share fair 4 november 2015 - oil & gas...
TRANSCRIPT
Share Fair – 4th November 2015
Graham Clarke and Allan Baird
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WE ARE HERE
Safety – Floor Plan
Amec Foster Wheeler Agenda
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• Amec Foster Wheeler at a Glance
• Value and Vision
• How to do Business with us
• A Changing Market
• The Supply Chain Challenge
• Cost Reduction initiatives
• Systems - Then and Now
• What are we doing
• Current Work and Opportunities
► Headquartered in London and listed on: -
► London Stock Exchange (AMFW)
► New York Stock Exchange (AMFW)
Amec Foster Wheeler Key Facts and Services
>40,000
people
>US$10bn
revenues
>150 years
of history
4
>50
countries
► Services: -
► Consultancy;
► Engineering;
► Project management;
► Project delivery;
► Ongoing asset support;
► Specialised power equipment.
Amec Foster Wheeler Markets and Sectors
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Markets Sectors Business units S
trate
gy &
Bu
sin
ess D
evelo
pm
en
t
Oil & Gas
Mining
E&I
Clean
Energy
Renewables / Bioprocess
Nuclear
Transmission & Distribution
Conventional Power
Glo
ba
l P
ow
er
Gro
up
No
rth
ern
Eu
rop
e &
CIS
Am
eri
ca
s
As
ia,
Mid
dle
Ea
st,
Afr
ica
& S
ou
the
rn E
uro
pe
Water
Transport
Government
Industrial / Pharma
Upstream
Midstream
Downstream
Mining & Minerals
► We have a clear vision which
encompasses our ambitions for the
future.
Amec Foster Wheeler Vision and Values
Add a coloured
transparent
segment and
caption if
required.
Delivering on
our promises
► Our values express who we are and
what we stand for: -
To be the most trusted
partner for our customers
by consistently delivering
excellence – bringing
together the knowledge,
expertise and skills of our
people from across our
global network.
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► At Amec Foster Wheeler we: -
► Recognise the important role our suppliers have in the development and ongoing success of our business;
► Believe that successful relationship management within our supply chain is fundamental to our delivery of safe and excellent projects;
► We expect our chosen suppliers and subcontractors to: -
► deliver on their promises;
► aid us in delivering projects excellently;
► be safe;
► take care of the environment;
► be ethical and fair.
► We expect our chosen suppliers and subcontractors to share our core values.
Amec Foster Wheeler How to do Business with Amec Foster Wheeler
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►Efficient
► Structural change in the market means we need more than this, we need to do something different, to think differently: -
► Strong financial / commercial structure;
► Technical excellence, quality and competent personnel;
► Proven systems, procedures and control mechanisms to support execution and delivery;
► Alignment with Amec Foster Wheeler values, Code of Business Conduct;
► ISO9001/29001, ISO14001 certification and OHSAS 18001 accreditation;;
► Excellent HSSE track record.
Amec Foster Wheeler How to do Business with Amec Foster Wheeler
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► Pre-qualification for UKCS projects (FPAL, project specific questionnaires);
► Top quartile performance feedback;
► Previously and continually we will select for suppliers that have: -
►Innovative ►Collaborative
Amec Foster Wheeler A significantly changing market
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► The industry, and its supply chain, needs to evolve to meet the current challenges.
► Do we do too much for any given outcome;
► Are we inefficient…are we getting any better;
► Industry costs have been largely uncontrolled;
► Why so many bespoke solutions.
Amec Foster Wheeler How have other industries evolved
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• Asset / service / geographic
restructure
• M&A + network integration
• Operating Model
• Activity reduction
• Consolidation
• Organisation design
• Digital / Technology
• Spend reduction
• Tactical process
improvements
• Cost avoidance
Impro
vem
ent (%
)
Category
12 – 36 months 5 – 18 months 3 – 9 months
Transform Efficiency Cost Out
Timing
10-15 %
15-25 %
25-40 %
Amec Foster Wheeler Cost Reduction, Efficiency and Transformational Change
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► Agenda
► Looking Back…understand what history tells us: -
► Industry;
► Design Engineering.
► Looking Forward…understand what we need to do: -
► Efficiency Drivers;
► Amec Foster Wheeler.
► What we need from Supply Chain…
Amec Foster Wheeler The Supply Chain Challenge
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Innovation
Collaborate
> FTEs
Eliminating
waste
Standard
Solutions
Efficiency
Gains
The Supply Chain contribution –
what can you bring?
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Amec Foster Wheeler Cost Reduction, Efficiency and Transformational Change
Allan Baird
Amec Foster Wheeler Looking Back – Industry - CRINE
► Early 1990s…oil prices of $12 a barrel;
► CRINE - Cost Reduction In the New Era…collaborative effort to find ways of reducing costs;
► CRINE Report published in 1994 - recommendations for functional rather than prescriptive specifications, shared working practices, a sole industry body for prequalification and a reduction in paperwork through the procurement process;
► The industry was able to reduce costs by 40%...
► Some industry commentators have gone as far as stating that CRINE platforms are less efficient, and even less safe…
► Recent strong steer from HSE...whilst they recognise the need to reduce costs...we must not compromise on safety;
► They will be watching closely...
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Amec Foster Wheeler Looking Back, 3D Modelling in 1980’s
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Amec Foster Wheeler Design Engineering – ES & IM
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Innovation in Engineering Systems & Information Management….
► So far…
► Increased Efficiency in Engineering Design;
► Improvements in Supply Chain Engagement;
► Some Standardisation;
► Improved Data Integrity;
► Asset Information Hubs.
► Looking Forward…what we need to do:-
► Continue to engage with System Providers;
► Align ES/IM with all aspects of Supply Chain;
► Embrace System Developments & Innovation, e.g. Fluid Dynamics, etc.
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Cash
Flo
w (£
Bill
ion
-201
4 M
oney
)
Total Revenue
Post-Tax Costs
Post-Tax Cash Flow
Source: Oil & Gas UK, DECC
► The UKCS Oil and Gas Industry continues to face significant cost challenges: -
► $49 barrel currently, was trading at $115 in June 2014;
► Expect average price per barrel in 2016?... $70?... $85?
► Investment in UKCS is likely to depend upon how the industry meets these cost challenges.
Amec Foster Wheeler Cost Reduction Drivers…2015
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UKCS Revenues and Cash Flow
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HVEC CENTRE CAPABILITIES
PROCUREMENT
Pre-order
Post-order
Quantity Surveying
Contracts
Inspection
Project Management
Project Controls – Planning
Project Control – Cost
Project Risk Management
Change Management and Control
PROJECT MANAGEMENT / CONTROL
ENGINEERING
Piping Engineering and Design
Equipment
Civil and Structural Engineering
Electrical
Control Systems and Instruments
Process Engineering
CONSTRUCTION
All Home Office Functions
Construction Supervision
Construction QA/ QC
HSE
Amec Foster Wheeler What are we doing…HVEC
► So far…
► Developed Strong Track Record of HVEC Delivery across multiple centres;
► Realised significant Cost Savings;
► Realised significant Schedule Benefits.
► Looking Forward…what we need to do: -
► Continue to optimise use of our Global High Value Execution Centres (HVEC);
► Continue to Invest in System Integration & Innovation;
► Align further with our Customers & Supply Chain.
z
Amec Foster Wheeler More 4 Less – What are we doing
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Ris
kDeliverables
Conventional approach Efficient Modifications
Man hours DeliverablesMan hours Deliverables
AES
E&I
Prioritise Categorise Deliver
Needs
Operator
Supply Chain More
Less
Delivering 30% – 60% Cost Savings
► In summary...what we need from you!
► Innovation;
► Efficiency;
► Simplification;
► Collaboration;
► Assurance...Quality, Cost, Schedule;
► Challenge!
Amec Foster Wheeler Expectation of Supply Chain…what we need from you!
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Amec Foster Wheeler Get involved…
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Oil and Gas UK Efficiency Task Force
You can submit your ideas on how to
reduce costs, generate efficiencies
and bring innovation to Amec Foster
Wheeler by contacting us at: -
[email protected] please use the
following as subject headers: -
• Technology
• Cost Reduction
• Late Life and Decommissioning
• Efficiency
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Amec Foster Wheeler And finally…
Amec Foster Wheeler Current Work and Opportunities
Graham Clarke
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ECAPS AJS
SCOPE:
Integrated cost, planning, maintenance project and
operations management.
50 offshore assets in Southern North Sea .
2 gas plants in Den Helder (NL) and Bacton (UK).
Long term relationship since 2003.
TERM: 2018
OPPORTUNITIES:
Mechanical: Pumps, Foam Injection Package,
Compressor Upgrades.
Piping: Valve and Pipe Spool Fabrication.
Electrical: Transformers, Switchboards, Cable.
Instruments: Bulks and Valves.
Structural: Fabrications.
OPPORTUNITIES:
Mechanical: Pumps.
Piping: Valves and piping material bulks.
Electrical: Bulks.
Instruments: Bulks.
Fabrication: Structural and pipe spool fabrications,
heat treatment, dimensional surveys, HV surveys.
SCOPE:
East Irish Sea Onshore and Offshore Assets.
Successful Integration of Centrica / Amec Foster
Wheeler team.
Extend Field life beyond 2030.
TERM: 2016
Contact: Jim Landamore Tel: +31610880713 Contact: Nick Fletcher Tel: +44(0)1524 864760
Amec Foster Wheeler Current Opportunities
SCOPE:
Kinneil LPG Chilldown currently in Detailed Design
(DD) and Fabrication Stage.
TERM: 2016
OPPORTUNITIES:
Mechanical: Various.
Piping: Valves, Bulks and Pipe Spool Fabrication.
Electrical: Bulks.
Instruments: Bulks and Valves.
Structural: Fabrications, Surveys.
Contact: Michael O’Hare Tel: +44(0)141 304 4294
Amec Foster Wheeler Current Opportunities
BP ETAP
SCOPE:
ETAP Additional Living Quarters (ALQ) now in EXECUTE
phase. The 1st Shiipment of Modules due 5th November
2015, final shipment of Modules due 30th December 2015.
All long lead equipment procurement executed with
deliveries scheduled for 4th Qtr 2015, 1st Qtr 2016. All
structural and piping fabrication well underway to support
offshore installation programme. Focus is moving to
construction and commissioning of offshore vendor support.
TERM: 2016
OPPORTUNITIES:
Piping: Valves, Bulks and Pipe Spool Fabrication.
Electrical: Bulks.
Instruments: Bulks and Valves.
Structural: Fabrications – dependent on emergent scopes.
Contact: Mike Hume (ETAP) Tel: +44(0)1224 291000
BP Kinneil LPG
Chilldown
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Cygnus Field
Development
BP Clair Ridge
HUC
SCOPE:
Primary engineering and project management
services consultant.
Second phase of development.
Hook up and commissioning services.
Target for first oil is 2017.
Designed for 40 years of production.
TERM: 2016
OPPORTUNITIES:
Mechanical: Various.
Piping: Valves and pipe spool fabrication.
Electrical: Bulks and Cable.
Instruments: Valves and Bulks.
Structural: Fabrications, Surveys.
OPPORTUNITIES:
Procurement mainly by Engie. Amec Foster Wheeler are
currently procuring the following:
Piping: Bulks, Valves and Pipe Spool Fabrication.
Structural: Fabrications, Dimensional Surveys.
Hire / Procurement of Plant and Equipment.
SCOPE:
Awarded HUC support contract.
Follows on from the FEED and detail design work executed by Amec Foster Wheeler.
First gas scheduled for Q4 2015.
Production due to account for around 5% of the UK’s gas production by 2016.
TERM: 2016
Contact: John Hutchins Tel: +44(0)1224 291000 Contact: Marti Scott Tel: +44(0)1224 291000
Amec Foster Wheeler Current Opportunities
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Amec Foster Wheeler Current Opportunities
E&C Projects
OPPORTUNITIES:
Mechanical: Chemical Injection Package.
Piping: Valves and Pipe Spool Fabrication.
Electrical: MCC Board, Bulks.
Instruments: Bulks and Valves.
Structural: Fabrications.
SCOPE:
EPC Brownfield Modifications.
CNS - Judy, Jade, Britannia and Jasmine Assets.
SNS - 42 Assets (4 Hubs with NUIs) / TGT Gas
Terminal at Gt Yarmouth.
Main Focus: Compression Optimisation project and
Process Efficiencies. Integrity Campaigns of aging
asset and process efficiency.
TERM: 2017
(5x1 Year Possible Extensions)
Contact: Dave Hutcheon Tel: +44(0)1224 291000
OPPORTUNITIES:
Mechanical: Various.
Piping: Valves, Bulks and Pipe Spool Fabrication.
Electrical: Bulks.
Instruments: Bulks and Valves.
Structural: Fabrications, Surveys.
SCOPE:
Operations, maintenance and project support to BP Forties Pipeline System. O&M and Project Support Services for North Sea Midstream, now to include BP CATS, Teesside. O&M Activities on 1 offshore platform (Unity) and 4 Landline Pumping Stations (Cruden Bay, Netherley, Brechin, and Balbeggie).
TERM: 2016
Contact: Stuart Simpson Tel: +44(0)1325 744661
BP Midstream
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Talisman
MonArb Project
SCOPE:
EPCC Brownfield Modifications.
Montrose Platform.
2016 TAR Campaign.
TERM: 2016
OPPORTUNITIES:
Piping: Fabrication.
Electrical: Bulks and Cable.
Instruments: Bulks and Valves.
Structural: Small Fabrications.
Contact: Kimberley Duncan Tel: +44(0)1224 291000
Amec Foster Wheeler Current Opportunities
Nexen Project
OPPORTUNITIES:
Mechanical: Various (dependable on emerging scopes);
Piping: Valves and Pipe Spool Fabrication;
Electrical: Bulks;
Instruments: Bulks and Valves;
Structural: Fabrications.
SCOPE:
5 years remaining of a 6 year engineering,
procurement and construction (EPC) contract.
Operational modifications and Brownfield projects.
Buzzard, Scott and Golden Eagle platforms.
TERM: 2019
Contact: Alan Purkis Tel: +44(0)1224 291000
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Maersk Oil
SCOPE:
Integrated Services Contract (ISC).
The provision of integrated services in the UK sector of
the North Sea includes project management, engineering
services, procurement, offshore construction and
offshore operations support.
TERM: 2018
OPPORTUNITIES:
The Amec Foster Wheeler team will make use of the
company's proven 'more 4 less' lean and scalable
engineering processes and integrated delivery together
with Scopus Engineering. Efficiencies from 'more 4 less'
have been proven to deliver 30 to 60 percent savings,
in time and cost, compared to traditional approaches.
Contact: Alan Purkis Tel: +44(0)1224 291000
Amec Foster Wheeler Current Opportunities
Maersk