F&S O&G Capabilities Global v1

7/27/2019 F&S O&G Capabilities Global v1.

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Oil & Gas Practice Capabilities and Case Studies



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Frost & Sullivan

Corporate Overview



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The Frost & Sullivan Story



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What Makes Us Unique



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Our Industry Coverage



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Our Services



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Our Global Footprint 40+ OfficesScanning the Globe for Opportunities and Innovation



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Oil & Gas Practice

Capabilities



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Power Oil & Gas

Power Generation

Renewable Energy

Transmission & Distribution

Plant Services

Upstream

MidstreamDownstream

PowerSystems

Power Quality

Power Supplies

Energy StorageBatteries

Services

Energy & Power Systems Coverage



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Frost & Sullivan Covers the Entire Value Chain for Oil &Gas Industry

Upstream

Exploration&

Production

Downstream

MidstreamTransport &

Logistics

OilfieldEquipment& Services

IndustryGroups &

PolicyMakers

InvestmentCommunity

Fuels &Biofuels

Environment&

Sustainability



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UPSTREAMExploration& Production

MIDSTREAMPumping & Storage

DOWNSTREAMRefining & Petrochemicals

Green Field Services Drilling Services Drilling Fluids

Brown Field Services Equipment

Services

Marginal Fields Offshore Support

Vessels

FPSO PSV, AHTS

Prime Movers Turbo-machinery

Services

HydrocarbonTransportation & Storage

Refinery MROServices

Energy Efficiency

Services Heavy Oil

Refining Supply Chain

Management

Biomass to CrudeTechnologies

Frost & Sullivan Covers the Entire Value Chain for Oil &Gas Industry



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Value Proposition for the Primary Industry

New Business Initiatives: Opportunity analysis,feasibility and market analysis, concept creation and

ideation

Asset Strategy: Asset value maximization, Equipmenttechnology evaluation and equipment maintenancestrategies

Strategic Sourcing: Vendor Identification and Evaluation

Global Peer Benchmarking: New Capex deploymentand maintenance outlay

Equipment Technology Monitoring: Technologydevelopments in production technology and equipment

Regulatory and Policy Support: Monitoring changingregulatory regime, compliance and mitigation strategies

Upstream

Midstream

Downstream



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Coverage of Oil & Gas Equipment Manufactures

Static Equipment

Tankages Heat ExchangerFurnaces Distilling Columns

Piping Reactors

Oilfield Tools

Drilling Rigs Wellhead Systems

Drill Bit Systems Blowout Preventer

Mud Pumps Well Controls

Rotating Equipment

Turbines Fans

Compressors Engines

Pumps Motors

Flow Control & Instrumentation

Valves & Fittings Automation

Actuators Flow Measurement

Measurement Christmas Tree

Subsea Equipment

Subsea Power ControlSubsea Tree Flow Measurement

Subsea Processing

Offshore Fabrication

Platforms Vessels & Ships

Derricks/Topside Drill Rigs

FPSO/FPU Modules



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OilfieldTools

StaticEquipment

RotatingEquipment

FlowControl

SubseaEquipment

Instru-mentation

OffshoreFabrication

MROServices

EPCContracting

PipelineServices

EquipmentServices

MROServices

OffshoreSupport

OilfieldServices

Value Proposition for Equipment Manufacturers &Services

Portfolio Strategy Development: New growth market and opportunity, new

product introduction and concept creation/ideation. Market Strategy: New Market Strategy, Market Sizing, Forecasting, Entry

Feasibility, Gaining market/profit share

Competitive Assessment: Market Analysis, Corporate Intelligence,

Competitive Benchmarking Manufacturing and Strategic Sourcing: Manufacturing location identification,

Vendor Identification, Supply Chain Enhancement

Customer Research: Customer Preference, End-User Satisfaction Surveys,

End-User Focus Group Discussions Industry Events: Industry focussed events and summits, Flagship ‘Growth

Innovation and Leadership’ event with a global foot-print.



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Coverage of Oil & Gas Services Industry

MRO Services: Plant Service providers for shutdown, generalmaintenance and repair, contracting

Equipment Services: Services for rotating equipment overhauland maintenance, Oilfield tools services

Pipeline Services: Integrity Management, Corrosion Protection

Offshore Support and Fabrication: Diving support, supply and

vessels, Marine operations management, tug vessels, rig and shiprepair services

Oilfield Services: Drilling Services, Well construction andcompletion, Artificial lift, Seismic and other data services,Equipment Rentals, Production Monitoring and Optimization

EPC Contracting: Engineering and design services, TurkeyProjects, Project Management, Construction projects, StrategicSourcing and Vendor Development, Project Tracking andMonitoring of Marco Scenario



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Value Proposition for Associated Industries

Investors &

Financial Services•Commercial due

diligence

•Valuations

•Bankable Reports

•Red HerringProspectus

Industry Groups &

Policymakers

•Market Analysis

•Industry Surveys

•Expert Panels and

focus group

discussions

•Benchmarking

Lubricants, Fuels &

Biofuels•Market Analysis

•Regulatory andPolicy Support

•Production

Technology•Channel

Distribution



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Oil & GasIndustry ServiceProviders

Oil & Gas IndustryEquipment/Product/Technology Suppliers

Oil & GasCompanies

Market Assessment Study

Competitor Benchmarking

New Geography Expansion Strategy

M&A / Partner Search

End User Surveys

Conducting Growth Workshop

Business Valuation

Market Assessment

Patent Analysis

Entry into Renewable

Strategy Formulation (Top Level)

Competitor Evaluation

Upcoming Technology Scan/Evaluation

Impact of Economic Crisis Study

Consulting Engagements in Oil & Gas



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Oil & Gas Practice

Case Studies

C S d 1 M k l k f i i l i i



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Case Study 1: Market outlook for critical equipment inOil and Gas

Client Issue and Project Objectives:

Our client discovered that a worldwide boom in oil & gas exploration and production in2006 had made it very difficult to secure delivery and prices for equipment in line withproject expectations. As a result, it decided to put into place a Commodity OutlookProgram in order to support its procurement professionals in selecting, implementingand maintaining optimal supply chain models.

Frost & Sullivan Approach and Methodology:Frost & Sullivan initially delivered a ‘Proof of Concept’ report

A four-year agreement (2007-2010) was subsequently finalised to roll-out andcontinuously update the study for six strategic commodities – Heat TransferEquipment, Instrumentation, Pipe Fittings, Pressure Vessels, Structural Steel andValves.

Each report covers the following key deliverables:

Strategic Recommendations and ImplicationsDemand versus Capacity Analysis

Lead Times and Key Bottlenecks

Cost Structure and Price Analysis

Supplier Profiles including risk assessment, portfolio, strategy, capacityutilisation, expansion plans, etc.

Results and Benefits to the Client:

» Enter into long term framework and capacity reservation agreements with keysuppliers

» Identify and add new suppliers to its approved vendor list

» Enter into agreements covering multiple commodities with key suppliers

» Set up an online system to survey their critical supply markets

» Understand and implement industry best practices

Global Demand Vs Production Capacity

Mapping of Supplier Portfolio Choice and Relationship Level

S t r a te g i c C o n c e p t

P u r c h a s i n g i m p o r t a n c e ( $ s p e n d )

C o m p a n y - s p e c i f i c s u p p l y r i s k i n d e x

A d v a n c e d

R e l a t i o n s h i pF r a m

e w o r k C o n t r a c t s

S u p p l i e r P o r t f o l ioS t r a t e g y

S u p p l i e rR e l a t i o n s h i pS t r a t e g y

70

80

90

100

110

120

130

70

80

90

100

110

120

130

2007 2008 2009 2010 2011 I n d e x

( 2 0 0 7 = 1 0 0 )

Ball Valves : Global Demand Versus ProductionCapacity, 2007Q1 - 2011Q3

Dem and (Index) Capacity



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Client Profile- A European Offshore fabrication company specializing in FPSO/FPU topsides, sub-sea

fabrication, decks, platform modules and jack-up rigs refurbishment

Background- The advent of New Exploration and Licensing Policy (NELP) has lead to a huge spurt in offshoreE&P activity in India opening new opportunities for offshore fabricators.

The client was keen to evaluate the business opportunity in India followed by a detailed business and location

feasibility analysis

Key focus areas for the assignment included market potential for the following

Platform refurbishments like structural fabrication of utility and process modules, platform decks and

small jackets

Jack up rig refurbishments such as repowering of drilling modules, Jacket repairs and drilling derricks

Subsea structures like flare bottoms, sub-sea fabrication jobs like installation of Christmas trees,

manifolds line-pipes and spools

Potential for FPSO-FPU topside fabrication in India

Case Study 2: Feasibility Study for OffshoreFabrication Facility in India (1/3)



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Detailed report on the NELP Comprehensive analysis of

the Offshore acreage by deepand shallow water

Profiling of all offshore E&Poperators, PMC/EPIC and

Fabricators in India Success ratio of each block:discoveries made, number ofwells drilled and approved

Estimation of current status ofdevelopment of all major

offshore blocks Evaluation criteria and

contracting strategy adoptedby E&P companies andPMC/EPICs for appointmentof Fabricator

Indication on current andfuture requirements for

FPSO/FPU, Fixed Platformsand Jack-Up rigs for the next 5to 6 years

Drivers and restraints in themarket

Market forecast and trend

analysis for sub-seafabrication, Jack-up andplatforms refurbishment

Competitive landscape:Foreign and Indigenousfabricators catering to the

Indian Offshore Market Profiling of fabricators:

Strength-Weakness, Facilitiesand Strategies

New facilities and playersentering into the market

Identification of key E&P

operators, PMC/EPICs anddrilling contractors aspotential customers

Categorizing of businessopportunities based on futureproject development and

investments Short-listing of 3 to 4

PMC/EPIC and Fabricatorsfor tie-up or JV.

Overall analysis of the capitaloutlay for setup of offshore

fabrication facility Location feasibility study: A

cost comparison betweenIndia and Middle East

Short listing of locations andrecommendations

Phase 2-Opportunity Assessment

Phase 1-Market Overview &

Skimming

Phase 3-Feasibility Study &Recommendations




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Location andBusiness

Feasibility

OpportunityAssessment

E&P Operators Evaluation criteria and contractingstrategy adopted by E&P companiesespecially for sub-sea structures (x’mastrees, manifolds et al), decks, process,accommodation & utility modules andminor refurbishments

Association with PMC/EPC, drilling

contractors and fabricators Potential tie-up and future business

opportunity

PMC/EPC Contracting strategy adopted by PMC:

subcontracting engineering and fabrication,in house engineering and outsourcedfabrication or end to end solution provider

Evaluation parameters used by PMC forselection of contractor like quay-side space,

references et al Survey of major fabricators preferred by

PMC and rates charged by the fabricatorsfor construction of offshore steel structureslike topsides, decks, jackets etc.

Drilling Contractors Contracting strategy adopted by

drilling rig owners forrefurbishment/re-powering of drillingmodules, jackets decks, derricksamong others

List of preferred indigenous andforeign fabricators

Offshore Fabricators Identification of key competencies and

future aspirations Capital outlay, facilities and manpower

assessment Estimation of pricing mechanisms,

contracting strategies and competencies Indication of broad financial figures –

Top line & Bottom-line, profitabilitylevels etc.

Outlook on the future business potentialand upcoming opportunities

Possibilities of JV or tie-up

Directorate General of Hydrocarbons andO&G Experts

Outlook for E&P business in India andfuture of NELP

Participation by foreign E&P operators

Policies to overcome restraints in E&Pdevelopment owing rig shortages and lowavailability of skilled manpower

Indication on policy decisions to aiddevelopment of offshore fabricationfacilities in India

Market drivers and restraints and specificskill shortages in offshore fabrication

market

Others EoI for availability of quay side

facilities for offshore fabrication

Demand and supply situation of APIgrade steel in India

Manpower day rates for welders,fitters, roustabouts, electricians inIndian and ME

Potential tie-up and future businessopportunity


Case Study 3: Assessment of Brown Field Services



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Engagement Objectives Outcome

Client

An Emerging OilfieldServices Provider in

Malaysia

● Brown Field Services marketsizing and market share analysis

● Insights on competitor

strategies

● Obtained views of the majorbuyers and insights on majorupcoming projects

● Market entry plans for Indonesia

Case Study 2Client Situation

● Need for an independentmarket report regarding topSide Brown Field Servicesmarket with a view listing in

the local stock exchange

● Estimate the Brown FieldServices Market size

● Identify competitors and

determine market share

● Understand governmentregulations and policies inthe region

● Identify major customers

Geographic Coverage Growth Processes

● Customer Strategies

● Strategic Partnering

● Geographic Expansion

Malaysia and Indonesia

Case Study 3: Assessment of Brown Field ServicesMarkets for an Upstream Oil and Gas Services Provider

Case Study 4: Offshore Oil & Gas and Sub-sea Equipment



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Engagement Objectives

Outcome

Client

Large SingaporeanDefense & Engineering

CompanyThe market analysis helped the

client to:

● Identify opportunities in offshoreand sub-sea equipment andservices market

● Identify potential targets foracquisition

Client Situation

● To understand the globaloffshore and sub-seaequipment market with anobjective to invest oracquire

● Assess market opportunitiesin the global offshore andsub-sea equipment andservices market ,consisting of the following:

Well drilling & completion Christmas Tree Umbilicals

ROV operations Pipelines

Controls Templates & Manifolds

● Identify the major players ineach segment of the offshoreoil & gas and sub-seaindustry

● Evaluate the market

attractiveness, entry barriersand suitability of the segmentfor the client to diversify into

● Identify suitable privatelyowned companies in theabove market either for

acquisition or for JointVenture

Geographic Coverage

Growth Processes

● Mergers and Acquisition

● Strategic Partnering

Global with focus onthe North Sea and

Gulf of Mexico

Case Study 4: Offshore Oil & Gas and Sub-sea Equipmentand Services Markets

Case Study 5: Turbo Machinery Equipment and Services



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Engagement Objectives Outcome

Client

Global Turbo MachineryEquipment Supplier The strategic assessment helped

the client to:

● Allocate resources based on the

upcoming opportunities inproducts and services market

● Identify product requirements orspecifications across differentend-user segments

● Strategize their existingdistribution channel to addressend-user requirements acrossthe oil and gas industry

Case Study 5: Turbo Machinery Equipment and ServicesDemand in the Oil and Gas Industry

Client Situation

● Need to have an indepthunderstanding of the TurboMachinery equipment (gasturbines, steam turbines & compressors) and servicesmarket demand in the oil

and gas Industry

● Estimate the existinginstalled base of the turbomachinery equipment inthe oil and gas industry

and identify product, end–user trends

● Market size and forecastfor equipment andservices in upstream, mid-stream and downstream

segments

● Service contracts analysis

● Competitor AnalysisGeographic Coverage

Growth Processes

● Channel Optimization

● Competitive Strategies

● Customer Strategies

Malaysia and AustraliaNew Zealand

Case Study 6: Mapping and Analysis of Research &



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Case Study 6: Mapping and Analysis of Research &Development Activities in the Solar PV Industry

Client Issue and Project Objectives: A leading oil and gas producer with operations in more than

130 countries had created a new business unit in order totarget opportunities within the renewable energy sector.

It wanted to have a thorough insight into global R&Dactivities in the solar PV sector in order to enter and winbusiness in this market.

Frost & Sullivan Approach and Methodology: Frost & Sullivan broke down the project into three steps:

– In Phase 1, we developed an R&D mapping template (asshown in the chart) and filled it in solely using secondaryresearch and existing Frost & Sullivan data.

– We then organised a face to face workshop with our client topresent the findings to date and identify the gaps in theresearch which could not be filled by secondary research.We also worked with our client to identify, select and short-list the most relevant research institutes to focus on in the 2nd

phase of the project.

– In Phase 2, Frost & Sullivan conducted 30 interviews with theshort-listed research institutes and profiled the R&D activitiesof each institute.

Frost & Sullivan leveraged its global presence and used itsmarket experts in Europe, North America and Asia to fulfil theproject.

Results and Benefits to the Client:

Based on Frost & Sullivan’s market research and analysis,our client was able to:

– Identify and focus on the most lucrative research activitiesthat were close to commercialisation

– Identify longer term technologies with commercialisationpotential

–

Identify and select possible research institutes to partner with

R&D Mapping Template

Number of Patents and Publications by Research Institute

CdTe Others

Organization Name C-Si PC-Si Others CdTe CISe CIGSe CIGSSeOrganic

Other

Nanotech

BasedOthers

Si Thin

Films

1st Generation : Bulk Silicon 2nd G enerat ion Solar Ce lls: Thin Films 3rd Gene ration Solar Ce lls

CIS/CIGS Chemistry

Total FTE Researchers PHD StudentsScientists of

ReputationAnnual Total Subsidies Internal Funds Public

Private

(Industry)

% Breakdown

Number of Employees Budget

0

50

100

150

200

250

2004 2005 2006 2007 2008

Patents

Publications

0

50

100

150

200

250

2004 2005 2006 2007 2008

Patents

Publications

SJ DJ TJMJ

(>3)Q-Dots

Q-

WellsNano Micro Other Glass Others

Raw

MaterialsIngots Wa fe rs Ce lls Modu le s Sy ste ms

Non-

VacuumVacuum

DepositionCell structure Business Integration

SubstrateMacroscopic :Stack PV Active MaterialScaleQuantum





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For Additional Information

For general assistance and enquiries:

Africa:+27 21 680 [email protected]

Asia Pacific:+65 [email protected]

Europe:+44 (0)20 7343 [email protected]

Latin America:

+54 11 4777 [email protected]

Middle East & North Africa:[email protected]

North America:[email protected]

South Asia:+91 (0) 22 6160 [email protected]

Documents

F&S O&G Capabilities Global v1