pilot share fair - oil & gas...

© Laurent Pascal/Total

PILOT SHARE FAIR 2014 AECC – 5 November 2014

PRESENTED BY:-

Nicolas Aimard – Development Studies & Planning Manager Jeremy Cutler – Head of Technology Innovation

LEGAL NOTICE This presentation represents the current view of future activities for TOTAL E&P UK Limited. Some activities remain subject to further study and / or internal and partner approval.

2 PILOT Share Fair - 5 November 2014

AGENDA

• Introduction to the TOTAL Group

• Northern North Sea (Alwyn & Dunbar)

• Central Graben Area (Elgin & Franklin)

• West of Shetland (Laggan/Tormore & Edradour/Glenlivet)

• St Fergus Gas Terminal

• Technology Innovation

• Contracting and Procurement

• Key Contact Points

• Q & A


A TRIBUTE TO CHRISTOPHE DE MARGERIE


“Rien ne remplace la chaleur humaine et la poignée de main. Vous n’arrachez jamais un contrat au téléphone.” Nothing can replace the humanity of a handshake. You will never clinch a deal on the phone.


THANK YOU MONSIEUR DE MARGERIE – CEO TOTAL

“We have indeed lost a true leader and a deeply inspiring and charismatic person. Christophe will be missed by all of us in the Group who have had the chance and pleasure to work for him in implementing, under his wise guidance, his vision for the continued success and development of the Total Group.” Philippe Guys, Managing Director of TEP UK

“The oil and gas industry has lost one of it’s giant international champions – an outstanding leader, a distinguished colleague – and I have lost a personal friend.” Bob Dudley, CEO of BP

“I’m extremely sad to hear about the tragic loss of Christophe de Margerie. Christophe was a larger-than-life character, a leader respected across the energy industry and a friend.” Ben van Beurden, CEO of Royal Dutch Shell

THE TOTAL GROUP

WITH OPERATIONS IN MORE THAN 130 COUNTRIES Total is a leading international oil company and a world-class operator in natural gas, refining and petrochemicals. To broaden our solutions, we are also developing energies that can partner oil and gas - solar today and, tomorrow, biomass.


Offshore platform

Liquefaction plant

Onshore facility

Refinery

Oil tanker

Petrochemical complex

Speciality chemicals

Service station

Oil depot Lubricant

blending unit

Solar panels

•Exploration & Production •Gas & Power

•Refining & Chemicals •Trading & Shipping

•Marketing & Services •New Energies


TOTAL ACTIVITIES


PRODUCTION GROWTH TARGETS


A PORTFOLIO OF MAJOR PROJECTS IN PROGRESS

Chinook (Petrobras)

Tahiti (Chevron)

Akpo

Moho Bilondo

Laggan / Tormore

CLOV

Girassol/Jasmin/ Rosa

Dalia

Pazflor

Countries with Deep Offshore production Countries with Deep Offshore acreage

Egina

Kaombo

Projects in production

Projects under development

Planned FID

Exploration

Moho North

LIBRA (Petrobras)

* Assets inventory not exhaustive

Usan


TOTAL’S DEEP OFFSHORE PORTFOLIO

TOTAL E&P UK LIMITED (TEP UK)

• One of the top three operators in the UK in terms of production and reserves

• 2013 - 2014 production about 100 - 120 Kboepd

• Employs around 1,200 people (staff and contractors) – 38 nationalities represented

• Will contribute almost 10% of the TOTAL Group’s daily production by end 2015

• Operated budget of £2.35 billion in 2014

• Expenditure of £6 billion over the next five years

P UK LIMITED (TEP UK)


2001: Elgin/Franklin capital investment £1.5bn for 692 million boe

2014: Laggan-Tormore estimated costs £3.3bn for 235 milion boe

WORLDWIDE UKCS

5 %


THE (INCREASING) COST OF OPERATING ON THE UKCS


NORTHERN NORTH SEA

A PHASED DEVELOPMENT: ALWYN AREA DEVELOPMENT CASE STUDY

Islay


NORTHERN NORTH SEA: FUTURE DEVELOPMENT OPPORTUNITIES

• Continuous infill drilling on Alwyn and Dunbar supported by seismic reprocessing,

extended reach drilling technology and well activation

• Mature assets that require continual ongoing maintenance programme to optimise

operating costs and maintain production / maximise ultimate reserves recovery

• Alwyn Dunbar Field Life Extension studies and OPEX reduction studies ongoing

• Ellon Grant subsea facilities life extension project on going

• Use of Concentric Gas Lift technology to reduce liquid loading in gas condensate

wells under implementation



CENTRAL GRABEN

CENTRAL GRABEN • Partnership : TEP UK (op), ENI, BG, E.ON,

ExxonMobil, Chevron, Dyas, Summit

• First gas in 2001, water depth 93m

• Gas exported via SEAL line to Bacton (gas processed offshore to UK sales gas spec)

• Liquids exported via GAEL to FPS

• Elgin PUQ – 43,000 Te jack-up platform (first use of TPG 500 concept)

• Significant HPHT development challenge • 1100 bar, 190 °C in reservoir

• Highly deviated ERD (Glenelg and West Franklin)

• Original concept assumed no infill drilling due to

substantial pressure depletion (1100 – 650 bar) • development of “designer mud” utilising “stress caging”

to minimise mud loss in depleted zone


CENTRAL GRABEN: FUTURE DEVELOPMENT OPPORTUNITIES

• West Franklin project ongoing – first gas before year end

• Post G4 gas leak (2012) – EF redevelopment project to secure wells and complete further infill drilling to maximise recovery of existing reserves (4 Heavy Duty Jack up rigs in parallel in 2015)

• Exploration drilling to secure future production and satellite tie-backs to existing EF facilities



WEST OF SHETLAND

WEST OF SHETLAND • 125km NW of Shetland • Gas condensate fields • Production potential of 100 kboe/d • Water depth from 200m to 1600m • Licensed to TEP UK (80%) and Dong (20%) • Capital project cost of £3.3bn • Edradour and Glenlivet sanctioned summer 2014 • Production of first gas from Laggan in 2015


WEST OF SHETLAND: DEVELOPMENT OPPORTUNITIES

• Edradour discovery – project sanctioned following cost reduction

• TEPUK enters Glenlivet to develop it jointly with Edradour

• Tobermory discovery (1600m WD, 175km from SGP) – long distance subsea

tie-back

• 26th & 27th Licensing Rounds acreage – exploration upside

• 3rd party gas transportation via SIRGE gas export line

EDRADOUR MANIFOLD

EDRADOUR PLEM

Glenlivet Production FLET 4

Edradour Production

FLET 1

MEG/Service FLET 2

Glenlivet MEG/Service

FLET4

12” Production flowline1km CRA Clad (TSA coated) installed on

pre-laid rock berm

LAGGAN MANIFOLD

ILT 1-3ILT 2-3

ILT 1-1ILT 2-1

6” MEG Line c/w 2” Service line piggyback(trenched & buried OR rock covered)

Umbilical from Laggan Manifold (trenched & buried

ORrock covered)

Edradour(206/4-2)

Spinnaker (206/4-3)

(if successful)

Future 2

Future 1

Edradour Production FLET 2

Edradour MEG/Service

FLET 1

12” Production flowline0.5 km CRA Clad (TSA coated) installed on pre-laid

rock berm

Umbilical from Edradour Manifold (trenched & buried

ORrock covered)

GLENLIVET MANIFOLD

Glenlivet 1

Glenlivet 2

Future 1

Future 2



ST FERGUS GAS TERMINAL

ST FERGUS GAS TERMINAL

• Started up in 1977 (Frigg Field gas)

• Now processes circa 20% of UK gas from over 20 offshore fields in UK and Norway

• Gas imported via 32” FUKA & Vesterled pipelines • FUKA operator TEP UK, Vesterled op Gassco (TEP UK = Technical Service

Provider)

• Phase III capacity : 30 - 36 MMscmd (max) ~ 1.3 BCF/d • Phase II capacity : 39 MMscmd (Vesterled)

• Gas exported to National Transmission System (NTS), NGLs to

FLAGS (Shell), FPS (BP)

• Milestones (major gas entrants) • 1977 Frigg, 1987 Alwyn North, 1993 Bruce, 2015 Laggan-Tormore, 2016 Martin

Linge (Norway)


ST FERGUS GAS TERMINAL: DEVELOPMENT OPPORTUNITIES

• Significant modifications work programme currently ongoing to Phases II & III

• Active Business Development to attract new gas entrants from UK and Norway

• FOR THE FUTURE: • New hot oil furnace

• FUKA pipeline life extension project

• St Fergus plant obsolescence and ageing review



TECHNOLOGICAL INNOVATION

R&D CENTRES, AN INTERNATIONAL DIMENSION

TEP R&T, Houston Research & Technology Centre • Seismic depth imaging,

Micro-Seismic and HPC • Chemical EOR, reservoir

simulation • Deep offshore, flow

assurance, drilling • Acceptability (environment,

societal)

CRC, Calgary Calgary Research Centre • Oils sands mining - heavy oils

GRC, Aberdeen Geosciences Research Centre • Geosciences • Oil & gas technologies

SRC, Stavanger Stavanger Research Centre • Environment (water management) • Production technologies (flow assurance,

subsea technologies) • Drilling for improved recovery

TRCQ, Doha Total Research Centre Qatar • Fluids and Organic

geochemistry • Acid stimulation of wells in

carbonates • Petrochemicals (CO2

conversion)

CSTJF, Pau Technical and Scientific Centre

PERL Platform for Experimental Research in Lacq • Physical-chemistry • Gas separation and treatment:

separation of fluid - environment + ≈ 180 Researchers

France

≈ 80 Researchers

abroad


8 R&D STRATEGIC PROGRAMS, A BOLD AND FOCUSED PORTFOLIO

Frontier Exploration Earth Imaging Field Reservoir Unconventional

Wells Deep Offshore Gas Solutions Acceptability

Our focused R&D portfolio allows us to better keep step with the challenges facing E&P, develop appropriate solutions and identify early on the disruptive innovations liable to have an impact on our operations.


TEP UK “TOP 4” TECHNOLOGY PRIORITIES

Subsurface Imaging • Improve acquisition and processing techniques • Improve sub-volcanic (basalt) imaging for new West of Shetland exploration plays • Accurately visualise individual thin sand units (<40m thickness)

Intelligent Operations & Maintenance • Robotics (surface & subsurface AUVs) • Deployment of wireless monitoring technology • Condition based (predictive) maintenance / SMART ROOM / BIG DATA

Effective Drilling & Completion (reduced cost & improved productivity) • Alternative technologies compared to conventional hydraulic fracturing in order to develop Tight

Sands (reduce cost & increase productivity) • Drilling sidetracks from existing wells to unlock additional reserves economically • Lower cost drilling technologies

Long Distance Subsea Tie-backs - All Electric Subsea Control Systems • Develop non hydraulic all electric subsea control system for long distance subsea tie-backs • Develop subsea remote chemical storage and injection systems • Develop subsea electrical power transmission grid technology (to support seabed processing

e.g. Subsea compression, multiphase pumping, subsea separation)



CONTRACTING & PROCUREMENT

DOING BUSINESS WITH TOTAL

• Total aspires to achieving full compliance with the principles of the Supply Chain Code of Practice (SCCoP) and have already achieved Gold status for 3 years consecutive years which resulted in us being awarded with the Award of Excellence in 2013 - www.pilottaskforce.co.uk

• We use FPAL for sourcing and performance management • We require up-to-date registration records from suppliers • Advanced registration to FPAL of all our suppliers • FPAL Capability Profile is required for key contracts / ITTs • Aiming to avoid duplication of information already supplied to FPAL • Promoting use of VERIFY scheme, assessing suppliers HSE practices • Forward workplans on FPAL site are updated every six months • Suppliers should commit to conducting two way FPAL performance feedback

• Procurement contact details are provided in our FPAL Purchasers Profile Record – www.fpal.com

• All supplier are also expected to comply to the principles of the SCCoP

• Suppliers must also satisfy Total’s prequalification, due diligence and HSE requirements


http://www.pilottaskforce.co.uk/�

http://www.fpal.com/�

SUPPLIERS MUST CONTRIBUTE TO THE COMMERCIAL SUSTAINABILITY OF TEP UK’S OPERATIONS

Compete on Costs

Ambition

Deliverable

• Sustainably reduce our costs (not a "one shot" approach)

• 3-year cost reduction plan (cost saving opportunities reviewed and agreed with our suppliers)

SUSTAINABLE COST REDUCTIONS

TEPUK are collaborating

with its suppliers to significantly reduce OPEX

and CAPEX costs. The key objective is to:

Structurally and

sustainably reduce costs, without ever

compromising the safety or integrity of company’s

operations


DOING BUSINESS WITH TOTAL

• Evaluating suppliers performance is a company requirement and key factor in the UK supply chain code of practice.

• To improve relationships with our suppliers, identify areas of improvement and action plans for suppliers and TOTAL.

• An objective to perform at least one performance review per year for strategic contracts and supplier’s feedback on TOTAL (FPAL database).

• Feedback from these reviews are used for future procurement strategies and contracts, and to monitor performance.

• Consolidation of international suppliers performance for global strategic vendors. • For an effective SRM process: Commitment Communication Collaboration


2013 CONTRACTS AND PROCUREMENT SNAPSHOT

34

Buying • 9,869 Purchase Orders created @ £133m • 25,533 line items • POs allocating to Purchasing Agreements: 4,410 @ £28m

944

288

167

134 109 98 CONSTRUCTION PROJECT

RIGS LOGISTICS OPERATIONS & MAINT GENERAL SERVICES WELL SERVICES

6 Categories represent 80% of spend

Service Orders • 2,057 SOs valued at £26.7m

Total TEP UK 2013 spend £2.1bn

Contracts • 544 live Contracts with an IAL of £8.1bn • New contracts starting in 2014: 135 @ £872m

PILOT Share Fair - 5 November 2014

SUMMARY OF HIGH VALUE CONTRACTS WITH EXPIRY DATES

Drilling Well Maintenance

Well Testing Services

Drilling Bits

Slickline and Cased Hole Logging

Casing & Tubular Services

Directional Drilling / LWD / MWD

Wireline Logging

Cementing Services

Subsea

Integrated Pipeline Eng Services

Subsea IRM Services

Pipeline Pigging Services

Logistics

Marker Buoy and Mooring Services

Marine Consultancy Services

PSV Services

2016

Mid 2015

Mid 2016

2016

2016

2016

2016

End 2015

End 2014

End 2015

End 2014

2015

2016

Operations & Maintenance

Telescopic Crane and Services – St Fergus

Fiscal Metering Services & Support

Hydraulic Maintenance

Fabric Maintenance

Crane Maintenance Services - Offshore

GSOC Contracts

Survival Craft Inspection/Life Boat Maintenance

Hose Management Services

Safety Equipment Maintenance Services

Electrical Switchgear Maintenance

Production Chemicals

Corporate Services

Emergency Response Services

Provision of Medical Services

Training Services

Hard Building Services – Onshore

Verification Services

Soft Facilities Management Services - Onshore

2016

Mid 2015

Early 2015

End 2015

End 2015

Early 2016

End 2016

End 2016

Early 2017

End 2015

Early 2016

End 2015

2015

End 2016

End 2016

2016

2015

2014 – 2016 (Excluding extension options and Drilling Rigs)


FORWARD WORK PLANS

Benefits of the work plans: Help provide an indication of future activity by participating Purchasers Act as a planning aid to help facilitate potential business opportunities for the supply chain. Support the Supply Chain Code of Practice in communicating opportunities to the supply chain.

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/ and/or collect a printout on your way out

Please note that Forward Work Plans are indicative and subject to change


http://www.fpal.com/�

SUMMARY OF PURCHASE AGREEMENTS WITH EXPIRY DATES

PILOT Share Fair 5 November 2014

• Electrical Consumables 2014 • Pipe, Fittings and Flanges 2015 • Supply of Filters 2015 • Laboratory Consumables 2015 • General Consumables 2015 • Belts and Bearings 2015

Please note : all purchase agreements will be re-evaluated in 2015 for saving opportunities


KEY CONTACTS


POINTS OF CONTACT FOR MAJOR CONTRACTORS OF TOTAL

KEY CONTACT Engineering Modification Services for All Facilities

• Wood Group Engineering Nigel Briggs

General Operating Contractor for Alwyn Area Facilities • Petrofac Shaun Dewar

General Operating Contractor for Elgin/Franklin and St Fergus Facilities • Aker Solutions Arnie Reid

Drill Rigs • Transocean - Sedco 714 & Galaxy I Ian Paterson • British American Offshore – RGV & RG5 Ralph Whelan • KCA Deutag UK – Alwyn/Dunbar Platform Drilling Ally Hogg • North Atlantic Drilling – West Phoenix Bjarte Taranger • Prospector – Prospector 1 & Prospector 5 Michael Pope

Other Contracts • Cape – Fabric Maintenance Services Scott Baxter • Expro – Well Maintenance Services Justin Bell • Halliburton – Various drilling services & supplies Ian Goodenough • Subsea 7 – Diving & ROV Services Liam Macintyre • Aramark – Offshore Facilities Management Steve Duthie • Compass T/A ESS – Onshore Facilities Management Ron Godsman • Schlumberger – Various well services & supplies Mark Sorheim • Baker Hughes – Various well services & supplies Peter Mysko • Clariant - Provision of chemical services David Glasgow


KEY CONTACTS WITHIN TEP UK

• Development & Planning Nicolas AIMARD • Geosciences Nick FRETWELL • Drilling/Wells Eric CASSÉ • Projects David WALTON • West of Shetland Robert FAULDS • Operations Sylvain PEYTIER • Ops/Subsea Richard FICKEN • Maintenance Olivier KAZMIERCZAK • Asset Integrity Bruce LAWSON • Logistics & Marine Ronan MASSERON • Contracts/Procurement Vincent NICOLINI • Geo. Research Centre Van-Thang NGUYEN

E-mail: [email protected]


QUESTIONS


THANK YOU!


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