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Transcript of The Maintenance, Modifications and Operations … Maintenance, Modifications and Operations Market...
The Maintenance, Modifications and
Operations Market By: Jon Dunstan, CEO, EMAS Offshore Limited
The MMO Market 2
Agenda
Introduction to MMO Market
• Market Potential by analysing Fixed and Floating Platforms
• Effect of Oil Prices to MMO Market
• Why is MMO Market Attractive
1
2 What’s the Potential for Offshore Accommodation Services
• Assessing Demand for Offshore Accommodation Services
• Specific Facilities needed for MMO Operations
The MMO Market
1. Introduction to MMO Market
Phases of Oilfield Asset Lifecycle
3
Hydrocarbon
Exploration E&A Drilling
Development Drilling
Construction Operations & Maintenance
Modifications Decommissio
ning
Source: DW World Offshore MMO Forecast 2014-2018.
Capital Investment Phase OPEX Phase Liabilities
The typical life cycle of an offshore platform which demonstrates the occurrence of Maintenance, Modifications and
Operations (MMO):
Operations:
Services that support on-going production
including the supply of labour and raw
materials.
Maintenance:
On-going inspection, repair and upkeep of
installed infrastructure.
Modifications:
Upgrade of existing infrastructure including
the installation of new accommodation and
capacity on the platform deck (offshore) or
processing systems.
Different
Types of
Services
MMO EPC
Engineering & Project Management:
Initiation, implementation, planning of the
project, including design, cost estimation of
the components.
Procurement & Fabrication:
Purchasing, expediting, management/
supervision of fabrication of key
components.
Installation:
Requisitioning vessels capable of
installation work, including scheduling and
factoring conditions for installation.
The MMO Market
1. Introduction to MMO Market
The MMO Market Potential
4 Source: DW World Offshore MMO Forecast 2014-2018 & 2015-2019
Global MMO Expenditure by Region 2009-2018
North
America
Asia
MMO from SLOW to GROW
Asia and North America will continue to
be the market leaders in MMO
expenditure with a combined shared of
~45% over the forecast period from 2015
- 2019
The MMO Market
1. Introduction to MMO Market
The MMO Market Potential
5 Source: DW World Offshore MMO Forecast 2014-2018 & 2015-2019
Addressable MMO Market of $672B, ~$216B in Asia
41% 4%
9%
46%
Modifications
Support Services
Asset Integrity
Asset Services
27%
21%
5% 6%
30%
11% Europe
Asia
Mid East
Africa
N. America
L. America
16%
46%
3%
7%
23%
5%
Europe
Asia
Mid East
Africa
N. America
L. America
Asset Services
(O&M) $307 bn
Modifications
$276 bn
• Global expenditure to total
$672bn (31% growth on
the previous 5-year
period). AsiaPac is the
largest segment of $216B,
accounting for 32%.
• Asset Services (O&M)
‒ AsiaPac, the third
largest Asset Services
segment accounts for
21% of market after N.
America (30%) and
Europe (27%).
• Modifications
‒ AsiaPac, the largest
segment, account for
46% of market
The MMO Market
1. Introduction to MMO Market
Analysing Fixed and Floating Platforms
6 Source: DW World Offshore MMO Forecast 2014-2018 & 2015-2019
Fixed and floating platform production continues to be key to meet growing energy demand.
Total Number of Platforms by Region 2009-2018
North America
Asia
3,663 platforms
• 90% fixed platforms
• 10% floating platforms
2,003 platforms
• 94% fixed platforms
• 6% floating platforms
Middle East
729 platforms
• 99% fixed platforms
• 1% floating platforms
Africa
901 platforms
• 91% fixed platforms
• 9% floating platforms Latin America
707 platforms
• 90% fixed platforms
• 10% floating platforms
• Offshore platform population is
dominated by North America, accounting
for 41%, followed by Asia 22%.
• Global fixed platform population is
dominated by North America (43%) and
Asia (22%), whereas floating platform
population is led by Asia (28%), Africa
(19%) and Latin America (19%).
Norway 96 platforms
• 76% fixed platforms
• 24% floating platforms UK
309 platforms
• 92% fixed platforms
• 8% floating platforms RoWE
355 platforms
• 99% fixed platforms
• 1% floating platforms
The MMO Market
1. Introduction to MMO Market
Effect of Oil Price to MMO Market
7
Asia Offshore MMO Expenditure 2009-2018
Growth not solely driven by oil production
• Fabric maintenance, safety upgrades
and general upkeep required for
production, whether it be 100bbls/ day or
100,000bbls/ day.
• Production enhancements (EOR)
debottle necking.
• Technology upgrades (equipment
obsolescense)
• Tie-backs always need a host-hub.
• New operators produce tail-end
operations and may have different
standards.
Source: DW World Offshore MMO Forecast 2014-2018 & 2015-2019
“DW are forecasting a 12% decline in offshore MMO expenditure compared to 2014. The decline is due to the delay of some
major modifications by operators and a reduction in some aspects of MMO that do not directly impact production.”
The MMO Market
1. Introduction to MMO Market
Why is MMO Attractive
8
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
-40
-20
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Y-o
-y c
ha
ng
e
US
D B
n
MMO Exp Dpwater CAPEX MMO Exp Trend Dpwater CAPEX Trend
MMO Expenditures vs Deepwater CAPEX
Comparison of Y-O-Y Changes
MMO expenditures being OPEX
driven has a steadier trend and is
less dependent on oil price. Most
companies may in fact consider
increasing MMO during dips in
CAPEX investment.
Low Risk and Steadier
Returns
High Risk, High
Reward
EPC being long-term CAPEX
investment driven is subject to
operators’ concerns of cashflow.As
such, it is typically cyclical.
The MMO Market
2. What’s the Potential for Offshore Accommodation Services
Assessing Demand for Offshore Accommodation Services
9
Offshore accommodation is needed through most stages from platform installation (12%) to IRM
(Inspection, Repairs, and Maintenance) & modification (85%) and decommissioning (3%).
Inspection, Repairs and Maintenance
(IRM) 69%
Modification 16%
Platform Installation
12% Decommissioni
ng 3%
Source: Infield, DNV.
• Represents the largest proportion
of aggregated offshore demand in
terms of total demanded vessel
days
• Robust and relatively stable due to
regulatory requirements relating to
repairs and maintenance work on
offshore platforms
Driven by health and safety
legislation
Reduce need to frequently transport crew
members to offshore infrastructure
Accommodation vessels onsite
• Facilitates increased man hours
onsite
• More conducive for IRM work and
upgrading of platforms
• Reduces downtime and loss of
production volume
Typically chartered for • Hook-up and commissioning of
platform installations
• Maintenance, modification and
upgrade work on existing
infrastructure
• Support decommissioning of
infrastructure on depleted fields
Demand by Value Chain
Functions/ Advantages of Accommodation Units
The MMO Market
2. What’s the Potential for Offshore Accommodation Services
Types of Offshore Accommodation Units
10
Jackups/ Liftboats
Supported by legs on
seabed, work area
lifted above water
surface
Limited to shallow
waters
Support drilling
platforms; also used
for offshore wind
farms and wind
turbines
Stability and
capabilities in harsh
weather environment
Competition is
localised and
fragmented
Anchor Barges
Non-propelled non-
DP anchor barge,
moored and require
towage vessels for
transit
Mainly in benign and
shallow waters
Aging anchor barge
fleet – newbuild
vessels have DP
systems
DP Barges Ships/ Monohull
Vessels Semisubs
Self-propelled and
DP capability
Increasing number of
deepwater fields
likely to increase
demand for DP
barges
Only handful
currently in existing
accommodation fleet
Some modern DP
barges with
propulsion are similar
to monohulls as they
have a ship shaped
hull
Relatively recent
development for
offshore
accommodation –
only handful of units
Mobile and enables
quick repositioning
Versatile – also used
for light crane work,
ROV, diving services
etc (cheaper than
semi-subs)
Most modern units
DP-equipped
Compared to
jackups, can operate
in deeper waters;
better stability in
harsh weather and
larger deck spaces
than barges or
monohull vessels
Disadvantage is
lower cargo capacity
due to greater
response to
externally applied
loads; higher
construction costs
Water depth: <100 m
Capacity: 50-450 men
Mobility: Low
Environment: Harsh
Water depth: <300 m
Capacity: 50- 1,000 men
Mobility: Towage Vessels
Environment: Benign
Water depth: Unlimited (DP)
Capacity: 400-1,000 men
Mobility: Towage Vessels
Environment: Benign
Water depth: Unlimited (DP)
Capacity: 200- 600 men
Mobility: High
Environment: Benign
Water depth: <300m/
Unlimited(DP)
Capacity: 200- 800 men
Mobility: Low/Medium
Environment: Harsh
Source: DVB, ODS-Petrodata
The MMO Market
2. What’s the Potential for Offshore Accommodation Services
Types of Accommodation Units for Different Environment Conditions
11 Source: DVB, Prosafe
Harsh Environment
Benign Environment
North Sea (often complex
seabed infrastructure
Australia & certain regions
of Asia
Deep Water Shallow Water Gulf of Mexico (often complex seabed
infrastructure)
Semi-subs
Brazil
Jack-ups
Mono hulls
DP Barges Anchor
Barges
Asia, Middle East, Caspian Asia & West Africa
The MMO Market
3. What’s the Potential for Offshore Accommodation Services
Specific Facilities for needed for MMO/ IRM Operations
12
Deck Space Gangway
Crane Accommodation
1
• Provide maximum possible working area for
safe and efficient operations.
• Gangway with safety and flexibility features.
• “Walk-to-work” safely – Ampelmann’s gangway
eliminates any relative motion by taking instant
measurement of the ship’s motion and then
compensates them by using 6 hydraulic
cylinders.
2
• Crane capacity with good lifting height
capability.
• Onboard and outboard lifts for the loading and
offloading of materials and equipment under a
range of environmental conditions.
• Suitable for lifts to and from supply vessels or
other floating platforms and fixed offshore
structures.
• Designed and outfitted to international offshore
standards, with the highest quality of finish and
range of facilities provided:
- Recreation rooms
- Office and administration
- Hospital
- Mess room
- Galley Equipment
- Swimming pool
- Up to 1000 pax
- FiFi
3 4
The MMO Market 21
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