Onslow Chamber of Commerce & Industry Taking advantage of operations and maintenance opportunities in the oil and gas industry

Transcription

1 Onslow Chamber of Commerce & Industry Taking advantage of operations and maintenance opportunities in the oil and gas industry 13 th August 2014

2 Opportunities in Operations and Maintenance Opportunities in the Operations and Maintenance phase present tremendous opportunity for local companies. Estimated A$3-4 billion annual expenditure Project life extends over many years

3 SME OPPORTUNITY GUIDE Australian LNG Operations and Maintenance contracting activities

4 AGENDA Opening address Geoff Herbert, OCCI Setting the scene Phil Kemp, Business Foundations Pre-Workshop Survey Results Contractor's perspective Chris Ellis, Svitzer Contractor's perspective Toby Edmunds, Toxfree Sub-Contractor s perspective Jason Varcoe, NTC Contracting 5pm Coffee/Tea break Accessing O&M opportunities on O&G projects Daniel Holbrook, ICN Introduction to The West Pilbara Business Support Program Entrepreneurs Infrastructure Program Don Geare, EIP Efic Leela Hanson, Efic Business Foundations Phil Kemp, Business Foundations Q&A session 7:00pm Networking

5 THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD

6 The Onslow Chamber of Commerce and Industry (OCCI) incorporated in May 2004 under the Associations Act The OCCI is a locally based organisation with a significant presence in the community of Onslow. THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD The OCCI is ideally positioned to have a positive influence for local business and the community of Onslow is general. This influence is through: Creation of Local Employment Investment in the Development of the Town Access to Affordable Goods, Services, Accommodation and Utilities Additionally, the OCCI represents business and the community with: Land Availability Key Infrastructure Development Care & Maintenance of the Local Environment

7 THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD GENERAL MEMBERSHIP: We have sent out approximately 90 membership renewals for the 2014/2015 financial year SILVER SPONSORS: We have acquired 6 which is our limit of Silver Sponsors being; Dredging International Pilbara Access The Ashburton Resort Bechtel NTC Drilline GOLD SPONSORS: We are after 2 Gold Sponsors so please let us know if you are interested.

8 THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD The OCCI are aiming to host a total of 6 Business After Hours (BAH) this year. The purpose of these events is for local businesses to showcase their capabilities by hosting an event, after business hours at their business premises or alternate location. The OCCI role is to support the BAH focus business with all aspects of planning, presentation and evaluation. We have already held 3 BAH this year getting up to 40 attendees and the OCCI aims to maintain and extend this success to ensure that the BAH events become a permanent highlight of the annual business calendar.

9 THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD The OCCI are aiming to host a total of 2 Forum s this year. With 1 Industry Forum already complete it is the intention of the OCCI to rename the event Business Forum and make a few changes, these including: Case Studies on Successful Businesses and their experiences, how they got where they are Update on opportunities in Onslow Co-hosted with Chevron Australia Pty Ltd The purpose of these forums is to provide a venue and opportunity for industry, business and other key stakeholders to meet and exchange information in relation to opportunities, barriers, trends and updates relating to business operations, development and growth in Onslow and the Pilbara region.

10 THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD The OCCI now have their own facility, sharing with the Small Business Centre West Pilbara (SBCWP). This facility will be used for regular OCCI meetings and for the day to day operation of the SBCWP Onslow Branch. As these are not full time requirements the OCCI will be offering the space for hire as office space, meeting facilities, training room, etc. We will be having an official opening of the hub on the 28 th of August, so please keep this evening free.

11 THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD The OCCI has been working closely with Small Business Centre West Pilbara (SBCWP) on the following: Facilitating Meetings with the Business Community Collaborating on Business Surveys Work Experience Students Placements

12 THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD

13 CHEVRON-OPERATED GORGON & WHEATSTONE PROJECTS ICN PRESENTATION Karratha, 12 th August 2014 Onslow, 13 th August 2014

14 QUICK FACTS SVITZER was established by Emil Z. Svitzer in SVITZER became part of the A.P.Moller Maersk Group in We operate a fleet of around 550 vessels with additional ~40 on order. Our turnover was USD 890 million in We employ around 4,700 staff in ~35 countries. Our organisation consists of 6 towage regions and 2 divisions. Head Office in Copenhagen.

15 WORLDWIDEOPERATIONS

16 FUNCTIONAL AREAS MOORING SERVICES HARBOUR TOWAGE MARINE SALVAGE TERMINAL TOWAGE OCEAN TOWAGE EMERGENCY RESPONSE

17 SVITZER AUSTRALIAN OPERATIONS 2007 acquired ADSTEAM renamed SVITZER Australia Ship towage in 35 ports in Australia Largest employer of Australian maritime labour employees Operates 160 vessels, of which over half are tugs Pursuing opportunities Marine Services to the oil and gas industry in the Asia Pacific area

18 SVITZER AUSTRALIA MAP OF COVERAGE NORTHERN TERRITORY WESTERN AUSTRALIA Koolan Island Cockatoo Island Gorgon Project Pluto LNG NWS LNG Wheatstone Project Onslow Geraldton Fremantle Kwinana Bunbury Albany Bayu Undan FPSO Darwin LNG Darwin SOUTH AUSTRALIA Weipa QUEENSLAND Cairns Mourilyan Lucinda Bowen Abbot Point Mackay Bundaberg Brisbane NEW SOUTH WALES Newcastle Sydney (Port Jackson & Port Botany) Thevenard Port Bonython Project Magnet Port Kembla Port Lincoln Whyalla Port Giles Port Pirie Eden Ardrossan VICTORIA Port Adelaide Melbourne Geelong Hastings/Westernport

19 CHEVRON OPERATED GORGON & WHEATSTONE PROJECT VESSELS ASD TUGS LOA 33.3M BEAM 13.0M DRAFT 5.8M SPEED 12.0kts BOLLARD PULL 75 MT (Gorgon) BOLLARD PULL 80 MT (Wheatstone) DRIVE ENGINES CLASS ACCOM Diesel / Electric 2 x Wartsila 1800 kw 1 x Wartsila 1600 kw Lloyds 10 Crew OP. MANNING 1 x Master 1 x C. Engineer 1 x IR OPERATIONAL UNITS 8

20 CHEVRON OPERATED GORGON & WHEATSTONE PROJECT VESSELS Pilot Boat LOA 17.5m Beam 5.4m Draft 1.4m Crew 2 Pilots 4 Engines 2 x Cummins Speed > 25kts Hull GRP Units 2

21 CHEVRON-OPERATED GORGON PROJECT HIGHLIGHTS PROJECT NAME LOCATION CAPACITY Chevron-operated Gorgon Project Barrow Island. 15.6MTPA PROJECT START MID 2015 SHAREHOLDERS Chevron (47.3%) Shell (25%) ExxonMobil (25%) Osaka Gas (1.25%) Tokyo Gas (1.0%) Chubu Electric Power (0.417%) Photos sourced: Chevron Australia website VESSELS CAPITAL INVESTMENT 4 X 75BP ASD TUGS 1 X PILOT BOAT >A$ 70M PILBARA EXPENDITURE Est A$600K / yr Photos sourced: Chevron Australia website

22 CHEVRON-OPERATED WHEATSTONE PROJECT HIGHLIGHTS Project Name: Location: Capacity: Chevron-operated Wheatstone Project Ashburton North, WA 8.9 MTPA Joint Venture Participants: Chevron (64.14%) Kuwait Foreign Petroleum Exploration Co (13.4%) Apache Corporation (13%) Kyushu Electric Power Co (1.46%) PE Wheatstone P/L, part owned by TEPCO (8.0) Photos sourced: Chevron Australia website Equipment: Capital Investment: Pilbara Expenditure: 4 x 80BP ASD Tugs 1x Pilot Boat(s) > A$ 70m Est $ 600K / yr Photos sourced: Chevron Australia website

23 POTENTIAL LOCAL SUPPLY OPPORTUNITIES CLEANING PRODUCTS AND CONSUMABLES OFFICE SUPPLIES PPE SAFETY EQUIPMENT SUPPLY AND SERVICING RIGGING ROPES AND MOORINGS SUPPLY AND SERVICING CREW TRANSFERS / TRANSPORT EQUIPMENT AND VESSEL MAINTENANCE SUPPORT SHIPS CHANDLERY GENERAL HARDWARE

24 SVITZER S PURCHASING POLICY Svitzer accredited to ISO 9001:2008 all orders must conform to the requirements of the Svitzer Australia Quality and Safety Management System. Contractors to be registered on approved supplier list reviewed biannually. Subject to audits. Compliance with Environmental Standards Reliable

25 Introduction to LNG Toby Edmunds General Manager ICN WORKSHOP

26 Toxfree One of the largest industrial service and waste management businesses in Australia 60 strategically located operations throughout Australia Employs over 1300 people nationally Diverse range of industrial and waste services to all market sectors

27 Toxfree Vision Simply stated: Exceeding client expectations with no harm to people; No harm to the environment; and No harm to resources.

28 Toxfree Commitment to the Pilbara Well represented in the Pilbara region. Can do solution innovators. Commitment to Indigenous Engagement and development. Focus on safety, service delivery, sustainable waste management practices, treatment licenses and technologies. QUEST.

29 Our track record Sites and Employees Revenue A$MM ,045 FY09 FY10 FY11 FY12 FY13 Sites Employees 56 1,200 1, FY09 FY10 FY11 FY12 FY13 FY14 1st Half 2nd Half CAGR 34.0% * * Underlying EBITDA and EBIT Underlying EPS * and DPS A$MM 58 Cents/Share FY09 FY10 FY11 FY12 FY13 EBIT EBITDA FY09 FY10 FY11 FY12 FY13 DPS EPS *Non-IFRS Financial Information

30 A Diversified Business Revenue by Market Sector and Geography Estimated on FY2014 forecasts Manufacturing 12% Oil and Gas 22% Victoria 10% Tas, ACT and SA 4% Government 17% Mining 14% New South Wales 4% Western Australia & Northern Territory 49% Commercial 25% Infrastructure 10% Queensland 33% Over 85% of revenue is generated from producing assets Over 40% of revenue is leveraged to the broader Australian Economy

31 Current LNG Contracts Toll Energy - Total Waste Management - Gorgon Project, Barrow Island Waste Management Services including hire and maintenance of bins (Onshore and Offshore), management of recyclable and non-recyclable (hazardous and non-hazardous) wastes and quarantine management. Includes associated upstream activities at Perth and Dampier Supply Bases Since 2009 Apache Energy Waste Management Services North West Shelf Waste Management Services including general, recyclable, hazardous waste collection and disposal, industrial tank cleaning and vacuum loading. Includes Varanus Island Since 2010 APLNG Waste Management Services Curtis Island, Gladstone Waste Management Services including general, recyclable, hazardous waste collection and disposal, industrial tank cleaning and vacuum loading. Since 2011

32 Current LNG Work Thiess Preferred Supplier, Waste Services National Woodside Energy Industrial Services and Marine Tank Cleaning Greater Western Flank Drilling Campaign, Okha FPSO Santos - Waste Services and Marine Tank Cleaning Services Dampier, Onslow Shell Australia Waste Services and Marine Tank Cleaning Services Dampier, Broome, Darwin Inpex - Waste Services and Marine Tank Cleaning Services Dampier, Broome, Darwin BHP - Waste Services Dampier, Onslow

33 Highlights Gorgon Project and Rio Tinto contracts leading Safety Management with 1,650 days+ / 4 Years Lost Time Injury (LTI) free; Strong local content for Australian Industry Participation with 3 WA vendors outgrowing their premises to support Toxfree; 6 local Chevron environmental awards, plus Australian Business Award (sustainability); Asset Management 20,000 rotable assets quarantined with Zero Non-Conformance; Sustainable Waste Management practices with 30,000 tonnes of waste reused or recycled diverted from landfill; Award of the Chevron ABU Waste Management Contract; Awards of Rio Tinto Pilbara and Dampier Salt Contracts; Employment of Thalanyji trainees; and FMG contract reaching 40% Aboriginal content.

34 Working with the LNG Sector Our impression Opportunities Detailed and robust systems and procedures; Numerous departments and personnel movements; Highly regulated, high visibility; Constant change. Efficient, professional, can-do service Licensing and insurances; Adaptable, flexible, knowledgeable; Transparent and reliable; Efficient, innovative, solution provider. Rewarding Scale and scope of work; Scale of networks.

35 Questions Toby Edmunds General Manager Mobile:

36 Sub-Contractor's perspective HOW A LOCAL CONTRACTOR HAS MANAGED TO WIN CONTRACTS WITH THE LARGER CONTRACTORS

37 Jason Varcoe Managing Director NTC Contracting

38 Outline Introduction How did we get there Company History, Growth & Development Key Points

39 Introduction NTC Contracting has been very successful at gaining works on the Wheatstone Project. Major Contracts include: Early Works Civil for Bechtel Non Permanent Works for Bechtel QMC Bridge Earthworks and Road Works for McConnell Dowell ISBL & OSBL Civil Works for Laing O Rouke Aggregate Cartage for Thiess WWTP Irrigation Field Installation for Monadelphous Site Civil Works for Energy Power Systems Concrete Disposal for Veolia Underground Civil Works for CB&I

40 Introduction Minor Hire Works include: KEJV John Holland Zinfra Mammoet ATCO Spinafex Outback Trees RockJV BestJV Keller Peak Workforce was 120 staff on the project and we have completed over 250,000hrs on the project LTI free to date.

41 How did we get there? All of these works were not handed to us, we had to work for them. Key Aspects: Prior to Wheatstone we were of medium size with staff Had worked in mining environments but only as a minor subcontractor We spent time and money developing the company systems including Quality Safety Environmental Human Resources Financial We called, we researched, we networked, we tendered

42 Who We Are NTC Contracting started as Ashburton Earthmoving during the 1950s in Onslow. The company was established by the McAullay family (a local family living in Onslow) and provided the small township of Onslow transportation and general civil services. The company was purchased by Chris and Richard Evans in May 1998 and later re-branded as Northern Transport Company Pty Ltd. Northern Transport Company grew through haulage and small civil contracts in the Pilbara often for mining clients NTC Contracting Pty Ltd (NTC) was officially formed in 2008 as a Civil Contracting branch of Northern Transport Company.

43 The Growth of NTC NTC started evolving in the late 1990 s from running a regular freight service and working on local contracting jobs within Onslow into larger projects including mine site civil construction.

44 Late 1990 Loading for a trip to Perth

45 Late 1990 Prior to leaving for freight run to Perth

46 Early 2000 Onslow Salt In early 2000 Onslow Salt started production in Onslow. NTC tendered for and won the cartage contract The contract involved carting salt from the crystallisers to the wash plant Was a 7 day a week 24 hour operation.

47 Early 2000 Onslow Salt Some of the first loads of salt

48 Early 2000 Onslow Salt Taking samples from the salt Stockpile

49 Mid 2000 Cyclone Glenda In March 2006 Cyclone Glenda hit Onslow as a Category 3 cyclone. A lot of damage was caused to the Onslow Salt levee walls NTC tendered for and was awarded the head contract for the repairs NTC undertook HSE under the guidance of Onslow Salt. Cyclone Track

50 Mid 2000 Cyclone Glenda Excavating for Wall Repairs

51 Mid 2000 Cyclone Glenda Sorting Armour Rock

52 2008 Sino Iron Project In June 2008 NTC commenced work on the Sino Iron project under VDM Group building the 1700 man camp 123. This evolved into a Site wide Services contract under MCC for Civil Construction services around the entire Sino Iron site NTC undertook their own HS&E, Quality Assurance and Human Resources Management AG Mill Construction

53 2008 Sino Iron Project Terex MT4400

54 2008 Sino Iron Project Causeway Construction

55 2008 Sino Iron Project Health and Safety NTC managed HSE in line with site requirements Used client supplied paperwork Human Resources Developed site greenfields agreement to meet site Industrial Relations requirements Environmental Started using a waste management system

56 2011 Macedon Project In June 2011 NTC tendered for and was awarded subcontract under OTOC for earthworks 350 man camp. First Oil and Gas Contract On completion tendered Road Maintenance Contract under Technip EPCM Awarded Contract brought a great opportunity for NTC to upskill their management systems Macedon Project

57 2011 Macedon Project NTC Commenced the Camp Construction under OTOC

58 2011 Macedon Project All of NTC s equipment had to meet the BHP Requirements for the site

59 2011 Macedon Project NTC introduced regular stretching into our prestart meetings

60 Q1-Q Wheatstone Project February 2011 NTC initiated communication with Bechtel and was able to undertake the project prequalification April 2011 A large investment of time was required to update systems to reach the standard required. NTC completed the prequalification and was approved as a First Tier Contractor

61 Q2, Q3 & Q Wheatstone Project May 2011 NTC was invited to tender for Early Works Civil package August 2011 NTC was awarded Early Works Civil package November 2011 NTC Commenced work on the Wheatstone Project

62 Q Wheatstone Project 18 Jan 2012 Ground was Broken on the CV Site creating access along Camp Road 1 into the site

63 Q2/Q Wheatstone Project June 2012 NTC reached 50,000 hours on site without a lost time injury

64 Q Wheatstone Project Sept 2012 NTC poured the very first permanent concrete for the project in the Communications Tower base

65 NTC Development February 2013 NTC achieved accreditations in Quality and Safety Management Systems ISO9001 Quality Assurance AS4801 Occupational Health and Safety

66 Q Wheatstone Project July 2013 NTC was awarded our second major contract on Wheatstone titled Non-Permanent Works consisting of Road construction and sealing, Drain construction Various civil maintenance works

67 NTC Now NTC works closely with environmental personnel such as Fauna Handlers to ensure appropriate management of the environment

68 NTC Now NTC has systems in place to ensure correct barricading is always used

69 NTC Now NTC promotes a family culture when it comes to completing JHA s, prestart meetings and Take 5 s

70 NTC Now NTC takes inspections of plant seriously; undertaking checks before any plant is started each morning

71 NTC Now Heavy machinery has a lot of moving parts - NTC has systems and procedures to manage and clean-up spills

72 NTC Now As per the NTC Fitness for work procedure, prestart meetings and breathalyser checks are mandatory for all staff every day and toolbox meetings held every week

73 NTC Now NTC is currently undertaking our Environmental Management System Accreditation audit to achieve ISO14001 We hope to be able to display the below logo in our documentation soon

74 Key Points Don t expect contracts to fall into your lap because of your location or expertise. Do your research about who is awarded what contract, start cold calling. Be prepared to invest in Plant and Equipment if required but don t to this too early in case a lead falls through

75 Key Points Start working on your company systems Health and Safety Environmental Quality Assurance Human resources Ask to become a prequalified supplier to some major contractors. This process will help guide you through what is needed to become compliant.

76 Questions?