FMC Kongsberg Sub sea - Global actor with base in Norway John Bjarne Bye.pdf · FMC Kongsberg Sub sea - Global actor with base in Norway ... • Surface Wellheads ... Cameron 7,209

FMC Kongsberg Sub sea -Global actor with base in Norway

John Bjarne Bye

Strategic Sourcing Leader, FMC Eastern Hemisphere

Agenda

• Introduction to FMC

• FMC Global Presence

• Present and future engagement

• Opportunities for the Supply Chain

• How the Supply Chain engage with the FMC organication

• Key Contacts to pursue business

Introduction to FMC TechnologiesIntroduction to FMC Technologies

• Subsea Trees

• Subsea Controls

• Subsea Production Systems

• Surface Wellheads

• Separation Systems

• Fluid Control

• Loading Systems

FMC Technologies at a Glance2006 Revenue: $3.8 Billion

Energy

Systems

77 %

Airport

• Citrus Extractors

• Freezing Systems

• Food Processing Systems

• Loaders

• Deicers

• Boarding Bridges

• RampSnake

• Loading Systems

• Measurement Solutions

Airport

Systems

9 %FoodTech

14 %

Revenue from Continuing Operations

Business Area Subsea

Evolution of Subsea Production Systems

Pressure

Dynamics

AGC

Subsea Product Lines – Well Established

1980

Bonito

RJS-39

189m

1,613 ft1,613 ft

619 ft619 ft

Kvaerner961 ft

Kvaerner961 ft

1983

Piraúna

RJS-232

293m

1,256 ft1,256 ft

1985

Marimbá

RJS-284

383m

1992

Marlim

MRL-9

781m

1988

Placid

Green

Canyon 31

684m

ABBABB

1994

Marlim

MRL-4 1997

1988

Marimbá

RJS-376D

492m

1980

Bonito

RJS-39

189m

Strong Deepwater Track Record

ABB5,605 ft

ABB5,605 ft

6,080 ft6,080 ft

2,561 ft2,561 ft

3,368 ft3,368 ft

ABB2,244 ft

ABB2,244 ft

MRL-4

1027m1997

Marlim Sul

MLS-3

1709m1997

Shell Mensa

1618m

5,308 ft5,308 ft

1999

Roncador

RJS-436

1853m2000

Petrobras

Roncador

1877m

ABB6,157 ft

ABB6,157 ft

2004

Shell

Coulomb

2316m

7,600 ft7,600 ft

Cameron7,209 ft

Cameron7,209 ft

2002

Marathon

Camden

Hills

2197m

$2.2

$3.8

$2.0

$2.5

$3.1

$2.0

$2.5

$3.0

$3.5

$4.0

Strong Financial ResultsEnergy Systems Driving Growth

200

250

300

350

400

Segment Operating Profit$M$B

Revenue

$0.0

$0.5

$1.0

$1.5

2002 2003 2004 2005 20060

50

100

150

2002 2003 2004 2005 2006(Adj. Op. Profit)

Airport FoodTech Energy Systems

1

$2.00

$3.01

$3.90 - $4.10

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Strong Financial ResultsUpward Trend in Income from Continuing Operations

Adjusted Income from Continuing Operations per Diluted Share

$1.41

$0.81 $1.00

$0.00

$0.50

$1.00

$1.50

$2.00

2002 2003 2004 2005 2006 2007 Est(Adjusted Income)

1

1 See Appendix II for reconciliation of 2004 and 2005 adjusted income per diluted share (non-GAAP measure) to U.S. GAAP.

1

(Adjusted Income)

1 600

1 800

2 000

Subsea Production SystemsSubsea is Our Largest And Fastest Growing Business

2006 FTI Revenues Subsea Revenue

1,700

0

200

400

600

800

1 000

1 200

1 400

2001 2002 2003 2004 2005 2006

Subsea

47 %

All Others

53 %

$M

500

400

500

600

700

800

Subsea Tree ForecastNo. of Subsea Trees

800

0

100

200

300

400

2003 2004 2005 2006 2007 2008 2009 2010

Year

No. of Subsea Trees

200

Cameron

26 %

FTI

40 %

2002-2006Unit Market Share

Subsea Production SystemsMarket Leader

Aker

Kvaerner

13 %

Dril Quip

4 %

Vetco Gray

17 %

Source: Quest Offshore Resources

FMC global presenceFMC global presence

HoustonHouston

KongsbergKongsberg

DunfermlineDunfermline

Global Presence - Plants

SingaporeSingapore

Rio De JaneiroRio De Janeiro

St. John’sSt. John’sAberdeenAberdeen

KristiansundKristiansund

Port Harcourt /OnnePort Harcourt /Onne

HoustonHouston

BergenBergen

Global Service Bases

NouakchottNouakchott

AbijanAbijan

MacaeMacae

Eq. GuineaEq. Guinea

LuandaLuanda

PerthPerth

Port Harcourt /OnnePort Harcourt /OnneAbijanAbijan

Local Establishment – Angola

Key Contacts to pursue businessKey Contacts to pursue business

Global Standardisering

NORWAY

LIBYA

USA

CANADA

UK

MAURITANIA

IVORY COAST

NIGERIA

EQ. GUINEA

ANGOLA

SOUTH AFRICA

CHINA

AUSTRALIA

BRAZIL CONGO

Local Fabrication and Assembly

5050505050505050

10101010

90909090

“The Norway Case” “The Angola case” “The Brazil case”

70

30

Non-NorwegianContent

NorwegianContent

Norwegian Contentin Angola

90909090

Norwegian Content in Brazil

Norwegian Contentin the North Sea

Content

Current ProjectsFuture OpportunitiesFuture Opportunities

Current Projects

• Gjøa• ASAP Oil• Pluto• Ormen Lange

FMC EH is currently engaged in more than 30 EPC projects

The largest being:

• Pluto• Ormen Lange• Tyrihans• Block-18• Alve• Sigrid• Yttergryta• RLWI MK-2• Norne Sat

Contract Awards YTD

Project Customer Region

• Gjøa Statoil NCS

• Urd Statoil NCS

• Vega Hydro NCS

• Troll O2 Hydro NCS• Troll O2 Hydro NCS

Targeted New Projects

33 %8 %

5 %

9 %

33 %

12 %

We are pursuing more than $3 Billion worth of new projects

200

300

400

500

600

700

800

Actual

Russia

UKCS

NCS + Canada

GoM + Mexico

Brazil + T&T + Ven.

Global Market Potential – Subsea Tree AwardsForecast by FMC Sales Staff Note: GoM and

UKCS only show ”target” markets

Quest Base Case

0

100

200

2004 2005 2006 2007 2008 2009 2010 2011

Brazil + T&T + Ven.

Asia Pacific

Africa

Global ss tree market share by inbound years 2004 – 2006 (Total 1260 trees)

Global ss tree market share by inbound year 2006 (Total 467 trees)

Africa – XT Market Potential

Client \ Year 2007 2008 2009 2010 2011

PERIOD

TOTAL

Total 49 69 80 32 17 247

BP 48 42 27 117

Chevron 11 12 10 23 8 64

Shell 38 19 15 72

Eni-Agip 9 9 2 2 22

Exxon Mobil 19 1 1 21

Woodside 11 6 17 100

150

200

250

Woodside 11 6 17

Devon 8 8 16

Hess 4 9 13

Murphy 12 12

Additional Projects EH 13 19 48 66 56 202

Additional Projects WH 2 2

Unidentified Projects 2 16 57 75

TOTAL PR. YEAR 123 188 230 182 157 880

EH Clients ForecastWR Clients ForecastUnidentified Actual 2006

■

■

■

■

0

50

100

2006 2007 2008 2009 2010 2011

Russia – Market Potential & Strategy

• Gazprom searching for a way to involve IOCs in Shtokman development due to need for know-how and project management

• Gazprom realize need for training in subsea technology of own personnel

25

30

35

40

XT Market PotentialForecast 2007 – 2011■

0

5

10

15

20

25

2007 2008 2009 2010 2011

UKCS – XT Target Market Potential

Client \ Year 2007 2008 2009 2010 2011 PERIOD TOTAL

Chevron 2 12 15 14 4 47

Talisman 5 8 8 8 5 34

Venture 7 4 6 5 3 25

Total 9 4 6 3 22

Oilexco 1 5 4 4 4 18

Ithaca 6 2 6 2 2 18

Additional Projects 12 21 13 14 13 73

Unidentified ProjectsUnidentified Projects

TOTAL PR. YEAR 33 61 56 53 34 237

Forecast 2007 – 2011Actual 2006

■

■

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011

Not considered in the forecast: • Shallow water market • Competitors’ frame agreements, i.e. Shell,

BP, Maersk, Nexen

Note: Forecast = Only target market vs. Actual 2006 = Total overall market

NCS – XT Market Potential


Statoil 32 63 42 12 12 161

Hydro 28 23 29 80

Eni 3 12 12 27

BP 17 17

Additional Projects 14 9 18 20 61


TOTAL PR. YEAR 80 112 95 55 64 406


■

■

0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011

Asia Pacific – XT Market Potential

Client \ Year 2007 2008 2009 2010 2011

PERIOD

TOTAL

Woodside Australia 10 10

Woodside Australia 39 12 6 12 69

Shell Malaysia 14 6 15 12 47

CVX Australia 12 12

CVX Australia 10 17 27

CVX Indonesia 4 2 24 2 32

ONGC India 12 12 2480808080

100100100100

120120120120

140140140140

ONGC India 12 12 24

Inpex Australia 22 22

CNOOC China 3 4 6 7 20

Reliance India 20 20

Conoco Malaysia 20 20

BHP Australia 8 8 16

Exxon Australia 5 5

BP Vietnam 2 3 5


Unidentified 15 20 18 30 50 133

TOTAL PR. YEAR 94 133 110 100 101 538

0000

20202020

40404040

60606060

2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011

■

■

■

System EH (Joint EH-Singapore)

Singapore

Actual 2006

Venezuela – Market Potential & Strategy

• Government pushing to exploit vast offshore gas reserves in northeastern V.

• Escalating campaign to wrest control away from IOCs

XT Market PotentialForecast 2007 – 2011■

25

30

Forecast 2007 – 2011■

0

5

10

15

20

2007 2008 2009 2010 2011

GoM – XT Target Market Potential

Client \ Year 2007 2008 2009 2010 2011

PERIOD

TOTAL

BP 23 20 17 8 68

Shell 26 9 15 12 3 65

Anadarko 9 17 15 8 49

Chevron 35 35

Petrobras 4 12 12 28

LLOG 2 6 6 6 6 2640

60

80

100

120

140

LLOG 2 6 6 6 6 26

ERT 5 7 4 4 4 24

Nexen 9 1 10

Devon 2 4 2 8

Hess 1 3 2 2 8

Eni 4 1 1 1 1 8



TOTAL PR. YEAR 79 129 94 62 45 409


■

■

0

20

2006 2007 2008 2009 2010 2011

Notes: • Competitors’ frame agreements not considered in the forecast • New forecasting model for projecting beyond 2-3 years will be implemented

Brazil – XT Market Potential


Petrobras 60 50 41 62 26 299

Shell 20 20

BG Trinidad & Tobago 7 3 3 3 13

Additional Projects


TOTAL PR. YEAR 60 72 74 75 59 332

100

Brazil Forecast 2007 – 2011Trinidad & T. Forecast 2007 – 2011Actual 2006 (1 XT = T&T)

■

■

■

0

20

40

60

80

100

2006 2007 2008 2009 2010 2011

Atlantic Canada – Market Potential & Strategy

• The current short term subsea market for FMC is limited to field expansions on Terra Nova (Frame Agreement with Petro Canada)

• Potential subsea business related to expansions on White Rose & Hibernia

• Potential subsea developments of both Tor Bay and fields in other areas

12

14

16

XT Market PotentialForecast 2007 – 2011Actual 2006

■

■

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011

Key opportunities for the Supply ChainKey opportunities for the Supply Chain

Typical Cost-of-Sales Breakdown

Material

~70%*

Cleary, purchased material represents the single largest element of our costs

Other COS

30%*

* Actual values may vary by business unit

BP Block 18 - Subsea Production System Angola National fabrication overview

PGB’s

17 t. per unit

44 units in Angola

Manifold & WSSM’s

45 to 80 t.. per unit

6-7 Units in Angola

XT Guide Frame

25 units in Angola

44 units in Angola

WI and Prod. Trees

35 t. per unit

25 XT Assy in Angola

WI and Prod. Jumpers

Overall weight 15 t. unit

20 production/23 InjectionFabrication in Angola

SIT (Optional)

7 weeks duration

Local Establishment – Angola

Key Contacts to pursue businessKey Contacts to pursue business

How the Supply Chain engage with the FMC organicationFMC organication

Strategic Procurement

Date: 30.04.2007

Rev.11

Appr.: AAJM

Activities performed by

tactical procurement

• Strategic procurement focus long term• Strategic Procurement focus on developing suppliers to make them a part of FMC’s pool of Preferred Suppliers

EH Strategic Sourcing Challenge

EH XT Projected Capacity vs.

Forecasted Shipments

120115

88

75

20

40

60

80

100

120

EH SCM Projected Capacity vs.

Forecasted Shipments

268

244

210

169150

200

250

300

350

0

20

2004 2005 2006 2007 2008XT Mfg Capacity

XT Forecast Shipments

169

100

150

2004 2005 2006 2007 2008

SCM Mfg Capacity

SCM Forecast Shipments

• Improve the Understanding of Supply Chain Constraints• Re-engineer Supply Chains to Meet Capacity Challenges

Strategic Commodity/Process Selection

Sp

en

d B

erg

en

Sp

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d S

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lier

On

ly S

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pli

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Avail

.

Cri

tical

Tech

no

log

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Vo

lum

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ssu

e

Qu

ali

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ssu

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Deli

very

/Lead

Issu

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Co

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Issu

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Cli

en

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eq

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Lo

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Co

nte

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Dem

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Glo

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Can

did

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ost

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.

Sin

gle

So

urc

ed

Low Hanging Fruits"Hu

rt"

Co

mp

on

en

ts

Reason for Hurt

$0 $0 x x Agreemen YES Cost is $0 $0 x x x x Agreemen YES Volume in $0 $0 x x x Agreemen YES Cost is $0 $0 x x x x Consolida YES Capacity

$1 380 000 $0 x x x x x YES Last

Spend By Facility Strategic Reason Strategic Options

$1 380 000 $0 x x x x x YES Last $0 $0 x x Frame YES Capacity, $0 $2 254 000 x x x Consolidate Volume and Have Kongsberg insulate trees in NorwayYES Capacity & Cost$0 $0 x x x x x Improve YES Lead time $0 $0 x x x x x Improve YES Lead time $0 $0 x x x x x Improve YES Lead time $0 $0 x x x x x x x Frame YES Capacity $0 $0 x X x x x FMC 1" YES

$0 $0 x x x x YES

$0 $0 x x x x x YES Capacity $0 $0 x x x x YES Volume$0 $0 x x x x YES Volume, $0 $0 x Agreemen YES Delivery $0 $0 x x x x x X Agreemen YES All of The $0 $0 x x x x x x YES All of The $0 $0 x X x x Agreement to be established. Qualify a second supplier ongoingYES Volume$0 $0 x x x x x Presently a frame agreement with HalliburtonYES Lead Time is high$0 $0 x x x x Presently YES Volume$0 $0 x x x Frame Agreement with X-cel under re-evaluationYES Delivery$0 $0 x x x x x x x Dialogue with Kongsberg on AggregationYES

$0 $0 x x x YES Obsolete $0 $0 x x x x Need to YES Volume & $0 $0 x X X x x x x YES Volume$0 $0 x x Agreemen YES Volume$0 $0 x x Agreemen YES Volume$0 $0 x x x Agreemen YES Lead $0 $0 x x x Establish YES Volume/S

Supply Chain Progress PlanControls

Pending

Updated: 17.04.2007 Not started

Ongoing

Completed

Initiative # Strategic Initiative Responsible Priority Target DateCost

ReductionPresent Target Present Target Issues

Supply

Agreement

Quality

Program

Supplier Development

Process

Mgmt. Visits

0001 Multi-Phase Meters W. Prestegård 1 Q1 / 2007 TBA40-50

weeks26 weeks 29 pcs 40 pcs Lt, Ot, Q Framo/Roxar 12.05.2006

0062 Optical Connector J. B. Bye 1 Q3 / 2007 Co, Ca, Q ODI / Seacon TBA

0063 Steel Flying Leads J. R. Johnsrud 1 Q1 / 2007 TBA Co, Ca, Ot TBA

0004 Control Valves A. Hjelle 1 Q3 / 2007 TBA14-16 weeks

12 weeks 4000 pcs 8000 pcs Co, Ca, SiRotator

08.11.2006

0006 Hydraulic Couplers A. Hjelle 1 Q3 / 2007 TBA8-12

weeks8 weeks 45000 pcs 60000 pcs Ot, Co, Ca, Si HTS 08.05.06

0007 SCM Manifold Block A. Hjelle 1 Q1 / 2007 TBA 14 weeks 6 weeks 200 pcs 400 pcs Co, Ca, Si TBA

Supply Chain Lead Time Annual Capacity Supply Chain Program

0064 eTech cost optimalisation O. Fjeldberg 1 Q3 / 2007 TBA Co N/A

0065 Hydraulic Jumpers O. Fjeldberg 1 Q2 / 2007 TBA Ca, Si, Co TBA

0038 WO Umbilical / Winch T. Knatterud 1 Q1 / 2007 10 % 52 weeks< 25

weeks12 20 Ca, Co, Ot TBA

0048Cost optimalisation of the new KS 600 series electronics

J. B. Bye 1 Q3 / 2007 TBA Co TBA TBA TBA N/A

0053 Small bore tubing O. R. Johnrud 1 Q1 / 2007 TBA Ca, Co, Lt TBA

0054 RLWI MK2, Controls T. Knatterud 1 Q2 / 2008 N/A Np N/A

0068 HPU Norway T. Knatterud 1 Q2 / 2007 5-10% 30 weeks 25 weeks 5 pcs >12 pcs Ca, Q, Co TBA

WOCS Norway T. Knatterud 1 Q2 / 2007 20 % 36 weeks 30 weeks 4 pcs >10 pcs Ca, Q, Co

FMC Supply ChainStrategies

Goals & Objectives Goals & Objectives 2007

23.03.2007 Low Cost Sourcing Strategy 2007

23.03.2007

Key Contacts to pursue Key Contacts to pursue business

Key Contacts

• TMI (Manifolds/Connection): Bjø[email protected]

• Control/Topside: [email protected]

• Completion/Workover/XT: [email protected]

• Strategic Sourcing Mngr: [email protected]

• Supplier development: [email protected]• Supplier development: [email protected]

• Russia: [email protected]

• Tel: +47 32286700

Good Luck!

Documents

FMC Kongsberg Sub sea - Global actor with base in Norway John Bjarne Bye.pdf · FMC Kongsberg Sub sea - Global actor with base in Norway ... • Surface Wellheads ... Cameron 7,209