Transcript Presentazione di PowerPoint

IRAQ Refinery 2012
April 17th
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Techint Group Revenues:
Our group
Over USD 19 billion as of December 31, 2010
Techint Group Employees:
54,200
38%
IRAQ
OPERATIONS
IRAQ
OPERATIONS
40%
10%
3%
5%
4%
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• Techint has been providing Engineering,
Procurement
and Construction services on a global basis for the
last 60 years.
• Present in Italy, Argentina, Brazil, Canada, Chile,
Mexico, Peru, Uruguay and other Latin American
countries, as well as the Middle East, Asia and
Africa.
Highlights of last 15 Years
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11 LNG Re-gasification Plants
6 Major LNG Liquefaction Plants
20 Major Oil&Gas Upstream Development Project
135 Major Refinery Projects
Over 70,000 km of pipelines installed
Over 23,000 km of power lines laid
74,000 MW installed in power plants
Over 7 million kVA installed in substations
Employees
18,000 (permanent and temporary)
Sales
USD 1.9 billion
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Techint E&C Services
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Feasibility Studies & Project Financing
Basic and Front-End Engineering Design
Detail Engineering
Project Management
Procurement Services
Construction
Construction Management
Project Financing
Commissioning
Operation and Maintenance
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• Leading supplier of tubes and related services for
the world’s energy industry and certain industrial
applications.
• With manufacturing facilities in Argentina, Brazil,
Canada, Colombia, Italy, Indonesia, Japan, Mexico,
Romania, and the United States, and a proprietary
network of finishing and service centers worldwide.
• An integrated R&D network comprised of four
centers in Argentina, Italy, Japan and Mexico where
more than 200 scientists and engineers work.
• Listed on the NYSE, and on the stock exchanges of
Milan, Mexico and Buenos Aires.
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Employees
25,500
Sales
USD 7.7 billion
Annual manufacturing capacity
6 million tons of steel pipes
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Why IRAQ is THE Market for EPC Contracting
• 31 Million Population  2nd in Region
• +10 years of inactivity in Infrastructure  EPC Contracting in
Country Re-starting from Scratch
• 115 Billion Barrel Of proven reserves (Statistics 2001)
• 150-350 Billion Barrel Of real reserves according to recent
unofficial statistics (World 1300 Billion)
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Why IRAQ is THE Market for EPC Contracting
Short Term
Mainly Through
existing DGS modif.
+3 MMbpd
Through New Facilities
Mid Term
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Why IRAQ is THE Market for EPC Contracting
Project Funnel (Published or Planned)
Should be prioritized
UPSTREAM & MIDSTREAM IN
MESOPOTAMIAN BASIN HIGHEST CAPITAL CONSUMING
10 Billion USD YEARLY CAPEX
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Why IRAQ is THE Market for Refining Contracting
• At least 6 major refineries upcoming
• Approximately 1 mln bbl/d to be installed
• 5% discount on oil feedstock from Ministry of Oil
• Iraq Refinery Law approved
• Domestic need expected to rise to 1 mln bbl/d Vs 400 kbbl/d actual
capacity - Proximity to rising demand markets
• Today Iraq spends approximately 4 bln USD per year for refinery
products inport
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What has slowed down investment in refineries
• Limitation of equity injection from MOO due to upstream
production priorities
• IMF limitations on Iraq foreign total debt and sovereign guarantees
• IOCs keen to step in oil production, more prudent to invest equity
in permanent refining capacity
• Prudent ECAs approach towards Iraq political risk
• Location of planned refineries Vs access routes to international
refined product markets
• Crude oil supply routes to planned refineries still to be finalised
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What additional refineries will bring
• Higher GDP
• Higher flexibility in country energy mix and strategies
• Higher occupation, five times labour intensive building 100000
bbl/d refining capacity than building 100000 bbl/d crude export
capacity
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
REMOTE DRIVEN
SITE DRIVEN
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
CHALLENGES
LABOUR QUALIFICATION AND AVAILABILITY
LOGISTICS & TRANSPORT
SECURITY
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
LABOUR QUALIFICATION AND AVAILABILITY
Only in south Iraq upstream projects a workforce of 50-100,000
would be needed in coming years using standard productivity
rates
As of today the overall situation is such that an Average
productivity factor towards standard productivity
k=3,5 - 4
Construction “All In” rates are actually ranging in
40-50 USD/Man-hour
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
TODAY’s “ALL IN RATE” COMPOSITION
Labour
Indirect
Equip./Scaff./TCF
Power & Consumables
Security
Labour Camp
Subcontractor Profit/O.H.
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3
6
3
6-10
9
5
USD/h
USD/h
USD/h
USD/h
USD/h
USD/h
USD/h
Total
Productivity Factor
49-53 USD/h
k=3,5 - 4
20%-80% Mix
To IOC Specs
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
IRAQ “ALL IN RATE” vs. Other GCC
Total
Productivity Factor
49-53 USD/h
k=3,5 - 4
IRAQ
Total
Productivity Factor
15-20 USD/h
k=2,5 - 3
GCC
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
SUBSTANTIAL IMPROVEMENTS CAN BE MADE WITH
A PROPER EXECUTION STRATEGY
With a proper training program a mix up to 40-60 (Iraqi/Foreign)
Can be achieved
Higher Iraqi content would imply a lower security concern
Higher competition on TCF and site facilities subcontractors has
to be enforced
Stimulate with attractive payment terms local contractors to
purchase construction facilities and equipment
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
Short Term Achievable “ALL IN RATES” COMPOSITION
Labour
Indirect
Equip./Scaff./TCF
Power & Consumables
Security
Labour Camp
Subcontractor Profit/O.H.
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3
4
3
3-5
6
5
USD/h
USD/h
USD/h
USD/h
USD/h
USD/h
USD/h
Total
Productivity Factor
37-39 USD/h (from 49-53)
k=3 – 3,5 (from 3,5 – 4)
40%-60% Mix
Iraqi Content
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
LOGISTICS AND TRANSPORT CONSTRAINTS
South Iraq ports (Umm Qasr and Khor Al Zubair) have been
improved but still not ready for major projects and Ro-Ro
operations
Custom clearance, material security and inland forwarding
SPTM trailers and special equipment have to be brought along
with the incoming special cargo, limited permanent fleet
available so far
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
LOGISTICS CRITICALITIES MITIGATION
Integrated inland logistic plan from “under hook” to oilfields
Jetty provision as part of project Implementation strategy
Overdesigned cargo buffering and laydown zone between
landing point and site
Bonded area provision for custom clearance within the buffering
zones
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
“under hook” to Oilfields service  Locally Contracted 2-3% of C.P.
EPC Contractor Responsibility  Traceability, Inspection, Non
Conformities & Damages Management
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
SECURITY CONSTRAINTS
IOC’s very Stringent Requirements
Sites De-Mining
Preventive Security – Local Community Program
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS”
SECURITY TREATS MITIGATION
IOC’s requirements shall be interpreted in function of the local
content.
Broad range of security companies present in Iraq with
experience dealing with IOC’s requirements.
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS’’
SITES DEMINING
Several local security companies offer turnkey contracts for
the demining of definite areas.
Sites demining can be properly executed subcontracting the
activity to local security companies with foreign expertise input
Where required
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS’’
LOCAL EXPERTISE
Local community program is a far-sighted strategy for the
valorization of Iraqi available competences and indirectly drives
to security profile improvement.
Local EPC contractor establishment is needed to plan the
community program before mobilization.
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LOCAL CONTENT
“MAIN DRIVER FOR
IRAQ PROJECTS
SUCCESS’’
CONCLUSIONS
TECHINT choice is to be Local and to bring our Global
expertise to Iraq
TECHINT is convinced that this choice is driving to better
service to the Country with higher margins to Contractor
TECHINT is committed to seek improvement of Local content in
quantity and quality within the Personnel Mix
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October 19th 2011
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