Future growth drivers and initiatives S trategies for growth and risk management Geography - diversification by region – portfolio of risk: security, political/ legal, economic – five/ six core country markets with numerous opportunistic countries – local presence continues to be a strong differentiator Customers and product diversification – diverse: international oil companies, national oil companies and smaller independent operators Well established and transparent execution model – FEED / EPC / Operations & Maintenance / Training Added value, cost and delivery optimisation from synergies across the total business offering, Engineering & Construction, Operations S ervices, Energy Developments
Future growth drivers and initiatives Geographic diversification, sales and development focus Middle East – Qatar, S audi Arabia, Kuwait, Oman, UAE – Iraq (medium term) – Iran (medium to long term) Africa – Algeria, Egypt, Tunisia, Nigeria, Libya CIS – Kazakhstan, Turkmenistan, Russia
Future growth drivers and initiatives Geographic diversification Obj ective is to maintain a balanced portfolio by target region – 2005 Middle East order intake – 2006 Africa and CIS order intake – 2007 Africa and CIS order intake – 2008 Middle East order intake – 2009 Middle East and Africa Increased participation in long term initiatives and partnerships – Petrofac / IKPT (partnership), LNG proj ects – Petrofac Emirates (partnership) – Petrofac S audi Arabia
Future growth drivers and initiatives Customer and product diversification Focus on strong relationships with international oil companies and national oil companies Mitigate cyclical industry trends by – LNG, refinery, petrochemical – balance services over offshore/ onshore Ability to offer differentiated commercial models Ability to build cost effectively on existing expertise eg. sour gas Utilities and offsites experience – t ranscends oil & gas, refinery and petrochemicals
Future growth drivers and initiatives Customer and product diversification LNG / GTL S elective technology positions – alliances, j oint ventures with specialist contractors Build on local presence – UAE – Oman – Algeria – Qatar – Kuwait – Kazakhstan
Future growth drivers and initiatives Competition With the Tier 1 contractors, limited peer competition, increasing Korean competition Development of differentiated position – through execution model, services to EPC, operations and training – through reliability and delivery leading to repeat business, negotiated awards and word of mouth recommendations thereby introducing new customers – value associated with strong brand – competitive cost structure
Future growth drivers and initiatives Petrofac Emirates - new venture in the UAE Joint venture between Petrofac and Mubadala S cope of work, EPC in UAE and where Mubadala has participating interest Maj or short-term bidding activity – ADCO, S AS , BAB Compression – ADGAS , Das Island – GAS CO, Habshan utilities and offsites S hort-medium term – ADCO, 1.8 expansion – Conoco Phillips, S hah development, multiple EPC contracts – Takreer refinery
Future growth drivers and initiatives S audi Arabia Actively bidding for proj ects eg. Karan utilities & offsites, Yanbu export refinery Excellent visibility of opportunities 2009-2012 in core oil & gas, refinery and petrochemical Local legal entity established – essential for in-country execution Targeted growth plan to establish Petrofac as a maj or player in the S audi market S trong relationships and positioning with key subcontractors
Future growth drivers and initiatives LNG Prequalified for S hell LNG proj ects worldwide, US $5-10 billion greenfield Bid for world class LNG proj ect, albeit unsuccessful (Algeria) Currently bidding for other LNG opportunities Good visibility of short/ medium-term prospects Pursuing strategic alliances with other maj or LNG contractors Focused recruitment programme ongoing
Future growth drivers and initiatives The outlook Target markets, outlook remains positive Good visibility of 2009, 2010 prospects for EPC Acquisitions on a selective basis S ecuring and retention of resources is a primary focus
Risk management
Risk management Executive risk management strategy Risk Risk management management processes processes Corporate Contract/ proj ect support risk management and guidance and execution management
Risk management strategy Executive risk management strategy Focus on areas of principal expertise, lump sum EPC and engineering services Mitigation through a broad portfolio, countries and services S trong management control and accountability Heavy investment in proposal management and proj ect controls Focus on strengthening risk monitoring and assurance processes Business continuity planning
Risk management approach Corporate support and guidelines Measurement and monitoring of corporate risk exposures, banks, countries, contracts, commodities, and other counter-party risk (vendors, subcontractors) etc Use of guidelines to establish limits and parameters for risk taking Common processes for reviewing and assessing corporate risk in new business
Contract risk in Engineering & Construction COUNTRY RISKS CUSTOMER RISKS Join venture/ Contracts Consortium agreement PARTNER RISKS PETROFAC Purchase orders Subcontracts SUBCONTRACTOR RISKS VENDOR/SUPPLIER RISKS
Petrofac’ s contractual risk policy Petrofac seeks balanced contractual risk allocation with customers, partners and subcontractors to: – avoid disproportionate potential liabilities – eliminate/ minimise potential liabilities outside Petrofac control – allow an equitable allocation of risks amongst parties involved – contractual risks control and mitigation by party in best position to manage – promote smooth contractual relationship among involved parties
Contract risk, prequalification cycle Prequalification Prospect Prequalification Prospect documents submission identification documents submission identification Prequalification phase Assessment of Assessment of customer risk & customer risk & country risk country risk High level execution High level execution strategy strategy Choose partners Choose partners Assessment & decision Assessment & decision to pre-qualify to pre-qualify
Contract risk, proposal cycle Risk review Proposal ready Risk review Proposal Proposal ready Tender committee Technical and Proposal Tender Bid/no bid for review committee Technical and Receive Bid/no bid for review information (RRC) Review Receive commercial submission information (RRC) Review decision commercial submission decision sheet ITB review sheet ITB review distributed Divisional risk distributed Divisional risk Board approval review committee Board approval review committee (DRRC) Review (DRRC) Review 1 week 2 nd price 1 st price review review 2 - 3 weeks 1 week Proposal preparation Bid/no bid decision phase Review and submission phase phase Review ITT and Detailed review Review ITT and Detailed review Revisions based on ITT and key key contract Revisions based on ITT and key key contract terms contract terms terms contract terms DRRC, RRC and board DRRC, RRC and board directives directives Identify and issue Check for Identify and issue Check for ITBs to vendors & ITBs to vendors & deal-breakers deal-breakers subcontractors subcontractors Obtaining vendor & Obtaining vendor & subcontractor Identification of risks & subcontractor Identification of risks & Prices Decision to mitigation measures for Prices Decision to mitigation measures for presentation to presentation to bid bid DRRC/RRC/board DRRC/RRC/board
Maj or contractual terms in EPC contracts Rely upon information Financial provisions and securities (payment terms, bank guarantees, etc) Liquidated damages for delay & failure to achieve performance guarantees Change in law Maximum aggregate liability of contractor under the contract Consequential losses/ damages Liabilities, indemnities and insurance Warranty obligations S uspension/ termination Force maj eure
Contract risk, proj ect cycle Commencement Provisional Final Mechanical Commencement Provisional Final Mechanical of EPC contract acceptance acceptance completion of EPC contract acceptance acceptance completion Warranty period EPC phase Commissioning phase Warranty phase By Petrofac/ By Petrofac/ Engineering Engineering Vendors & subcontractors to Vendors & subcontractors to customer with customer with meet their meet their support support warranty obligations warranty obligations from vendors Procurement from vendors Procurement & subcontractors through vendors & subcontractors through vendors Construction through Construction through subcontractor(s) subcontractor(s) Vendors to meet required Vendors to meet required performance guarantee Subcontractor to achieve performance guarantee Subcontractor to achieve for their equipment mechanical completion for their equipment mechanical completion CONTRACT RISKS
Progress Final acceptance certificate Warranty phase Provisional Acceptance 100 % Certificate Pay LDs Pay LDs Make good Make good U RFS ‘ Back to Mechanical completion back’ vendor Execution phase guarantees Vendor representatives at site s e r u s a e m n o i t Correct design/ performance test Contract risk, profile a g Effective Dat e procedures/ completions checklist i t i M 100 % 0% Identify & align vendors who can meet Proposal phase requirements Take up wit h vendors and subcontractors Assess and allow for proposal (performance Tests, rely upon info etc)
S ubcontracts, risk management PETROFAC CONSTRUCTION MATERIAL CONSTRUCTION MATERIAL SUBCONTRACTORS VENDORS/SUPPLIERS SUBCONTRACTORS VENDORS/SUPPLIERS Back-to-back basis with Back-to-back basis with a) Pass-through obligations a) Pass-through obligations the EPC contract the EPC contract b) Warranty on a back-to-back b) Warranty on a back-to-back conditions (obligations, conditions (obligations, basis with the EPC contract basis with the EPC contract payment terms, bonds, payment terms, bonds, c) Compliance with main contract c) Compliance with main contract liquidated damages, liquidated damages, requirement requirement warranty etc) warranty etc)
Contract risk, large scale proj ects strategy (1) CUSTOMER Joint & several liability towards customer Joint venture Joint venture Petrofac – JV Partner Petrofac – JV Partner S haring of risks JV PARTNER PETROFAC E, P & C S cope E, P & C S cope Engineering Procurement Construction Engineering Procurement Construction Engineering Procurement Construction Engineering Procurement Construction Responsible for performance of Responsible for performance of Responsible for performance of Responsible for performance of its work scope its work scope its work scope its work scope Commercial risks Commercial risks Commercial risks Commercial risks Schedule risks Schedule risks Schedule risks Schedule risks Technical risks Technical risks Technical risks Technical risks
Contract risk, large scale proj ects strategy (2) CUSTOMER Joint & several liability Joint venture towards customer Joint venture Petrofac – Partner 1 – Partner 2 Petrofac – Partner 1 – Partner 2 S haring of risks PARTNER 1 PARTNER 2 PETROFAC Engineering Procurement Engineering Procurement Construction Engineering Procurement Engineering Procurement Construction Responsible for performance of Responsible for performance of Responsible for performance Responsible for performance of Responsible for performance of Responsible for performance its work scope its work scope its work scope of its work scope its work scope of its work scope Commercial risks Commercial risks Commercial risks Commercial risks Commercial risks Commercial risks Schedule risks Schedule risks Schedule risks Schedule risks Schedule risks Schedule risks Technical risks Technical risks Technical risks Technical risks Technical risks Technical risks
S ubcontractor risk management Provisional Final Mechanical Commencement of Provisional Final Mechanical Commencement of acceptance acceptance completion EPC contract acceptance acceptance completion EPC contract Warranty period Commissioning Warranty EPC phase phase phase Late Lack of Defective Delay in Non-achievement of Late Lack of Defective Delay in Non-achievement of SUBCONTRACTOR mobilisation resources workmanship progress mechanical completion mobilisation resources workmanship progress mechanical completion RISKS Incentive Take out scope of work Additional Incentive Take out scope of work Additional Petrofac control of Petrofac control of schemes to and assign to other resources schemes to and assign to other resources subcontractor resources & subcontractor resources & subcontractor by Petrofac subcontractor(s) subcontractor by Petrofac subcontractor(s) lower-tier subcontractor lower-tier subcontractor MITIGATION Petrofac Direct intervention Acceleration & recovery Petrofac Direct intervention Acceleration & recovery MEASURES construction management by Petrofac measures by subcontractor(s) construction management by Petrofac measures by subcontractor(s) Project sponsor, steering committee and executive management: Project sponsor, steering committee and executive management: monitoring and intervention monitoring and intervention
Vendor/ supplier risk management Provisional Mechanical Final Placement of Provisional Mechanical Final Placement of acceptance completion acceptance acceptance completion acceptance purchase order purchase order Warranty period Commissioning Order execution phase Warranty phase phase VENDOR VENDOR Order of Defective Failure during Slow response in Order of Defective Failure during Slow response in RISKS RISKS Lack of Shop load Delay in Lack of capable Lack of Shop load Delay in Lack of capable raw materials/ workmanship factory addressing warranty raw materials/ workmanship factory addressing warranty status resources fabrication site engineers status resources fabrication site engineers sub-components or material acceptance issues sub-components or material acceptance issues MITIGATION MEASURES Additional Acceleration & Placement Outsourcing Step-up Incentive MITIGATION MEASURES Additional Acceleration & Placement Outsourcing Step-up Incentive Air freight/ Air freight/ resources recovery measure of resident test bench expediting schemes to resources recovery measure of resident test bench expediting schemes to charter flights charter flights by Petrofac by vendor inspectors facilities efforts sub-vendors by vendor by Petrofac inspectors facilities efforts sub-vendors Take out partial scope of work Use of high level pressure Take out partial scope of work Use of high level pressure and assign to other sub-vendors from vendor management and assign to other sub-vendors from vendor management Project sponsor and executive management: monitoring and intervention Project sponsor and executive management: monitoring and intervention
The proj ect cycle PROPOS AL S TAGE AWARD S TAGE EXECUTION STAGE Identification of Identification of Negotiations with Ensure strong Negotiations with Ensure strong critical contract customer to ensure fair critical contract customer to ensure fair support & support & and equitable contract risks and mitigation and equitable contract risks and mitigation coordination from coordination from Negotiations with measures Negotiations with measures partners, partners, partners, partners, subcontractors and subcontractors and Careful selection of Careful selection of subcontractors and subcontractors and vendors for a goal- vendors for a goal- partners, partners, vendors to ensure a fair vendors to ensure a fair driven unified- driven unified- subcontractor and and equitable subcontractor and and equitable approach contractual relationship approach contractual relationship vendors vendors Sound contractual policy Sound contractual policy Direct intervention by senior management Direct intervention by senior management Regular reporting and reviews Regular reporting and reviews
Execution management
Execution management Phases of a proj ect Basic components of each phase Common drivers
Execution management, proj ect phases Bid start Contract COMM Bidding and award complete proposals Performance Contract test complete realisation End of Custody handover liabilities Warranty period
Execution management, proposal & bidding • Vendors • Vendors • S ubcontractors • S ubcontractors Customer Technical • S pecialist services • S pecialist services • Technology/ licensors • Technology/ licensors Proposal Contractual Commercial
Execution management, proposal approach Proposals are the cornerstone of good execution Manage the proposal as a proj ect Mobilise the task force for the proposal Understand, analyse, dissect technical, contractual and commercial requirements Engage with customer, in clarification Identify third party involvement and engage them Develop a good understanding of how the proj ect will be executed
Execution management, proposal approach Technical Prepare and submit technical proposal including clear representation of your understanding of requirements Prepare preliminary execution plans for the realisation phase including organisation, schedule, specifications and data sheets and basis of bid Detailed review of vendors and sub-contractors submission and engaging them in clarification process - zero on the critical Prepare technical document register, procurement register, schedule Align offers of vendors, subcontractors and third parties to the contract requirements where possible Prepare risk matrix and proposed mitigations, including proposed actions to deal with non transferable risks or liabilities
Execution management, proposal approach Engineering Verification and endorsement of the FEED – meets performance guarantees, material deliveries, alternatives, etc Development of the FEED at the bid stage, as required, to support the detailed estimate, provide early start for all disciplines Third party verification: for specialist technology domains Introduction of specialist subcontractors/ partners to add value to the bid and execution
Execution management, proposal approach Contractual Prepare detailed list of contractual obligation and liabilities - assess criticality/ acceptability and risk associated with each submission Prepare detailed clarifications and qualifications and engage the customer Quantify cost where it is possible and prepare alternative proposals Include clear basis of the proposal in the bid and include alternatives S upport in selection of subcontractors and finalise all contractual commercial issues related to maj or subcontractors and vendors Review and analyse cash flow and propose alternative Prepare risk matrix
Execution management, proposal approach Commercial proposal Zero pricing principle (no rules of thumb, no estimation curves) Issue enquiries and obtain quotations Engage critical vendors in clarification and negotiations Evaluate data obtained against in-house recent data from proj ects Engage subcontractors and issue BOQ, for obtaining prices Compare obtained quotes to in-house performed estimates Review cycles for BOM, BOQ and prices Comparison to historical data
Execution management, proj ect realisation Engineering Project Procurement services Project Construction HSSE management Commissioning QA/QC Project controls
Execution management, proj ect realisation Project management principles Risk - early identification of risks and plans for mitigation HS S E - safe execution saves time and money Quality - the most cost effective scenario is do it right first time Customer satisfaction - create win-win relation with the customer Budget - set budget, control, report and improve Target driven schedule – plan, identify risk, be flexible and responsive Management of interfaces - early recognition of problems means early solutions Commissioning and construction are the aim of the engineering and procurement
Execution management, proj ect realisation Project management approach Task force, with full in-house capability and competence QA and HS S E are an integral part of the proj ect activities Construction/ commissioning driven schedule Target driven schedules and plans Decision making process based on technical and optimum cost solutions Early procurement of critical material Bulk orders in phases to meet site requirements Continuous cost monitoring, reporting and control
Execution management, quality assurance & control Quality management principles Customer focused organisation Leadership and standard setting Involvement of right resources Process approach (plan, do, check, act) Continual improvement Best practices, lessons learned Factual approach to decision making Mutually beneficial supplier relationships Embedded within execution, not treated as a “ bolt-on”
Execution management, HS S E Management commitment to highest health, safety, security and environment standards Risk based inherently safe approach Exhaustive in-house HS S E technical capability for all proj ect phases Integration of home office and site HS S E organisations
Execution management, HS S E Construction HS S E programmes including: – emergency response procedures – crisis management – training – security – medical resources Proven capability of world class HS S E performance on proj ects with – extreme environments – low competency manpower – brownfield operations – sour gas presence
Execution management, HS S E Principles/approach Identify proj ect specifics and risk areas – early and remain focused Develop programmes and specific plans S et targets and KPIs across all levels of proj ect staff Develop plans, monitor, report and improve Visible leadership Ensure execution plans embody safety Ensure method statements and risk assessments cover requirements to execute safely All team members are responsible for safety Constructability reviews early and include safety aspects
Execution management, engineering Full in-house capability and control Cover all aspects from studies to det ailed engineering - Woking, S harj ah, Mumbai, Chennai & Indonesia High value operation centres (Mumbai, Chennai and Indonesia) Integrated data centric approach In-built quality assurance process Mature procedures and method statements S chedule tailored to meet construction needs Established material management system Feedback through field engineering
Execution management, procurement Integrated within proj ect task force – buying, inspection and expediting Worldwide capability - Europe, US , Middle East offices Terms and conditions that cater for all potential risks and liabilities Deep understanding of our market/ vendors Use of customer vendor lists Integrated material management system Early identification of misalignment and development of contingency plans Win-win partnership approach with vendors
Execution management, construction and completions Principles Construction is generally sub-contracted Early engagement of construction partner - bidding Ensure relationship is governed by an equitable contract, that is almost ‘ back to back’ with the main contract Develop a complementary win-win relationship and deal with problems promptly Mobilise supervision early in the proj ect Establishment of robust preservation and maintenance team Integrate with commissioning plans
Execution management, construction Construction approach Experienced, hands-on construction management team – supervision, planning, quality, HS S E, material management – proper training and exposure Construction partner (local) – local materials, logistics, customs clearance, construction resources – local authorities and regulations – equitable win-win relation – identify weakness and bottlenecks through open and frank relat ions – minimal reference to contract by creating alignment – more than one subcontractor per discipline
Execution management, completions Completion principles Use in-house resources Mobilise early enough to involve them in the formal reviews Input to engineering equipment, model reviews Input to quality plans of vendors Early definition of commissioning handover systems/ schedule Identification and alignment with customer start-up/ early operations requirement Include vendor requirements in the purchase inquiries Identification of specialist equipment and tools early on Mobilise to site early enough to act as customer for construction
Execution management, warranty Obtain back-to-back warranties Plan warranty period activities Allow provisions – in-house resources – third party costs (involve vendors) – materials Assign warranty coordinator (continuity) Responsiveness and problem solving Develop relations with the plant custodians
Current proj ects
Current S harj ah proj ects Facilities upgrade, Kuwait Harweel, Oman Hasdrubal, Tunisia S alam gas plant, Egypt In Salah gas compression, Algeria Ebla gas plant, S yria Jihar gas plant, S yria KOC 40” feed pipeline Kashagan Train 3 Kashagan construction management Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10
KOC facilities upgrade
KOC facilities upgrade Customer Kuwait Oil Company (KOC) Proj ect type Multi location Brownfield - EPCC- LS TK S cope Oil processing capacity increase and relocation of all underground hydrocarbon service piping to above ground at seven gathering centres & two booster stations Award May 2005 S chedule (revised) Progressive - 43 months for last station (GC3) Value Approx $800 million
KOC facilities upgrade Project description Proj ect covers seven oil gathering centres (GCs’ ) and two gas booster stations (BSs’ ) S ection-I Crude oil processing capacity increase by addition of HP/ LP separators, hydro cyclones (de-oiler) in six GC’ s and desalter trains in five GCs’ . Capacity increase by about 250,000 barrels/ day New condensate recovery units (compressor systems) for associated gas in three GCs’ Upgrade of all control and shut down systems in six GCs’ , and partial upgrade in the rest Section-II Relocation of all underground hydrocarbon piping to above ground in all seven GCs’ and two BSs’
KOC facilities upgrade Engineering from S harj ah All procurement from S harj ah Construction through single CMEI local subcontractor Kharafi National Consistency check and change management across various stations maintained through proj ect engineering management & discipline leads S equential shut down, tie-in and re-commissioning of all GC’ s and BS ’ s S equential commissioning of new facilities in six GC’ s
Harweel field development
Harweel field development Customer Petroleum Development Oman (PDO) Proj ect description Harweel field development, enhanced oil recovery (EOR) proj ect Proj ect type Oil & gas production/ treatment Grass roots/ tie-ins S cope Engineering, procurement, construction, pre-commissioning, training Award December 2005 S chedule 34 Months (original)
Ebla gas proj ect surface facilities
Ebla gas proj ect surface facilities Customer Petro-Canada Palmyra BV Proj ect Ebla gas proj ect surface facilities Location Palmyra, S yria S cope Engineering, procurement, construction, commissioning and start-up Commenced March 2008 Completion April 2010 Contract value US $477 MM
Ebla gas proj ect surface facilities Overview The scope comprises engineering, procurement, construction, commissioning and start-up of: – gas treatment plant producing 80 MMS CFD of sales gas – gas gathering station – flow lines and pipelines, connecting well sites and gas gathering stations with the gas treatment plant – gas treatment plant consists of, gas dehydration unit, gas separation using turbo-expander/ low temperature separat or process, LPG recovery unit, LPG storage facilities and loading facilities, condensate stabilisation and storage – associated offsites and utilities
Hasdrubal gas plant
Hasdrubal gas plant Customer BG Tunisia/ ETAP Contractor Petrofac E&C Proj ect type Gas processing / LPG & Condensate Export Location Hasdrubal, Tunisia S cope Engineering, procurement, construction and commissioning Award November 2006 S chedule Ready for hydrocarbon introduction, 29 months Contract value US $460 MM
Hasdrubal gas plant, plant capacity Input 120 MMS CFD of raw gas and gas condensate/ oil Product 15,000 BPD of stabilised condensate and oil 400 TPD butane and propane 98.6 MMS CFD of lean gas
Khalda gas processing plant
Khalda gas processing plant Customer Khalda Petroleum Company Project type G as production/ treatment/ grass roots Scope S alam gas trains 3 &4 (S GT 3/ 4) Engineering, procurement, construction, commissioning and initial operations Award October 2006 Schedule 25 months (original) Value Approx $400 million
Khalda gas processing plant Key features Fast-track proj ect, 25 months from award to gas in Full PDMS plant modelling Adj acent to existing operating facilities (S GT-1 & 2) – construction safety – S IMOPS / (O&M) High pressure (separation) – 110 bar Tie-ins from S GT-3 & 4 to existing plant – completed within plant shutdown schedule
alah gas compression In S
In S alah gas compression Customer IS G (j oint venture), S onatrach 35% , BP 33% , S tatoil, 32% Contractor Petrofac E&C Proj ect type Compression proj ect Location Three sites, Teg, Reg & Krechba 600 km from Hassi Messaoud, Algeria S cope Engineering, procurement, construction, utilities commissioning, process commissioning assistance, operations support and training Award October 2007 Durations 25 months Teg, 26 months Reg, 35.5 months Krechba Value $600M
In S alah gas compression Reg and Teg Addition of further field separation and cooling Two parallel trains of gas turbine driven compression Associated utilities, air compressor package, nitrogen package, HP flare system, 3.8MW GTUG) Krechba Addition of further field separation and cooling S ingle train of VS D electric motor driven compression Power requirements will be met by the addition of a third RB211 gas turbine generator
Engineering services
Engineering services S uccessful delivery of – consultancy – FEEDs – detailed engineering – PMC/ EPCM A differentiated offering to Engineering S ervices customers based on Petrofac’ s unique combination of LS TK EPC, operations management, training and asset management capabilities
Engineering S ervices, structure Chennai Mumbai Woking >500 personnel >500 personnel >400 personnel Consultancy Detailed Detailed engineering support engineering support FEED to S harj ah to S harj ah, Woking Detailed design and Aberdeen PMC/ EPCM
Engineering services, Woking Currently occupying four office locations, allowing capacity for >800 personnel Extend offering for engineering and proj ect management services in other geographic regions such as Middle East, North Africa, West Africa, and CIS Continued expansion into higher volume market areas eg. LNG, refinery Continue to improve competitive position by maximising use of resources from lower cost centres
Engineering services, current proj ect, Karachaganak Proj ect Karachaganak Phase III FEED, Kazakhstan Customer KPDL Duration October 2006 – December 2008 S cope Front end engineering design (FEED) FEED for the construction of new facilities for the Phase III expansion proj ect of the Karachaganak field. Particular challenges included location, transport and installation strategies taking into account the remote location and harsh, sour gas environment. The largest FEED contract to date executed by Woking office - 1.1million hours over 2 years.
Engineering services, current proj ect, Kharyaga Proj ect Kharyaga Phase III proj ect Customer Total E&P Russia Duration December 2007 – December 2008 S cope Front end engineering design (FEED) Basic Design (TEO-C) The Phase III development will ensure the facilities maintain oil production at the present rate and provide de-mercaptinisation of the crude oil and gas sweetening and dew pointing to achieve the sales gas specification and remove the requirement for flaring. Execution of the proj ect is across Woking, Chennai, S amara and Moscow. Petrofac also executed the EPC contract for Phase II between 2000-2003 which increased oil production to 30,000 BOPD.
Engineering services, Mumbai and Chennai S upports delivery of proposal and proj ect work for S harj ah, Woking and Aberdeen Centre of excellence for detailed engineering and 3D modelling Operates with the same business management system as S harj ah and Woking – certified to IS O 9001 S trong resource bases with plans for continued growth
Offshore engineering
Offshore engineering, introduction Enhanced service line offering for 2009 Market research and customer surveys indicate Petrofac can readily build on excellent E&C reputation to participate in $10billion pa offshore capex market Based in Woking - synergies and resource share with existing E&C engineering Currently recruiting additional specialist and offshore proj ect management leaders from industry Build on Petrofac’ s brownfield, offshore operations and Energy Developments’ offshore proj ects experience
Offshore engineering, strategy Leading offshore engineering team in Woking will be grown and supported by E&C engineering, offshore operations and brownfield engineering. More intensive business development and marketing programme Q1 2009 Pursue reimbursable FEED engineering proj ects Build capability and competence from Energy Developments and external IOC proj ects Reimbursable low risk Higher risk/ reward Concept/ FEED Engineering Detailed design Programme management Capital lump sum proj ects
Offshore engineering, strategy We will consider cost effective st rategic acquisition opportunities to accelerate growth and build competency/ specialist expertise Utilise Petrofac lower cost engineering centres EPC proj ects effectively lead to additional negotiated business opportunities for Petrofac functions; commissioning, operations, maintenance and brownfield engineering plus training Utilise E&C cost effective processes and existing full service capability Market differentiation is our ability to optimise proj ects using our in- house offshore operations experience and access to E&C cost effective engineering and procurement systems as well as leveraging market relations
Offshore engineering, market Focus is on international oil and gas companies and national oil companies Maj or offshore proj ects – brownfield (field development) – greenfield (new build/ conversion) – abandonment/ decommissioning S pecific regions – North S ea – Middle East – S outh East Asia – West Africa
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