THE DEEP OFFSHORE MARKET Ivan REPLUMAZ CEO Offshore Branch INVESTOR DAY, PARIS, FRANCE - October 22, 2004
I. INTRODUCTION II. DEEP WATER DEVELOPMENT CONCEPTS III. RESERVES AND PRODUCTION IV. MAIN OPERATORS & CAPEX V. TECHNIP POSITIONING 29
INTRODUCTION Definitions:! Deep water: depth between 500m and 1,500m! Ultra deep water: depth exceeding 1,500m History:! First deep water development in 1989 in the US Gulf of Mexico! 96 deep water and ultra deep water fields on stream today in US! Gulf of Mexico, Brazil and Africa mainly! These developments have been made possible thanks to: " the discovery of new reserves located in giant offshore fields " technological innovations in exploration, drilling and production 30
INTRODUCTION: DEEP WATER RECORD-BREAKING HISTORY 1978 Cognac GoM 1989 Jolliet GoM 1991 Marlim Brazil 1994 Marlim 4 Brazil 1997 Mensa GoM 1997 Marlim Sul Brazil 2000 Roncador Brazil 2003 Nakika GoM 312 m Shallow Water 540 m 752 m 1,027 m Deep Water 1,650 m 1 709 m 1 853 m Ultra Deep Water 2315 m 31
II. DEEP WATER DEVELOPMENT CONCEPTS 1. WET TREE 2. DRY TREE 32
DEEP WATER DEVELOPMENT CONCEPTS: WET TREE Wet tree concept relates to a development scheme where the production trees are located below the sea surface, generally on the seabed Floating Production Storage & Offloading (FPSO) Semi-Submersible 33
DEEP WATER DEVELOPMENT CONCEPTS: DRY TREE Dry tree concept relates to a development scheme where the production trees are located above the sea surface Extended Draft Platform (EDP) SPAR Tension-Leg Platform (TLP) 34
II. RESERVES & PRODUCTION 1. DEEP WATER RESERVES: GEOGRAPHICAL SPLIT 2. DEEP OFFSHORE PRODUCTION: OIL & GAS 35
Billions of barrels of oil equivalent (bboe) 35 DEEP WATER RESERVES: GEOGRAPHICAL SPLIT 30 25 20 Oil & Liquids 62% Gas 38% 15 10 Total: 90 bboe as of 1/1/04 5 0 Africa Gulf of Mexico Brazil Australia South East Asia North Sea Others 75% of total reserves and 93% of oil reserves located in Africa, Gulf of Mexico and Brazil Source: Infield 36
DEEP OFFSHORE PRODUCTION: OIL & GAS 7 6 Millions of barrels p/d Oil Production Others 200 160 Billions of m3 p/y Gas Production 5 4 South East Asia Africa 120 North Sea 3 80 2 1 Gulf of Mexico Brazil 40 0 1990 1995 2000 2005 2010 2004: 3.0 mb /d 2010: 6.5 mb /d 0 1990 1995 2000 2005 2010 2004: 0.9 mboe /d or 52 bm3 /y 2010: 3.1 mboe /d or 180 bm3 /y Source: IFP 37
III. MAIN OPERATORS & CAPEX 1. MAIN OPERATORS 2. DEEP WATER CAPEX: GEOGRAPHICAL SPLIT 3. DEEP WATER CAPEX BY SEGMENT 38
DEEP OFFSHORE: MAIN OPERATORS Petrobras ExxonMobil Shell Total BP ChevronTexaco Unocal Norsk Hydro Statoil British Gas/Edison/EGPC Kerr-McGee Reliance Murphy Liquid Reserves Gas Reserves Liquid reserves: 56 bboe Gas reserves: 34 bboe Total reserves: 90 bboe BHP Billiton Others 0 2 4 6 8 10 12 14 16 Billions of barrels of oil equivalent (bboe) Source: Infield 39
DEEP WATER CAPEX: GEOGRAPHICAL SPLIT $ in millions 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 India Europe Asia & Oceania North America Latin America Africa 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Over the 1999-2008 period, 90% of capital expenditures located in Africa, North America and Latin America Source: Infield 40
DEEP WATER CAPEX BY SEGMENT $ in billions Average Yearly Deep Water Capex 4.5 4 3.5 3 2.5 2 1.5 1 0.5 +72% +68% +112% $57 bn deep water capital expenditures forecast over the 2004/2008 period:! $21 bn on facilities! $19 bn on SURF (subsea, umbilicals, risers and flowlines)! $17 bn on subsea hardware 0 SURF Facilities Subsea Hardware 2000-2003 2004-2008 Source: Infield 41
IV. TECHNIP POSITIONING 42
TECHNIP POSITIONING IN DEEP OFFSHORE Technip is present on:! SURF (Subsea, Umbilicals, Risers and Flowlines)! Floating facilities (FPSO, semi-submersibles, SPAR ) Leadership in SURF market! 52% share in 2003! 35% share over the 2000-2003 period 10% share on the floating facilities market! Dry tree concepts: " 10 SPAR platforms delivered " 1 currently under fabrication! FPSO: Girassol (sub contract), Dalia in Africa! Semi-submersibles: P51 and P52 in Brazil 43
TECHNIP POSITIONING: MAIN REFERENCES IN DEEP OFFSHORE Country Project Segment Client Water depth (m) Angola Girassol FPSO Facility (Eng.) Total 1,450 Angola Kuito SURF Chevron Texaco 500 Angola Greater Plutonio SURF British Petroleum 1,500 Angola Dalia FPSO Facility Total 1,350 Angola Dalia SURF Total 1,350 Brazil Roncador SURF Petrobras 1,850 Brazil P51 SEMI-SUB Facility Petrobras 1,255 Brazil P52 SEMI-SUB Facility Petrobras 1,255 Egypt Simian Sapphire SURF British Gas 500 Ivory Coast Baobab SURF Canadian Natural Res. 1,300 USA Banjo Seahawk SPAR Platform Williams Energy serv. 1,050 USA Banjo Seahawk SURF Williams Energy serv. 1,050 USA Nakika SURF Shell 2,315 USA Mad Dog SPAR Platform British Petroleum 2,040 USA Holstein SPAR Platform British Petroleum 1,370 USA Red Hawk SPAR Platform Kerr McGee 1,620 USA Constitution SPAR Platform Kerr McGee 1,520 44
For more information, please contact: INVESTOR RELATIONS G. Christopher Welton Tel. +33 (0) 1 47 48 66 74 e-mail: cwelton@technip.com David-Alexandre Guez Tel. +33 (0) 1 47 78 27 85 e-mail: daguez@technip.com 45
TRADING TECHNIP ISIN FR0000131708 46