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INTSOK 12th Annual Russian-Norwegian Oil & Gas Conference
Kvaerner Concrete Solutions for Arctic Exploration Drilling, LNG and Oil & Gas Production Platforms
By Erik Gulbrandsen
Vice President Business Development, Russia
Kvaerner Moscow Branch
22.01.2014
© Kvaerner 2013 15.08.2013
Agenda for the presentation
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1. Kvaerner experience and contribution to the Russian Oil & Gas Industry
2. Current Arctic platforms and the potentials in Russian Arctic areas
3. Opportunities and challenges in Arctic areas
4. Kvaerner concrete solutions for Arctic areas
5. Actual GBS projects designed and developed by Kvaerner
6. Kvaerner’s contribution to Russian Content in Russia
7. Cost effective Project Execution
8. Requirement for infrastructure supporting Offshore development projects
9. Summary of Presentation and Concluding Remarks
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© Kvaerner 2013 15.08.2013
Concrete substructure solutions
GBS (Gravity Based Structure)
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In Arctic Areas
© Kvaerner 2013 15.08.2013
Topsides, floaters & onshore facilities
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In Arctic Areas
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© Kvaerner 2013 15.08.2013
The Kara Sea and Sea of Okhotsk Potentials
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The size of North Sea: Norwegian and UK Sector
Source TU
The size of North Sea: Norwegian and UK Sector
Meaning: 1 installation in place per month in 30 years !!
© Kvaerner 2013 15.08.2013 6 6
ExxonMobil
Exxon
SEIC/Gazprom
SEIC/Gazprom
SEIC/Rosneft
Exxon/Rosneft
Exxon/Rosneft
7 in Russia and 2 in Canada Kvaerner’s contribution is 5 out of 9 Platforms
World wide Arctic Platforms
in operation, at location or currently in fabrication
Prirazlomnaya
Gazprom
Varandei
Lukoil
Sakhalin 2 PAB
Sakhalin 2 LUN-A
Sakhalin 1 Berkut Sakhalin 2 Moliqpack
Sakhalin 1 Orlan
Hibernia
Hebron
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© Kvaerner 2013 15.08.2013
Opportunities and challenges in design of
Exploration Drilling and Production Platforms in Arctic Areas
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1. Soil conditions and water depth
1. Limited soil data available
2. Relatively new settlements at the sea bed
3. Weak soil with limited capacity, however, feasible.
4. Water depth 5-60 meter
2. Ice loading
1. Ice conditions severe with stamukha, fresh water ice ridge action and level ice
2. Open water vary with seasons.
3. Sizing of substructure base slab versus ice loading
3. Environmental awareness
1. Sensitive to consequences of pollution
2. Rescue operations require zero tolerance
4. Logistic
1. Sizing of Topside storage areas including winterization
2. Ice management issues
3. Transportation of material and personnel
© Kvaerner 2013 15.08.2013
Advantages and features of concrete substructures
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Robustness for the Arctic environment
Tailored made for fixed or floating structures
Support large topside weight
Spare capacity for topside weight increase
Integrated oil, diesel and drill fluid storage
Protection of risers, j-tubes, pipes
Minimum maintenance (low lifecycle cost)
Significant Local Content
Independent of heavy lift vessels
Year around drilling and relocateable GBS
Sakhalin 1 Adriatic LNG terminal Sakhalin 2
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© Kvaerner 2013 15.08.2013 Page 9
Atshore: Nakhodka / Vostochney Site establishment
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© Kvaerner 2013 15.08.2013 10
Sakhalin 2 - delivered in 2005 to SEIC & Gazprom
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Concrete works in minus 20 C degrees
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© Kvaerner 2013 15.08.2013
Adriatic re-gas facility delivered in 2009 to Exxon
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Principle concept also applicable for LNG plants
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LNG concept alternatives
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Conventional onshore concept Barge Float-in concept
Near-shore, non-arctic concept Arctic Concept
Near-shore FLNG concept
Cost and schedule lucrative with minimum in place
hook up & commission. Plus substantial Russian Content
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© Kvaerner 2013 15.08.2013
Sakhalin I – delivered in 2012 to ENL & Rosneft
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© Kvaerner 2013 15.08.2013
Hebron GBS – ongoing (Canada) for Exxon
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© Kvaerner 2013 15.08.2013 Slide 15
Cement
Aggregate
Sand
Rebar
Formwork
Mechanical
Post-Tensioning
Materials (weight ratio)
3% - Imported
97%
Purchased
In RUSSIA
Manpower
8% - Expats
92%
Russian content
Concrete Gravity Base Structures gives: High National Content (Sakhalin 2 data)
■ All rough materials: cement, sand, aggregate, rebar, steel profile etc.
■ All trucks (exception – dumpers for basin digging), earthmoving equipment, mobile cranes and construction fleet (floating crane, tugs, barges, vessels)
■ All personnel transportation services
■ All Fuel, Wood, Electricity, Water, Telecommunication, Tools and majority of other consumables
95% Russian Content for GBS structures built in Russia
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© Kvaerner 2013 15.08.2013
Kvaerner: EPCI contractor delivery model
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Long-term presence in strategic regions
Local partnership/JV approach in
regions of operation for project
execution and construction
Engineering management, execution by
long term partners
Self performing construction in regions
of operation
Significant local Russian content
Successful project execution is all about people
VOSTCO yard, Nakhodka, Russia
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© Kvaerner 2013 15.08.2013
Aker Kvaerner
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Concept selection + FEED
Ice resistant Exploration Drilling Platform
Fabrication
Topside/GBS
Integration
Hook-up Detail Engineering
Procurement
E Engineering
P Procurement
C Construction
Commissioning
Studies
Concept
FEED
Approval Process with Russian Authorities
Project development and execution in sequence:
Period for a concept selection study: 6 month
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© Kvaerner 2013 15.08.2013
23.01.2014
© Kvaerner 2011
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Norwegian Coastline Infrastructure
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Coastline HSE
Training (10)
Major Coastline
Supply Bases (8)
Coastline Main
Rescue Helicopter
Centers (5)
Major Fabrication
Yards for Modules
and assembly of
Topsides (9)
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© Kvaerner 2013 15.08.2013 19
CHALLENGES when developing a new O&G industry
ROGALAND REGION: POPULATION: ~0,4 mill people
NUMBER OF SUPPLIERS: >500
ARKHANGELSK & MURMANSK REGIONS: POPULATION: ~3 mill people
NUMBER OF SUPPLIERS: <50
© Kvaerner 2013 15.08.2013
Norwegian Content in Oil & Gas projects
0
20000
40000
60000
80000
100000
0 5 10 15 20Years after start of the Norwegian sector
Num
ber
of
em
plo
yees
Total Suppliers Norwegian Suppliers
SOURCE: HYDRO SURVEY, SSB
1972
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After 10 years: 60% Norwegian Content
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© Kvaerner 2013 15.08.2013
Marine operations from a Dry Dock in Far East
Russia to Kara Sea
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Sannikov Strait
13m
Sources: Norwegian Mapping Authority and Arctic Marine Shipping Assessment
Kara Gate
21m
Yugorskiy Shar
13m
Laptev Strait
12m
50m
Bering Strait
30m
Nakhodka bay
exit channel 11-22m
Kamchatka Strait
300 m
100+m
Murmansk
PROSPECTS:
Dry Dock in
Murmansk
20-40m
100+m Murmansk fjord
exit channel
330mw x 100mwd Ob-Taz fjord
11+m
Northern Sea Route
From To Distance Tow
time
VOSTCO
yard
Sakhalin 1,2 fields 1,021 nm 14 days
Magadan fields 1,290 nm 18 days
Kara Sea fields 4,950 nm 67 days
37m Ice limit
March
Vilkitsky Strait
32m
20m
De Long Strait
20m
33m
La Peruz Strait
20+m
500 m
Ice limit
March
Ice limit
August - September
Ice limit
March
Ice limit
August - September
100+m
Tow at speed of average 3 knots
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© Kvaerner 2013 15.08.2013
Summary of Presentation
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1. Kvaerner is an EPCI contractor that offers both Substructure and Topside:
Feasibility Studies and Front End Engineering Design (FEED)
and
Detail Engineering, Procurement, Construction, marine towing and Installation
for
Exploration and Production Platforms in Russian Arctic Areas
2. A Concrete Gravity Based Structure (GBS) is a durable solution in Arctic Areas
3. GBS fabrication leaves ~90% Russian content to the local Industry
4. Topside integration and mating with a GBS sub-structure is possible in Russia
5. A Re-locatable Exploration Drilling Platform will soon be concluded for operation in
year around Russian Arctic Areas
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© Kvaerner 2013 15.08.2013
Copyright
Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate.
Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable
acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.
Disclaimer
This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to
differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the
regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and
projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual
results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets
for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange
rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based
upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is
making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors,
officers or employees will have any liability to you or any other persons resulting from your use.
Copyright and disclaimer
Copyright
Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate.
Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable
acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.
Disclaimer
This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to
differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the
regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and
projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual
results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets
for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange
rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based
upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is
making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors,
officers or employees will have any liability to you or any other persons resulting from your use.
Copyright and disclaimer
24
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