Transcript Marathon Norway Share Fair

Marathon Norway
Share Fair
20 April 2006
Forward Looking Statement
Except for historical information, this presentation contains
forward-looking information with respect to the Alvheim/Vilje
and Volund developments, including future exploration,
drilling, production and development plans. These forward
looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those
expressed or implied from such information. In accordance
with the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995, Marathon Oil Corporation has
included in its Annual Report on Form 10-K for the year ended
December 31, 2005, and in subsequent Forms 10-Q and 8-K,
cautionary language identifying important factors, though not
necessarily all such factors, that could cause future outcomes
to differ materially from those set forth in the forward-looking
statements.
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Foinaven
Marathon Blocks
Alvheim
Marathon Offices
Brae
Area
Aberdeen
Corrib
Cork
Kinsale
London
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Stavanger
Production Core Area: Europe
 Operator of Brae platform and
pipeline complex in Central North
Sea
– 3 major platforms
– 7 producing fields
– 19 third-party fields
 Non-Operator at Foinaven
 Increasing position in Norway
– Heimdal gas hub
– Alvheim development
– Exploration programme
 Only producer of natural gas
offshore Ireland – 2 producing
platforms
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Pro-active pursuit of growth in Norway
 Partner in Heimdal area since 1975
 Existing production from Heimdal, Vale, and Skirne
 Operator from 2002
 Awarded 8 licenses in the 2003 & 2004 rounds
 Progressing development of Alvheim field
 Partner in Vilje - discovery 2003 – current development
by Norsk Hydro back to Alvheim
 Operator for Volund discovery 2004 - progressing
development concept approval
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Marathon in Norway
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The Alvheim Area
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Alvheim/Vilje Subsea Layout
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FPSO Facility - Scope of Work
Topsides process design, supply,
installation, hook-up and
commissioning
Hull upgrade, remediation and
refurbishment
Installation of FPSO moorings,
risers and riser bases
Turret/mooring/swivel design,
supply installation, and
integration
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Alvheim Development Project
 Project on schedule for production early 2007
 FPSO vessel upgrade completed at Keppel, Singapore
 Subsea contract with Technip, Norway
 Turret, Mooring and Swivel nearing completion with APL, Norway
 Topsides Contract to Vetco Aibel
– Main equipment and bulk materials ordered
– Heavy lift on to vessel planned mid summer
 Drilling contracts all awarded; rig Deepsea Bergen
 Tanker offloading to Teekay
 Operations and Maintenance contract awarded to Maersk
Contractors
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FPSO Long Term Operations
 Maersk Contractors Norge AS will “run” the FPSO
with their personnel, providing all services and
materials
 Tendering throughout 2006
 Maersk contact is Tom Sanders, telephone 01224
216810
 Marathon will directly source certain FPSO
requirements e.g. logistics
 Marathon will directly contract for all subsurface,
drilling, well and subsea intervention work
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Volund Development
 Licence PL150; Marathon 65%, Lundin 35%
 Oil and gas discovery in 2004
 Currently completing feasibility studies which indicate
– Tie-back to Alvheim
– Minimal modifications to Alvheim FPSO
– Two to three subsea wells
– Separate flowlines and risers to Alvheim
– PDO submission 3Q 2006
 Definition studies awarded and expect to bid for
implementation activities late 2006
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Norway Exploration
 Three licenses awarded in the 2003 Pre-Defined
Areas Round
– Marathon is designated Operator for two licenses
 Five licenses awarded in APA 2004
– Marathon is designated Operator for four licenses
 Partner in the Gudrun license
 Exploration Team located in Stavanger and actively
seeking new opportunities to grow beyond current
license position
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Procurement Strategies
 Procurement conducted from both Aberdeen
and Stavanger offices for Alvheim
– Aberdeen – Alvheim Drilling and Logistics
– Stavanger – Alvheim facilities (complete)
– Aberdeen – All new procurements (Volund)
 Orders placed by Marathon Petroleum
Company (Norway)
 All bidders sourced from Achillies JQS (Norway)
and FPAL Systems
– Evaluation criteria and timescale in enquiry
– Use Standard Contracts with few exceptions
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Our Expectations from Suppliers
 Register on FPAL – complete capability profile
keep details up to date
 Do the same in Achilles JQS for Norway work
 Still need to promote your own business
 Provide innovative solutions
 Demonstrate the advantages in dealing with you
 Seeking new technology and “Best Practices”
 How can you “Add Value” to our business
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Services Procurement Personnel
NAME
DISCIPLINE
PHONE
Bob Hill
Supply Chain Manager
01224 803068
Heather Milne
All Drilling Services
01224 803789
James Macgregor
Services for Projects work
01224 803313
Mike Boyd
All services for Norway
01224 803071
Mark Hood
Strategic Sourcing Manager,
Houston office
+1 713 296 2712
Rob Lair
World Wide Supply Chain Manager, +1 713 296 2729
Houston office
Noel Garza
Vice President, Global
Procurement, Houston office
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+1 713 296 3611
Management Personnel
NAME
DISCIPLINE
PHONE
Roger Wilson
Managing Director
+47 51506303
Pete Oswald
Alvheim Project Director
+47 51506302
Geir Solli
Operations Manager
+47 51506311
Keith O’Donnell
Alvheim Project Manager
+47 51506307
Bryan Wallace
Engineering Manager
+47 51506393
George Caloudis
Business Manager
+47 51506330
Steve Wherry
Exploration Manager
+47 51506317
John Stevenson
Volund Project Manager
+47 51506324
Al Kaplan
Vice President, Major Projects,
Houston office
+1 713 296 4002
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Marathon : Europe Business Unit
Office Addresses
 Cork
 Aberdeen
Marathon Oil Ireland Ltd.
Marathon Oil U.K., Ltd.
Mahon Industrial Estate
Marathon House
Blackrock
Rubislaw Hill, Anderson Drive
Cork, Ireland
Aberdeen, AB15 6FZ
 Tel. (00 35321) 4357301
 Tel. (01224) 803000
 London
Marathon Oil U.K., Ltd.
Capital House
25 Chapel Street
London NW1 5DQ
 Stavanger
Marathon Petroleum Company (Norway)
Postboks 480 Sentrum
4002 Stavanger
Norway
 Tel. (+47) 51 50 63 00
 Tel. (020) 7298 2500
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Questions ?