ACS and Oil Market Mateo Rodriguez-Sanchez 1
INDEX Oil market ACS in the sector Experiencies and Capabilities Minatitlan project Growth 2
PETROLEO PRICES Since 2004, Oil prices increase Future scenario with upward trend Fuente: World Energy Outlook 2006 3
PRIMARY DEMAND OF ENERGY Oil is and will be the primary source of energy It implies an increasing necessity to invest in all value chain 45% increase in 20 years 40% increase in 20 years Fuente: World Energy Outlook 2006 4
GROWTH OF MARGINS E&D costs (Exploration and Development) of fields: 7 to 10 $/bl conventional fields and of 10-15 $/bl present fields.. Maintenance of oil prices in the range of 70 $/bl (minimum Value) Consequences: Higher margin in Oil to undertake new projects Development of now profitable fields 70 80 $/bl Increase in EPC market Increasing margin for Contractors Increasing Margin! 20 30 $/bl 57usd/bl Op., Cost E&D Cost 9usd/bl Op., Cost E&D Cost Past 7-10 $/bl 10-15 $/bl Present & Future 5
ACCUMULATE INVERSMENT 2005-2030 High prices mean an outstanding increase of investments 175,000 M$/year in Oil investments Only in Spain: 4 refineries under development (investment above 5,000 M ) 122500 M$ $175 000M (In 2005 USD) $470MM $175MM $160MM $25 MM 26250M$ 26250 M$ Fuente: World Energy Outlook 2006 E&D Refining Others 6
Índice Oil market ACS in the sector Experiences and Capabilities Minatitlan Project Growth 7
OIL CHAIN OF VALUE Gas Oil Derivates Production Transportation Refining Other sources Petrochemicals *** Alternative fuel 8
PETROCHEMICAL: From the factories to consumers REFINING (Paraxileno) PTA/DMT PET/CHDM POLYCARBONATES BENZENE PROPYLENE CUMENE PHENOL/ACETONE PROPYLENE POLYPROPYLENE BACK 9
PIPELINES Sea transportation of oil CAPTAIN PROJECT, Texaco, Northern Sea 10
UPSTREAM CEPSA. RHOURDE EL KHROUF (ALGERIA) Gas, Water and Oil Separation plant REPSOL: BLOQUE 16 (ECUADOR) Extension of Oil production 11
REFINERIES Spain New Refineries in Bilbao and Cartagena Turnkey Projects and Engineering services Works for the next 3 years 12
PETROCHEIMICAL TA/PTA PLANT INTERQUISA Spain and Canada Turnkey Contract of PTA plant (raw material for PET production) 13
DERIVADOS DAP Ma aden( associate to projects of gas and ammonia) The biggest DAP plant of the world (3 MM tpd) Own Technology (INCRO) Located in Al Jubail Arabia Saudi Turnkey of 550 MM $ 14
ALTERNATIVES FUELS Fuente: World Energy Outlook 2006 Investments will grow outstandingly in alternative liquid fuel sources ACS is also present in these alternative fuels Agro Fuels Gas to liquids Heavy Oils 15
PHENOL CUMENO PHASE 1 16
PHENOL CUMENO PHASE 2 17
UPSTREAM EPC 78, PEMEX, MEXICO 18
PETROCHEMICAL EASTMAN CHEMICAL San Roque (Cadiz) SPAIN CHDM (PET additive) 19
PETROCHEMICAL Basell Polypropylene Plant Tarragona, Spain 20
PETROCHEMICAL Basf S.A Propylene Storage tanks Tarragona, Spain 21
PETROCHEMICAL Repsol Benzene Hydrogenation La Coruña, Spain 22
PETROQUIMICA General Electric Cartagena Project, Spain 23
REFINERIES CEPSA San Roque Refinery Cadiz 24
PIPELINES Land Transportation. Metragaz Pipeline Magreb - Europe 25
Index Oil Market ACS in the sector Experiences and Capabilities Minatitlan Project Growth 26
ACS CAPABILITIES Promotion Engineering Construction Operation & Maintenace More than 40 years of experience Integral contractor (Engineering, Procurement and Construction, Operation and Maintenance) Excellent positioning in the Turnkey Market Project Integral management International experience Home engineering capabilities of international prestige Solid client portfolio - National and international Financial strength to develop investments Extent of services in all Value chain 27
CAPABILITIES FOR EXECUTION OF ALL ACTIVITIES Basic Engineering Detailed Engeneering Procurement Construction & Start-up Plant Completion E P Engineering Procurement Contract Process Detailed Eng. Equipments Materias HAZOP/Risks licenses Procurement Expedition Inspection Logistics Spare parts C Construcción and Start up Construction Supervision Plant Completion Constructibility Planning and Control Costs QA/QC Health, Safety, Environmental 28
MARKET DEMAND EPC Contractor (Turnkey) Bigger Contracts Typical contract rise from 100 MM$ to over 500 MM Restricted to general contractors with high technical capabilities and financial soundness Unprecedented increase in demand Less competition Ability to select contracts based on a suitable risk analysis 29
CLIENTS 30
INTERNATIONAL PRESENCE Europe: Spain, Portugal, Greece Latin America: Brazil, Argentina, Peru, Costa Rica, Mexico, Ecuador, Colombia, Chile North America: Canada, EEUU Africa: Algeria, Tunisia, Morocco, Tanzania, Eritrea, Egypt Middle East: Saudi Arabia Asia: China, Vietnam 31
Índice Oil Market ACS in the sector Experiencies and Capabilities Minatitlan Project Growth 32
More than 400 refineries and Petrochemical Plants DEISOPENTANIZER 46.000 tpy isopentane MEROX UNIT 42.000 kg/hr. PROYECTO MINA BENZENE REDUCTION 470.000 MT/Y PLATFORMING RZ-100 450,000 tpy GASOLINE ALKYLATION UNIT 160.000 tpy 33
MINATITLAN PROJECT: BEFORE 34
MINATITLAN PEMEX - MEXICO Engineering and Design Above 1 Million of hours Design in 3D (PDMS) Engineering in Madrid, Mexico, Venezuela 35
MINATITLAN PEMEX - MEXICO Procurement Procurement in Mexico, Europe, EEUU and Asia 400 Purchase orders 750 pieces of process equipment 50.000 tons transported via marine and air shipping 1600 inspections developed 36
MINATITLAN PEMEX - MEXICO 200,000 m3 of concrete and 8,000 ton of steel structure 37
MINATITLAN PEMEX - MEXICO More than 11,000 Tn of equipments 38
MINATITLAN PROJECT: NOW 39
Index Oil market ACS in the sector Experiences and Capabilities Minatitlan Project Growth 40
ACS: A constant guarantee of growghing ACS is in all the oil chain (overlapping cycles) ACS provides all services from engineering to maintenance ACS is diversified geographically Diversification of clients 60 50 % 40 30 20 Refino Upstream Offshore Total 10 0 2003 2004 2005 2006 2007 41
.and profitable High entry barriers Technological (experience) Client trust Financial soundness for Major Projects Sustainable Profitability Privileged position through presence in all value chain New contract schemes New technologies and trends 42
ACS and Oil Market Mateo Rodriguez-Sanchez 43 << Cargo del Ponente >>