agr rm capability presentation - oil & gas...

www.agr.comwww.agr.com

PILOT SHARE FAIR 2014

AGRInnovative/Experienced/Flexible

Gordon PattersonLyanna Farquhar

5th November 2014


DISCLAIMER STATEMENT

This presentation contains forward-looking statements with respect to the operations of AGR. It incorporates our current (November 2014) view of future activities, some of which remain subject to further study and internal and external (partner and client) approval. Hence actual activities may differ materially from those expressed or implied from this presentation, and readers should not place undue reliance on said forward-looking statements. AGR does not guarantee the validity of the information contained in this presentation and such information is released for indicative purposes only.


Contents

1. Introduction to AGR

2. AGR’s Worldwide Footprint

3. AGR’s UK/West Africa Organisation

4. HSEQ

5. Logistics

6. AGR Operations

» Experience & Tech/Core Competencies

» Supply Chain Management

» Control of Well Insurance

6. Rig Market – Current Events

7. AGR Activity Overview

8. AGR Contacts


1. Introduction to AGR

Effective 1st September 2014 the AGR Group was acquired by European private equity firm – Silverfleet. Unlike previous owner, new owner is seeking to expand the business on an international scale – exciting times @ AGR.

AGR provides value-adding services and solutions to customers through its innovation, experience and flexibility. We pride ourselves on quickly supplying the highest quality and most cost-effective integrated services within the following areas………


AGR Capabilities

Consultancy• 300+ consultants• Database of 9000+

Reservoir Management• Global player• Delivers over 200 reservoir studies/year

• A&D: Expert Advisory Services

Well Management• Outsourced Drilling• 522 Wells delivered over 13 years

Training• 25 000 people trainedin 45 countries

• 200 courses p.a.

Integrated LogisticsSolutions• Logistics• Procurement• Drilling cost control

Expert Rig Sourcing• Dedicated team• Handle negotiations and contracting


521 wells - AGR’s unrivalled drilling track record


OVERVIEW OF AGR GROUP

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Solid financial platform market leading position

Footprint in key markets internationally

Revenue, NOK Billion

World’s premier independent well & reservoir management group400 Staff + over 300 well consultants on placement.Managed drilling of 521 wells as at end October 2014

AGR offices


Working towards full compliance with the Supply Chain Code of Practice to…

In support of the Code, our preferred suppliers are registered with FPAL.

For more information or to register your company go to www.FPAL.com

• Improve performance

• Eliminate unnecessary costs

• Add value and boost competitiveness

http://www.fpal.com/


In addition, we are also signed up to PILOT Forward Workplan

A web-based information-sharing website to provide up to date information on business opportunities for the Supply Chain.

Visit the FPAL website to see our information online:http://www.fpal.com/

- Then click on ‘Forward Workplan’



3. AGR - UK/WA/ME

Organisation


AGR Well Management - Organigram

EVP WELL MANAGEMENT UK /WEST AFRICA /ME

Ian Burdis NORWAYREGION MANAGER

Steiner Berg

MIDDLE EASTREGION MANAGER

Iain Morrison

S.E ASIAREGION MANAGER

Bruce Roebuck

N.AMERICA REGION MANAGER

Scott Thetford

BD & SUPPORTChris Rayburn

Kay Elliott

ENGINEERING MANAGER

Mark Peacock

OPERATIONS MANAGER

Simon Lucas

DRILLLING OPERATIONS

RESOURCE

MATERIALS &LOGISTICS RESOURCE

WELL ENGINEERING RESOURCE

F U

N C

T I O

N A

L S

U P

PO

R T

INTEGRATED LOGISTICSSOLUTIONS

Lyanna Farquhar

OFFSHORERESOURCE

PA/OFFICE MANAGERAlison Fyfe

OFFICE ADMIN/RECEPTIONBeccy Simpson

HSEQTove Magnusson

(Norway)

HUMAN RESOURCESBirgitte Ronnenberg

(Norway)Eilidh Fearn

Louisa Wiltshire

CONTRACTS & PROCUREMENT

Gordon PattersonJim McManusJulie Simpson

STRATEGIC COMMUNICATIONS

Maria Djomina

INFORMATION TECHNOLOGY

MANAGERMike Christensen

ADMINISTRATION

FINANCERob Fraser

HSEQ MANAGERGavin Kerr

SUPPORT SERVICES

CENTER OF EXCELLENCE

BUSINESS DEVELOPMENT Nick Chilcott

CONSULTANCYKirsty CrookRyan Watson

HSEQ Resource


4. HSEQAGR believe planning is key to successful HSEQ, Logistics and operational performance...


HSEQ for Remote Ops – Plan Well Ahead

• Desktop Review

– Country Risk Assessment – Piracy / Government Stability / Terrorism / Security / Virus Epidemics

– Drilling & Environmental Permitting

– Spill Response Strategy

• Reconnaissance Visit

– Review country infrastructure, base and port facilities

– Absolutely critical for efficient Materials and Logistics planning but also for HSE

• Discuss permitting process with Government

• Understand lead times and approvals process

– Waste facilities – what can go where and what will they do with it?


Environmental Issues

• EIA & OSCP can take a long time! (6-12m+)

– You must start EIA and OSCP as soon as possible

– Engagement of a local consultant can help… and hinder!

– Prepare a Terms of Reference and present it to Government, it provides a baseline that the EIA can be judged against

• Review Spill andWaste Management Strategy

• Rig Discharge - Skip and ship is very expensive and logistically challenging OBM v WBM decision


AGR operate an integrated Management System

ISO9001:2008 (Quality) – AccreditedISO14001:2004 Environment) – AccreditedOHSAS 18001:2007 (Safety) - Fully Compliant


5. AGR Integrated Logistics Solutions

Provides reliable Logistics, Procurement & Drilling Cost Control Support for International Oil & Gas Projects


Integrated Logistics Solutions

UK and International Operations support

• Marine and Aviation support

• Personnel logistics

• Dedicated project personnel

• Procurement

• Ability to provide customs support

• Control of client inventory and storage

• Drilling Cost Control


6. AGR OperationsStatistics

Capabilities

Rig Sourcing

Decommissioning

AGR Supply Chain

Control of Well Insurance


AGR Statistics

521AGR have drilled...

24Countries...<=> 12%

106Clients in...

wells...

for...


AGR Capabilities

Well ManagementComplete

well management

Well construction

studies

Casing and completion

design

Well construction

planning

Logistics capability

Operatorship applications

for new entrants

Procurement and

contracting of all services

HSE and emergency

preparedness

Rig site operations supervision and

management

De-commissioning & Abandonment

Rig Sourcing


What rig sourcing services can AGR provide?

• Rig only

– Studies re availability / suitability

– Contract on back-to-back principle

– Brokerage re sublet etc

• Rig with full or partial well management

• Rig teams in Aberdeen, Stavanger and Oslo

• Extensive experience of rig -intake for AGR’s Client’s projects

• Worldwide outlook and presence


Decommissioning

• Growth in Well Abandonment

• 930 wells to P&A over the next decade at a cost of £6.4billion*

• E&P Company non-core activity

• AGR have extensive experience of P&A operations in UK

• Potential to initiate multi-client campaigns to reduce cost & deliver value

* Oil & Gas UK Decommissioning Insight 2014


AGR SUPPLY CHAIN

AGR Supply Chain Management encompasses:

• Developing a Contracting &

Procurement strategy

• Managing 3rd Party Services

• Managing Materials and Logistics

support

• Lead local relationship management

• Lever combined spending power for better pricing

Working towards full compliance with the Supply Chain Code of Practice to…

In support of the Code, our preferred suppliers are registered with FPAL.

For more information or to register your company go to www.FPAL.com



AGR’s Drilling Supply Chain Philosophy

• Safety of Operations

• Preservation of Environment

• Quality of Service

• Quality of Personnel

• Security of Supply

• Competitive Pricing

• Timely Delivery

• Beneficial Reciprocal Relationships

• Non-Adversarial Behaviour


Oil & Gas UK has awarded AGR Bronze (2009), Silver (2010;

2011;) Gold (2012; 2013;) Bronze (2014) level of Supply

Chain Compliance.

which has:-

• speed of invoice

payments;

• transparency of forward

work planning;

• use of standardised

contracts;

– as compliance yardsticks.

SUPPLY CHAIN - AGR RECOGNITION


AGR Supply Chain - Contracting with AGR

To secure a Contract to provide Services to AGR the following applies:

• Contractor/Supplier must be registered on FPAL

• Likely a tender process will take place -achieves transparency to AGR’s Clients & JOA compliance

• LOGIC (CRINE) Standard T’s & C’s utilised– both UKCS and overseas wherever possible

• Tender evaluation, recommendation to award and placement of Contract


AGR’s Typical Well Supply Chain Model


Well M

anagem

ent

Control of Well (CoW) Insurance

AGR Clients have access to preferential rates for Control of Well Insurance. This exclusive facility is available when AGR’s Well Delivery Process is employed, due to recognition of AGR’s track record of over 500 wells having been safely and efficiently drilled globally.


Control-of-well Insurance

AGR has become recognised by the Insurance Underwriting community, as a company with:

• a strong HSEQ focus - inextricably linked to positive performance

enhancing procedures;

• a safe proven track record of over 521 wells;

• a solid future order book;

• a global well management approach utilising standard processes &

procedures;

• unique management processes;

• an experienced and dedicated workforce.

CoW Insurance footage rates for “AGR wells” are lower than for

Operators without such a track record - this saving can stretch to

millions of dollars - delivering exceptional value for AGR’s

Clients.


7. Rig Market – Current Events


Rig Market – Current Events

• Softening UK market conditions due to reduced demand - especially for floaters

• Increasing rig availability, including many sublet opportunities

• Potential for Norwegian sector floaters entering UK

• Reducing day rates - especially floaters

• One well contracts and options now accepted by drilling rig contractors once again

• Opportunity to drill more readily achievable - at reduced cost and tailored rig contract term



• For upstream companies which have generally been cutting back spending in the face of investor pressure, this is a time of uncertainty – and worry.

• Total investment in oil & gas in 2015 is expected to fall by 8%.

• Rigs – Norwegian Consultancy Rystad Energy say rig market expected to be balanced again in 2020.

• Shale is substituting the need for projects above USD $85 per barrel – ultra-deepwater rigs will compete in deepwater market & the mid-water market in many regions.



• 6th generation dayrates could slide to $425k to $475k with 5th generation dropping to USD $325k.

• Future of Jack Ups for 2015/2016 looks like falling rates -as new build arrivals increase.

• The Paragon, Shelf and Hercules effect - minimising Jack-Up retirements – what about semis in future?

• How a boost in Rig demand might happen:

– Higher oil prices;

– More efficient field developments;

– Halt new build orders & more conversions;

– Cold stacking of rigs;

– Scrapping of rigs;

• Seadrill CFO September 2014 quote - “Going to be tough for next couple of years. Going to get worse before it gets better.”


8. AGR Activity Overview

www.agr.com

Drilling Activity Planned Worldwide


Summary

• UK exploration drilling activity currently restrained

• Opportunity for smaller E&Ps due to reduced drilling costs

• Expansion of international activity/projects – for everycompany involved with Oil & Gas UK

• AGR Entering new markets

– Rig Sourcing

– Integrated Logistics Solutions

– Decommissioning/Well Abandonment

– Geographical expansion


CONTACT US....

Contact AGR Well Management or Reservoir Management; UK, West Africa & ME, at the following office:

Union Plaza1 Union WyndAberdeen AB10 1SL

Tel: +44(0)1224 629000

Gordon Patterson: ContractsLyanna Farquhar: Integrated Logistics SolutionsNick Chilcott: Business DevelopmentChris Rayburn Business DevelopmentMark Peacock: Well Engineering – Well Management Mark Cullen: Reservoir ManagementEilidh Fearn: Human ResourcesChris Ferrier: Software SolutionsKirsty Crook: Consultancy Solutions


PILOT SHARE FAIR 2014

AGRThank you for your time & for listening – any questions?

agr rm capability presentation - oil & gas...

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