saipem Saipem activities in Canada and its sustainable business model 18 October 2013

Size: px

Start display at page:

Download "saipem Saipem activities in Canada and its sustainable business model 18 October 2013"

Alexandra Fisher
6 years ago
Views:

1 Saipem activities in Canada and its sustainable business model 18 October 2013

2 Outline Introduction Canadian O&G market: Where the action is!!! Saipem in Canada: Company Evolution and Business Model The Canadian Challenge 2

3 Introduction 3

Saipem Highlights Leading Global EP(I)C General Contractor

7 B Employees (December 31 st, 2012) 45,000 Engineers &

countries, more than 50 permanent establishments, employees

strategic markets Engineering & Construction Full service

niches offshore Distinctive frontier focus in Oil & Gas

4 Saipem Highlights Leading Global EP(I)C General Contractor Revenues (2012) 13.4 B Backlog (December 31 st, 2012) 19.7 B Employees (December 31 st, 2012) 45,000 Engineers & Project Managers > 7,000 Operating in more than 70 countries, more than 50 permanent establishments, employees from 125 nationalities Key local employer and investor in strategic markets Engineering & Construction Full service EP(I)C provider Drilling High quality player onshore and in niches offshore Distinctive frontier focus in Oil & Gas industries Most modern, technologically advanced offshore construction fleet 4

5 Saipem E&C: Complete Range of EPC/EPIC Services Project Management Feasibility Studies Technology Licenses Project Definition Basic Design, Front End Engineering, Procurement, Installation, Construction Start-up and Commissioning Lease and Operate Maintain and Operate Revamps, Upgrades, Modernization Decommissioning Env. Remediation Targeting even the most challenging and technologically advanced projects, offshore and onshore Emphasis on maximizing local presence and content Superior capabilities for harsh, remote and difficult environments Customized project and contracting solutions EPC LSTK EPIC T&I Cost-plus Convertible Lease & Operate 5

6 Canadian O&G market: Where the action is!!! 6

The investments (140 projects) focused on: Mining In situ technologies Steam-Assisted Gravity Drainage (i.e. SAGD) Downstream Upgraders Transportation Systems Bitumen/Emulsion Pipelines (e.

7 Oil sands value chain From 2001 to 2011 the combined oil, gas and oil sands CAPEX in Alberta was about $300 billion. Investment in Alberta oil sands increased from $1.4 billion in 1998 to $21.6 billion in The investments (140 projects) focused on: Mining In situ technologies Steam-Assisted Gravity Drainage (i.e. SAGD) Downstream Upgraders Transportation Systems Bitumen/Emulsion Pipelines (e.g. Hydrotransportation) Export Pipelines (e.g. Keystone XL) Gas Pipelines (e.g. Gateway) 7

Steam is injected in the upper injection well generating a high temperature vapor chamber which heats the surrounding bitumen, allowing it to drain by gravity into the lower production well.

8 In situ technologies (i.e. SAGD) The SAGD process uses dual horizontal well-pairs that are drilled in parallel. The lower production well is drilled horizontally and close to the bottom of the bitumen zone. Steam is injected in the upper injection well generating a high temperature vapor chamber which heats the surrounding bitumen, allowing it to drain by gravity into the lower production well. Concept Basic KPI: Steam to Oil ratio (between 2,5/3) bitumen production per well pair (is between 400 and 1,000) Recovery factors (higher than 50%). Key challenges for SAGD plants: Maximizing energy efficiency (60 70% of total operating cost); Effective oil and water separation (emulsion-breaker and water clarification technologies); Water treatment for reuse in steam generation (e.g. lime softening, reverse osmosis, and ion exchange). C.P.F. Issues in SAGD projects: OTSG purchasing; Multiple buildings and tanks; Low degree of modularization. 8

9 Saipem Canada Evolution & Business Model 9

10 Saipem in Canada: Company Evolution and Business Model BUSINESS MODEL COMPANY EVOLUTION GROWTH IN BUSINESS LINES GROWTH IN BUSINESS OFFERING 10

11 Saipem experiences in Canada:Current Projects in Canada CNRL Horizon VALUE 500 million CAD Hydrotreaters EPC LUMP SUM SOW: EPC for a Secondary Upgrader with a production capacity of 42,599 BPSD of Hydrotreated Gas Oil, as part of Horizon Phase 2. The scope of the project includes 3 units to be built within the existing complex: Gas Oil Hydrotreating Unit (GOHTU), Common facilities (Substation & Rib), Wash Water and Rich Amine System and the Interconnecting Piperack. Horizon Statoil Sunrise VALUE Husky Sunrise >1 billion CAD 2010-Q EPC EP LUMP SUM + C-CONVERTIBLE at 90% Model Review Central Process Facilities for Steam-Assisted Gravity Drainage (SAGD) Complex with 60,000 BPD of bitumen production (2 trains 30,000 BPD each). SOW: EPC for oil treatment, produced water de-oiling, water treatment and steam generation, production and storage of produced bitumen, construction camp and non-process buildings. VALUE AT CONVERSION Statoil Corner SAGD ~ 1 billion CAD Pre-Construction Service Agreement and Convertible Lump Sum EPC SOW: FEED and Procurement of Long-Lead items for the Central Processing Facility: 1 train of 44,000 BBPD with once-through steam generators (OSTG); 6 well pads with a total of 47 well pairs; flowlines interconnecting CPF and well pads; associated infrastructure. 11

12 Saipem experiences in Canada:Completed Projects in Canada CNRL Horizon Secondary Upgrader EPC LUMP SUM (Joint Venture) : 400 Million CAD SOW: EPC of three hydrotreaters to process 110,000 BPD (during Phase 1) of feedstock from the Primary Upgrader into synthetic crude components. NHT BPSD DHT BPSD GOHT BPSD Licensor: UOP Horizon North West Canaport Hydrotransport Tranche EPC LUMP SUM : 100 Million CAD Scope of Work: The Extraction Tranche 2 - Hydro-transport consists of a third Hydrotransport system, power equipment and distribution for the Mine and all associated infrastructure and modifications: 28 inch diameter hydrotransport pipeline (3 km ), 2 slurry booster pump house skids, substation and power distribution, slurry valving station, large bore water lines (hot process, reclaimed). Canaport LNGLP EPC LUMP SUM (Joint Venture) : 900 Million CAD Canaport LNGLP liquefied natural gas (LNG) receiving terminal 1 billion standard cubic feet per day (initial capacity) Saint John, New Brunswick SOW: Tanks: three 160,000 cubic meters full containment liquefied natural gas storage tanks with a throughput capacity of 600,000 cubic meters of gas per hour. North West Redwater Sturgeon County Upgrader 2011-Q EDS & EARLY ENGINEERING: 30 Million CAD SOW: EDS and Early Engineering for the 50,000 BPD initial capacity of the LC Finer Unit (Unit 20: Residue Hydrocracking Unit) as part of the bitumen-processing and converting Upgrader to be constructed by North West Redwater Partnership. 12

13 The Canadian challenge 13

Opportunities in the oil sands supply chain SNAPSHOT ALBERTA Every dollar invested in the oil sands creates $8 in direct and indirect activity in the

Oil sands activities also contribute to substantial job creation in other sectors such as manufacturing and retail.

14 Opportunities in the oil sands supply chain SNAPSHOT ALBERTA Every dollar invested in the oil sands creates $8 in direct and indirect activity in the Alberta economy. About 16.5% (1 out of 6) of the Albertans are directly or indirectly employed in Alberta s energy sector. Oil sands activities also contribute to substantial job creation in other sectors such as manufacturing and retail. Infrastructures Providers Transportation Services Providers Manufacturing Providers Technology Providers Oil Sands Development Professional Services Providers Increasing number of E&P Players Financial Providers Retail Services providers

15 Thank you 15

AMEC Oil Sands Breakfast Briefing Peter Madden, President Oil Sands. 1 October 2010

AMEC Oil Sands Breakfast Briefing Peter Madden, President Oil Sands 1 October 2010 Important information Certain statements in this presentation are forward looking statements. By their nature, forward