Karratha & Districts Chamber of Commerce & Industry Presentation August... · Gorgon...

Karratha & Districts Chamber of

Commerce & Industry

Taking advantage of operations and maintenance opportunities in the oil and gas industry

12th 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 the Operations and Maintenance phase present tremendous opportunity for local companies.

Estimated A$3-4 billion annual expenditure

Project life extends over many years

Opportunities in Operations and Maintenance

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

Karratha, 12th August 2014 Onslow, 13th August 2014

CHEVRON-OPERATED GORGON & WHEATSTONE PROJECTS

ICN PRESENTATION

• 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.

QUICK FACTS

WORLDWIDEOPERATIONS

MOORING SERVICES HARBOUR TOWAGE MARINE SALVAGE

TERMINAL TOWAGE OCEAN TOWAGE EMERGENCY RESPONSE

FUNCTIONAL AREAS

SVITZER – AUSTRALIAN OPERATIONS

2007 acquired ADSTEAM –

renamed SVITZER Australia

Largest employer of Australian

maritime labour - 880 employees

Operates 160 vessels, of which

over half are tugs

Ship towage in 35 ports in

Australia

Pursuing opportunities

Marine Services to the oil

and gas industry in the

Asia Pacific area

SVITZER AUSTRALIA MAP OF COVERAGE

SOUTH AUSTRALIA

NEW SOUTH WALES

QUEENSLAND

NORTHERN TERRITORY

WESTERN AUSTRALIA

VICTORIA

Koolan Island Cockatoo Island

Bayu Undan FPSO

Darwin LNG

Darwin

Pluto LNG

Cairns

Mourilyan

Bowen – Abbot Point

Mackay

Lucinda

Bundaberg

Brisbane

Newcastle

Sydney (Port Jackson & Port Botany)

Port Kembla

Eden

Hastings/Westernport Melbourne

Project Magnet

Whyalla

Port Pirie

Port Adelaide

Albany

Gorgon Project

NWS LNG

Geraldton

Fremantle Kwinana

Bunbury

Weipa

Thevenard Port Bonython

Port Lincoln Port Giles

Ardrossan

Geelong

Wheatstone Project

Onslow

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

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 & WHEATSTONE PROJECT VESSELS

CHEVRON-OPERATED GORGON PROJECT HIGHLIGHTS

PROJECT NAME Chevron-operated Gorgon

Project

LOCATION Barrow Island.

CAPACITY 15.6MTPA

PROJECT START MID 2015

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

Photos sourced: – Chevron Australia website

Project Name: Chevron-operated Wheatstone Project Location: Ashburton North, WA Capacity: 8.9 MTPA Joint Venture Participants: Chevron (64.14%) Kuwait Foreign Petroleum Exploration Co (13.4%) Apache Corporation (13%) 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

CHEVRON-OPERATED WHEATSTONE PROJECT HIGHLIGHTS

Photos sourced: – Chevron Australia website

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

23 26 31 35

56

390 440

568

818

1,045

0

200

400

600

800

1,000

1,200

0

20

40

60

80

100

120

FY09 FY10 FY11 FY12 FY13

Sites Employees

Sites and Employees

41 47 65 92

132 188

47 52 78

116

153

88 99

143

208

285

188

FY09 FY10 FY11 FY12 FY13 FY14

1st Half 2nd Half

Revenue

14 16 21

29

36

22 25

33

45

58

FY09 FY10 FY11 FY12 FY13

EBIT EBITDA

Underlying EBITDA and EBIT

A$MM

A$MM

2 3

4 5

9 11

14 16

18

FY09 FY10 FY11 FY12 FY13

DPS EPS

Underlying EPS and DPS

Cents/Share

CAGR

34.0%

*Non-IFRS Financial Information

* * *

A Diversified Business – Revenue by

Market Sector and Geography Estimated on FY2014 forecasts

Commercial25%

Government17%

Infrastructure10%

Oil and Gas22%

Mining14%

Manufacturing12%

Over 40% of revenue is

leveraged to the

broader Australian

Economy

Queensland 33%

Tas, ACT and SA 4%

New South Wales

4%Western

Australia & Northern Territory

49%

Victoria 10%

Over 85% of revenue is

generated from

producing assets

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

Highlights Gorgon Project and Rio Tinto contracts leading Safety

Management with 1,650 days+ / 4 Years Lost Time Injury (LTI)

free;

Strong local content for Australian Industry Participation with 3

WA vendors outgrowing their premises to support Toxfree;

6 local Chevron environmental awards, plus Australian Business

Award (sustainability);

Asset Management 20,000 rotable assets quarantined with Zero

Non-Conformance;

Sustainable Waste Management practices with 30,000 tonnes of

waste reused or recycled diverted from landfill;

Award of the Chevron ABU Waste Management Contract;

Awards of Rio Tinto Pilbara and Dampier Salt Contracts;

Employment of Thalanyji trainees; and

FMG contract reaching 40% Aboriginal content.

Working with the LNG Sector – Our

impression Opportunities

Detailed and robust systems and procedures;

Numerous departments and personnel movements;

Highly regulated, high visibility;

Constant change.

Efficient, professional, ‘can-do’ service

Licensing and insurances;

Adaptable, flexible, knowledgeable;

Transparent and reliable;

Efficient, innovative, solution provider.

Rewarding

Scale and scope of work;

Scale of networks.

Questions

Toby Edmunds

General Manager

Mobile: 0428 927827

Email: t.edmunds@toxfree.com.au