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Oil and Gas Equipment & Services. Chris Jennis Jeff Ritter Andrew Swint Andrew Williams. Industry Overview . Support Services on a fee or contract basis to companies involved in oil and gas extraction, and mining.
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Oil and Gas Equipment & Services Chris Jennis Jeff Ritter Andrew Swint Andrew Williams
Industry Overview Support Services on a fee or contract basis to companies involved in oil and gas extraction, and mining. Drilling, taking core samples, and making geological observations at prospective work sites. Manufacturing oil and gas filed equipment and underground mining machinery.
Industry Terminology DAY RATEThe daily price charged to a producer for a drill rig, drilling and the associated costs of personnel and routine supplies.DAYWORK CONTRACTA work agreement that provides a basic day rate when drilling and lower rates when the rig is moving or when drilling operations are interrupted or restricted.DRILLING RIGA machine used to drill holes for oil and natural gas wells. DRILLSHIPA ship fitted with oil and gas drilling equipment.HYDRAULIC FRACTURING (FRACKING)The process of utilizing pressurized water, chemical additives and propping agents to fracture rock layers and release petroleum, natural gas or other substances so that they can be extracted. JACK-UP RIGAn offshore oil rig with a floating hull and retractable legs that can be lowered to the seabed for support.SEMI-SUBMERSIBLE RIGA mobile offshore drilling or production unit that floats on the water’s surface above the subsea wellhead and is held in position either by anchors or dynamic positioning.WELL LOGGINGThe practice of making a detailed record (a well log) of the geologic formations penetrated by a borehole.
Technip Oil and Gas Equipment & Services
Basic Facts • Energy technology, project management, and maintenance (97% from oil and gas) • Headquarted in Paris, France • Revenue = 8.2 Billion Euros • 11.5 Billion in Assets • Employ 38,000 people in 48 countires • 2 Major Segements • Onshore/Offshore • Subsea
History Founded in 1958—Paris, France Originally a refinery and natural gas manufacturer Expanded further into Middle East, Russia, Brazil through acquisitions and growth Pioneered the first platforms in the North Sea—take on rough climate jobs
History Continued 1990’s--Engineered new technologies with floating platforms mid-1990’s--Bought CBS Engineering—first entry into US 2001--Purchased Coflexip—made their subsea division (umbilical specialization) 2008—Partnership with Geogreen (CO2 capture and transport)
Growth Strategy • Continue to be a leader in technological innovation, JV, and acquisition • Subsea • Engineering Acquisitions/Strategic Acquisitions • Diversify—outside petroleum (offshore wind)
Financial Goals and Operating Priorities 6-8% margins on Onshore/Offshore projects ~15% margins on all subsea projects Continue to be the leader in tough climate and subsea contacts Keep a consist and robust order backlog Continue to innovate through extensive investment in R&D Focus on high growth areas i.e. Asia, Middle East, Brazil
Markets • Oil and Gas • Consulting • Project Management • Design/Engineering • Manufacturing • Construction • Maintenance • Other Industries • Fertilizers • Nuclear Mining • Green Energy
Products • Subsea • Field Development • Flexible Pipe • Rigid Pipe • Umbilicals • Maintenance • Drilling Services and Products • Offshore/Onshore • Floating Platforms • FLNG • Floatover Operations • Fixed Platforms • Refining • Ethylene • Petrochemicals • Fertilizers • Flexible Pipe • Renewable Energy • Nuclear Mining • Gas Monetization • Services • Conceptual Design • Engineering • Procurement • Construction • Start-up • Project Management • Consulting
Competitors Fluor Corporation Halliburton Subsea 7 Baker Hughes Schlumberger
Strategic Alliances/JV HQC-China China Offshore Oil Engineering Exxon Mobil Malaysia Marine and Heavy Engineering Rostec Odebrecht Oil & Gas Ghana National Petroleum Corporation
Potential Adverse Influences Bidding too low on contracts (overrun costs, delays, ect.) Political Climate in Middle East/North Africa Regulatory Scrutiny Volatility of Oil Prices Disruptive technological shift Severe Weather Protecting Intellectual Property Liquidity Risk
Types of Contracts • Cost plus fees Contracts • EPCM Contracts • No Risk—Bonus for how well they perform • Progressive Turnkey Contracts • Cost-plus for design and procurement • Then lump sum • Lump Sum turnkey projects • Make a bid