Industry Capability Network. Taking advantage of operations and maintenance opportunities in the oil and gas industry.

Transcription

1 Industry Capability Network Taking advantage of operations and maintenance opportunities in the oil and gas industry 13 th May 2014

2 AGENDA Opening Address & setting the scene Colby Hauser, National Sector Manager Oil & Gas Pre-Workshop Survey Results Pete Walmsley, The Space Station Contractor's perspective Mike Nolan, UGL Contractor's perspective Errol Beere, Tox Free Sub-Contractor's perspective Murfie Siqueira, Alltype Engineering Winning O&M opportunities Nigel Dennis, Bid Write 10:15am Morning Tea Accessing O&M opportunities on O&G projects Ray Loh, ICN Enterprise Connect Don Geare, Enterprise Connect EFIC Leela Hanson, EFIC Business Foundations Phil Kemp, Business Foundations Q&A session 12:00pm Networking Lunch

3 Opportunities in Operations and Maintenance Opportunities in the Operations and Maintenance phase present tremendous opportunity for local companies. Estimated A$3-4 billion annual expenditure Project life extends over many years

4 SME OPPORTUNITY GUIDE AUSTRALIAN LNG OPERATIONS AND MAINTENANCE CONTRACTING ACTIVITIES

5 Taking Advantage of Operations and Maintenance Opportunities in the Oil and Gas Sector Business Unleashed May 2014 Pete Walmsley customer insights + marketing strategy

6 WHO? BUSINESS SECTOR Engineering Professional Services Manufacturing Services customer insights + marketing strategy

7 WHO? BUSINESS EXPERIENCE Two thirds of participating businesses have been operating for more than 10 years customer insights + marketing strategy

8 WHO? Permanent Staff Diversity customer insights + marketing strategy

9 WHO? Contract Staff Most commonly do not employ contract staff Computers, Technology and Telecommunications Services Engineering Firms customer insights + marketing strategy

10 WHO? APPRENTICES AND TRAINEES Manufacturing Building and Construction Contractors Building Trade Services Almost half had no apprentices or trainees customer insights + marketing strategy

11 WHO? STAFF CHANGE OVER THE PAST 12 MONTHS Most commonly marginally increased staff numbers across industries customer insights + marketing strategy

12 WHO? ACCREDITATIONS Many businesses don t have accreditations 25% not sure customer insights + marketing strategy

13 WHAT? UNDERSTANDING 40% do not have a clear understanding of the specific needs of the sector 42% do not know what they need to do with their business to be successful customer insights + marketing strategy

14 WHAT? MARKETING Strongest suitable image understand competitors professional website Weakest marketing strategy customer insights + marketing strategy

15 WHAT? HUMAN RESOURCES Strongest shared goals and vision skills in appropriate areas Weakest job descriptions customer insights + marketing strategy

16 WHAT? HEALTH AND SAFETY Strongest hazard strategies in place staff identifying hazards Weakest safety training provided customer insights + marketing strategy

17 WHAT? RISK MANAGEMENT Strongest safety financial non-compliance Weakest succession risk loss of information customer insights + marketing strategy

18 WHAT? FINANCE Strongest costs and margins managing cash flow Weakest accessing finance customer insights + marketing strategy

19 WHAT? GOVERNMENT SUPPORT Weak support available to enter the industry and/or expand in the industry customer insights + marketing strategy

20 WHAT? SOURCES OF NEW AND EXISTING PROJECT OPPORTUNITIES Project Connect ICN Gateway Networking Forums Industry Journals customer insights + marketing strategy

21 WHAT? MAIN BUSINESS ADVICE IN CAPITALISING ON NEW PROJECTS No One (27%) Networking Forums (18%) Project Connect (11%) Accountant (10%) customer insights + marketing strategy

22 WHO? TURNOVER (past 12 months) INCREASED Professional Services Building and Construction Contractors Computers, technology and telecommunication services DECLINED Education and Training Health, medical, Allied health, counselling DECLINED OR INCREASED Engineering Services VARIED Manufacturing LIMITED CHANGE Building Trade Services customer insights + marketing strategy

23 WHAT? TURNOVER (next 12 months) INCREASE Professional Services Building Trade Services Education and Training VARIED Engineering Services Building and Construction Contractors Manufacturing Computers, technology and telecommunication services Health, medical, Allied health, counselling customer insights + marketing strategy

24 WHAT? SUPPORTED BUSINESS GROWTH Great Team of Staff (41%) Product Quality (39%) Targeted Marketing (39%) customer insights + marketing strategy

25 WHAT? HINDERED BUSINESS GROWTH Increased Competition (41%) Large Tender Access (38%) Customer Confidence (39%) customer insights + marketing strategy

26 WHAT? CHALLENGES Identifying Key Contacts (80%) Overseas Prices (43%) Industry Experience (36%) customer insights + marketing strategy

27 WHAT? SUPPORT SUCCESS Market Information (67%) Strategic Marketing (65%) Understanding Clients (54%) customer insights + marketing strategy

28 WHAT? FINAL COMMENTS Small business assistance and getting a fair go Importance of buying local Accessing key personnel Communicating requirements Accreditation required Oil and gas experience customer insights + marketing strategy

29 WHAT IS A BRAND? Not a name Not a logo Not a website Not marketing collateral EXPERIENCE REPUTATION customer insights + marketing strategy

30 WHAT IS A BRAND? IT S WHAT THEY SAY ABOUT YOU WHEN YOU ARE NOT AROUND customer insights + marketing strategy

31 BRAND POSITIONING? What do you stand for? Strong brands own an idea, concept or benefit in the mind, heart, soul and life of the consumer. customer insights + marketing strategy

32 SUCCESSFUL BRAND BUILDING DESIRABLE = relevant to consumer motivations No one likes people who only talk about themselves, yet brands do it all the time. customer insights + marketing strategy

33 SUCCESSFUL BRAND BUILDING DIFFERENT = genuinely distinctive from competitors offerings. Our brains act as filters to protect us from too much information. customer insights + marketing strategy

34 SUCCESSFUL BRAND BUILDING DEFENDABLE = constructed from ideas that the brand can deliver People vote with their feet when promises are not kept.. customer insights + marketing strategy

35 customer insights + marketing strategy

36 Sectors & Industries Our client sectors & industries COVER SLIDE: If you see this text, you must copy the swish graphic from a pre-built COVER slide and onto this slide. This text will no longer be visible if done correctly.

37 UGL today A service company focussed on outsourcing and supporting essential infrastructure, resources and property assets FY13 Revenue People (including contractors) Countries A$4.2 B 54, Our values safety, integrity, outstanding client service, teamwork, honesty and openness in communication Sectors Regions Clients Services Communications Defence Industrial Power Property Rail Resources Social Infrastructure Transport Water Australia New Zealand Asia Americas EMEA Blue-chip companies Government Private enterprise Public institutions Asset management Commissioning Construction Decommission Engineering Fabrication Maintenance Manufacture Operations Parts, Products and Technical Services Project management Property Services Refurbishment and Upgrades

38 Our end-to-end delivery model How we deliver Our business operations are Engineering, Operations & Maintenance & Property Services **. In all, we have over 220 sites across Australasia, Europe, Americas, Middle East and Africa. ** Our end-to-end delivery model does not include our Property Services business operations Sectors & Industries Where we deliver Power Power Generation Power Transmission Substations Power Distribution Water Municipal Water & Wastewater Industrial Water & Wastewater Irrigation & Reticulation Rail Freight Passenger Technology Systems Resources Minerals & Metals Oil & Gas/Hydrocarbons Chemicals Property Corporate Real Estate Facilities Management Transport Road Systems & Tunnels Marine Communications Telecommunications Broadcast Social Infrastructure Government Commercial Industrial Industrial Processing Defence Defence Matériel Defence Estate

39 Oil & Gas -Footprint

40 Chevron ABU Brownfield Maintenance Contract Overview Awarded - December 2013 Location: Barrow Island WA Oil assets and Gorgon LNG, Thevenard Island -WA Oil assets and Onslow Wheatstone LNG Project Duration: Initial Contract term is 5 years, with year extensions Contract Scope: Provision of maintenance services, minor capital works and turnaround execution for Chevron ABU. Multi-disciplined scope covers mechanical, E&I, scaffolding and fabric maintenance. Services will progressively extend to Gorgon and Wheatstone LNG assets as handed over from construction and commissioning. Outsourcing Opportunities (Gorgon and Wheatstone) Fabrication structural, piping, platework HVAC services

41 Important notice This presentation and any oral presentation accompanying it: is not an offer, invitation, inducement or recommendation to purchase or subscribe for any securities in UGL Limited( UGL ) or to retain any securities currently held; isforinformationpurposesonly,isinsummaryformanddoesnotpurporttobecomplete; is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor, potential investor or any other person. Such persons should consider seeking independent financial advice depending on their specific investment objectives, financial situation or needs when deciding if an investment is appropriate or varying any investment; may contain forward looking statements. Any forward looking statements are not guarantees of future performance. Any forward looking statements have been prepared on the basis of a number of assumptions which may prove to be incorrect or involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of UGL, which may cause actual results, performance or achievements to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Any forward looking statement reflects views held only as of the date of this presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, UGL does not undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation and any oral presentation accompanying it. To the maximum extent permitted by law, UGL and its related bodies corporate, and their respective directors, officers, employees, agents and advisers, disclaim and exclude all liability (including, without limitation, any liability arising from fault or negligence) for any loss, damage, claim, demand, cost and expense of whatever nature arising in any way out of or in connection with this presentation and any oral presentation accompanying it, including any error or omission therefrom, or otherwise arising in connection with any reliance by any person on any part of this presentation and any oral presentation accompanying it.

42 Contractor s Perspective ICN WORKSHOP 1

43 j1 Toxfree One of the largest industrial service and waste management businesses in Australia strategically located operations throughout Australia Employs over 1200 people nationally Diverse range of industrial and waste services to all market sectors Growth -via strategic acquisition, green field development and organic

44 Slide 43 j1 j.dixon, 21/11/2013

45 44 Vision Australia's leading waste management and industrial services company Darwin Derby Broome Wyndham & Kununurra Fitzroy Crossing Cairns Townsville Barrow Island Karratha Port Hedland Tom Price NT QLD Mackay Rockhampton Henderson Kwinana Bibra Lake WA Murrin Murrin Kalgoorlie SA Coopers Plains Toowoomba NSW St Marys Roma Gillman Wodonga VIC Williamstown Campbellfield Laverton North Mulgrave Gladstone Narangba Northgate Oxley Yatala Beresfield Waste Services Industrial Services Hazardous Waste TAS Ulverstone Launceston Hobart

46 A Diversified Business Revenue by Market Sector Estimated Industry Segmentation of FY2014 revenue 45 Less than 1% of revenue is generated from mining construction activities Government 18% Manufacturing 12% Oil and Gas 22% Over 40% of revenue is leveraged to the broader Australian Economy Mining 14% Commercial 25% Infrastructure 10% Note 1. Includes retail, agriculture, hospitality & leisure, hospitals, education, and other waste companies

47 Current LNG Contracts 46 Toll Energy - Total Waste Management - Gorgon Project, Barrow Island Waste Management Services including hire and maintenance of bins (Onshore and Offshore), management of recyclable and non-recyclable (hazardous and non-hazardous) wastes and quarantine management. Includes associated upstream activities at Perth and Dampier Supply Bases Since 2009 Apache Energy Waste Management Services North West Shelf Waste Management Services including general, recyclable, hazardous waste collection and disposal, industrial tank cleaning and vacuum loading. Includes Varanus Island Since 2010 APLNG Waste Management Services Curtis Island, Gladstone Waste Management Services including general, recyclable, hazardous waste collection and disposal, industrial tank cleaning and vacuum loading. Since 2011

48 Current LNG Work 47 Thiess Preferred Supplier, Waste Services National Woodside Energy Industrial Services and Marine Tank Cleaning Greater Western Flank Drilling Campaign, Okha FPSO Santos Waste Services and Marine Tank Cleaning Services Dampier, Onslow Shell Australia Waste Services and Marine Tank Cleaning Services Dampier, Broome, Darwin Inpex Waste Services and Marine Tank Cleaning Services Dampier, Broome, Darwin BHP Waste Services Dampier, Onslow

49 Working with the LNG Sector Our impression 48 Challenging and Demanding Detailed and robust systems and procedures; Numerous departments and personnel movements; Highly regulated, high visibility; Constant change. Efficient, professional, can-do service Detailed and robust systems and procedures; Licensing and insurances; Adaptable, flexible, knowledgeable; Transparent and reliable; Efficient, innovative, solution provider. Rewarding Scale of work; Scale of networks; Get it right.

50 Upcoming work 49 Award of Total Waste Management contract with Chevron Australia 5 year contract + 5 year option, estimated at $170m over the initial 5 year term Significant expansion of services within Queensland and Western Australia -Acquisition of WanlessEnviro Services and Racelogin Queensland -complementing Toxfree stotal Waste Management Strategy Acquisition of Absolute Liquid Waste in Toowoomba servicing Coal Seam Gas (CSG) Inpex Ichthys Operations Total Waste Management, Darwin/Broome Shell Prelude FLNG Waste Management and Industrial Cleaning Services, NT/Offshore BHP Macedon Gas Plant Waste Management Services, Onslow

51 Thank you

52 Our Strategy on winning contracts By: Murfie Siqueira

53 Introduction to Alltype Engineering Privately owned Fabrication, Site installation & Maintenance services Over 100 employees

54 Our Strategy Technology Accreditation Continuous Improvement

55 Technology Pipe Cutting Coping Robot Beamline Plate Profiling Deburring Machine

56 Accreditation ISO 9001:2008 AS/NZS AS3834.2

57 Commitment to Continuous Improvement Operational excellence training programme Lean manufacturing work methods Improve production efficiencies

58 Our Future Third bay for heavy engineering and modularisation Supplement Australian labour force Expansion of operational office space into second floor Ongoing training and upskilling

59 Thankyou

60 Winning O&M Opportunities Maximising Tender Success: Four Key Factors Henderson, 13 th May 2014 Bid Write Pty Ltd 2014 Presenter: Nigel Dennis

61 Type #1: Sellers 60

62 Type #2: Buyers 61

63 Stand Up If 62

64 1. Strong Positioning 63

65 What is Positioning? 64

66 Positioning to Win the 3 C s Customer Issues - what matters and who decides? Competitors - strengths and weaknesses Capability - assessment, tactics to implement 65

67 Your Capability / Proposition What is Your Focus Business or Clients? What s your business? We provide financial services. What you do for clients? We improve our clients bottom lines. We make them rich! Challenge: What is Your Focus? What service do you provide? How do you benefit clients? 66

68 2. Compliance 67

69 Compliance Practical Tips Follow instructions Use buyer templates Find hidden requirements Make evaluation easy Compliance doesn t win only stops you losing 68

70 Is non-compliance OK? So when is it OK to bend the rules? Speed limits? Meeting starts? RFT questions? 69

71 Compliance an exercise... Provide a draft quality management plan. A. Provide upon award B. Provide a previous example C. Provide an outline or proposed TOC D. Provide a tailored draft plan E. Provide any of the above 70

72 3. Persuasion 71

73 Page Layout: Content & Presentation How content is presented can influence key take-away messages. This is because content is obviously very important but it needs to be presented well to gain attention. Different presentation of content can change emphasis, determine what is read and when, and can highlight key messages. To get the right balance of key messages and technical detail, content and presentation must be considered together. 72

74 Content & Presentation Belong Together Content: obviously very important Presentation: changes emphasis, determines what is read & when, highlights key messages Balance:content and presentation of key messages and technical detail must be considered together How content is presented can influence key take-away messages 73

75 Describing Graphics Avoid This is a Cow titles Figure 1:Our cows Figure 1: Better Milk Our grass is greener, our cows are healthier and our milk is better 74

76 4. Pricing 75

77 Alternative vs Option Pricing Alternative Option Separate to complying Part of complying 76

78 Alternative vs Option Pricing Alternative Option Separate to complying Part of complying Must be better Provides choice 77

79 Alternative vs Option Pricing Alternative Option Separate to complying Part of complying Must be better Quantify benefits Provides choice Identify benefits 78

80 Alternative vs Option Pricing Alternative Option Separate to complying Part of complying Must be better Quantify benefits eg. blue notred Provides choice Identify benefits eg. small or large red 79

81 Alternative vs Option Pricing Alternative Option Separate to complying Part of complying Must be better Quantify benefits eg. blue notred Provides choice Identify benefits eg. small or large red 80

82 Summary: Four Key Factors Strong Positioning Good Compliance Persuasive Story Well Priced 81

83 Proposal Best Practice -APMP Association of Proposal Management Professionals 82

84 Questions? Perth Brisbane Melbourne (soon!) connect with us 83