diversification opportunities for the oil & gas supply chain
TRANSCRIPT
Diversification Opportunities
for the Oil & Gas Supply
Chain
Championing the UK Subsea Sector Across the World
Agenda
• Welcome and introduction
Neil Gordon, CEO, Subsea UK
• Supporting the supply chain to access new markets
Douglas Hyslop, Senior Manager, Energy Supply
Chain Team, Scottish Enterprise
• Diversification opportunities and challenges
Sam Gomersall, Pale Blue Dot
• Guide to the offshore wind sector
Alan Duncan, BVGA Associates
• Open forum discussion
Scottish Enterprise:
Oil & Gas Supply Chain
Diversification
Presented by: Douglas Hyslop
Where: Village Hotel, Aberdeen
When: 2nd August 2016
InvestmentPromoting
Scotland as a
leading hub for
renewable
energy
innovation
Create globally
competitive
supply chains
and support
companies to
win business in
key markets
Securing
manufacturing
commitments
that result in the
creation of HVA
jobs.
Supporting
investment and
promotion
Supporting Scotland’s Economic Strategy
Our Role in the Energy Sector
“We have a highly-skilled workforce, substantial natural resources, a longstanding reputation for
innovation, internationally recognisable brands and products and companies competing
successfully in global markets.
Innovation
Inclusive
Growth
Internationalisation“Our Economic Strategy will build on this strong starting point.
It will focus on the dual and reinforcing objectives of
boosting competitiveness and reducing inequality through
our four priorities for sustainable growth”
Scottish Enterprise is developing a comprehensive programme of support to
assist oil & gas supply chain companies to identify and exploit new market
opportunities:
• Aims to support companies individually and collectively to identify relevant
near to market opportunities
• Recognises the strategic importance of diversification to company growth
plans
• Will consider how to address barriers to successful diversification into new
sectors and geographical markets
• Initiated by a review carried out by Pale Blue Dot, BVG Associates and ARC
Consulting – June 2016
• We seek interaction with ambitious companies to discuss how we can
support your diversification strategy
Key Messages
Scotland is actively developing its supply chain to ensure our companies remain market
leaders. The Expert Support Programme helps established supply chain companies and
new market entrants, offering:
• Up to two days of FREE one-to-one support, funded by Scottish Enterprise
• Support delivered by specialist advisors who have knowledge and experience of the
offshore wind sector
• Market or technology appraisals, designed to help companies consider and build
diversification strategies to that help them to win business in the offshore wind sector
• Company specific action plans, that identify and exploring potential revenue steams and
include key milestones to help companies to take forward their offshore wind ambitions
Expert Support Programme
Eg. Offshore Renewables Supply
Chain Directory
• Created by Scottish Enterprise and
Highlands & Islands Enterprise
• Details hundreds of Scottish
companies with offshore renewable
energy capabilities
• Enables developers to search for
specific capabilities
• Provides an excellent opportunity for
supply chain companies to promote
their capability
Supply Chain Directory
Scottish Enterprise and Highlands & Islands Enterprise have
developed a programme of events to support new and existing
supply chain companies:
• Supply Chain Workshops - Sessions exploring specific supply
chain opportunities. Eg. September event focussed on ports &
harbours and attracted 90 delegates
• Meet the Buyer Events - Tailored events with leading OEMs
and developers
• Technical Solutions Workshops - Sessions focussing on
specific industry challenges and potential solutions
Supply Chain Events
The Innovation Support Service
• Are you planning an innovation or R&D project?
• Yes - then Scottish Enterprise offers a free, impartial, advisory service that will review
your business case and plans and provide you with guidance
• To benefit fully from the Innovation Support Service you should:
– Be a formed company (registration number required)
– Have conducted a basic market research
– Have a business plan and/or a project plan
– Be able to finance a significant part of the project costs
For further information about the Innovation Support Service click here(http://www.scottish-enterprise.com/iss)
or call the Scottish Enterprise network helpline 0845 607 8787(mention the Innovation Support Service when you make your enquiry)
SMART: SCOTLAND provides grants to Small to Medium Enterprises (SMEs) based in
Scotland to help them undertake technical feasibility studies and research and development
(R&D) projects with a commercial endpoint.
• Feasibility studies – Supports up to 70% of the eligible costs for a small SME and up to
60% of the eligible costs for a medium SME. Studies must last between 6 and 18
months, and the maximum grant is £100,000.
• R&D Projects – Covers projects that aim to develop pre-production prototypes of a new
product or process. Support is available at up to 35% of eligible project costs. Projects
must last between 6 and 36 months, and the maximum grant is £600,000.
To be eligible projects must exhibit:
• An advance in technological innovation for the UK industry or sector concerned.
• The technical risks and challenges associated with defining and developing the
technology.
SMART: Scotland
Oil & Gas DiversificationOpportunities and Challenges
SubseaUK & Scottish Enterprise
2nd August 2016
Sam Gomersall
www.pale-blu.com
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
1
Carbon Capture
& Storage
2
Oil & Gas
Transition
3
Emerging
Energy Systems
We help organisations of all sizes to create opportunities
and mitigate risks arising from major changes in the energy
markets.
Management consultants for the energy transition
Pale Blue Dot Energy
Project outline
To provide Scottish Enterprise with sector and market analysis to enable a detailed action plan regarding diversification opportunities for the Scottish oil & gas supply chain
Review 24 sectors
Map O&G capabilities to those sectors
Prioritise sector potential
Highlight other diversification aspects
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Sectors considered
Aerospace
Carbon Capture and Storage
Chemical & Life Sciences
Construction
Decommissioning
Defence
Downstream O&G
Energy storage
Food & Drink
Heat
Hydro
Hydrogen
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Knowledge
Marine
Midstream O&G
Mining
Nuclear
Offshore wind
Rail
Textiles
Thermal Generation
Water
Wave & Tidal
Unconventional gas
Output material
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Sector Overview
Report
Excel Spreadsheet
24Sector
Reports
Summary Report
Findings: Priorities
‘Green’
Offshore wind
Nuclear
Decommissioning
Hydrogen
Heat
‘Amber’
Wave & Tidal
Chemical & Life Sciences
Unconventional gas
CCS
Energy storage
Knowledge
Water
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
‘Red’
Hydro
Aerospace
Defence
Construction
Marine
Midstream O&G
Downstream O&G
Textiles
Rail
Mining
Food & Drink
Thermal Generation
Findings
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Findings
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Findings
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Mapping summary
Sector with traffic lights Resvr Wells Facilities Subsea Support
1 Offshore wind
2 Wave and Tidal
3 Hydro
4 Nuclear
5 Aerospace
6 Defence
7 Chemical & Life Science
8 Unconventional Gas
9 Carbon Capture & Storage
10 Decommissioning
11 Construction
12 Marine
13 Downstream O&G
14 Midstream O&G
15 Textiles
16 Rail
17 Mining
18 Energy storage
19 Hydrogen
20 Knowledge
21 Food and drink
22 Water and wastewater
23 Heating and cooling
24 Thermal generation
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Sectors with subsea activity
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Scotland’s Opportunity
To use O&G ‘surplus capacity’ as an opportunity for growth
Consolidate position in Decommissioning and Offshore Wind
Develop sector leadership in emerging sectors such as: Hydrogen, Wave & Tidal, Heat, Energy Storage
Move from ‘solving a problem’ to ‘creating an opportunity’
Engage the O&G sector in the vision
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Market challenges
N Sea production in decline
Low oil price now, future price uncertainty
Growth in low carbon sectors
Transition from fossil fuels underway
Oil and Gas remains a huge sector
O&G supply chain unlikely to recover in size
Need to ensure awareness of the “broader script”
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Messaging challenges
Industry messages are a delicate balance;
“We need to be pulling together to secure the future for the N Sea, which still holds billions of barrels of oil & gas” DierdreMichie O&G UK
“Aberdeen is now beginning to face up to the challenges of its long term economic future after the complacency of a strong N Sea dominated era” Sir Ian Wood
Both messages are valid and complimentary
The diversification message needs to be stronger in Aberdeen
..without being seen as undermining the O&G message
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Cultural challenges
Insufficient drive for diversification
High oil price: no need
Low oil price: no capacity
Poor understanding of other sectors
Ability to market into other sectors
Perception of O&G from other sectors
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Diversification drivers & outcomes
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Improved value proposition
Distinctive offering
=>
Business synergies
Growth potential
Decline in current markets
Loss of revenue
=>
Diluted profitability
Loss of focus
Dri
ver
Ou
tco
me
Strategy precedes delivery
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Summary
Early sector opportunities are in Offshore Wind and Decommissioning. Also Water and Nuclear.
Scottish leadership could be established in Wave & Tidal, Heat, Hydrogen, Energy Storage
O&G Sector not well engaged with Diversification
Precipitating O&G Sector engagement is the most important strategic action
O&G capacity is an opportunity for business and Scotland, but it will take time
Business can get started with preparatory action before engaging in strategic activity
© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
Questions
[email protected]© Pale Blue Dot
Energy Ltd. 2016Management Consultants
for The Energy Transition
31/34
Guide to the Offshore Wind Sector
Exploring high O&G synergies and diversification
opportunities ~ 02nd August 2016 (Alan Duncan ~ BVGA)
32/34
Who we are
BVGA: Business realism rather than eco-idealismOver 10 years of experience in offshore wind, onshore wind, wave and tidal
Selected clients
BVG Associates
• Market and supply chain
• Analysis and forecasting
• Strategic advice
• Business and supply chain development
• Technology
• Engineering services
• Due diligence
• Strategy and R&D support
• Economics
• Socioeconomics and local benefits
• Technology and project economic modelling
• Policy and local content assessment
© BVG Associates 2016
33/34
Questions to be addressed today:
Supporting Scotland’s O&G supply chain diversifyO&G suppliers possess world-class capabilities – targeting largest and most accessible markets
© BVG Associates 2016
Earliest ~ Where are the largest opportunities for early diversification?
Longevity ~ What longer term potential exists in other market sectors?
Readiness ~ How prepared are companies to develop new areas of business?
How to diversify ~ What strategies are available to companies seeking to
expand into new markets?
Navigating roadblocks ~ What challenges and barriers might the subsea supply
chain face?
‘Team Scotland’ ~ What is the role of the public sector in supporting industry to
move forward?
34/34
European Offshore Wind 2005 to 2025
European deployment to increase four-fold in the next 10 years
© BVG Associates 2016
• UK continues to be most consistent, growing market
since 2003.
• UK nearing the end of a 3-year slow-down between
2014 and 2016, transition to new ‘strike price’
mechanism. Dip towards 2020 down to new
Government and ‘1 lost CfD year’
• UK and Germany make up 2/3 of the cumulative
forecast EU market by the end of 2025
• Deployment in France expected to begin at volume
from 2020, Netherlands ramp-up expected after 2021
• Denmark and other Europe markets intermittent
• European installed capacity to rise from just under
11GW in 2015 to 40GW in 2025 (total wind farm
investment over £100bn)
• With 7700 turbines installed by 2025, each operating
for 25 years+, the O&M market is likely to increase
tenfold
0
10
20
30
40
50
0
1
2
3
4
5
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25
Cum
ula
tive in
sta
lled c
ap
acity (G
W)
Insta
lled c
apacity (G
W)
Year of turbine installation
DE DK FR NL UK Other Europe Cumulative
• All offshore wind markets are subsidised to a roughly
similar extent and support is likely to be required until
around 2025
• Moving to larger zones (~1GW). In some cases,
expected to be phased around 500MW projects.
• With 5.1GW of offshore wind capacity
online at the end of 2015…….
• Scotland has precisely zero turbines
of the 1454 installed in the UK
35/34
Asia and North America: the next offshore wind hotspots
Internationalisation Offshore wind WILL go global: foreign markets to seek European expert supply
© BVG Associates 2016
With Europe to hit 40GW by 2025….
China will approach 15GW
and surpass UK within the
next 10 years….
Chinese money flooding into
Europe – acquisitions and
partnerships….
Learn from European leaders
and ‘export’ back to Asia
First project (Block Island) will
be commissioned in 2016
Open to European suppliers –
DONG awarded rights to
1GW Bay State project
‘Liberal’ seaboard states
committed to wind and suited
to floating solutions
36/34
UK near term projects, Scottish strife
Beatrice is the only Scottish project with a ‘trouble free’ deployment plan
© BVG Associates 2016
After almost 1 year delay, CfD2 to 4 schedule
announced:
£730 million this Parliament (4 years) £730m
for up to 4GW of offshore wind and other less
established renewables
First auction Q3 2016 of £290 million
Strike price trajectory defined ~ £105/MWh (in
2011-12 prices), falling to £85/MWh for
projects commissioning by 2026 – ‘subsidy
free’?
2.3GW Scottish projects with legal challenges
(NNG, Inch Cape, Seagreen)
Not enough to go around - Scottish projects
disadvantaged by higher CAPEX costs and
transmission charges !
Strong developer commitment to UK
Overseas - Dong & Vattenfall heavily invested
in UK, Shell entering NL ?
Domestic - SPR (EA1) & SSE u-turn ?
Scottish developers – all or bust
Market probably has space for 3 strong WTM
Siemens in Hull, MHI/Vestas IOW, GE ?
Lack of Scottish WTM severely limits CAPEX
potential
Project Lead developer Contract type Project status* Expected
capacity (MW)
Beatrice SSEEPC (WTM
Siemens)
FID expected
H1 2016588
East Anglia 1ScottishPower
RenewablesEPC (WTM
Siemens)Post-FID 714
Hornsea 1 DONG Energy Multi-
contractingPost-FID 1,200
Neart na
GaoitheMainstream
EPC (WTM
Siemens)
Consent
approved448
Moray Firth 1 EDPR EPCConsent
approved500
Dogger Bank
Creyke BeckStatoil
Multi-
contracting
Consent
approved1300
Triton Knoll RWE Innogy Multi-
contracting
Consent
approved400
East Anglia 3ScottishPower
Renewables EPC
Applied for
consent600
Hornsea 2 DONG EnergyMulti-
contracting
Applied for
consent1,200
Inch Cape Repsol EPCConsent
approved700
Dogger Bank
TeessideRWE Innogy
Multi-
contracting
Consent
approved1200
Total (MW) 8,850
* Capacities are a BVGA
scenario only / other
projects not listed are
possible
37/34
Floating wind – the Scottish opportunity ?High oil and gas market synergy
•Technology proliferation may spread DEVEX
budgets and hamper progress.
•Scotland has the perfect water depth for floating but
majority of Round 3 sites <50m so suited to fixed
foundation.
•Particularly attractive for near shore / deep water
sites (technology largely unproven below 50m water
depth).
• 0-30m ~ Monopiles
• 30 – 50m ~ Jackets
• 50m+ ~ Floating
•Higher potential for local content – more onshore
construction and onshore O&M.
•Floating significantly behind fixed foundation
technology so more expensive in the short-term.
Rapid cost reduction required.
•3.5 ROCs available in Scotland: various demo sites
planned
• 2017 ~ Hywind (Statoil) – 6 turbines
• 2018 ~ Kincardine (Atkins) – 8 turbines
• 2018 ~ Dounraey (HIE TBC) – 5 turbines
•Japan leading the global effort: Scottish enablers
keen to explore Scottish centre of excellence
credentials.
Market overview
© BVG Associates 2016
Spar buoy Semi-sub
Tension Leg
Platform
Wind speed N Europe Sea depth N Europe
38/34
Large SOM across a 35 year lifecycle‘Standard’ OSW lifetime spend of £4 to £6bn - Where the money goes….
© BVG Associates 2016
3% 57% 40%
£0.1bn £2.4bn £1.7bn
Source: EDPR (Moray) ~ £4.2bn 25 year spend (500MW mid size wind farm)
BVGA study on global SOM for O&G supply chain
suggests £8bn of high potential opportunities
(approximately 30% of total spend)
39/34
Developmentand project
management
Wind turbine supply26%
Balance of plant19%
Installation and commissioning
14%
Operation, maintenance and service
39%
Project other1.6%
1%Turbine
assembly
7%
2%
8%
4%
4%
Subsea export cables2%
1%
7%
8%
1%Installation ports
0.5%
2%
4.5%4%
3%
Operation, maintenance and minor service
20%
7%
12%
Blades
Castings and forgings
Drive train
Tower
Turbine other
Subsea array cables
Substations
Balance of plant
other
Foundations
Installation other
Subsea cable installation
Foundation installation
Turbine installation
OMSother
Major service
Wind farm design0.1%
Surveys0.3%
Source: BVG Associates
2%
Lifetime cost breakdownWorking out where you fit within the supply chain is key….
40/34© BVG Associates 2016
How to diversify: Oil & Gas deep-dive
Available to download from SE website
First analysis in a concerted effort by
‘Team Scotland’ to support our Scottish
O&G supply chain find diversification
opportunities in these challenging
times for the industry….
41/34
Abstract: Offshore wind diversification
The dawn of a new era rather than a sunset for our oil and gas supply chain
© BVG Associates 2016
• Diversification can be a great business strategy - a targeted move into a new sector can spread risk, generate new revenue and reduce unit costs.
• Key to successful diversification - ensure there is capability overlap between “legacy” and “new “ industry.
• The oil & gas overlap – offshore wind open to suppliers from all sectors but capability correlation between offshore wind and oil and gas is naturally
very high.
• Two-way learning - processes and innovative thinking developed over decades in oil and gas can be transferred to offshore wind / rapid cost
reduction, standardisation and faster deployment techniques in offshore wind can benefit oil and gas.
It doesn’t need to be either or – spreading the risk / reward
42/34
Local benefit – key to continued support
Engage with Scottish suppliers that have succeeded in offshore wind….
© BVG Associates 2016
0%
20%
40%
60%
80%
100%
TOTEX DEVEX CAPEX OPEX
% U
K c
on
ten
t
Source: BVG Associates
• 10 UK wind farms larger than 100MW, completed 2009-
13
Disjointed progress
• Supply chain plan “gateway” into the CfD auction process ~
Three criteria: competition, innovation and skills
• Backed up by strong DECC, BIS and UKTI pressure, supply
chain plans must be delivered, no UK content beauty contests
Supply chain plans
Increased UK
content but at
any cost ?
43/34
Offshore wind high potential diversification areas
Supply chain split into 35 sub-element areas of supply – 9 ‘hot spots’
© BVG Associates 2016
Considers O&G track record in wind, supply synergies, appetite, cost-out potential, investment & size of the prize
1. Project
management
2. Array cables
3. Substation
structures
4. Turbine
foundations
5. Secondary
steelwork
6. Cable
installation
7. Installation
equipment
8. Installation
support
services
9. Operations,
maintenance &
inspection
services
44/34
Development and project Management
Opportunities in project management
© BVG Associates 2016
Environmental
surveys3%
Consenting and
development services
15%
Site investigati
ons15%
Project managem
ent67%
Development and project
management3%
Small lifetime spend – committed at risk ahead of FID
Project management:
The challenges of working in a harsh environment
and the ensuing implications for HSE, for example,
mean that oil and gas companies are well placed for
work in offshore wind
Minimal investment required
45/34
Turbine supply
No indigenous OEM so opportunities limited….
© BVG Associates 2016
Strong local supply chains have grown in overseas
markets where offshore wind first emerged. Turbine
manufacturers companies are reluctant to risk
switching supply unless significant cost or quality
benefits can be realised
Investment by CS Wind in WTS means towers
emerging as an opportunity
Possible investment in a UK blade manufacturing
capability
Turbine25%
Turbine assembly
4%
Blades18%
Drive train19%
Power conversion
30%
Large fabrications
5%
Towers13%
Small component
s11%
46/34
Balance of plant
Significant opportunities for the O&G supply chain
© BVG Associates 2016
Balance of plant is expected to deliver significant
LCOE improvement. Innovative oil and gas
companies can findi opportunities in offshore wind
Highest opportunity for O&G suppliers to secure
CAPEX orders based on high level of synergy
Large quayside manufacturing capability required for
all but secondary steel supply. Bi-Fab, Global Energy
and Babcock securing business.
Balance of plant17%
Array cables
8%
Export cables
17%
Transmission
17%
Substations structures
11%
Turbine foundations
40%
Secondary steelwork
7%
47/34
Installation and commissioning
High synergy with O&G deployment
© BVG Associates 2016
Although many of the personnel involved in
installation work have a background in oil and gas,
few oil and gas companies have a track-record in
turbine and foundation installation
The vessels used are now bespoke for offshore wind,
often high-specification jack-up vessels, and are
mostly built in the Gulf states or east Asia
The main opportunities for oil and gas companies lie
in installation equipment and support services, to
engineer efficient offshore solutions for a range of
installation activities, reducing LCOE via innovation
Installation ports and
logistics5%
Turbine and foundation
installation41%
Cable installation
21%
Substation installation
3%
Installation equipment
10%
Installation support
services15%
Onshore works
5%
Installation and commissioning
11%
48/34
Operations, maintenance and servicing
Large spend on maintenance and inspection across 25 year lifecycle – high local content potential
© BVG Associates 2016
Most maintenance vessels are mostly owned and
operated by specialist companies
There is some uncertainty over the OMS strategies
adopted by developers as projects are built further
from shore
Oil and gas suppliers have a vast amount of
experience in maintaining assets in the North Sea
and synergies in terms of defect detection, planned
maintenance and asset repair are extremely high
Innovative approaches from the oil and gas sector will
be welcomed by offshore wind asset owners
Operation, mantenance and service
41%
Fuel and consumable
s4%
Maintenance and
inspection services
33%
Spare parts5%
Vessels and equipment
36%
O&M ports
2%
Communication systems
1%
Inventory managemen
t0%
Other OPEX19%
49/34
Offshore wind high potential diversification areas
£8 bn of high potential annual spend by 2025 up for grabs – learn from those who have gone before
© BVG Associates 2016
A number of traditional UK oil & gas companies have successfully navigated the challenges to entry
1. Project
management
Oil and gas companies are
already offering skills in managing
complex projects offshore.
“There is a realisation of the
benefits that offshore oil and gas
expertise can bring to the
emerging offshore wind sector”
4. Turbine
foundations
Fabrication skills from oil and gas can
be harnessed to produce serially
manufactured structures.
“The growing offshore wind sector
can be served in conjunction with the
oil and gas sector. We are
demonstrating to wind developers
that we can manufacture foundation
structures in volume”
7. Installation
equipment
The transition from oil and gas
equipment supply has been made by a
significant number of companies, for
example in pile and cable handling
equipment and trenching and burial
tools.
“There is a definite appetite for robust,
simple and cost-effective solutions in
this new market”
2. Array
cables
Their manufacture requires
similar skills and equipment to
O&G umbilical manufacture.
“The fact we are able to develop
solutions which can be deployed
in both sectors allows us to share
best practice across industries”
5.
Secondary
steelwork
This is an accessible market for
companies without the capacity for
foundation manufacture and entry
may not need new coastal facilities.
“We have enhanced our automated
cutting and profiling services to
develop a lean manufacturing plan for
competitive volume fabrication for the
offshore secondary steel market in
particular.”
8. Installation
support services
The experience of working offshore can
bring real benefits to offshore wind not
only in subsea services such as diving
and ROV services but also in onshore
activities such as marine consultancy.
“The supply chain has to work hard
tendering against projects that are not
fully financed…. get it right and
offshore wind can be a long-term part
of a company’s strategic vision with
excellent global prospects”
3.
Substations
structures
These are typically one-off
designs on a similar scale to oil
and gas platforms.
“One of SLP’s main objectives
has been to apply its long
experience in designing and
building offshore platforms for the
oil and gas industry to the
offshore wind sector”
6. Cable
installation
Most experienced contractors have
not only oil and gas experience but
learnt that the complexity of offshore
wind contracts presents significant
new challenges.
“If you are a company that can offer
high calibre engineering support, you
can more than succeed in offshore
wind in UK and beyond”
9. Maintenance
and inspection
services
Oil and gas experience of offshore
logistics can shape evolving strategies
in wind.
“New market entrants must have a
clear idea of what their core
competence is and how to articulate
their value proposition. Companies
must show how they can help
customers improve asset efficiency or
reduce cost”
50/34
Facing the diversification challenge
“ It’s offshore marine Jim but not as we know it….”
© BVG Associates 2016
Understand core competence, address the supply gaps in offshore wind seeking highest LCOE savings
Lack of
track record
Risk-averse
investors
Cost
competitive
ness
Contracts
(Lump sum
/ fixed
price)
Warranties
& Asset
uptime
linked
reward
Target
multiple
projects (framework)
Long-term
OPEX
focus: high
local
content
Disruptive
innovation /
cost
competitive
Floating
wind: high
O&G
structure
synergy
Understand
differences
with clear
strategy
51/34
BVG Associates Ltd
The Blackthorn Centre
Purton Road
Cricklade, Swindon
SN6 6HY UK
tel +44(0)1793 752 308
@bvgassociates
www.bvgassociates.co.uk
BVG Associates Ltd
The Boathouse
Silversands
Aberdour, Fife
KY3 0TZ UK
tel +44(0)1383 870 014
This presentation and its content is copyright of BVG Associates Limited - © BVG Associates 2016. All rights are reserved.
© BVG Associates 2016
For more information please contact:
+44(0)845 505 3535
Or visit
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Championing the UK Subsea
Sector across the World