1 Investor Presentation 15 May 2009
1
Investor Presentation15 May 2009
Maroun SemaanGroup Operating Officer
New organisational structure
New organisational structure
implemented 1 January 2009
Maroun Semaan appointed Chief
Operating Officer
Seven business units
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Main drivers:
– Provide a platform for continued growth
– Share best practice
– Improve integration of services and revenue synergies
– Develop the management ‘bench’
Engineering & Construction
Sharjah EPC business
E&C Ventures
Petrofac Emirates
Saudi Arabia
Petrofac IKPT
Engineering Services
Reimbursable engineering
•Woking
•Mumbai
•Chennai
Offshore Engineering & Operations
Brownfield
Offshore projects & engineering
Facilities Management
Training
Health & Safety training
Technical training
Consultancy
Production Solutions
Dubai Petroleum
SPD
Eclipse
Caltec
i-Perform
Plant Asset Mgmt
Energy Developments
Co-investment in oil & gas assets
New organisational structure
Maroun SemaanChief Operating Officer
Engineering & Construction Sharjah
Engineering & ConstructionVentures
Engineering Services
Offshore Engineering & Operations
Training Production Solutions
Energy Developments
Lump-sum EPC Reimbursable engineering services
Training
Dubai Petroleum, SPD, Caltec, Eclipse, i-Perform
Energy Developments
Brownfield
engineering
Facilities Man,
excDubai Pet,
SPD, Caltec…
Engineering & Construction Operations Services Energy Developments
Divisions
(pre 1/1/9)
Business units
(post 1/1/9)
Engineering & Construction Other Energy Developments
Reporting
segm
ents
(post 1/1/9)
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Offshore projects & engineering
Offshore Engineering & Operations
Engineering Services
Training Production Solutions
Engineering & Construction Sharjah
Engineering & ConstructionVentures
Services
(pre 1/1/9)
Engineering & Construction Sharjah
Managing Director: Subramanian Sarma
Sharjah lump-sum engineering, procurement and
construction (EPC) operation experienced
significant growth and success:
– Revenue 5 year CAGR 46%
Well positioned to be Tier 1 EPC contractor
E&C backlog (including E&C Ventures) at record levels at US$6.7 billion at end April 2009; includes
US$5.0 billion of new awards to date in 2009
Business operating near capacity, but bidding activity continues; key focus areas remain MENA
and CIS
Innovation and cost-effectiveness key to leading the business forward
E&C backlog by region* (April 2009)
60%
38%
2%
Middle East North Africa CIS
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* E&C Sharjah and E&C Ventures combined
Engineering Services
Managing Director: Rajesh Verma
Brings together:
– Woking reimbursable engineering services: consultancy, FEED, PMC/EPCM support etc
– Lower cost Mumbai and Chennai operations, which support Woking and Engineering & Construction
Aim to achieve Tier 1 status
Focus to expand through:
– Reimbursable projects in MENA, West Africa and CIS
– Technically complex sectors such as LNG, heavy oil and refineries
Continue to optimise resources in lower cost
centres to improve group competitive position
E&C + ES employees*
2,900
3,900
4,900
2006 2007 2008
6* Including agency and contract staff and the
group’s share of joint venture employees
E&C +ES employees by region* (Dec 2008)
37%
20%
10%
33%
Sharjah India Woking Sites/other
Offshore Engineering & Operations
Managing Director: Bill Dunnett
Includes group’s MMO businesses:
– Operations Management (Duty Holder)
– Brownfield
Also includes Offshore Engineering & Projects
service line to provide:
– project management and engineering and
construction services to global offshore and subsea development market
– builds on capability developed in Engineering Services and Brownfield
Aim to create premier international offshore
engineering and operations business
Safety, efficiency and volume of business are key
drivers to ongoing success
OEO employees*
4,4004,100 4,200
2006 2007 2008
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* Including agency and contract staff and the
group’s share of joint venture employees
LTI/RI frequency rates
0.12 0.090.05
0.68
0.38
0.29
2006 2007 2008
Training
Managing Director: Leigh Howarth
Comprises:
– Competence-led training services, including health & safety, fire, survival and technical training
– Consultancy services to identify or assess competency gaps or risks within an organisation
– Outsourced tailored managed solutions
Strong need to develop competent and skilled
operations personnel for oil & gas industry
Recent growth driven by international expansion –new training facilities established in Sakhalin,
Houston, Kuala Lumpur, Baku, Singapore and Dubai
Now manage 16 facilities in 8 countries
Further international expansion / new training centres key to continued growth
Global training delegates
35,00040,000
50,000
2006 2007 2008
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Training employees by region* (Dec 2008)
60%
8%
20%
6%6%
UK Houston UAE Singapore Other
Production Solutions
Managing Director: Gordon East
Production Solutions brings together many of group’s
specialist consultancy businesses:
– SPD Group – well operations management
– Caltec – production technology
– Eclipse – production engineering
– Plant Asset Management – asset performance
– i-Perform – business performance
In addition, Dubai Petroleum service operator
contract will report through Production Solutions
Business aims to package together services to
provide customers with solutions to enhance
production and improve reservoir recovery
Remuneration based upon success, for example, tariff or quasi-equity structures
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Employees by activity* (Dec 2008)
620
210
5050
Dubai Petroleum SPD Eclipse Other
* Including agency and contract staff and the
group’s share of joint venture employees
Marwan ChedidManaging Director, E&C Ventures
E&C Ventures, contents
Mission
Organisation
Macro market analysis
Ventures
– Petrofac Emirates
– Petrofac KSA
– Petrofac IKPT (LNG)
Operations
– ASAB Project (Abu Dhabi)
– Karan (KSA)
Conclusion
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Fuel long term growth in Engineering & Construction:
– Petrofac Emirates (UAE & Mubadala Investments)
– Petrofac Saudi Arabia
– Petrofac IKPT (LNG)
Broaden products lines from oil & gas into Refinery, Petrochemicals,
LNG, etc
Introduce further new ventures to fuel growth by geographic and product diversification
E&C Ventures, mission
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E&C Ventures, organisation
LNG
MubadalaPetroleum Services
Company
Petrofac IKPT
� LNG venture projects� Cost effective
engineering support� Proposal support
� In-Kingdom full EPC �Out-of-Kingdom portion
of large EPC
� UAE� Mubadala influenced
projects in other countries
Petrofac Saudi Arabia
Saudi Arabia United Arab Emirates
Petrofac Emirates
Petrofac E&CVentures
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E&C Ventures, market analysis, opportunities
LNG projects in North Africa, CIS etc
Onshore field development (e.g. ADCO
Project 1.8), onshore facilities for
offshore gas development (e.g. Gasco
IGD programme), refinery expansion
Refinery expansion projects,
onshore gas developments, onshore
facilities for offshore gas developments
and clean fuels programs
* Generally, projects bid in packages with values of US$0.5 billion to US$3 billion
Petrofac IKPT US$30 billion
Petrofac Emirates US$40 billion
Petrofac Saudi Arabia US$60 billion
Short and medium-term potential market: c. US$130 billion*
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E&C Ventures, macro market analysis - UAE
Abu Dhabi oil & gas market experiencing boom period despite worldwide
financial crisis; visible business for next two years
Petrofac Emirates is a joint venture with Mubadala Petroleum Services
Company LLC, a wholly-owned subsidiary of Mubadala Development Company
(Mubadala)
Mubadala is a Public Joint Stock Company headquartered in Abu Dhabi focussed on developing and managing an extensive and economically diverse
portfolio of commercial initiatives, independently or in partnership with
leading international organisations
Petrofac Emirates will pursue associated opportunities, focusing on
significant EPC projects for UAE and international clients where Mubadala is an investor
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E&C Ventures, macro market analysis - KSA
Saudi Aramco to spend around US$60 billion including 144 projects over the next five years in boosting onshore and offshore oil & gas production
Saudi Aramco is concentrating US$27 billion in 17 mega projects (> US$500m), US$7 billion in 30 large projects (US$100-500m) and balance on medium to small projects (< US$100m)
Saudi Aramco has initiated programme to encourage local and international companies to cooperate and create local EPC skills to execute in Kingdom small-to-large size EPC projects (up to US$500m)
– Saudi Aramco aim to achieve Saudization programme: 50% local content within 5 years
Saudi Aramco has started identifying projects from expansion programme to beawarded to in-Kingdom EPC companies
Shortly SABIC (Saudi Basic Industries Corporation) will follow same model for downstream petrochemical projects
SABIC potentially large market; Petrofac in process of gathering information
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E&C Ventures, macro market analysis – LNG
Alliances
– Development of strategic LNG alliance
Expertise
– Development of in-house expertise through structured training
programmes (IKPT, Woking)
– Focused recruitment of key industry (pan-EPC) employees
Technology
– Explore use of alternative process technologies
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E&C Ventures, ASAB full field development
Client, Abu Dhabi Company for Onshore Operations (ADCO)
Project, brownfield except greenfield central degassing station at ASAB
Petrofac successful against competition from:
– Saipem
– Tecnicas Reunidas and CCC joint venture
– Technip
Past experience in UAE
– ASAB high pressure gas injection (2000-2001)
– EPCC of new gas processing facilities at Sajaa gas plant for Crescent Petroleum (2004-2005)
ASAB awarded January 2009
44 month schedule
Base contract value, US$2.3 billion
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Project outline:
Develop SAS fields for enhanced production over extended time in phased manner
Increase current production to sustainable production rate of 600,000 bpd and peak (technical) rate of 720,000 bpd of stabilised crude oil from three SAS fields with ASAB as hub
Replace / expand / enhance/demolish ageing facilities to ensure their ability to operate safely and more efficiently
Petrofac scope:
Development of new greenfield Central Degassing Station (CDS) comprising 4 separation trains with degassing gas lift compression, produced water treatment and main oil storage and pumping facilities
Modification to 5 existing Remote Degassing Stations (RDSs) and conversion of existing ASAB CDS into RDS-6
63 wellhead modifications and new wellheads; approximately 516 kms of flowlines and pipelines including main oil line to BAB field
E&C Ventures, ASAB full field development
Client, Saudi Aramco
Petrofac successful against competition from
– Snamprogetti/Saipem
– HEC
Awarded, March 2009
Planned completion, December 2011
Project outline:
To support Aramco’s strategy to meet the In-Kingdom energy demand from 2012 onwards; without the project, Master Gas System would have a deficit
Facilities to produce 1,300 standard cubic feet per day (mmscfd) of sales gas, 80 mmscfd plant fuel and 1,350 metric tonnes (MT) of sulphur per day
Karan facilities will be integrated in existing Khursaniya gas plant, 40 km north of Jubail
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E&C Ventures, Karan utilities & cogeneration
Petrofac scope:
Covers utilities, cogeneration train, sales gas export pipeline and offsites (gas and sulphur facilities by others)
Cogeneration: combustion gas turbine generator and heat recovery steam generator supply
Auxiliary steam boiler
Sales gas export pipeline: length 47 km, diameter 40-inch
Additional condensate deaerator system
Upgrade of boiler feed water systems, condensate and steam systems, nitrogen, cooling water, fire water and fuel gas systems
New electrical substation
Modification to high voltage gas insulated switch gear
14 km of crash rate fence and patrol roads
E&C Ventures, Karan utilities & cogeneration
E&C Ventures, conclusion
UAE opportunities in oil & gas, refinery and petrochemicals
International potential alongside Mubadala
Major Saudi opportunities from 2010 especially in refining sector
LNG opportunities are major and longer-term, structurally attractive market
with limited competition due to size and complexity of projects
Short and medium-term potential market robust
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Amjad BseisuChief Executive, Energy Developments
Strategy
Energy Developments (ED) invests alongside the group’s partners in oil & gas
upstream developments and energy infrastructure, offering differentiated
risk/reward models
Partnership approach improves alignment, mitigates risks and reduces costs
whilst generating more value for Petrofac and its partners
Value created by ED is measured in NAV: objective is not to increase reserves
or production year-on-year
ED selectively looks at small field and late-life asset opportunities where it
offers differentiated capability in engineering, operations and/or commercial
competence
While ED is wedded to the business model, opportunities to sell or swap part
or all of an asset would be considered
Hedging considered on asset-by-asset basis: objective to hedge
approximately 75% of low-case production estimate once steady state
production achieved; hedging likely to be on rolling 12 month basis
Rob JewkesManaging Director & EVP Project Development & Operations, Energy Developments
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Portfolio of producing assets
Chergui, Tunisia
Ohanet, Algeria
Cendor, Malaysia
Don Development, UK
KPC, Kyrgyzstan
Don development
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Group acquired interests in West Don and Don
Southwest fields in 2006
Following decision to utilise Northern Producer floating production facility, field development programme (FDP) approval granted in late May 2008
First oil achieved April 2009, less than one year from FDP approval
Combined peak production expected to reach in excess of 40,000 barrels per day (bpd)
Petrofac 27.700%
Valiant 17.275%
Stratic 17.250%
First Oil 19.275%
Nippon 18.500%
Formation Depth : 10,650 ft TVDSS
Formation : Brent
Oil/Gas Gravity (deg API) : 34.0
Formation Temperature (deg F) : 251.5oF
CO2 (%) : 1.48%
H2S (%) : None Reported
End-2008 Reserves (mmboe)
Geological Parameters
Co-venturers: West Don
P50
3.6
12.8
5.6
20.3Gross
P90
PED Entitlement
West Don
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Commenced production late April 2009 from
first producer well
Second producer well and injector well
expected to commence in Q3 2009
– Peak production then expected to reach
25,000 bpd
First tanker offload c. 500,000 bbls expected
late May
Petrofac 60.0%
Valiant 40.0%
Formation Depth : 11,200 ft TVDSS
Formation : Brent
Oil/Gas Gravity (deg API) : 38.0
Formation Temperature (deg F) : 260oF
CO2 (%) : 1.4%
H2s (%) : None Reported
End-2008 Reserves (mmboe)
Geological Parameters
Co-venturers: Don Southwest
P50P90
8.6
14.4Gross 27.6
PED Entitlement 16.6
Don Southwest
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Production expected to commence Q2 2009
Initial production expected to be from two
producer wells
Injector wells to
be tied back in
Q3 2009
Further development potential expected from near field opportunities
15%PetroVietnam E&P
30%Petronas Carigali
25%KUFPEC
30% & OperatorPetrofac
Formation Depth : 1300mTVDss
Formation : H group (H15,
H20)
Oil/Gas Gravity (deg API) : 42
Formation Temperature (deg F) : 115oC
CO2 (%) : Variable 23% to
60%
H2S (%) : Zero
Phase 1 P50Phase 1 P90
3.5
17.4
5.2
29.1Gross
PED NET
End-2008 Reserves (mmboe)
Geological Parameters
Co-venturers
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Cendor
The field continues to perform well
– Expected to produce c. 14,300 bpd in 2009
(2008: 14,700 bpd)
– Produced over 13 million barrels to date
– MOPU YTD uptime: 100% (2008: 99%)
Near field drilling continuing to prove up
reserves for Phase 2
Phase 2 development programme in place; option selected; FEED to commence 2H 2009
Formation Depth :4600 ft ss
Formation : Reineche -
Eocene nummulitic limestone
Gas Gravity / Condensate : specific gravity 0.65; 65 °API
Formation Temperature (deg F) :175°F
CO2 (%) :0.02%
H2S (%) :0.00%
Condensate yield :12 bbls/mmscfpd
P50P90
18.8
41.9 53.1Gross
23.8PED Entitlement
End-2008 Gas Reserves (bscf)
Geological Parameters
Concession Owners
55%ETAP
45% & OperatorPetrofac
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Chergui
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Export commenced August 2008, 16 months
after Petrofac appointed Operator
Nameplate capacity of Central Processing
Facility (CPF) 20 mmscfd
Gas sales exceeding nameplate capacity by 20% following commissioning of refrigeration
unit: plant debottlenecking continues to
increase capacity further
Offtake contract with STEG; headroom
available above the contracted rate
Further seismic work undertaken: field expansion options under evaluation
Business development
Regional focus concentrated on existing areas of investment, i.e. UKCS, MENA and Far East
– leveraging partner relationships, both in-country and out-of-country
– local presence provides early insight into opportunities with commercial experience
– local sub-surface knowledge enables early assessment of risk outside of our control
Particular focus on infrastructure projects where there are synergies with existing operations and where our service businesses have strong relationships and expertise
Current illiquidity in financial markets is providing increased flow of opportunity
Opportunity to exchange interests in developed assets also provides a valuable enabler for potential new opportunities
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Investor Presentation15 May 2009