - Azerbaijan ATA fabrication yard (2012) 26 26

27 Appendix - Azerbaijan Major oil and gas fields and distribution pipelines Azerbaijan oil and gas fields Major distribution pipelines Azerbaijan s oil & gas fields 27 27