Pluto LNG Development Industry Briefing. 21 st November 2006

Transcription

1 Pluto LNG Development Industry Briefing 21 st November 2006

2 Agenda Introduction David Kobelke Project Overview Lucio Della Martina Project Scope and Execution Mike Lutz Onshore Procurement Strategy Trevor Barwick Onshore Construction / Contract Strategy David Gwynne Offshore Procurement / Contract Strategy Rob Goodson Questions & Answers Close David Kobelke

3 Project Overview Lucio Della Martina Director - Pluto

4 Pluto delivers value Generates long term cash flows from end 2010 Commercialises 4.5 Tcf dry gas (Pluto + Xena) Creates value from commercial and marketing package 2,000 Potential Impact of Pluto and Xena on Woodside Reserve Base 2P Reserves, WEL Share (MMboe) 1,000 1,244 >35% add to YE P reserves 0 YE P Reserves Pluto SPA Volumes with KE/TG Unsold Pluto Volume + Xena Volumes Note: All figures are based on current estimates and are subject to change and final Reserve Committee review. Does not include 2006 Production or 2006 Reserve Revision/Additions. Based on 100% equity. Includes condensate. Pluto & Xena are currently Contingent Resource, timing of movement to Reserves is dependant on Technical and Commercial Maturity.

5 Pluto creates growth options Enables expansion - approvals being sought for 12mtpa LNG plant plus domestic gas plant Drives Woodside s Carnarvon Basin exploration Attracts third party gas through open access Burrup LNG Park

6 Pluto provides sustainable outcomes Dampier Rock Art Precinct* Draws on existing regional infrastructure Builds capacity in local communities Supports cultural heritage preservation by traditional custodians *as defined by National Trust

7 Meeting the challenges Managing cost pressures (Capex A$6 to A$10 billion) Using NWS Phase V lessons Integrating contractor synergies Leveraging frame agreements Tackling public policy changes State government domgas & land linkage Environment Cultural heritage and management Taking advantage of tightening LNG supply

8 Meeting milestones for 2010 LNG delivery Meet customer agreements by end 2010 Permit award Discovery Project announced Appraisal drilling Xena discovery Site A Env. approval Commence Site Preparation Finalise customer agreements Project Env. approval Drill Pluto-5 Final Investment Decision

9 Woodside Local Industry Participation Policy Key points: Engagement of local industry is fundamental to Woodside s success. Maximise local content by giving preference to tenders with higher local content where tenderers are capable and competitive on the basis of health, safety, environment, quality, cost and delivery. Systematic approach across our activities. Ensure local capabilities are considered in work planning. Require contractors to provide training and development opportunities to local workforce.

10 Meeting the LNG construction challenge Global LNG Demand LNG construction strategy 400 LNG demand (mtpa) Global LNG demand North America Europe Asia Pacific Proportion of Modular Stick Build Basic packages Modularise Stick build Design modular Design offshore modular Modular Repeat Train 1-4 Train 5 Pluto Browse Sunrise Source: Poten & Partners Global LNG demand to double over next decade Intense competition for resources - exacerbated by WA skills shortage Train 5 being built as world first modular LNG construction Modular construction a key technology supporting Pluto & Browse

11 Significant returns to Aust over life of projects NWSV estimated spend Million $ Op Ex (Aust spend) Op Ex (OS spend) Cap Ex (Aust spend) Cap Ex (OS Spend) WA Govt Royalties Total Aust spend Total OS spend

12 Key messages LNG by end 2010 is achievable Challenges being addressed Greenfields projects such as Pluto offer unparalleled opportunities for local content

13 Project Scope and Execution Mike Lutz General Manager - Pluto LNG Project

14 Project Overview

15 Project Scope Pluto LNG Scope LNG Plant comprising of Process Train Pig Receiver Slug Catcher MEG Regeneration Facility Plant Utilities LNG and Condensate Tanks Administration Buildings, Workshops, Laboratories etc. LNG Loading Jetty Platform & Topsides Facility Pipeline / Mono Ethyl Glycol (MEG) Line Subsea Production Wells Flowlines and Risers

16 Functional Requirements Train 5 scope

17 Project Schedule Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 MILESTONES FID 1st LNG SUBSEA & TRUNKLINE BOD FEED DESIGN, PROCUREMENT & CONSTRUCTION Commission PLATFORM BOD FEED DESIGN, PROCUREMENT & CONSTRUCTION HUC WELL CONSTRUCTION WELLS DESIGN & PROCUREMENT DRILL 5 WELLS Start 1st. Well Award Contract ONSHORE PLANT BOD FEED DESIGN, PROCUREMENT & CONSTRUCTION Commission & Cooldown SITE A PREPARATION SITE A PREP. DREDGING & JETTY CONSTRUCT JETTY AND DREDGING Execute Time Charters Shipyard Cut Steel 1st Ship Delivery LNG SHIPBUILDING SECURE SHIPPING PARTNER SHIP CONSTRUCTION Level 0 Project Summary Schedule DRIMS # Version 1 20 November 2006

18 Promoting Local Content Tenders for material and equipment will be called both locally and offshore. Adequate time will be allowed to enable local companies to joint venture with offshore companies where specialist expertise is required. Frame agreement in place with ICNWA to identify and capture opportunities for Australian participation. Engineering and Procurement will be executed in each of the EPCM contractor s offices. Approval for all Procurement Plans and Recommendations for Award is required from Woodside prior to a commitment being placed.

19 Project Objectives The aim for this project is to be recognised for exemplary performance in: Maximising the value of Woodside assets. Health and safety of all personnel involved in its execution and subsequent operation Protection of the environment Maximising opportunity for Australian suppliers and contractors where capable and globally competitive Providing qualified individuals and enterprises of the local Indigenous community with job opportunities.

20 Australian Industry Participation Plan Overarching document to accomplish project objectives in maximising opportunities for local involvement. Reflects WEL corporate objectives in providing full, fair and reasonable opportunity where capability, global competitiveness on HSE, quality and delivery exist. Will ensure material selection considers grades and types locally available for local fabrication and manufacture. Specifies requirements for precise and regular reporting on local content Will ensure utilisation of local database for potential local supply ICNWA ProjectConnect Phase V Vendor/Supplier Lists Project has formal agreement with ICNWA to further identify local capability ICNWA will directly assist in formulation of Procurement Plans ICNWA is currently updating the Pilbara Services Directory to identify Indigenous Capability. This will be incorporated into ProjectConnect.

21 Onshore Procurement Strategy Trevor Barwick Foster Wheeler WorleyParsons Procurement Manager

22 Onshore fly-over

23 Onshore Procurement Strategy Scope Purchasing, material control, expediting, inspection & logistics Equipment A$760 m (indicative) Bulk materials A$480 m (indicative) Number of packages (indicative) Supply Strategy Repeat items - Negotiated supply where competitive & schedule compliant. Competitive tendering - non repeat items and wherever negotiations for repeat supply fail. Use of Australian Specifications. Full & fair opportunity for Australian industry to participate where capable and competitive second tier opportunities will be promoted to enable entry to global supply chain.

24 Scope broader than Train 5 Train 5 scope

25 Onshore Procurement Strategy Vendor Pre-qualification Process Phase V (and IV) performance Technical, Quality Assurance, Commercial, Capacity Industry Capability Network Western Australia coordination ProjectConnect Onshore Long Lead Items Onshore Other Procurement Items Onshore Contracts Second tier opportunities Tender Process Request for Tender Web based tendering Sealed tender protocol

26 Onshore Procurement Strategy Tender Evaluation Criteria Technical conformance to specifications Quality Phase V benchmarking for repeat items Commercial Price / Terms and Conditions Delivery Capacity

27 Onshore Procurement Strategy Worldwide Logistics International Freight Forwarder Retains overall responsibility subcontract to specialist companies Export liaison Ocean freight (to fabrication yards, Fremantle or Dampier) Customs clearance AQIS compliance Warehousing / Marshalling in Perth Transportation to Pre Fab site Transportation from Australian suppliers works to site

28 Construction / Contract Strategy David Gwynne Foster Wheeler WorleyParsons Construction Director

29 Construction Scope of Work On Site Site Preparation / Temporary Facilities LNG and Condensate Tanks Civil Works Dredging Jetty Mechanical and Piping Electrical and Instruments Infrastructure Buildings Insulation and Painting Off Site Pre-Assembly / Module Yards Steel fabrication Pipe fabrication

30 Tangible Quantities (Indicative) Major Equipment pieces 500 Earthworks (Excavation & Backfill) 1,900,000 m3 Concrete (Foundations & Paving) 100,000 m3 Structural Steel 26,000 tonnes Above Ground Piping 200,000 m Underground Piping 15,000 m Underground Electrical Cable 350,000 m Above Ground Power & Control Cable 400,000 m Instrument Cable 500,000 m Lighting Cable 200,000 m Earthing Cable 100,000 m

31 Construction Execution Strategy On site works Maximise practical and cost effective prefabrication Early award of pre-assembly & site preparation and civil works Engage Erection Contractors to execute on-site work Direct work packages Discipline based Key Erection Contractors identified and pre-qualified early Key Erection Contractors involved in pre-construction detailed planning: Identification of interfaces between disciplines, Resource planning and Resource levelling, HSE, IR, ER and quality management plans. Commissioning and Start-Up assistance within scope of Erection Contracts.

32 Contracting Strategy Prefabrication & Pre-assembly: Maximisation of Australian content subject to global competitiveness. Competitiveness measured on basis of costs delivered at site (Burrup). Site Preparation, Civil and general services contracts: Tendered competitively within Australia. Key Above Ground erection contracts: Mechanical, Electrical & Instrumentation, Insulation & Painting. Pre-qualified Australian Contractors. All contracts: Selection criteria: proven capability & capacity to manage HSE, IR, ER, quality of work and productivity. Selection weighted towards indigenous participation via employment and subcontractor opportunities.

33 Karratha Business Opportunities Office Maintenance Building, plumbing, air-conditioning Site Maintenance and Misc. Work Minor temporary civil works Road maintenance Lifting Services Office Equipment and Supplies Construction Supplies Provision of non-permanently installed material Vehicle Supply and Maintenance Accommodation Concrete Supply

34 Indicative Construction Schedule O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J Site A Preparation Tanks Jetty Dredging Civil Works Mechanical and Piping Electrical and Instruments Insulation and Painting Site B Preparation Civil Works Buildings Module Deliveries Mechanical and Piping Electrical and Instruments Insulation and Painting Commissioning

35 Indicative Project Personnel on Site Indicative Project Personnel on Site 2000 Directs only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

36 Indicative Contract Plan Indicative Contract Plan Contract Plan Contract Package Supply Scope Planned Tender Mobilise On Site Site Preparation & Temporary Facilities Construct Q3-06 Q4-06 Civil Works Supply/Construct Q1-07 Q3-07 LNG & condensate Tanks Design/Supply/Construct Q3-06 Q1-07 Dredging Construct Q4-06 Q1-07 Jetty Design/Supply/Construct Q4-06 Q1-07 Piping & Mechanical Work Construct Q2-07 Q4-07 Electrical & Instrument Works Construct Q3-07 Q1-08 Buildings Design/Supply/Construct Q3-07 Q1-08 Telecoms Construct Q3-07 Q1-08 Infrastructure Construct Q3-08 Q1-08 Scaffolding Supply/Erect Q3-07 Q1-08 Offsite Pre-assembly/Module Yard Fabricate/Assemble Q4-06 Q2-07 Steel Fabrication Fabricate Q2-07 Q4-07 Piping Fabrication Fabricate Q2-07 Q4-07

37 Project Overview / Execution Rob Goodson Offshore Project Manager - Pluto LNG Project

38 Offshore fly-through

39 Offshore Facilities Location ~190 km offshore, water depth ~85m Riser Platform - Not Normally Manned Minimal Facilities Low Operation & Maintenance No Process Pigging of flowlines & trunkline Metering Chemical Injection Instrumentation, Controls, Communications Operated from Onshore Control Room Act as Hub for gas gathering from other fields

40 Platform Configuration Multiple risers & J-tubes for Pluto production and compression Two or more other fields (other Operators) Export trunkline & MEG line Other Facilities Flare Crane Helideck Emergency Shelter / Utilities Room Safety Equipment Provision for bridge connection to compression platform

41 Platform Substructure Foundations present major technical challenge Platform location driven by foundation issues Substructure type not yet selected Type selection by January 2007

42 Substructure Alternatives Launched Jacket Drilled & Grouted Piles Lift installed topsides Launched Jacket Ballasted Gravity Mat Lift installed topsides Self Installing Platform Ballasted Gravity Mat Topsides pre-installed

43 Offshore Procurement Strategy Scope EOS will provide purchasing, material control, expediting, inspection & logistics for offshore Equipment $ 10m Bulk Materials $ 20m Number of Packages 20 packages Supply strategy Frame agreements for subsea hardware, process control system, drilling consumables Competitive tendering equipment packages & bulk materials Full & fair opportunity for Australian industry where capable & competitive

44 Offshore Procurement Strategy Vendor Pre-qualification Process WEL / EOS / JPK / FMC Project performance Technical, Quality Assurance, Commercial, Capacity Industry Capability Network Western Australia coordination ProjectConnect Equipment packages and bulks Platform Fabrication Well Delivery Materials and Services Tender Process Request for Tender Web based tendering Sealed bid protocol

45 Offshore Procurement Strategy Tender Evaluation criteria Technical compliance to specifications HSE & Quality Commercial Price / terms & conditions Delivery Cost & schedule performance risk

46 Questions & Answers Moderator David Kobelke

47 Yaandina Family Services, Roebourne Moderator David Kobelke

48 Yaandina Family Services, Roebourne