bw offshore presentation - Parat Halvorsen

BW OffshoreIn it for the long-termEnergyDigitalCorporateProfilewww.energydigital.com

The YUMMK’AK’NAAB in theIndian Ocean on theway to Mexico

Energy | BW Offshore | 3In it for thelong-termWith Cidade de Sao Vicente en-route to Brazil, and Pioneerunder construction, BW Offshore has every reason to beoptimistic, despite the current economic slumpWritten by Ian Armitage & Produced by Nicholas DaviesBWOffshore, previously knownas Bergesen WorldwideOffshore, is a Norwegianoperator of floating production storage andoffloading (FPSO) vessels. With over 25 years’experience, it is currently one of the leadingFPSO contractors in the world, operating internationallyin Malaysia, Mauritania, Mexico, Nigeriaand Russia, with a total of 13 FPSO vessels.“BW Offshore is recognised for its openness,ability to adapt and the way we engage theoil and gas industry,” says Tom Arne Kristiansen,EVP technology. “We are one of the world’sleading FPSO contractors and a market leaderwithin advanced offshore loading and productionsystems to the oil and gas industry.“We are also committed to the future ofour industry through innovation in our technologydivision, APL, which is based in Arendal,Norway, and is a market leader in the development,fabrication and sale of advanced systemsfor offshore production. It has delivered solutionsfor production vessels, storage vessels and tankersin a wide range of field developments.“Through such efforts, BW Offshoreensures that customer needs are met with someextremely versatile solutions,” he adds.Kristiansen is responsible for FPSO businessdevelopment, the technical division andFLNG. He joined Bergesen in 2002 and hassince served as Topsides Manager, EngineeringManager and Director – Technical Division.www.energydigital.com | April 2009

Quality andreliability“Through our own standards ofParat Halvorsen supplies productsthat both we and our customerscan be proud of.“Steam and heat solutionswww.parat.noMarine High Voltage Electrode BoilerParat Halvorsen ASP.O. Box 173N-4402 FlekkefjordNorwayTel +47 99 48 55 00Fax +47 38 32 44 71office@parat.no

Energy | BW Offshore | 5Installation of adisconnectable turretbuoy from APL“BW Offshore hasbeen a pioneer inmany respects. Ibelieve it was thefirst company tooperate an LPGFPSO”– Tom Kristiansen, EVPTechnologyBefore joining Bergesen, he worked for ABBOffshore System as Lead Process Engineer andEngineering Manager. He also has a Master ofScience (M.Sc.) in Mechanical Engineeringfrom the Norwegian Institute of Technology inTrondheim.“BW Offshore has been a pioneer in manyrespects,” he continues. “I believe it was the firstcompany to operate an LPG FPSO with its operationsin Angola, back in 1982, and has sincedelivered 12 other FPSOs.”A bright futureBW Offshore recently completed a new FPSO,BW Cidade de Sao Vicente, which is currentlyen-route to Brazil.“That was a fast track project, which wewww.energydigital.com | April 2009

Parat Halvorsen ASP.O. Box 173N-4402 FlekkefjordNorwayTel +47 99 48 55 00Fax +47 38 32 44 71office@parat.noHISTORICAL TRADITION OF TRUECRAFTSMANSHIPIn 1842, Halvor Sørensen moved to the small coastaltown of Flekkefjord and started his own business.This marked the beginning of a 165-year-long history– a history about faith in solid expertise, quality andreliability. Today, Parat Halvorsen is an internationalsupplier of steam and heat solutions and their trademarkremains; quality and reliability.TURNKEY SOLUTIONS FOR THEMARINE- AND OFFSHORE INDUSTRIESSince 1974, Parat Halvorsen has delivered more than500 complete boiler systems to the marine industry.The company supplies Water Tube, Smoke Tube,Exhaust Gas, Composite and Electrical Boilers completewith feed water systems and the latest high techPLC based automation technology.Parat meets environment and energy challengeshead-on, one of its latest innovations being the ParatORO System (Oil Recovery Operations).Since the late 1970s, the company has also supplieda multitude of boilers, pressure tanks and processingpackages to the offshore sector.Since 2004, one of the company’s key products forthe offshore FPSO industry is complete heatingmedium packages. Its latest delivery to BergesenWorldwide Offshore is a compact skid implementingthe new Parat High Voltage Electrode Boiler.WORLDWIDE DEDICATIONParat Halvorsen takes pride in every delivery. Inorder to live up to the company trademark, a teamof highly skilled service technicians are ready todispatch at short notice offering 24-hour worldwidebackup to all its customers. In addition to offeringcommissioning, service, spare parts, modificationsand repairs its is also able to service most existingsystems delivered by other manufacturers.www.parat.noIllustration of the BW Pioneer on the Chinook and C“We convertedand modified theFPSO BW Peaceto meet Petrobra’sspecifications”

Energy | BW Offshore | 7ascade fields in the USstarted with Petrobras less than one year ago– in April 2008,” Kristiansen explains. “The contractis for 10 years, plus we will have an optionperiod of five years. It recently left Singapore,now headed for the giant Tupi oil field. The journeyto Brazil will take about six weeks and it willcommence operations in the second quarter of2009.”Tupi is one of Brazil’s biggest offshore fields.It has lots of potential and lots of oil. Indeed,Petrobras estimates the recoverable volume ofoil and gas at the ultra-deep field at between fivebillion and eight billion BOE, making it one ofthe biggest discoveries in years outside OPECcountries, comparable in size to the Kashagan oilfield in Kazakhstan.Continuing, Kristiansen comments: “Weconverted and modified the FPSO BW Peaceto meet Petrobra’s specifications. It has beena schedule-driven project in which the mainwww.energydigital.com | April 2009

The whole world as it’s workplaceGSL is a highly specialised Norwegianforwarding company servicing operatorsin the global shipping and offshore oil &gas service markets, with complete and integratedsupply chain solutions. GSL handles logisticscontracts all over the world and has earned a reputationfor finding the most cost efficient solution– regardless of consignment size or destination.GSL’s products and solutions are built on anin-depth understanding of industry specific requirements.The company has a thorough understandingof all the aspects of supply chain management (SCM)and also knows all the specifics of freight forwarding.Due to the company’s in-depth ‘industry knowledge’and ‘front edge information & communications systems’(ICS), it is able to provide its customers withtailor made, integrated, door-to-door forwarding andtransportation solutions on a global basis.Today, GSL serves more than 100 marine customers.The company is now also responsible forthe supply chain logistics for more than 500 vesselson behalf of different ship owners and managementcompanies. GSL has also been the preferred partnerby BW Offshore on several projects. During 2005-2009, GSL has been handling necessary logistics ofequipment needed for the conversion of four FPSOunits for BW Offshore – ‘Berge Helene’, ‘BergeEnterprise’, ‘BW Peace’ and ‘BW Pioneer’.Years of experience and highly skilled staff,combined with its global cooperative network, makesGSL a unique partner.www.gsl.noApril 2009 | www.energydigital.com

Energy | BW Offshore | 9Process operator onboard the FPSO Berge Helene“BW Offshore hasbeen selected forthe conversion,installation andoperation of anFPSO at Chinookand Cascade fields”process modules and key components wereengineered and delivered within eight months,which is a near record delivery time. The conversionthen took place in Keppel Shipyard Benoi,Singapore and was completed in February.The entire duration of the project was just335 days.Remarkably, this is not BW Offshore’s onlymajor project. The company is also building and willthen operate what will be the first FPSO in the USGulf of Mexico, due to start operations in 2010.“BW Offshore has been selected for theconversion, installation and operation of anFPSO at the Chinook and Cascade fields in theGulf of Mexico,” says Kristiansen. “The FPSOwww.energydigital.com | April 2009

Sensible, fast & reliableaccording to your and our valuesM7 Offshore provides project management andengineering services to the oil & gas industry.with focus on process plants (Topsides), modules andskids for Floating Production Storage & Offloading Units(FPSO’s).Utility Modulefor BWO’s FPSO”BW Cidade deSão Vicente”now on sail to theTUPI field is.......one of many M7 designs.www.m7offshore.comE: m7@m7offshore.com | T: +47 90 88 77 48Inside the process plant onboard YUMM K’AK’NAAB“Of course, there arechallenges aheadbut we see plentyof opportunities.We believe in thissegment strongly”April 2009 | www.energydigital.com

Energy | BW Offshore | 11will be installed on the field with a water depth of2,600 metres, probably the deepest water depthon which an FPSO has ever been installed.”The vessel, to be named BW Pioneer, isbeing constructed, as in the case of BW Cidadede Sao Vicente, on behalf of Petorbras, Brazil’sstate-run oil firm.“It is currently under conversion in KeppelShipyard Tuas and we plan to set sale later thisyear,” adds Kristiansen.Feeling the crunchDespite the long-term value of these and otherprojects, BW Offshore experienced a significantreduction in the EBIDTA from operationslast year. 2008, says Kristiansen, was influencedby an impairment assessment of its shares inProsafe Production and higher than expectedstart-up costs related to the FPSO YÙUMK`AK`NÀAB.The company also suffered from the terminationof the BMG project, which would have giventhe firm a foothold in Australia/South East Asia;a market it is eager to gain greater penetration in.“The turmoil in financial markets and thelower oil price has had some negative impactwww.energydigital.com | April 2009

“Beyond theimmediate horizon,we are sure thatthe long-termfundamentals ofour business aresound”on the business,” says Kristiansen. “Someprojects, like BMG, have been cancelled andmany postponed.”However, he says, in the long-term, businessis sound – a cause for much optimism. “Inthis period of uncertainty, our future is securedbecause of the long-term contracts we have withreputable clients, mentioned above,” Kristiansenexplains. “Beyond the immediate horizon, weare sure that the long-term fundamentals of ourbusiness are sound. After all, there is a growingdemand for energy and this will fuel demand fornew oil and gas fields.“Where would we like to develop?” heApril 2009 | www.energydigital.com

Energy | BW Offshore | 13Tom KristiansenYUMM K’AK’NAABoperating in Mexicocontinues. “Well we have a great presence, globally,but maybe more in Australia and South EastAsia – we would like some vessels there. Wedon’t have any there at the moment, although weare perusing several opportunities.“Of course, there are challenges aheadbut we see plenty of opportunities,” adds Kristiansen.“We believe in this segment strongly.We will suffer short-term, as will everybody elsein this business, but oil is a limited resource andthe world needs oil. So, as soon as we get out ofthis financial turmoil, we see significant growthin this sector. “We are very positive about thelong-term prospects.”FACTS at a GlanceCompany Name: BW OffshoreCEO: Carl K ArnetOperations: An FPSO contractor,providing advanced offshore loading andproduction systems.Established: 1982Employees: 1,200Revenue: 126.4 million (USD) Q4 2008www.bwoffshore.com

CompanyNameBW OffshoreP.O. Box 33 Skøyen, 0212 Oslo, NorwayInsertTel: +47 2313 0000 Fax: +47 2313 0001company logobwoffshore@bwoffshore.com | www.bwoffshore.comInsert image No 1Company Strapline or HeadlineConstructionDigital ConstructionDigitalEnergyDigitalCorporateProfilewww.energydigital.comCorporateProfilewww.constructiondigital.com