CHALLENGES IN DIVERSIFACTION: ROVs ACROSS OIL & GAS AND OFFSHORE WIND

AGENDA

•  ROVOP Introduction •  Why diversify? •  Diversification •  Offshore Wind Industry •  The Challenges •  Conclusion and questions

WHO WE ARE

•  Independent and 100% focused on the provision of ROV services

•  Founded in September 2011 and operate across offshore wind, oil & gas, telecoms and power transmission industries

•  Over 130 staff, 16 strong fleet of ROVs

•  DNV ISO9001, 14001, OHSAS18001 accredited

•  Operational facilities in Aberdeen and Houston

•  Aberdeen based ROVOP Academy includes ROV simulator and test tank

THE ROVOP ACADEMY

•  ROV market has been strongly impacted by slump in oil price, and internal technical support and personnel training is more important than ever

•  The ROVOP Academy was set up as a commitment to our offshore team

•  Train, develop and manage competency of personnel •  Over 50 training modules •  6x6x6m WROV test tank •  £250K Schilling ROV simulator •  Scenario planning for clients

WHY DIVERSIFY?

•  Technological know-how, market insight and project management skills to do both

•  Volatile oil price

•  Renewables increasingly important – financing of offshore wind farms and transmission assets have hit record level

•  EU, UK & European government targets

•  Earn favourable political capital among climate-conscious community members and decision makers

ROVOP DIVERSIFICATION

•  First project was at Walney offshore wind farm in 2011

•  c.50% oil and gas construction, inspection repair and maintenance and decommissioning

•  c.50% non oil & gas including offshore wind, telecoms, interconnectors, tidal turbines & environmental projects

•  Less than 40% of revenues are dependant on oil price

OFFSHORE WIND INDUSTRY According to Wind Europe: •  84 wind farms in 11 countries; 14 completed in

2015 •  3,019MW installed in 2015 (104% growth) •  €13.3Bn projects reached FID (100% growth) •  11.5GW installed, 23.5GW by 2020 •  Average water depth 27m •  80% of foundations are monopiles •  As depths increase so does jacket and tripod

foundations, floating installations

OFFSHORE WIND AND CABLE

Subsea tasks include: •  Seabed survey •  Boulder and UXO removal •  Foundation installation •  Piling and grouting •  Inter-array and cable

installation •  Cable seal activation

•  Plough and trencher support •  Mattress deployment •  Damage identification & repair •  Scour survey & repair •  Substation installation support

THE CHALLENGE: OPERATIONAL CONDITIONS

Offshore wind: •  Shallow, turbid, high current, zero visibility conditions •  Close proximity to hull, thrusters, product, structures, UXO… Oil and gas: •  There are exceptions, but generally deep and still waters THE SOLUTION: •  Latest generation camera, sonar & gyro packages •  Focus on offshore staff competence & development •  ROV control system capability & thrust essential •  Diversity to recommend the right vehicle to meet project

requirements and desires

THE CHALLENGE: MARKET MATURITY

•  Offshore wind has taken off over the last 5 years compared with over 40 years evolution for oil & gas

•  Generally less in-water construction experience than typical clients in Oil & Gas

•  View of “In oil & gas we…” •  Diver use still common in applications where oil industry

would use ROV THE SOLUTION: •  Work closely with developers, designers and clients before

the project •  Prepare for some basic questions and misunderstandings •  Experience in offshore wind highly valued

CONCLUSION

•  The prize is considerable but so are the challenges. •  Be aware of the different drivers and attitudes between industries •  Environmental challenges are considerable: this is not an industry

for out of date equipment and technology •  Personnel competency and development are critical to

performance •  Maximising efficiency, flexibility and collaboration with customers •  With focus, there are great opportunities for companies to diversify

from oil & gas to renewables

THANK YOU www.rovop.com