2017 ACTIVITY REPORT

Transcription

1 217 ACTIVITY REPORT

2 3 Our strategy and values Be the standard in underground storage, for all techniques and products. Attain perfection in terms of Hygiene, Safety and the Environment. Earn the confidence of our shareholders, our customers and our partners. Be a player in energy transition by offering new possibilities for storing gas and renewable energy. Participate in the development of our employees, support them in their professional careers and facilitate the transfer of knowledge. A WORD FROM THE CEO In 217, even though Average Oil Prices have increased by 25%, the level of investment has remained low in the Oil & Gas Industry. As a consequence and due to the high level of uncertainties, the Underground Storage Market has been impacted, resulting in a general lower level of activity worldwide. Within this difficult context, Geostock Group has remained resilient and succeeded in maintaining relatively good performance given the adverse situation faced by our Industry. In addition, some relevant opportunities have materialized, offering some promising prospects for the near future. Among them, the Shalapa Project in Mexico has started. It is operated by Geostock and constitutes a showcase for the development of new identified projects in Mexico as well as worldwide where Geostock can offer integrated and packaged services from engineering to operation. In the Middle East, given the geopolitical tensions in the region, Geostock is involved in major underground hydrocarbon storage projects. Innovate in order to prepare future storage facilities. Contents 2 Our strategy and values 3 A word from the CEO 4 Organization and teams 6 Key figures 8 Our commitments 16 Our activities 2 Our expertise 24 Our innovation program 26 Contacts Geostock SAS has been affected by delay or postponement of several major projects, resulting in performance below expectations even though the profitability has remained acceptable, UGS GmbH, despite a slack German Market and a lower level of activity, maintained decent performance, ˈ ˈ Geostock Asia Pte Ltd showed very good performance thanks to major projects in the Middle East that materialized, ˈ ˈ Geostock Sandia LLC has benefited from a more dynamic market in the US for well disposal, which did not result in higher profitability due to planned exceptional expenditures, Geostock de México SA de CV, following the start-up of the Shalapa project and the recruitment of a full Operation Team, delivered very good results, ˈ ˈ Once again, the level of activity of Geogreen SA remained low due to the reduced market in the field of CO 2 storage. Geostock, with the support from its shareholders Entrepose and TOTAL, has reinforced its efforts to promote and develop major projects that will secure its future. Turkey, that has a strategic position on the gas corridor going from the Caspian Sea to Europe, is a promising country where Geostock is developing several major underground gas storage projects. Geostock is placing a high priority on developing Operation and Maintenance Services internationally. Meanwhile, Research & Development efforts in Energy Storage (mainly Compressed Air and Hydrogen Underground Storages) have been continued to anticipate future projects. In spite of the complex environment facing our Industry in 217, oil prices seem to stabilize at a decent level, which should impact the investment in the Oil & Gas Industry. With its 5 years of experience, its professional and dedicated staff as well as the mutual Trust that we enjoy with our Customers, we are confident that the Geostock Group will be successful in seizing new opportunities and developing its activity in the near future. PASCAL BAYLOCQ Managing Director Geostock Holding President and CEO Geostock SAS R&D efforts are maintained on Energy Storage Workover - USA

3 4 ORGANIZATION AND TEAMS EXECUTIVE COMMITTEE Geostock is a subsidiary of Entrepose Group (Vinci Group) and Total and is established on every continent through its worldwide subsidiaries, offering proximity services to its clients. PASCAL BAYLOCQ President and CEO DOMINIQUE LEBTAHI Vice President Operations & Development GILLES LE RICOUSSE Vice President Operations & Development LOUIS LONDE Technical Director 9% 1% THIERRY VORGERS Legal Director VINCENT LE QUELLEC Vice President Administration & Finance FABIENNE SOORIAH Vice President Business Development CÉLINE COSQUER Human Resources Director MANAGEMENT COMMITTEE 1% DO BRASIL ASIA DE MEXICO NORTH AMERICA 1% 1% 1% 1% 6% 95,5% 2% UGS VGS 4% GEOGREEN IFPEN 3% BRGM 1,5% GEOSUD CNP ASSURANCES 98% 1- Carlos GOMEZ MONTALVO Director Sales & Marketing 2- Alain HERFRAY Operation Manager 3- Lotfi MOUNEDJI Director Business Development 4- Gilles MUNIER Director Projects Division 5- Flore OSTAPOFF Director HSE & Permitting Department SUBSIDIARIES MANAGEMENT TEAMS TURKISH BRANCH 1% STONORGAZ BANYAN CAVERNS STORAGE SERVICES 1% 35% SANDIA US FEDERAL SERVICES 1% 1% GEOMETHANE VTS 45% JCPL 2% GEOSUD 5% STORENGY 5% Matthias HERTER & Robert SCHELER Senior Managing Directors UGS GmbH Berlin (GERMANY) Donald STEHLE President and CEO SANDIA, LLC Houston, Texas (USA) Jintang YAN General Manager ASIA Pte Ltd (Singapore) Gilles MUNIER CEO GEOGREEN SA Paris (France) Jonathan ROYER-ADNOT Country Manager DO BRASIL Ltda. Rio de Janeiro (Brazil) Fabienne SOORIAH Director DE MEXICO SA de CV (Mexico)

4 KEY FIGURES % 58% KEY FIGURES % 2 KEY FIGURES BACKLOG 125 M end 217 KEY FIGURES GROUP CONSOLIDATED TURNOVER (M ) OPERATING INCOME 1.87 M % 14% CASH AFTER LONG TERM DEBTS (M ) WORKFORCE 52 people 58% % 58% GROUP 2 SALES % % 14% % NATURAL GAS % PER ACTIVITY (% OF GROSS INCOME) NATURAL 2GAS % 17% EFFLUENTS & OTHERS 2% 14% GROUP SALES PER PRODUCT LINE (% OF GROSS INCOME) KEY FIGURES 216 LIQUID 22% LIQUEFIED LIQUID 22% % 15% % WELL SERV 33% 6 5 WELL 1 SERVICES ENGINEERIN 15% % NATURAL 3 GAS 47% NATURAL G EFFLUENTS & OTHERS 13% NATURAL GAS 41% 37% EFFLUENTS & OTHERS 2% 11% EFFLUENTS & OTHERS 2% HEADCOUNT PER ACTIVITY 37% ADMINISTRATION 12% LIQUEFIED 1 LIQUID 17% 22% LIQUEFIED 8 17% 39% NATURAL GAS 47% EFFLUEN & OTHE 1 ENGINEER EFFLUENTS & OTHERS 13% WELL SERVIC 1 EN ADMINIST % % ADMINISTRATION 12% % WEL ENGIN AD 28% 58% NATURAL GAS 41% LIQUID 22% 11% ADMINISTRATION 12% 33% 52% 39% NATURAL GAS 47% Surface facilities - Diadema, Argentina LIQUID 25% WELL SER ADMIN

5 8 Realization of an HSE visit OUR COMMITMENTS Our main value is Safety and we remain mobilized at all levels to implement our Hygiene, Safety and the Environment policy. Our permanent objective Zero Lost Time Accident Zero Major Accident Zero Environmental Damage

6 1 11 OUR COMMITMENTS Quality Management Geostock SAS, France and UGS GmbH, Germany are ISO 91: certified. Health, Safety, Security and Environmental Awareness has always been and remains a core value and a priority policy for all Geostock Activities. HUMAN RESOURCES Since we believe that our employees represent our knowledge and expertise, we implement a Human Resources policy that seeks to support their development and offer them long-term prospects. Among the actions that were started or continued in 217, Geostock endeavoured in particular to: Site Operation & Maintenance Géosel, Manosque, France To achieve its permanent objectives, Geostock continues to implement an ongoing process of constant improvement and is committed to promoting the HSE FUNDAMENTAL RULES with a focus in 217 on HSE vigilance in daily tasks and security of access and data. Supported by a strong HSE Management System and a network of professional HSE Teams working in the various Geostock companies, Geostock endeavours to apply HSE standards at every stage of projects (design, construction and operation): HSE in engineering & construction: continuous development of a system to integrate HSE concerns into all project processes, SAFETY at operational plants and sites under construction: contingency plans updated and tested to deal with any hazardous situations occurring on a site operated by Geostock. Three drills have been held, activating the Crisis Centre at Geostock headquarters, ˈ ˈ SECURITY at operational plants: specific security action plans have been set up to reinforce security at all plants, ˈ ˈ ENVIRONMENT: monitoring the environmental impact of all projects, specifically during pipeline construction. Geostock is used to managing ecological studies involving fauna and flora at every step of a building project, with the aim of protecting the environment and limiting / reducing the impact of works. Foster sustainable employability, realised in 217 through a 1% rate for permanent work contracts in mainland France and a rate of 85 to 9% in the other regions, with a reliable turnover and team and expert retention, Increase the percentage of women in the group, which currently accounts for 31% of the staff, with 27% of women holding management positions, Continue its training efforts with a sustained rate of 4% of the payroll, mainly in France, Improve knowledge transfer to ensure knowledge retention and handle the significant number of employees in engineering and operations activities entering retirement, Ensure the large-scale recruitment and extensive training of the operations staff following the opening of our Geostock subsidiary in Mexico. Salt caverns Engineering STRONG HSE COMMITMENT AT NEW LPG STORAGE FACILITY IN MEXICO HSE was incorporated during the entire plant construction of a new LPG storage facility in a salt-leached cavern at Shalapa (Mexico): in pre-commissioning, commissioning and start-up phases. The operation of the facility is now undergoing Geostock HSE system management improvement. REWARDED FOR ITS HSE RESULTS On 13th May, the Sennecey-le-Grand storage facility in France, operated by Geostock and its owner completed its 21th year (i.e. 767 days) without Lost Time Accident. This result is the confirmation of the commitment and the professionalism of everyone in the daily compliance with HSE good practices.

7 OUR ACTIVITIES A PRESENCE IN 26 COUNTRIES IN 217 b Argentina b Australia b Belgium b Brazil b Bulgaria b China b Congo b France b Georgia b India b Italy b Japan b Mexico b Morocco b Oman b Portugal b Spain b Singapore LPG STORAGE IN SHALAPA (VERACRUZ STATE) Client: ASSE b South Korea b Sweden b Switzerland b Turkey b United Arab Emirates b United Kingdom b United States b Vietnam The underground storage facility of Shalapa, owned by CYDSA is a Liquefied Petroleum Gas (LPG) facility in a salt-leached cavern. As part of an EPC contract managed by Entrepose, Geostock provided engineering services for CYDSA s subsidiary ASSE for the underground part comprising a salt cavern and well, and project managing assistance during construction supervision, first gas filling and performance tests. In 217 with the beginning of the commercial operation of the storage facility, 37 people from Geostock s subsidiary Geostock de México operate this facility on a long-term contract. USA Client: Parsons for DOE-SPR Subsurface expertise for life extension project USA CALEDONIA (MS) Client: ENSTOR Workovers and remedial works on seven storage wells. UNITED KINGDOM WILTON Client: Sabic Risk assessment study. FRANCE PETIT-COURONNE Client: Shell France Realization of the shutdown works of a propane-mined storage cavern. FRANCE MANOSQUE Client: Géosel Full operation site management. FRANCE LAVÉRA Client: Geogaz Full operation site management. BRAZIL SANTANA Client: Stogas Front End Engineering & AMOA Drilling activity & Subsurface. GERMANY EPE-GRONAU Client: Solvay Recompletion of a conventional oil storage facility in order to be in compliance with risks and environmental requirements. GERMANY EPE Client: Air Liquide Full Helium storage operation. ITALY CORNEGLIANO Client: Ital Gas Storage Technical assistance and supervision of subsurface construction and 3D seismic survey management. UAE ABU DHABI GEORGIA SAMGORI SOUTH DOME Client: GOGC Engineering and supervision of exploration works. TURKEY TUZ GÖLU Client: TCC CO 2 characterization and leaching program and support of six phase-2 caverns. SINGAPORE Client: JTC Full operation site management through BCSS Joint Venture JAPAN KURASHIKI & NAMIKATA Client: JOGMEC Technical assistance to storage operation. SOUTH KOREA ULSAN Client: SK GAS Technical assistance to storage operation. LPG STORAGE FACILITY IN YANTAI - CHINA As part of the underground mined propane storage facility (1.2 Mm 3 in two caverns) at Yantai in Shandong Province, Geostock received a contract from WANHUA Chemical Group for the review of the feasibility study, the complementary site investigation, as well as assistance with basic design in construction supervision. LPG STORAGE FACILITY IN CAI MEP - VIETNAM At the end of the year, Geostock was awarded a contract with the Korean company HYOSUNG Vietnam Co, Ltd. for the realization of an underground LPG storage in mined caverns (1 propane cavern of approximately 34. m 3 and 1 butane cavern of approximately 14. m 3 ) in the industrial zone of CAI MEP in the province of Bà Rja-Vũng Tàu in the south-east of the country. HYOSUNG Vietnam Co, Ltd is a major South Korean company, which plans to build a new petrochemical plant in Vietnam that will use propane as a raw material. Geostock services concern exploration studies as well as general design studies that began at the contract s signing in Septembre 217 and will last for 12 months. SQUARE-F Liquid hydrocarbons SQUARE-F Liquefied Hydrocarbons SQUARE-F Natural Gas SQUARE-F Others ARGENTINA Client: Tecpetrol Site selection and feasibility study.

8 18 UGS in construction. Cornegliano, Italy. Ital Gas Storage S.p.A. OUR EXPERTISE Geostock proposes a comprehensive offer throughout the full storage life cycle of an underground storage project as well as tailored solutions for client s needs through the expertise of its teams. Leaching wellhead. Tuz Gölu, Turkey

9 2 21 SERVICES SERVICES Ranging from Consulting Engineering and Design studies to Construction supervision. ECONOMIC STUDIES b Market survey and evaluation, b Planning studies, b Economic feasibility assessment, b Due diligence, b Business model evaluation. DESIGN b Orientation and prefeasibility studies, b Site selection, b Exploration, b Feasibility studies, b Project planning, b Reservoir and Caverns engineering, b Permitting, b Conceptual & Basic design, b Modelling. CONSTRUCTION b Engineering, b Detailed design, b Tendering, b Procurement, b Construction management, b Commissioning and start-up. DRILLING, WORK OVER, SOLUTION MINING b Drilling, b Well logging, b Well completion, b Workovers, b Solution mining, b Brine, CO 2 and effluent disposal in deep aquifers, b Operation of leaching plants. Control Room. Shalapa, Mexico From specific services to Full Operation Management. Geostock offers three different operating service models that enhance storage performance while ensuring the integrity of installations. Adapted to each customer s needs, they are the result of over 5 years of experience in underground storage facility operation and maintenance. Technical support services Participation in storage operation Examples of services: b Storage Operations Management, b Storage facility Monitoring, b Asset Technical and Integrity Management, b Corrosion studies, b Technical studies on equipment and facility, Geostock provides O&M services in more than 2 storages in the world, in mined or salt caverns as well as in depleted or aquifer storages, for LPG, Oil products or Natural Gas. Full storage operation management b Well design and operations, b Storage audits, b Health, Safety and Environment, b Site decommissioning and closure. It is also involved in the operation of Jurong Rock Caverns storage in Singapore through its 35% shareholding in Banyan Caverns Storage Services, operator of the storage. The company has operated Geosel and Geogaz storage facilities in France for nearly 5 years. Geostock has also just started to fully operate a new salt cavern storage in Mexico.

10 22 23 TECHNICAL KNOW-HOW Geostock benefits from a full range of skills, with over fifty years of know-how and expertise in underground storage technologies, for all techniques and all products. Multidisciplinary expertise Geostock s expertise in underground storage covers: Subsurface Technologies (Geology, Geophysics, Geomechanics, Hydrogeology, Reservoir Engineering, Civil Engineering, Mining and Solution Mining), Surface Technologies (Piping, Pumps, Pressure Vessels, Process, Electricity/Instrumentation, Control Systems, Corrosion), Drilling and well services, Construction Management, Operation and Maintenance, Integrity Management, Closure and abandonment of underground gas storage facilities. Geostock is an active member of several worldwide scientific and technical societies in its field, such as SMRI (Solution Mining Research Institute), ISRM (International Society for Rock Mechanics), or SPE (Society of Petroleum Engineers). Leached-salt caverns Salt cavern storage requires the presence of a significant salt deposit. The cavern is created by dissolving the salt in fresh water (leaching). Its shape and volume are established by sonar readings. The caverns are elongated in shape, several hundred meters high and several tens of meters in diameter. They are usually located at a depth of between 2 and 2, meters and can have a volume of several hundred thousand cubic meters. The stability of the cavern is guaranteed by the right choice of geometry and continuous monitoring of the pressure, temperature and flow during operation. Its tightness results from the intrinsic properties of salt. PRODUCTS STORED Liquid hydrocarbons Liquefied hydrocarbons Natural gas Compressed air Hydrogen Effluents Aquifers and depleted fields A field of this type is a porous, permeable geological formation (the reservoir) a depleted field or an aquifer - overlain with an impermeable stratum and structured so as to ensure lateral containment. It is usually located at a depth of between 5 and 2, meters. During the storage phase, the gas is compressed and injected into the reservoir in gaseous state through a series of production wells. During recovery, the gas is withdrawn under the effect of its own pressure. Equipment on the surface includes specifically compression, processing and metering facilities. Monitoring wells are used to check the position of the gas and the tightness of the reservoir. PRODUCTS STORED Natural gas Compressed air Hydrogen CO2 Effluents Mined-rock caverns LEACHED-SALT CAVERNS AQUIFERS AND DEPLETED FIELDS MINED-ROCK CAVERNS A mined cavern consists of one or more tunnels carved out of the rock (limestone, chalk, granite, etc.). The tunnels are usually located at a depth of 5 to 2 meters. Generally unlined, their tightness is based on the principle of hydraulic containment, which defines the depth at which the cavern needs to be located to allow for the water naturally contained in the surrounding rocks to flow constantly towards the cavern at all points, thus containing the product inside the storage cavern. The mined-cavern technique - both with and without a lining, as applicable may also be applied to the cryogenic storage of gases having a liquefaction point below -1 C. PRODUCTS STORED Liquid hydrocarbons Liquefied hydrocarbons Natural gas (compressed or liquefied)

11 24 O&M services. Lavéra, France OUR INNOVATION PROGRAM To improve Safety, Reliability & Performance and to address new markets. The Geostock 217 innovation programme has been organized within two areas of focus: The first area aimed at improving tools and know-how in terms of Safety, Reliability & Performance. This allows Geostock to offer better services to its clients when designing or operating underground storages. Existing tools have been upgraded. This is the case of GUSTS V2, Geostock thermodynamic simulator for gas salt caverns. GUSTS V2 is now currently used for the follow-up of existing caverns or for designing new caverns, including for new products like hydrogen. A new version of the well integrity management system (WIMS) tool has been also issued and used on industrial applications. An Asset Integrity Management Screening Tool has been tested on Reservoir Storages. The Asset Integrity Management System was also adapted to Mined Caverns in a promising step to build a comprehensive and efficient service framework. A series of tests on various biocides have been performed on various water qualities and various steel samples. This was intended to compare the efficiency and/or detrimental effects of biocides, which are used in mined caverns (shaft water, sump water, water curtain water, etc.). Long duration tests were launched in mid-217. The results will be available in 218. in 217. Progress was made in coupling finite-element mechanical tools with diphasic-flow simulation tools. This can be used for CH 4 or for CO 2 reservoir modelling in porous media. The second area aimed at addressing the rising market of decarbonized energy storage. Collaborative research on Hydrogen storage (Rostock-H) and on power-topower (Fluidstory, with the Electrolysis- Methanation-Oxycombustion concept) was continued. Other programmes were launched with Entrepose on Hydrogen storage in order to optimise the whole power-to-power value chain, salt caverns being the middle links between electrolysers and fuel cells. Research on Compressed Air Energy Storage (CAES) continued with a focus put on well optimization. Geogreen is also extremely active in R&D, with subsidised collaborative R&D projects. Three projects are currently underway (ENOS, CO 2 DISSOLVE, FLUIDSTORY), focusing on the following innovative directions: coupling of geomechanical and fluid, dynamics digital simulation tools, quantification of risks, investment strategy estimates based on real options. Two main areas of focus: Safety, Reliability & Performance Decarbonized Energy Storage Geostock s effort to improve hydromechanical simulation capabilities continued 3d cavern modeling

12 26 CONTACTS FRANCE SAS 2, rue des Martinets CS RUEIL-MALMAISON Cedex Tel.: Fax: Pascal BAYLOCQ President and CEO GEOGREEN SA 2, rue des Martinets CS RUEIL-MALMAISON Cedex Tel.: Fax: Gilles MUNIER CEO BRAZIL DO BRASIL Ltda. Avenida Rio Branco, n 2, 3 andar, centro, Cidade do RIO DE JANEIRO RJ, CEP: 29- Tel.: Jonathan ROYER-ADNOT Country Manager GERMANY UGS GmbH Berliner Chaussee MITTENWALDE Tel.: Fax: Matthias HERTER Robert SCHELER Senior Managing Directors MEXICO DE MÉXICO SA de CV Av. Paseo de la Reforma 3, piso 3 Col. Juárez, Del. Cuauhtémoc 66 CIUDAD DE MÉXICO Fabienne SOORIAH Director SINGAPORE ASIA Pte Ltd. 3 International Business Park #3-27 Nordic European Centre SINGAPORE Tel.: Fax: Jintang YAN General Manager TURKEY ANKARA c/o OPALIT Tic. ve San. Ltd Şti. Kırçiçeği S G.O.P ANKARA Tel.: (3 Hat) Fax: Haluk AYDEMIR Branch Manager USA SANDIA, LLC 886 Fallbrook Drive HOUSTON, Texas 7764 Tel.: +1 (346) Fax: +1 (832) Donald STEHLE President and CEO Photos credits: Geostock photo library - Franck Beloncle - Adrien Vaucher - Géogaz Lavéra - Géosel Manosque - Ital Gas Storage S.p.A.

13 Mined-Rock Storage - Inchon, South Korea 2, rue des Martinets - CS Rueil-Malmaison Cedex France Tel.: Fax: Design: Dimitri Henchoz - Printing: Cydergies