uk subsea sector, the invisible global player

Will Rowley � Director of Analytical Services

UK Subsea Sector, The Invisible Global Player �An Overview of the Global Impact of UK Subsea Engineering Companies

and Personnel

©Infield Systems Ltd 2006

Infield Systems Limited

Subtech06 2 ©Infield Systems Ltd 2006

The information contained in this document is believed to be accurate, but no representation or warranty, express or implied, is made by Infield Systems Limited as to the completeness, accuracy or fairness of any information contained in it, and we do not accept any responsibility in relation to such information whether fact, opinion or conclusion that the reader may draw. The views expressed are those of the individual contributors and do not represent those of the publishers.

Some of the statements contained in this document are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, numbers of development units, statements relating to the continued advancement of the industry�s projects and other statements which are not historical facts. When used in this document, and in other published information of the Company, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements including the potential for the industry�s projects to experience technical or mechanical problems or changes in financial decisions, geological conditions in the reservoir may not result in a commercial level of oil and gas production, changes in product prices and other risks not anticipated by the Company. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

Forward Looking Disclaimer

© Infield Systems Limited 2006


Infield Systems Ltd [aka Infield or ISL]

� Specialist boutique in offshore energy � 20th year of operation

� Highly respected internationally with clients in every continent

� Clients - operators, contractors, suppliers, finance & investment, Governments & NGOs

� Worldwide offshore coverage � unique databases & info

� Full suite of products and services � data, publications & analytical services

� Offshore Energy Database - unique global database with >25million data points

� Specialist Vessel Database � 600+ offshore vessels incl specs (pipelay, heavy lift, construction etc)

� OFFPEX� Modelling & Forecasting System - highly developed proprietary modelling & forecasting

� Bottom-up, project-by-project analysis, fully transparent

� Tailored reports, studies and surveys

� Major sector & regional reports, Global Perspectives & Regional Perspectives series

� Match & Track© tailored models & forecasting service

� Market due diligence & benchmarking analysis

� Offshore Indices � activity & cost indices including future indicators

� Vessel Activity Log � contracts & activity of specialist vessels

� Contracts Database � industry wide contract data & information, current & historical

� Supply & Demand Analysis

� Benchmarking & scheduling analysis

0

500

1000

1500

2000

2500

0 200 400 600 800 1000

Facility $m

WD

(m

)

0

500

1000

1500

2000

2500

3000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Actual Year of Spend

$m

Africa As iaAustralas ia EuropeLatin America Middle EastNorth America

0

5

10

15

20

25

30

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year Installed

Un

its

FPSs FPSO Spar

TLP Other

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1999 2001 2003 2005 2007 2009 2011 2013


$m

Ultra-deep

Deep

Shallow

0

500

1000

1500

2000

2500

3000

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Year Installed

WD

(m

)

FPSO

FPSs

TLP

Spar

Other

0

500

1000

1500

2000

2500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


$m

BP CABGOC CNR ConocoPhillipsExxonMobil Shell Star Deep StatoilTotal Woodside Oil Co.


� Global subsea market

� Brief overview

� UK influence

� People

� Companies

� Conclusion

Contents


� $11.7bn market p.a. direct expenditure (narrow ISL defn)

� Growing >11% p.a.

� 87% activity outside UK waters

� Most growth is outside UK waters

� Deepwater still backbone of growth

Global Subsea Market

0

1,000

2,000

3,000

4,000

5,000

6,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year On-stream

US

$ M

illio

ns

Africa

Asia

Australasia

Europe

Latin America

Middle East &CaspianNorthAmerica


� Every deepwater project has a subsea element

� Water depths are increasing

� Technical challenges increasing

� HPHT

� Processing

� Flow assurance

� Subsea to shore etc�

� Subsea continues to be a critical element in delivering

offshore future production growth - worldwide

Global Subsea Market


To many here the previous slides are not new news, everyone is busy and our industry constantly talks about deepwater & subsea

And the subsea sector, according to Subsea UK, contributes >£3bn to the UK economy

But�. This paper calls it �The UK�s Invisible Global Player�

And I�m here to provide an overview of its global impact?

So�.. I started with a simple exercise

Where in the world have I had personal contact with UK Subsea Engineering Companies & Personnel?


Global Influence


� The previous map gives my personal experience of UK

contacts in relation to the global subsea market

- Note personal view � not scientific

� Without exception every major subsea project that I have had

any contact with has involved UK personnel

� A considerable number of subsea related senior project

managers and engineers are British

� The following map highlights key offices of UK engineering

companies

Global Influence


Office locations � major UK companies


� A quantitative assessment of the global impact of the UK subsea

industry does not exist

� Research completed on subsea related projects & contracts from

our databases & files suggests

� On average >82% of subsea projects worldwide involve UK

companies in at least one of the following subsea sectors;

Engineering design or project management, equipment supply, survey,

installation and testing & inspection.

� In addition UK personnel are widely distributed amongst senior

positions within operators of all types, across the world

� The UK therefore has considerable influence within the global

subsea sector

� The real problem is�

Scale of influence around the world


� Those on the inside can see it but those on the outside can�t.

� A cautionary tale:

� Most subsea personnel are much older than me

� Extended influence through elevated positions

� Influence will wane over time

� Lower positions & growing influence of local companies &

personnel � often trained by UK personnel

� Same message I gave in a DTI report on Offshore E&D in 2001

Scale of influence around the world


� UK subsea sector is a major global influence

� Companies & personnel spread throughout the world

� Very strong technical & professional reputation

� External visibility of this success is limited.

� The sector did not just become invisible, we let it.

Conclusion

Will Rowley - Director of Analytical Services

[email protected]

OFFPEX� Forecasting & Modelling System

Infield�s Offshore Energy Database

Infield�s Specialist Vessels Database

Infield�s Offshore Contracts Database

Infield�s Offshore Cost Indices

Used by over 87% of the offshore industry�s major players

Sources

mailto:[email protected]

uk subsea sector, the invisible global player

Documents