Taking advantage of operations and maintenance opportunities in the - PowerPoint PPT Presentation

Karratha & Districts Chamber of Commerce & Industry Taking advantage of operations and maintenance opportunities in the oil and gas industry 12 th August 2014

AGENDA  Opening address – John Lally, KDCCI  Setting the scene – Phil Kemp, Business Foundations  Pre-Workshop Survey Results  Contractor's perspective – Gary Bawden, Svitzer  Contractor's perspective – Toby Edmunds, Toxfree  Accessing O&M opportunities on O&G projects – Daniel Holbrook, ICN 5pm Coffee/Tea break  Introduction to The West Pilbara Business Support Program  Entrepreneurs’ Infrastructure Program – Don Geare, EIP  Efic – Leela Hanson, Efic  Business Foundations – Phil Kemp, Business Foundations  Q&A session 7:00pm Networking

Opportunities in Operations and Maintenance  Opportunities in the Operations and Maintenance phase present tremendous opportunity for local companies.  Estimated A$3-4 billion annual expenditure  Project life extends over many years

SME OPPORTUNITY GUIDE  Australian LNG Operations and Maintenance contracting activities

AGENDA  Opening address – John Lally, KDCCI  Setting the scene – Phil Kemp, Business Foundations  Pre-Workshop Survey Results  Contractor's perspective – Gary Bawden, Svitzer  Contractor's perspective – Toby Edmunds, Toxfree  Accessing O&M opportunities on O&G projects – Daniel Holbrook, ICN 5pm Coffee/Tea break  Introduction to The West Pilbara Business Support Program  Entrepreneurs’ Infrastructure Program – Don Geare, EIP  Efic – Leela Hanson, Efic  Business Foundations – Phil Kemp, Business Foundations  Q&A session 7:00pm Networking

CHEVRON-OPERATED GORGON & WHEATSTONE PROJECTS ICN PRESENTATION Karratha, 12 th August 2014 Onslow, 13 th August 2014

QUICK FACTS • SVITZER was established by Emil Z. Svitzer in 1833. • SVITZER became part of the A.P.Moller – Maersk Group in 1979. We operate a fleet of around 550 vessels with additional ~40 on order. • Our turnover was USD 890 million in 2010. • • We employ around 4,700 staff in ~35 countries. • Our organisation consists of 6 towage regions and 2 divisions. Head Office in Copenhagen. •

WORLDWIDE OPERATIONS

FUNCTIONAL AREAS MOORING SERVICES HARBOUR TOWAGE MARINE SALVAGE TERMINAL TOWAGE OCEAN TOWAGE EMERGENCY RESPONSE

SVITZER – AUSTRALIAN OPERATIONS  2007 acquired ADSTEAM –  Ship towage in 35 ports in renamed SVITZER Australia Australia  Largest employer of Australian  Pursuing opportunities maritime labour - 880 employees Marine Services to the oil and gas industry in the  Operates 160 vessels, of which Asia Pacific area over half are tugs

SVITZE R AUSTR AL IA MAP O F C O V E R AG E NORTHERN TERRITORY  Bayu Undan FPSO Weipa   Darwin LNG  Darwin QUEENSLAND WESTERN AUSTRALIA  Cairns Koolan Island   Mourilyan Cockatoo Island   Lucinda Gorgon Project   Bowen – Abbot Point  Pluto LNG NWS LNG   Mackay  Onslow Wheatstone Project   Bundaberg  Brisbane NEW SOUTH WALES Geraldton  SOUTH AUSTRALIA  Newcastle  Sydney (Port Jackson & Port Botany) Fremantle  Thevenard  Kwinana   Project Magnet  Port Kembla Port Bonython  Bunbury   Whyalla Port Lincoln   Port Pirie Port Giles   Eden  Albany  Ardrossan  VICTORIA Port Adelaide  Melbourne Geelong   Hastings/Westernport

CHEVRON – OPERATED GORGON & WHEATSTONE PROJECT VESSELS ASD TUGS LOA 33.3M BEAM 13.0M DRAFT 5.8M SPEED 12.0kts BOLLARD PULL 75 MT (Gorgon) BOLLARD PULL 80 MT (Wheatstone) DRIVE Diesel / Electric ENGINES 2 x Wartsila 1800 kW 1 x Wartsila 1600 kW CLASS Lloyds ACCOM 10 Crew OP. MANNING 1 x Master 1 x C. Engineer 1 x IR OPERATIONAL UNITS 8

CHEVRON – OPERATED GORGON & WHEATSTONE PROJECT VESSELS Pilot Boat LOA 17.5m Beam 5.4m Draft 1.4m Crew 2 Pilots 4 Engines 2 x Cummins Speed > 25kts Hull GRP Units 2

CHEVRON-OPERATED GORGON PROJECT HIGHLIGHTS PROJECT NAME Chevron-operated Gorgon Project LOCATION Barrow Island. CAPACITY 15.6MTPA PROJECT START MID 2015 Photos sourced: – Chevron Australia website SHAREHOLDERS Chevron (47.3%) Shell (25%) ExxonMobil (25%) Osaka Gas (1.25%) Tokyo Gas (1.0%) Chubu Electric Power (0.417%) VESSELS 4 X 75BP ASD TUGS 1 X PILOT BOAT CAPITAL INVESTMENT >A$ 70M PILBARA EXPENDITURE Est A$600K / yr Photos sourced: – Chevron Australia website

CHEVRON-OPERATED WHEATSTONE PROJECT HIGHLIGHTS Project Name: Chevron-operated Wheatstone Project Ashburton North, WA Location: 8.9 MTPA Capacity: Joint Venture Participants: Chevron (64.14%) Kuwait Foreign Petroleum Exploration Co (13.4%) Apache Corporation (13%) Photos sourced: – Chevron Australia website Kyushu Electric Power Co (1.46%) PE Wheatstone P/L, part owned by TEPCO (8.0) Equipment: 4 x 80BP ASD Tugs 1x Pilot Boat(s) Capital Investment: > A$ 70m Pilbara Expenditure : Est $ 600K / yr Photos sourced: – Chevron Australia website

POTENTIAL LOCAL SUPPLY OPPORTUNITIES • CLEANING PRODUCTS AND CONSUMABLES • OFFICE SUPPLIES PPE • SAFETY EQUIPMENT SUPPLY AND SERVICING • RIGGING • • ROPES AND MOORINGS SUPPLY AND SERVICING • CREW TRANSFERS / TRANSPORT • EQUIPMENT AND VESSEL MAINTENANCE SUPPORT SHIPS CHANDLERY • GENERAL HARDWARE •

SVITZER’S PURCHASING POLICY • Svitzer accredited to ISO 9001:2008 – all orders must conform to the requirements of the Svitzer Australia Quality and Safety Management System. • Contractors to be registered on approved supplier list – reviewed bi- annually. Subject to audits. • Compliance with Environmental Standards • Reliable

Introduction to LNG Toby Edmunds – General Manager ICN WORKSHOP

Toxfree • One of the largest industrial service and waste management businesses in Australia • 60 strategically located operations throughout Australia • Employs over 1300 people nationally • Diverse range of industrial and waste services to all market sectors

Toxfree Vision Simply stated:  Exceeding client expectations with no harm to people;  No harm to the environment; and  No harm to resources .

Toxfree – Commitment to the Pilbara  Well represented in the Pilbara region.  “Can do” solution innovators.  Commitment to Indigenous Engagement and development.  Focus on safety, service delivery, sustainable waste management practices, treatment licenses and technologies.  QUEST .

Our track record Sites and Employees Revenue A$MM 120 1,200 285 1,045 100 1,000 CAGR 34.0% 818 208 80 800 188 153 56 568 143 60 600 440 116 390 35 99 31 88 40 400 26 78 23 188 52 47 132 20 200 92 65 47 41 0 0 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 FY14 Sites Employees 1st Half 2nd Half * * * Underlying EBITDA and EBIT Underlying EPS and DPS A$MM Cents/Share 58 18 45 16 14 36 33 29 11 25 9 22 21 16 14 5 4 3 2 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 EBIT EBITDA DPS EPS *Non-IFRS Financial Information

A Diversified Business – Revenue by Market Sector and Geography Estimated on FY2014 forecasts Tas, ACT and SA Manufacturing 4% Oil and Gas 12% Victoria 22% 10% New South Wales 4% Government Western 17% Australia & Northern Territory 49% Mining 14% Queensland 33% Commercial Infrastructure 25% 10% Over 85% of revenue is Over 40% of revenue is generated from leveraged to the producing assets broader Australian Economy

Current LNG Contracts Toll Energy - Total Waste Management - Gorgon Project, Barrow Island Waste Management Services including hire and maintenance of bins  (Onshore and Offshore), management of recyclable and non-recyclable (hazardous and non-hazardous) wastes and quarantine management. Includes associated upstream activities at Perth and Dampier Supply Bases  Since 2009  Apache Energy – Waste Management Services – North West Shelf Waste Management Services including general, recyclable, hazardous waste  collection and disposal, industrial tank cleaning and vacuum loading. Includes Varanus Island  Since 2010  APLNG – Waste Management Services – Curtis Island, Gladstone Waste Management Services including general, recyclable, hazardous waste  collection and disposal, industrial tank cleaning and vacuum loading. Since 2011 

Current LNG Work Thiess – Preferred Supplier, Waste Services – National  Woodside Energy – Industrial Services and Marine Tank Cleaning – Greater  Western Flank Drilling Campaign, Okha FPSO Santos - Waste Services and Marine Tank Cleaning Services – Dampier,  Onslow Shell Australia – Waste Services and Marine Tank Cleaning Services –  Dampier, Broome, Darwin Inpex - – Waste Services and Marine Tank Cleaning Services – Dampier,  Broome, Darwin BHP - Waste Services – Dampier, Onslow 