dof subseaasia pacific - providing integrated offshore services · reliant on others for these...

DOF Subsea Asia Pacific

MAINTAINING THE MOMENTUM

Today s Briefing

Brief Introduction to DOF Subsea Asia PacificThe Competitive LandscapeBuilding a More Capable BusinessOutlook and PlansSummary the investment case

The DOF Subsea model

DOF Subsea directly owns and controls all of the assets and services required to undertake subsea work.

DOF Subsea is:Subsea Construction, Intervention and Survey Vessels

Project management and engineering

Survey operationsROV and AUV operations

Diving Operations

DOF Subsea is not:Reliant on others for these services

Two year snapshot

Established September 05 to build Asia Pacific presence and build a construction project execution capability for the groupGrown from 1 to 100 permanent staff with up to 200 offshore casuals

Added Assets and completed acquisition

Profitable from first quarterProjects group contribution since inception

Revenue 725m NOK

EBIT contribution 78m NOKFocus on high end technically demanding portion of regional subsea market

ISO 9001 accredited

Focus Maintaining the Momentum to build a resilient business» Asset growth

» Regional diversification and penetration

» Revenue and margin growth

Developing capability across the subsea value chain

Required Subsea Services Seabed to Surface

Profitable business with high levels of

client satisfaction

Executing project and installation engineering on projects

Owns and operatesGeosea

GeosounderOrderedDSV 06

Providing survey

services on Geosea and Geosounder

Conducting inspection and work

class ROV operations

Conducting air and

saturation diving

operations

Evidence

Capability

Delivering solutions throughout the region

SINGAPORECorporate HQLogistics Hub

PERTHAUSTRALIAProject Management and Engineering Centre

MANILAPHILIPPINESOperations Office

JAKARTAINDONESIAMarketing Office

KUALA BELAITBRUNEIOperations Office

Project Locations

Achieving growth by delivering outstanding client satisfaction

Blue Chip Client BaseStandard Setting OperationsRepeat Business negotiated contract basis rather than tender

Under extreme conditions, subzero temperatures, in unsheltered waters without direct port access, DSV "Geosea" did an excellent job as the sole marine construction vessel. You showed full flexibility and reactivity to complete four spool tie-ins and perform the PA-B subsea work : full crewstrength at all times, divers & (marine) crew with guts relentlessly kept equipment in working order to do the job that engineers well prepared withtight material control. Logistic support run like clockwork starting at the offices downunder till here in Yuzhno and up north.

You have set the standard for construction diving in cold waters of Sakhalin !!

Pieter SwartSakhalin Energy Investment Company

Please pass on to all on-board the Geosea that Coogee are extremely appreciative of the high level of co-operation, competency and efficiency by all involved in the recent project work on the Jabiru Venture. The high standard of work ethic displayed by the crew on board the Geosea is a credit to the individuals and had a significant impact on completing this work in a safe and timely manor.

Bobby ChopraCoogee Resources

You can all be proud to have completed this scope under the most difficult conditions. Each and every one of you has, once again, set the bench mark for other Projects to emulate. Many thanks for a job well done."

Andy Fielding,Woodside Energy

Contributing to diversified group earnings

0

200

400

600

2006 20070

20

40

60

80

2006 2007

Project Execution BusinessNOK million

Revenue EBIT

Actual

Projected

Earnings growth analysis (Projected)

0

10

20

30

40

50

60

70

2006 Assets Labour Costs Downtime Execution Dockings 2007

Start up

Increased Regional Asset BaseMV GeosounderC300 Saturation System2 ROV s

Unrecoverable increases in offshore labour costs

Ability to generate increased project margins through 2006 Geosea DSV modifications

Spread DowntimeGeosounder reliabilityNew Comanche ROV

Q4 GeosounderDocking

Project execution is our core business

Location - North-West Shelf, Western Australia..DOF Subsea contracted to complete turnkey construction project to enhance production capability of the Mutineer-Exeter Phase field.Work Scope included:

Design and install a spool piece bundle to tie-in the EP5 flow base to the Exeter multiphase pump manifold;Installing/replacing various items of equipment, including multiphase flow meters and a modem pod;Installing control jumpers between subsea trees; andInspections and as-built surveys of the Mutineer and Exeter subsea production centres

Project execution is our core business

Project utilised full range of company services:Project ManagementDesign and Installation EngineeringProcurement and SubcontractingVessel OperationsSaturation Diving OperationsROV OperationsSurvey Operations

Life of field IRM support is our core business

Location Philippines

DOF Subsea contracted to manage, engineer and execute all subsea work for the Malampaya deep water field.

Complete Inspection, Repair and Maintenance scope

Work Scope utilises the full range of DOF Subsea sservices.

5 year rolling contract

Malampaya field is a complex subsea environment

100

900

Earthquake Fault ZoneWW2

MunitionsDump

Example Malampaya project - wellhead bridge seal replacement

Leak on all 5 wells in the field

Usually require drill rig to retrieve and repair wellhead

Decision made to complete repair subsea by installing an internal bridging seal

Specialised tooling developed and repair successfully executed on 4 wells, completing 5th well in November.

Today s Briefing


Projected growth in regional market

Forecast strong long term regional GDP growth

Source: Energy Information Administration / International Energy Outlook 2007

Average Annual Growth in World GDP by Region

0

1

2

3

4

5

6

7

8

2004 2015 2030

Per

cen

t per

Yea

r North America

Central and South America

Asia

OECD Europe

Middle East

Africa

Russia

Projected growth in regional market

Growth in World Oil and Gas (liquids) Consumption by Region 2004 and 2030Regional offshore production expenditure forecast to almost double by 2011

Source: Energy Information Administration / International Energy Outlook 2007

0,0 10,0 20,0 30,0 40,0Million Barrels per Day

North America

South America

Asia

Europe

Middle East

Africa 2004 2030

Regional market continues to change and mature

Service and competitor positioning in Asia PacificT

ech

nic

al C

om

ple

xity

Project Value

CLOUGH

TS7 AP

SAIPEM

SARKU

GLOBAL

MERMAID

TS HALLIN

ALLAM

CAL DIVE

FUGRO

OCEANEERING

TMS

SMIT

SONSUB

SEASTREAM

HELIX

ACERGY

CANYON

Today s Briefing


Steady capability growth to larger project execution

Building an enhanced capability within DOF SubseaProgressively building capability to be able to utilise larger assets and undertake more rewarding projects.Growth in a risk managed environment

2006 2010

Geosea

Geosea DSV Modification

Geosea Enhanced Capability

Construction DSV - Skandi Singapore

OSCV-06

Regional Organisation

Conquring the labour mountain

Skilled labour shortages caused by high level of market activity is the single largest restriction to business growthMarket reputation a vital factor in attracting excellent staff

Regional focus on developing Asian talent poolDo not grow an expat based businessUtilise, train and nurture local employees

New Business

ClientRecognition

EstablishingReputation

PreferredEmployer

CareerOption

Approaches WithoutAdvertising

Source: Douglas Westwood

Establishing the right culture

We are creating market differentiation and positive client perception by not only having the right assets and services but by establishing a collaborative operating culture.

Our company culture is a client focused, cohesive, knowledge sharing environment which enables successful outcomes for the customer, the individual and the company.

Clients prefer working with us. This can be a major enabler for sustained growth particularly if the market should weaken.

Today s Briefing


Regional outlook - 2008

Continued strong demand for services

Due to shortage of available new assets we expect comparable regional financial results in 2008 as projected for end 2007.

New operational assets will deliver substantial growth as they become available through 2008 and 2009

D300 Saturation diving system late 2008

DSV-06 Skandi Singapore 2009

Regional plans - 2008

Regional Expansion Increase presence in Indonesia from marketing office to operations capable business.

Move some business activities to cheaper regional cost centres.

Establish joint venture relationship in Malaysia.Open marketing office in India

Services GrowthExpand overall capability to meet requirements for our construction DSV the Skandi Singapore and the larger project workload that this vessel will bring.Further modifications to Geosea to enhance capability and leverage greater value from the vessel

Strategic Growth

Develop low cost Asian engineering and drafting hub (India ?)

Today s Briefing


DOF Subsea Asia Pacific The Investment Case

Delivering on our promisesDeveloping a market leading position across the region.

Established a highly regarded management team.Service profile spans the entire subsea services sector.

High level of client satisfaction and repeat business.

Business leveraged to Asian demand for energy growth.Market not saturated with competition.

Tightening regulatory and client standards match DOF Subsea s profile.

Quality diving based construction service is able to deliver higher spread day rates and margins

Significant opportunity for cross utilisation with sister companies and other related DOF business units.

dof subseaasia pacific - providing integrated offshore services · reliant on others for these...

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