Presentation on theme: "TenizService LLP Company Overview"— Presentation transcript:
1TenizService LLP Company Overview (for Western Kazakhstan Investment Forum: expanding production and development)Aktau, 2012
2TENIZSERVICE LLPTenizService LLP is subsidiary company of KazMunaiGas NC JSC, established in 2003 with the aim to develop coastal infrastructure as its indicated in the State Program of oilDevelopment of Kazakhstan Sector of Caspian Sea (Decree of RoK President # )Main activities of the company are related to construction and exploitation of offshore operations support infrastructureKashaganKalamkasBautinoAktauKurykTenizService established number of infrastructure facilities in Bautino.Results of TS activity were highly rated by the President of the State during his visit in 2008.
3TENIZSERVICE’s ACTIVITIES Currently TenizService LLP (TS) is stable growing company with well established and proven reputation.Since its establishment in 2003, TS, based by the recognized international quality and safety standards, has successfully implemented a number of onshore infrastructure development projects, including, such projects as:Construction of Offshore Operations Support Base,Rock Loading Jetty,Marine Fueling Station,Fabrication Site,Waste Management Facility for Industrial and Drilling Wastes,Power Line,Hotel in Bautino,Establishment of “Kaz M-I”, a first high-technology joint venture, with MI SWACO, a leading drilling mud company, etc.HSE Report hours no accidents in 2011.TenizService is an owner of 627 hectares of costal land line in Bautino for existing facility, and 725 hectares of coastal land line in Kuryk for future development.
4NATIONAL WELFARE FUND SAMRUK-KAZYNA COMPANIES GROUPNATIONAL WELFARE FUNDSAMRUK-KAZYNANational railway company Kazakhstan temir zholyNational Atomic Company KazatompromKazakhstan Electricity Grid Operating CompanyKEGOCNational company KazMunaiGasKazakhtelecomKazPostOther companiesGas transportation and marketingRefining, petrochemistry and marketingOil and gas upstreamOiltransportationServices projectsTenizService LLPAbove 500 affiliated companiesShare of National Welfare Fund "Samruk Kazyna“ GDP is 56% out of total KZ GDP. The share of NC "KMG“ GDP is 11% out of total KZ GDP.
5ADVANTAGES OF TS AS PART OF KMG National company KMGOil and gas upstreamOiltransportationGas transportation and marketingRefining, petrochemistry and marketingServices projectsTenizService LLP(49 % KMG)single source*PSA (State body)KPOTCO* Single source is an option of “bid free” procurement inside of KMG group companies in accordance to procurement rules of KMG.KMG group company(over 50% of KMG shares)(over 25% of KMG shares)NO BIDAuthorities of PSA:Approval of Shortlists;Approval of ITT;Approval of bid results.All Contracts above $20 mln. should be approved by PSA, otherwise costs are not subject to reimbursement.NCPOCTCOKEY FACTORS:TenizService is a key company in Service Division of KMG;TenizService’s activity is strongly supported by KMG, PSA and relevant State Authorities;TenizService has already implemented a number of projects and nowadays successfully operates a different coastal infrastructure.
6THE ROLE OF LOCAL CONTENT IN THE DEVELOPMENT OF SERVICE BUSINESS IN THE OIL AND GAS INDUSTRY Obtaining contract under the auspices of the local contentThe possibility of exposure by purchasing services and works from a single sourceThe possibility of obtaining long-term contract in the KMG group of companies for a period of 3-5 years.Conditional price drop for Kazakhstan provider of 0.1% for every 1% of local content in group of KMG companies, max 20%Form of appropriationConditional discountThere is no possibility of obtaining a contract from a single sourceIf company wins the tender, the implementation of the contract maximum 1 yearThe absence of any benefits when participating in tendersContractInclusion of projects in the State. FIID program, receiving government support and funding from fund DAMU on conditional discountLack of incentives and government support, when attracting financingPath1: On the auspices of the local content(Rules of procurement of Samruk-Kazyna, KMG, Development Programme Local Content)REGULATORYLEGAL BASISObtaining contracts based on market conditionsPath2: Overall market conditions
7BUSINESS AREAS INTERESTING FOR TENIZSERVICE OffshoreCoastal infrastructureOnshoreTenizServiceSUBSEA:Well headsPreventersDrillingPipelinesJACK-UP DRILLING RIG:AssemblyOperationMARINE CONSTRUCTION:DredgingArtificial islandsCOASTAL INFRUSTRUCTURE:Ship repair/buildingFabrication yardWaste managementOCTG anddrilling pipelinesBase managementREFINERY PLANTS:DesignConstructionMaintenanceOTHER:TrainingConsultingSubseaKAZ M-IMud plantDrilling, completion & drill-In fluidsSolids Control equipmentFull range of waste management technologiesWell productivity tools (downhole cleaning tools)Production chemicalsDRILLING:Stimulation of productionWell headingPreventersDrillingWell repairBitsTS`s areas of interests for JV creationActivities covered by Joint Venture
8“KAZ M-I” JOINT VENTURE On 19 November 2008 TenizService established a Joint Venture with M-I Drilling Fluids International B.V. (MI SWACO) – «Kaz M-I» LLP.JV Purpose - Provision of pioneering technologies in:Drilling, Completion & Drill-In fluidsSolids Control equipmentFull range of Waste Management technologiesWell Productivity tools (Downhole Cleaning tools)Production chemicalsLiquid Mud PlantIn October 2009 MI SWACO began construction of the Liquid Mud Plant on the territory of TenizService Support Base.Productive capacity of drilling mud production - 84 000 tons/year .End of construction – 1 quarter of 2012.Project cost – $ 15 mln.
9AUTOMATED TANK CLEANING TS provides the following services:Automated Tank cleaning using remote control equipment and tank sweepsUse of specialized sludge guns with hot or cold tap capacitySeparation, transportation and utilization of sludgeOil recovery of needed.Advantages of automated Tank Cleaning system:Safety (ATEX)EfficiencyCost effectiveLess timeCurrent situation:TS is cleaning KazTransOil’s m3 reservoir in Aktau, the following step is signing long-term contract.Negotiations are held with KPO, TCO, MMG, etc.TS will create JV with partner.TS participating in KPO tender
10OFFSHORE WASTE MANAGEMENT EQUIPMENT TS is the one of few companies in Kazakhstan, which provides equipment for offshore waste management (offhore skips, drilling cutting boxes - DCB, offshore cargo baskets , minicontainers, iso tanks, etc).TenzService DCBSpecificationOther DCB3.55Volume (m3)3.18400Max. Payload (kg)60001600Tare (kg)150010000Gross Weight (kg)75002280Length (mm)24001950Width (mm)17001250Height (mm)1370Volume of TS DCB - 13% more than Other DCB,Therefore 13% less lifting operations and logisticsCurrent situation:TS has contract with Zhambyl PetroleumTS has mobilized equipment from Baku and UK to Bautino.TS has intention to provide equipment for all offshore operators,.
11PROVISION OF DRILL BITS, CENTRALIZERS Joint VentureProject ManagingTechnology,Training,Know-howInvestmentTERCELPersonnel and local contentWorkshop in Special Economic Zone Aktau Sea port for assembling of products:Tax references – 0 %,Custom references – 0%,TENIZSERICEAdministration and cooperation with state bodiesTenizServiceTercelOil and gas companiesCurrent situation:TS provided 2 Roller Cone bits to AktauNefteService for testing in Zhetybau oilfield. Technical Results of testing are very successful.TS and Tercel are making marketing research.TS and Tercel are preparing documents to approve creation of JV in KMG.
12WASTE MANAGEMENT SERVICES One of the main perspective projects to be realized by TenizService is waste management services for all type of waste coming form oilfields.ReasonsTS advantagesno any complete waste recycling, treatment units in Mangystau regionincreasing of offshore oil operationscurrent wrong WM in regionwaste management law strengtheningTS existing Polygon hectaresAdditional 40 ha reserved for Polygon extensionTS Base –Polygon road do not cross village, settlementsExperience in waste managementDirect knowledge of situation on waste management in MangystauTS has Designed Project for WM unitssegregationtransportationmanagementincinerationrecyclingtreatment
13FABRICATION YARD Joint Venture Oil and gas companies Project ManagingTechnology, training, know-howTECHNIPPersonnel and local contentAdministration and cooperation with state bodiesTENIZSERICEDeveloped Infrastructure in Bautino- 51% (Fabrication site)PARTNERAt this moment TS is holding negotiations withpotential partners - Technip, Hyundai Heavy Industries,Heerema, etcOil and gas companiesFabrication Site is a reclaimed land plot on the Eastern coast of Tupkaragan Bay.Total area: 20 hectares;Quay wall length: 667 m;Preliminary dates of yard construction areInitially yard capacity will be 6000 tons/year, with a subsequent increase up to 10 000 tons/year.Fabrication Site
14NORTH CASPIAN ENVIRONMENTAL OIL SPILL RESPONSE BASE Project: North Caspian Environmental Oil Spill Response BasePurpose of the project: Provision of services for emergency oil spill response within the Northern part of the Kazakhstani Sector of the Caspian sea.Location: Atyrau Oblast, Primorsky Channel, south of Damba Village.Implementation period: 2009 – 2012.Project value: ~85 mln. USD (final value is to be defined on the basis of the design and estimation documentation).Finance source: KazMunaiGas and/or loans.Main facilities:Berth and mooring pond;Buildings for OSR equipment storage;Buildings and structures for Air-Cushion Ships Maintenance (ACSM);Building of the Fauna Rehabilitation Center;Building of the Ecological and Meteorological Monitoring Center;Auxiliary Buildings and Structures;Flight deck.
15OIL SPILL RESPONSE SERVICES TS is implementing project North Caspian Environmental Oil Spill Response Base in Atyrau region. All construction-and-assembling operations are being make with advanced pace and project will be done in time.TS – one of few offshore base management companiesOwn several offshore infrastructure objectsExperience in base managementOwn high-trained local personnelHigh international standardsTS has experience in provision of OSR services in partnership with MEKE KazakhstanOSR tier-1,2OSR modelingOil spill sensitive mappingIMO standard trained local personnelPrevious contracts: N Operating Company, TenizBurgylau.3 oil spills were responded during N project drillingOSR exercises were held with NOC and state authoritiesTS – company with high abilities to provide full cycle of OSR services.
16KURYK: PERSPECTIVE FACILITIES OVERVIEW In the future, when the main hubs of coastal infrastructure such as Atyrau, Bautino, and Aktau will reach their capacity, TenizService intends to develop subsequent projects aimed to increase coastal infrastructure in the Kuryk area.Existing facilities:ERSAI Fabrication yard.Facilities depending on commencement of Kashagan Phase II.Pipe coating plant.Oil loading terminal.Ship building yard.Fabrication yard.Facilities depending on commencement of oil production in the South CaspianDredging base.Living camp.Vaporizer pondEnvironmental monitoring centerWater-desalinating plant.Fleet supporting base.Offshore operations support base.Industrial logistics base.Waste management facilityHelipad.Compressor station.Oil and gas preparation stationEmergency response base.Liquefied gas station.