Onslow Chamber of Commerce & Industry Taking advantage of - - PowerPoint PPT Presentation

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

• Opportunities in the Operations and

Maintenance phase present tremendous

• pportunity for local companies.
• Estimated A$3-4 billion annual

expenditure

• Project life extends over many years

Opportunities in Operations and Maintenance

SME OPPORTUNITY GUIDE

• Australian LNG

Operations and Maintenance contracting activities

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

THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD

THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD

The Onslow Chamber of Commerce and Industry (OCCI) incorporated in May 2004 under the Associations Act

• 1987. The OCCI is a locally based organisation with a

significant presence in the community of Onslow. 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

Without members and sponsors however, none of this

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.

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.

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

• pportunity 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. The next forum will be held in November so please keep

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

• ffering the space for hire as office space, meeting

facilities, training room, etc. We will be having an official opening of the hub on the 28th of August, so please keep this evening free.

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

THE OCCI IS PROUDLY SUPPORTED BY CHEVRON AUSTRALIA PTY LTD

Karratha, 12th August 2014 Onslow, 13th August 2014

CHEVRON-OPERATED GORGON & WHEATSTONE PROJECTS ICN PRESENTATION

• SVITZER was established by Emil Z. Svitzer in 1833.
• SVITZER became part of the A.P.Moller –Maersk Group in 1979.
• We operate a fleet of around 550 vessels with additional ~40 on order.
• Our turnover was USD 890 million in 2010.
• We employ around 4,700 staff in ~35 countries.
• Our organisation consists of 6 towage regions and 2 divisions.
• Head Office in Copenhagen.

QUICK FACTS

WORLDWIDEOPERATIONS

MOORING SERVICES HARBOUR TOWAGE MARINE SALVAGE TERMINAL TOWAGE OCEAN TOWAGE EMERGENCY RESPONSE

FUNCTIONAL AREAS

SVITZER – AUSTRALIAN OPERATIONS

• 2007 acquired ADSTEAM –

renamed SVITZER Australia

• Largest employer of Australian

maritime labour - 880 employees

• Operates 160 vessels, of which
• ver half are tugs
• Ship towage in 35 ports in

Australia

• Pursuing opportunities

Marine Services to the oil and gas industry in the Asia Pacific area

SVITZE R AUSTR AL IA MAP O F C O V E R AG E

SOUTH AUSTRALIA NEW SOUTH WALES QUEENSLAND NORTHERN TERRITORY WESTERN AUSTRALIA VICTORIA

Koolan Island  Cockatoo Island 

 Bayu Undan FPSO  Darwin LNG  Darwin  Pluto LNG  Cairns  Mourilyan  Bowen – Abbot Point  Mackay  Lucinda  Bundaberg  Brisbane  Newcastle  Sydney (Port Jackson & Port Botany)  Port Kembla  Eden  Hastings/Westernport 

Melbourne

 Project Magnet  Whyalla  Port Pirie 

Port Adelaide

 Albany

Gorgon Project  NWS LNG  Geraldton  Fremantle  Kwinana  Bunbury  Weipa  Thevenard  Port Bonython  Port Lincoln  Port Giles  Ardrossan  Geelong  Wheatstone Project 

 Onslow

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 Diesel / Electric ENGINES 2 x Wartsila 1800 kW 1 x Wartsila 1600 kW CLASS Lloyds ACCOM 10 Crew

• OP. MANNING 1 x Master

1 x C. Engineer 1 x IR OPERATIONAL UNITS 8

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

CHEVRON–OPERATED GORGON & WHEATSTONE PROJECT VESSELS

CHEVRON-OPERATED GORGON PROJECT HIGHLIGHTS

PROJECT NAME Chevron-operated Gorgon Project LOCATION Barrow Island. CAPACITY 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%) VESSELS 4 X 75BP ASD TUGS 1 X PILOT BOAT CAPITAL INVESTMENT >A$ 70M PILBARA EXPENDITURE Est A$600K / yr

Photos sourced: – Chevron Australia website Photos sourced: – Chevron Australia website

Project Name: Chevron-operated Wheatstone Project Location: Ashburton North, WA Capacity: 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) Equipment: 4 x 80BP ASD Tugs 1x Pilot Boat(s) Capital Investment: > A$ 70m Pilbara Expenditure: Est $ 600K / yr

CHEVRON-OPERATED WHEATSTONE PROJECT HIGHLIGHTS

Photos sourced: – Chevron Australia website Photos sourced: – Chevron Australia website

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

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 bi-

• annually. Subject to audits.
• Compliance with Environmental

Standards

• Reliable

Introduction to LNG

Toby Edmunds – General Manager

ICN WORKSHOP

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

Toxfree Vision

Simply stated:

 Exceeding client

expectations with no harm to people;

 No harm to the

environment; and

 No harm to resources.

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

.

Our track record

23 26 31 35 56 390 440 568 818 1,045 200 400 600 800 1,000 1,200 20 40 60 80 100 120 FY09 FY10 FY11 FY12 FY13 Sites Employees

Sites and Employees

41 47 65 92 132 188 47 52 78 116 153 88 99 143 208 285 188 FY09 FY10 FY11 FY12 FY13 FY14 1st Half 2nd Half

Revenue

14 16 21 29 36 22 25 33 45 58 FY09 FY10 FY11 FY12 FY13 EBIT EBITDA

Underlying EBITDA and EBIT

A$MM A$MM

2 3 4 5 9 11 14 16 18 FY09 FY10 FY11 FY12 FY13 DPS EPS

Underlying EPS and DPS

Cents/Share CAGR 34.0%

*Non-IFRS Financial Information

* * *

A Diversified Business – Revenue by Market Sector and Geography

Estimated on FY2014 forecasts

Commercial 25% Government 17% Infrastructure 10% Oil and Gas 22% Mining 14% Manufacturing 12%

Over 40% of revenue is leveraged to the broader Australian Economy

Queensland 33%

Tas, ACT and SA 4% New South Wales 4% Western Australia & Northern Territory 49% Victoria 10%

Over 85% of revenue is generated from producing assets

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

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

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.

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.

Questions

Toby Edmunds General Manager

 Mobile: 0428 927827  Email: t.edmunds@toxfree.com.au

Sub-Contractor's perspective

HOW A LOCAL CONTRACTOR HAS MANAGED TO WIN CONTRACTS WITH THE LARGER CONTRACTORS

Jason Varcoe Managing Director NTC Contracting jason@ntc.net.au

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

Outline

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

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.

Introduction

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 30-40 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

How did we get there?

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.

Who We Are

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.

The Growth of NTC

Late 1990

Loading for a trip to Perth

Late 1990

Prior to leaving for freight run to Perth

• 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.

Early 2000 – Onslow Salt

Early 2000 – Onslow Salt

Some of the first loads of salt

Early 2000 – Onslow Salt

Taking samples from the salt Stockpile

• 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

Mid 2000 – Cyclone Glenda

Mid 2000 – Cyclone Glenda

Excavating for Wall Repairs

Mid 2000 – Cyclone Glenda

Sorting Armour Rock

• 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

2008 – Sino Iron Project

2008 – Sino Iron Project

Terex MT4400

2008 – Sino Iron Project

Causeway Construction

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

• 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

2011 – Macedon Project

2011 – Macedon Project

NTC Commenced the Camp Construction under OTOC

2011 – Macedon Project

All of NTC’s equipment had to meet the BHP Requirements for the site

2011 – Macedon Project

NTC introduced regular stretching into our prestart meetings

Q1-Q2 2011 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

Q2, Q3 & Q4 2011 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

Q1 2012 Wheatstone Project

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

Q2/Q3 2012 Wheatstone Project

June 2012 NTC reached 50,000 hours on site without a lost time injury

Q3 2012 Wheatstone Project

Sept 2012 NTC poured the very first permanent concrete for the project in the Communications Tower base

NTC Development

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

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

Q3 2013 Wheatstone Project

NTC Now

NTC works closely with environmental personnel such as Fauna Handlers to ensure appropriate management

• f the environment

NTC Now

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

NTC Now

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

NTC Now

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

NTC Now

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

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

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

NTC Now

• 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

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.

Key Points

Questions?