Transcript Document

N-Class
Harsh Environment Jack-up
Drilling/Production
Oslo Rig Event
24 September 2009
SKDP N-Class Jack-Up Unit
Drilling/Production
Oslo Rig Event 2009
Page 1
AGENDA
1
Company Introduction
2
Rig Concept and Design
3
Project status
4
Financial
5
Market update
Oslo Rig Event 2009
Page 2
COMPANY BACKGROUND - Skeie Drilling & Production ASA (SKDP)

SKDP established September 2006 and located in Kristiansand, Norway

31% owned by Skeie Technology AS, 12% by Wideluck Enterprises and
57% by external investors (Post financial restructuring in July 2009)

Signed contract for design and construction of three KFELS Class N Jackup Unit with revised delivery in September and December 2010, and June
2011.

OTC listed in Oslo

Operational Management by Skeie Rig Management
Oslo Rig Event 2009
Page 3
RIG OPERATION
•
Skeie Rig Management AS (SRM)
established in Trondheim in 2008
as a wholly owned SKDP
subsidiary.
•
SRM will be responsible for all rig
operations after delivery from
yard.
•
Key onshore and offshore
management positions and
section leaders already recruited.
•
Pre-operations activities ongoing
–
–
–
–
Oslo Rig Event 2009
Training and competency development
programs under development
QHSE management systems
established.
Maintenance systems.
Logistics (spare parts)
Page 4
AGENDA
1
Company Introduction
2
Rig Concept and Design
3
Project status
4
Financial
5
Market update
Oslo Rig Event 2009
Page 5
TECHNICAL COMPARISON WITH PEERS AS DRILLING RIG
RIG DESIGN
Class
Operating water depth (ft)
Drilling depths (ft)
Hull size (ft) (LxBxD)
Leg length (ft)
Cantilever outreach (ft)
BOP (psi rating)
Mud Pumps
Liquid mud capacity (bbls)
Bulk mud capacity (bbls)
Draw works (hp)
Top Drive
Cranes
Main Power(hp)
Variable Deck Load (st)
Accommodation
Keppel N-Class
MSC CJ70-X150A
DNV
400 (430)
35,000
264/289/35
598
75
15,000
3 (space for 4)
6,600
15,892
4,600
1 000 tons/2x1150 HP
3
13,050
4,535
120
DNV
492
30,000
291/336/38
673
90
15,000
4
6,793
15,723
4,600
750 tons/1150 HP
3
14,484
4,600
120
MSC CJ62-S120 MSC CJ70-X150A 1)
DNV
380
30,000
256/296/35
541
60
15,000
3
5,400
14,027
3,000
750 tons/2x1150 HP
3
6,880
3,693
115
DNV
492
40,000
291/336/38
673
90
15,000
4
6,793
15,723
4,600
1 000 tons/2x1150 HP
3
14,484
5,200
120
1) Enhanced version of the existing CJ-70 design with increased drilling depth, increased variable deck load and 1000 t top drive.
Source: Company, ODS Petrodata
Oslo Rig Event 2009
Page 6
TECHNICAL COMPARISON WITH PEERS
(OUTSIDE NORTH SEA UNITS)
Design
SKDP Units
Typical Premium
Unit (1)
Typical Premium
Unit (2)
Typical 116-C
Typical L-780
N-Class (KFELS)
MOD V B
Pacific Class (BM)
LeTourneau 116-
F & G - L-780
C
Mod II
(KFELS)
Delivered
2010
2006 to 2009
2006 to 2009
1979
1982
500 ft + (1)
350 ft
375 ft
350 ft
300 ft
598 ft
480 ft
506 ft
477 ft
340 ft
264/289/35 ft
234/208/25 ft
240/224/28 ft
243/201/26 ft
180/175/25 ft
35,000 ft
30,000 ft
30,000 ft
25,000 ft
20,000 ft
75 ft
66 ft
70 ft
40 ft
70 ft
40 ft
47 ft
24 ft
40 ft
25 ft
BOP Stack
18 ¾” - 15,000 psi
18 ¾” - 10,000 psi
18 ¾” - 15,000 psi
13 5/8” - 10,000 psi
13 5/8” - 10,000 psi
Mud Pumps
3 x 2,200 hp
(space for 4)
6,600 bbls
3 x 2,200 hp
3 x 2,200 hp
3 x 1,600 hp
3 x 1,600 hp
3,500 bbls
4,100 bbls
1,500 bbls
2,100 bbls
15,900 cuft
11,100 cuft
11,300 cuft
8,160 cuft
8,000 cuft
Draw works
4,600 hp
3,000 hp
3,000 hp
3,000 hp
2,000 hp
Top Drive - Rating
1,000 T
750 T
750 T
750 T
500 T
Variable Load (Drilling)
5,000 T
3,750 T
3,750 T
3,900 T
2,400 T
13,050 hp
9,275 hp
10,750 hp
6,600 hp
4,950 hp
120
110
115
106
98
Operating Water Depth
Leg Length
Hull Size (L/B/D)
Drilling depth
Cantilever
Outreach
Transverse Envelope
Liquid mud cap.
Bulk capacity
Main Power
Accommodation
(1) Depending on actual location criteria and leg extensions
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Page 7
COMBINED DRILLING AND PRODUCTION OPERATIONS
The Cantilever and Drill Floor can be repositioned 26ft (7.92M) to the
Port side of the Vessel, to allow space for installation of a future
production process module.
Oslo Rig Event 2009
Limits
Area:
Height:
12,918 sq ft (1,200M2)
52.5ft (16M)
Page 8
SPECIFICATIONS FOR DRILLING OPERATIONS
 Drill Floor located on the
substructure above the cantilever.
 Cantilever capable of being
skidded fore and aft with center
line (primary Cantilever position) of
rotary up to 75 ft (22.86m) aft of
stern
It can be relocated 26 (7,92m) ft to
port (secondary Cantilever
position)
 The Drill Floor can be skidded 20
ft (6.1m) port and starboard of the
Cantilever centerline both in
primary position and in secondary
position
 Max operation envelop over a preinstalled Jacket/Wellhead
Platform:
75 ft aft of Transom, 20 ft to
starboard of hull centerline and 46
ft to port of hull centerline.
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Proposed Frøy development concept (October 2007)
Jack-up production/drilling unit with subsea concrete storage and riser
shaft/ wellhead module
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Page 10
AGENDA
1
Company Introduction
2
Rig Concept and Design
3
Project status
4
Financial
5
Market update
Oslo Rig Event 2009
Page 11
OVERALL STATUS
100.00%
98.90%
Project status
95.30%
90.00%
80.00%
72.30%
76.20%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Engineering
Oslo Rig Event 2009
Procurement
Construction Overall status
Page 12
CONSTRUCTION - HULL
 Hull structure
complete
 Main equipment
installed
 Engines
commissioned
 First rig undocked
 Leg fabrication
ongoing
 Helideck fabrication
ongoing
Oslo Rig Event 2009
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CONSTRUCTION - CANTILEVER
 Structure complete, main fixed equipment installed
 Commissioning to start November 2009
Oslo Rig Event 2009
Page 14
CONSTRUCTION – DRILL FLOOR



Structure complete, main equipment being installed
Derrick assembly is ongoing offsite
Drilling equipment - commissioning to start January 2010
Oslo Rig Event 2009
Page 15
AGENDA
1
Company Introduction
2
Rig Concept and Design
3
Project status
4
Financial
5
Market update
Oslo Rig Event 2009
Page 16
SKDP CAPITAL STRUCTURE PRE & POST RESTRUCTURING
• Enterprice value down from 1620 MUSD to 1130 mUSD
• Each rig from MUSD 540 to MUSD 370
Unfunded
Bank
110
Convert
Bonds
Equity
Oslo Rig Event 2009
Page 17
MAIN FINANCIAL IMPLICATIONS FROM THE RESTRUCTURING
 NOK 540m/$85m SKDP private placement completed
Unfunded
 Current SKDP equity valued at NOK 0.5/share (~$6m)
– Implying 3% “recovery” at transaction pricing
 NOK 660m/~$100m of SKDP convertible bonds exchanged
into new SKDP equity worth $10m at NOK 0.5/sh
Bank
110
Bonds
Convert
Equity
– Approx 10% recovery at transaction pricing
 $495m of 2.pr bond loans written down to $305m
– 61.6% average bond recovery
– Implying $190m total 2.pr debt reduction/write-off
– Remaining $305m to be continued as 2.pr debt
– In addition, secured bondholders to receive SKDP shares worth approx $50m
(33% SKDP ownership post re-structuring) in exchange for 18-month write off
of forward interest from June 2009
 Cash break even day rates significantly reduced, reflecting
lower capital costs
– Break even rates estimated to come down from ~
USDk 360/day to ~USDk 295/day
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OWNERSHIP DISTRIBUTION POST DEAL
Post restructuring ownership
 Skeie Technology 31.5%, Wideluck 12%, other external investors (including
convertible bondholders) 23.5% and secured bondholders 33%
 Skeie Technology and Wideluck collectively owns 43.5% of SKDP
 International investors (secured bondholders and shareholders) represented
through Euroclear Bank/Nominees owns 29.3% of the share capital in SKDP
 Bondholders behave as individual investors and not as a group post
restructuring
Share status
 Number of shares increased from 77.110 million to 1916.582 million
Oslo Rig Event 2009
Page 19
SKDP – SCENARIOS POST FIX
Reduced break-even meeting current dayrate environment
SKDP Post Fix
SKDP SCENARIOS
DAY RATES
Utilisation
Daily opex incl fixed mgmt fee
No of rigs
PROFORMA P&L
Rig EBITDA
SG&A
USD/day
300,000
325,000
350,000
375,000
400,000
425,000
450,000
96%
96%
96%
96%
96%
96%
96%
($120,000) ($120,000) ($120,000) ($120,000) ($120,000) ($120,000) ($120,000)
3.0
3.0
3.0
3.0
3.0
3.0
3.0
USDm
"
184
(10)
210
(10)
237
(10)
263
(10)
289
(10)
315
(10)
342
(10)
"
"
"
"
"
"
"
"
"
"
174
(35)
139
(75)
64
(6)
57
92
(90)
2
200
(35)
165
(75)
90
(9)
81
116
(90)
26
227
(35)
192
(75)
116
(12)
105
140
(90)
50
253
(35)
218
(75)
142
(14)
128
163
(90)
73
279
(35)
244
(75)
169
(17)
152
187
(90)
97
305
(35)
270
(75)
195
(19)
175
210
(90)
120
332
(35)
297
(75)
221
(22)
199
234
(90)
144
NOK
0.0
7.7
9.9
12.2
14.4
16.7
18.9
1.0
945
141
959
1,100
367
1.0
945
141
959
1,100
367
1.0
945
141
959
1,100
367
1.0
945
141
959
1,100
367
1.0
945
141
959
1,100
367
1.0
945
141
959
1,100
367
1.0
945
141
959
1,100
367
EV/EBITDA
6.3
P/E
2.5
RoE (on mkt cap)
40.6 %
Free cash flow yield (on mkt cap)
2%
Net interest bearing debt/EBITDA
5.5x
EBITDA/Net interest
2.3x
Source: Pareto Securities AS, Corporate Finance
5.5
1.7
57.3 %
18%
4.8x
2.7x
4.9
1.3
74.1 %
35%
4.2x
3.0x
4.4
1.1
90.9 %
52%
3.8x
3.4x
3.9
0.9
107.6 %
69%
3.4x
3.7x
3.6
0.8
124.4 %
85%
3.1x
4.1x
3.3
0.7
141.2 %
102%
2.9x
4.4x
EBITDA
Depreciation (30yr/15yr)
Operating profit
Net financials
Pretax profit
Taxes (10%)
Net Profit (after tax)
Cash Earnings
Debt amortisation
Free cash flow
EPS
Share price
No of shares (fully invested)
Market capitalisation
Net debt fully invested
Enterprise Value
EV/Rig
Oslo Rig Event 2009
NOK
mill
USDm
"
"
Page 20
AGENDA
1
Company Introduction
2
Rig Concept and Design
3
Project status
4
Financial
5
Market update
Oslo Rig Event 2009
Page 21
NCS – JACK-UP CONTRACT STATUS
2009
NAME
CURRENT OPERATOR
Rowan Gorilla 06
SKDP 1
West Epsilon
PetroProd
SKDP 2
Maersk Guardian
SKDP 3
Maersk Giant
Maersk Inspirer
Maersk Gallant
Maersk Innovator
BG
UNDER CONSTRUCTION
StatoilHydro
UNDER CONSTRUCTION
UNDER CONSTRUCTION
Talisman
UNDER CONSTRUCTION
Talisman
StatoilHydro
ConocoPhillips
ConocoPhillips
FIRM CONTRACT
c
OPTION
YARD / UNDER CONSTRUCTION
FOLLOWING
OPERATORS
DONG
1
2
AREA
NOS
SEA
NOS
SEA
SEA
NOS
SEA
NOS
NOS
NOS
NOS
CURRENT
COUNTRY
UK/NOR/UK
SGP
NORWAY
SGP
SGP
NORWAY
SGP
NORWAY
NORWAY
NORWAY
NORWAY
2010
2011
CONTRACTOR
J F MA MJ J A S O N D
Rowan Companies
Skeie D&P
Seadrill
Jurong
Skeie D&P
Maersk Contractors
Skeie D&P
Maersk Contractors
Maersk Contractors
Maersk Contractors
Maersk Contractors
c
2
c
2
2
2
c
c
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c
2
c
2
2
c
2
c
c
c
c
c
2
c
2
2
c
2
c
c
c
c
c
2
c
2
2
c
2
c
c
c
c
c
2
c
2
2
c
2
c
c
c
c
c
2
c
2
2
c
2
c
c
c
c
2
2
c
2
2
c
2
c
c
c
c
2
2
c
2
2
c
2
c
c
c
c
2
2
c
2
2
c
2
c
c
c
c
c
2
c
2
2
c
2
c
c
c
c
c
2
c
2
2
c
2
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c
2
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2
2
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2
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c
J F MA MJ J A S O N D
J F MA MJ J A S O N D
c
2
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2
2
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2
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c
c
c
1 1 1
1 1 1 1 1 1
c
2
2
c
2
c
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c
c
2
c
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c
c
2
c
2
2
c
2
c
c
c
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c
2
c
2
2
c
2
c
c
c
c
c
2
c
2
2
c
2
c
c
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c
c
2
c
2
2
c
2
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c
c
c
2
c
2
2
c
2
c
c
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c
1
2
c
2
2
c
2
c
c
c
c
1
2
c
2
2
c
2
c
c
c
c
1
2
c
2
2
c
2
c
c
c
c
2
2
c
2
c
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c
2
2
c
2
c
c
c
c
c
2
c
c
c
c
2
c
c
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2
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c
2
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c
2
c
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c
c
c
c
©2009
 Current Norwegian jack-up fleet tied up on firm contracts.
 Limited no. of available units and new entrants on the NCS in 2010/11.
 SKDP units well positioned for new contracts based on revised delivery dates.
Oslo Rig Event 2009
Page 22
c
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c c
c c
Norway Jackups Supply & Demand: 2005-2013
18
16
SKDP 1, PetroProd 1 &
SKDP 2 & 3 due out of
the yard.
14
Rowan Gorilla VI - Subject AOC
to be clarified around Q3 09
12
10
8
6
4
2
0
jan.2005
jan.2006
jan.2007
jan.2008
jan.2009
jan.2010
jan.2011
jan.2012
Last Updated: 13.07.09
Existing contracts
Oslo Rig Event 2009
Options
Requirements
Possibles
Supply
Including Rowan Gorilla VI
Page 23
UPCOMING REQUIREMENTS AND PROSPECTS
Husky
Location/ Field
Husky
Location/ Field
Client
Location/ Field
Husky
Nova Scotia, Canada
BP/Exxon
Sakhalin
Statoil
Gudrun, Dagny
Valemon (NCS)
ConocoPhillips
Ekofisk area (NCS)
BP
Valhall/Tambar (NCS)
Total
Hild (NCS)
Lundin
Luno, Nemo/Krabbe (NCS)
Talisman
Yme, Grevling (NCS)
Det Norske
Frøy (Production/drilling)
(NCS)
BG
Mandarin
Bream (Production/drilling)
(NCS)
Client
Location/ Field
Client
Location / Field
Client
Location / Field
Pemex
Gulf of Mexico
Chevron
Nigeria
ONGC
India
Various
Deep gas prospects
Oslo Rig Event 2009
Page 24
SUMMARY
 Three N-Class jack-up rigs under construction in Singapore ready for
delivery in 2010/11 are on schedule and budget.
 Financial restructuring completed in July 2009 securing a significant debt
write-off.
 All rigs are fully financed during construction period.
 New capital structure has triggered close dialogue with several oil
companies for drilling projects in North Sea and other markets.
 Strong demand for new jack-up drilling units from 2010 onwards with
current oil price.
 SKDP maintains its optimism that all three rigs will be on contract prior to
delivery.
Oslo Rig Event 2009
Page 25
Skeie Drilling & Production ASA
Tordenskjoldsgate 9
4612 Kristiansand
Norway
Telephone: +47 38 04 19 40
Fax:
+47 38 04 19 41
WWW.SKEIEDRILLING.COM
Oslo Rig Event 2009
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