INEOS a new entrants view 1 safety, reliability & cost - - PowerPoint PPT Presentation
INEOS a new entrants view 1 safety, reliability & cost visibility privately owned company established in 1998 downstream, 105 sites , 22 countries sales circa 40bn , low leverage flat management structure, speedy
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▪ privately owned company established in 1998 ▪ downstream, 105 sites, 22 countries ▪ sales circa €40bn, low leverage ▪ flat management structure, speedy decisions ▪ business unit model, drives focus on cost ▪ growing upstream, largest privately owned SNS operator ▪ recent acquisition of DONG O&G portfolio
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▪ INEOS is a manufacturing company, not a venture capitalist, and is in it for the long haul. ▪ World class HSE performance (0.32 OSHA recordable rate) ▪ Best in class reliability: Most of our assets operating at 99.0% - 99.7%. ▪ Operate the world's third largest refining and petrochemical portfolio, 18,600 personnel. ▪ UK's 8th largest offshore gas producer, focus of current growth strategy. ▪ UK's largest shale gas developer. ▪ Largest ethane shipper world wide: recent 15B$ invested in supply chain. ▪ Proven track record of continuously improving operating efficiency, a strong focus on our assets. ▪ Ability to extend lifespan and maximize economic recovery
Strictly Business Confidential
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INEOS safety performance
OSHA Recordable Rate Per 200 000 hrs: Employees + Contractors
2.54 1.13 0.91 0.79 0.66 0.66 0.52 0.40 0.42 0.32
0.0 0.5 1.0 1.5 2.0 2.5
2002 2008 2009 2010 2011 2012 2013 2014 2015 2016
Best in Class 0.3 Chemical Manufacturing 1.00
Strictly Business Confidential
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Continued focus on ‘best-in-class’ safety and reliability Future investment
▪ Major acquisition growth continues ▪ Pursuing options to further exploit shale gas ▪ Growth into the Upstream E&P sector
Strictly Business Confidential
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▪ proven track record of safety / reliability / cost-efficiency ▪ same vigorous approach needed in the North Sea ▪ Operate more efficiently, focused on the asset ▪ Extend lifespan, maximise economic recovery ▪ Decommission at lower cost ▪ Value-adding integration with refining/petrochemical businesses, underpinning Europe’s manufacturing activity ▪ Oil & Gas Authority recognize INEOS as bringing fresh thinking into the North Sea
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INEOS Oil & Gas
INEOS Breagh INEOS Shale
INEOS Upstream Services
INEOS DeNoS INEOS FPS
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▪ acquisition closed end of September ▪ INEOS to buy DONG E&P for $1.05bn plus $250m contingent ▪ INEOS now top 10 O&G company in the North Sea ▪ largest private company ▪ 4 x size of INEOS Breagh, (Production: 100,000 kb/d (in 2016), 570 million barrels of oil in reserve) ▪ a complete Exploration & Production business ▪ 440 people in Denmark, Norway & UK
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▪ a complete, competitive Exploration & Production business ▪ good mix of long life fields and new developments ▪ apply INEOS model to operated assets ▪ learn from operators of deep sea assets (Ormen Lange & Laggan-Tormore) ▪ significant pre-invested development option in Denmark ▪ step off point for INEOS Oil & Gas trading business (28m boe/year)
Syd Arne
Syd Arne
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Operator: Shell DONG equity: 14% Sea depth: 1200 metres Wells: 20 Well depth: 3000m Nyhamna
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Operator: Total DONG equity: 20% Sea depth: 600 metres Wells: 8 Well depth: 4000m Shetland Gas Processing Plant
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Syd Arne
▪ Siri area (Dong operated) includes the Nini, Nini East and Cecilie fields. ▪ Syd Arne (Hess operated) is a large field and a key producing asset in the overall portfolio.
Syd Arne
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INEOS Breagh ▪ Breagh; drilling programme in progress. ▪ Clipper South; re-routing to Shell Clipper from LOGGS. ▪ Cavendish; in production but nearing end of life. ▪ Windermere; in hydrocarbon safe mode prior to decommissioning.
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▪ BP looking to exit for some time ▪ important for Grangemouth for the associated gases which come with the oil ▪ an integration of our downstream businesses
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▪ 1 million barrels of oil per day capacity ▪ 370 km of oil & gas pipeline from the Forties and Graben areas of the Central North Sea ▪ Forties Unity platform ▪ St Fergus to Cruden Bay NGL line ▪ Cruden Bay Terminal ▪ Kinneil oil conditioning and gas fractionation terminal
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▪ LPG storage and export facilities at Grangemouth docks ▪ Dalmeny oil storage terminal ▪ Hound Point oil tanker loading jetties
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potential Breagh Phase 2 field development, ▪ concept study in progress ▪ subsea or jacket to be determined. potential Herje Area field development potential exploration well WoS decommissioning of Windermere, latterly Cavendish ▪ well requires P&A. ▪ removal timing dependent on assessment of the market. ▪ open to discuss a fly-by option. ▪ salvage, not reverse engineering.
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risk based, procurement approach to ensure safety, delivery & cost efficiency ▪ lean procurement teams, fast commercial approval ▪ pragmatic approach to terms & conditions, contract structure, tendering ▪ encourage new entrants & technology ▪ no approved supplier lists ▪
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▪ demonstrable safety culture essential. ▪ demonstrable performance essential. ▪ commercial innovation ▪ we want to discuss with the commercial decision makers and “cut deals”. ▪ protracted T&C discussions are an impediment to repeat business. ▪ technical invention ▪ we actively support new approaches, ▪ they must be safe and economically attractive.
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