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FPSO Roundtables

8:15 AM Registration & Coffee

8:50 AM Welcome Comments by Chairman

9:00 AM Oil Markets in 2017 and Consequences for the FPSO Industry

Kelvin Sam, Principal Researcher, IHS MARKET
• Reviewing the oil price scenario for 2017 and FPSO project opportunities ahead
• Cost deflation – have we reached the bottom?
• Idle FPSOs – which ones are best placed for redeployment?

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Kelvin Sam

Principal Researcher
IHS MARKET
• Understanding oil companies’ philosophies for field developments and project awards in the current market climate: what has been learned in the past 12 months?
• Rethinking tendering criteria to propel projects forward: where can reform deliver the most benefits?
• Applying equitable risk sharing across all project stakeholders as a means to securing financing
• Assessing the effects of supply chain consolidation and the opportunities that collaboration, partnerships and creative commercial arrangements can present

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Shiv Sivarajah

Director, Natural Resources Asia
ING Bank
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Uzoma Correia

FPSO Contracts Leader
Total
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Kevin Moore

President & General Manager
Husky Indonesia

10:15 AM Morning Refreshment Break

Roundtable 1: Offshore Financing Risk and Developing Bankable FPSO Projects

Financing is a critical hurdle for many FPSO projects in the current market climate. Banks appear to be altering the scope of their due diligence and the parameters of what is considered bankable, leading to confusion, and sometimes, frustration for oil companies and FPSO contractors.
This roundtable aims to align financiers and project partners in developing a means to adequately assess project risk and establish the confidence to obtain investment in the difficult market climate.
  • Strategies to financing FPSO projects based on smaller fields, shorter lease periods or with smaller oil companies: have financiers revised their expectations on the balance of risk allocation?
  • Understanding the specific commercial and technical requirements that financiers assess for an FPSO, and if these differ for redeployments
  • Discussing whether oil companies are ready to disclose more information about overall field economics such as production costs, production profile and reserves to give financiers comfort regarding the overall project feasibility

Roundtable Host: Shiv Sivarajah - Director, Natural Resources Asia - ING Bank

Roundtable 2: Building Innovative Risk-Sharing Mechanisms Into FPSO Contracts

Much has matured in the FPSO industry over the past 12 months, and the entire FPSO value chain is now critically aware of how conventional modes of cooperation and contracting must change in light of the market climate.
With this stakeholder understanding, this roundtable will discuss how to structure FPSO contracts to make them more palatable for oil operators and FPSO contractors in order to push projects forward.
  • Exploring innovative ways to share project scope and risk, such as assuming oil price risk with fluctuating returns or re-assessment of fixed charter rates: where are the opportunities?
  • Assessing mechanisms to developing a win-win contracting model: liquidated damages and bank guarantees; programme management vs extension of time; time at large vs time bar clauses
  • Analyzing the viability of standard contract terms
  • Are oil companies willing to include more incentives in contractual arrangements?: balancing lease contract lengths and day rates with upside allowance for vessel contractors

Roundtable Host: Uzoma Correia - FPSO Contracts Leader - TOTAL

Roundtable 3: Procurement and Supply Chain Optimization to Reduce Costs and Improve Schedules During Execution

The past few years have seen builders, operators, vendors and sub-contractors continually squeezed and forced to push down margins on FPSO projects, but it is clear that this not a sustainable path to long-term cost reduction. To survive in the current climate, oil companies, FPSO contractors and subcontractors are starting to break out of their silos and engage with each other in order to improve procurement processes and contracts.
This roundtable looks at standardization and efficiency enhancement in the supply chain as a path to cost and schedule improvement.
  • Leveraging the current market downturn to re-evaluate and optimize procurement procedures/systems
  • Understanding how an optimized operation gives a better foundation for future projects with a focus on TCO and LCC for long-term cost savings and value improvement
  • Early engagement with subcontractors pre-project: pre-agreed T&C’s, process standardization, umbrella agreements and other strategies to streamline supply chain and build common understanding
  • What can the FPSO industry learn from procurement practices in other industries?

Roundtable Host: Michael Skyum - Senior Vice President, Supply Chain - BW Offshore


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Shiv Sivarajah

Director, Natural Resources Asia
ING Bank
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Uzoma Correia

FPSO Contracts Leader
Total
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Michael Skyum

Senior Vice President, Supply Chain
BW Offshore
Roundtable 4: FPSO Contractor and Oil Company Client : Working Together in Difficult Times
The FPSO Industry has traditionally had two types of contracts: i) Lease and Operate, or ii) Sale, with the majority of contracts being Lease and Operate. For this type of contract FPSO Contractor is normally entrusted to deliver the FPSO offshore on time, then hook up and Start up with high levels of Reliability and Availability. Oil Companies can adopt a number of different strategies to assure contract compliance, varying from a “light touch” and say visiting once a month for a Progress meeting to “Heavy Touch”, with a Large Oil Company Project Team embedded in the Contractors offices and sites carrying assurance checks and inspections.
This roundtable explores how oil companies and FPSO contractors can get early alignment, ideally before contract award, to work together in a collaborative manner to achieve common objectives without impact to cost and schedule.
  • How Oil companies and FPSO contractors should set out their expectation in the contract
  • Explore best & worst practices on previous FPSO projects
  • Assess the advantages or impact of leaving the project phase at Operations Handover with a Strong or Toxic Relationship
  • Evaluate if an “Integrated Team” approach can work in practice
  • Discuss the Importance of a Solid FEED phase
  • Develop ideas and initiatives around a Common Business Plan for the FPSO Project

Roundtable Host: Don Raith - FPSO Delivery Manager - Premier Oil

Roundtable 5: FPSO Operational Excellence and Strategic Maintenance to Enhance Productivity and Extend Service Life

Value preservation and the optimization of existing assets is a key focus for the FPSO industry in light of the current market climate.
This roundtable will explore how to continue to achieve production efficiency while protecting asset integrity and meeting ongoing compliance and process safety requirements.
  • How can productivity and maintenance be balanced to maximize uptime?
  • Developing an early asset integrity framework through alignment of client and contractor expectations and deliverables
  • Operating strategies to increase maintenance intervals while extending asset life for reliable, cost-effective service on mature FPSOs
  • Holding OPEX under control while pursuing life extension initiatives for mature FPSOs

Roundtable Host: Adrian Tan - Engineering Manager, Development - Murphy Oil

Roundtable 6: Selecting the Optimal Contractor and FPSO in the Current Market Climate

With operator pocketbooks squeezed, cost has become the almost singular factor driving FPSO project decisions. There are a number of redeployment opportunities available and FPSO contractors offer different competitive advantages, yet oil companies run the risk of selecting an unsuitable partner if they incorrectly match vessels and partners to their production profile. This roundtable will discuss how to evaluate both FPSO contractors and FPSOs themselves for the optimal match, assessing past experience, safety and project execution records when shortlisting contractors for a project.

It will also analyze how to pick a candidate for redeployment:
  • Understanding the early scope of requirements and field economics to match the best vessel to the field
  • Reverse engineering: starting with the vessel asset to tailor a production plan for the field that is perhaps not maximum recovery but acceptable output
  • Assessing the regulatory, jurisdiction and operator changes that redeployed FPSOs face, and their attendant risks and costs
  • Understanding the risk that FPSO contractors take on: where can contractors carry risk, what are the consequences?

Roundtable Host: Jeffrey Sim - Chief Operating Officer - Rubicon Offshore

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Don Raith

FPSO Delivery Manager
Premier Oil UK Limited
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Adrian Tan

Engineering Manager, Development
Murphy Oil
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Jeffrey Sim

Chief Operating Officer
Rubicon Offshore

12:45 PM Lunch & Networking Break

1:45 PM Roundtable Rotation 3

Delegates will be free to choose the roundtable of their choice. Each table will seat between 7-10 participants, to facilitate a
healthy and engaging discussion

2:45 PM Roundtable Debate Session

The chairman will put forward 3 topics for debate and delegates will be free to participate in dialogues on these trickier questions that perhaps do not have a clear solution but warrant closer discussion across the industry.

3:45 PM Summary of Key Conclusions from Each Roundtable Host

4:45 PM Closing Remarks from Chairman

5:00 PM Happy Hour Drinks Begin