Presentation by Neil Kirkbride, Chairman of NOF Energy MD, Bel Valves • The Market Opportunities • The Capabilities of the North East of England • The Challenge for the Regional Supply Chain • The Opportunities for the Regional Supply Chain • Example Opportunities • How NOF Energy Can Help The Market Opportunities UK Market Data Total spend in North Sea £12.4 billion in 2007 Total employment 480,000 people Export sales Approximately 27% supply chain sales go to overseas markets £4 billion worth of activity “In Addition to the North Sea the Export Market Provides Massive Opportunities for our Region” North East England Supply Chain Estimated 700 plus suppliers in the oil and gas sector Over 70% of North Sea platforms built in the region! Key strengths Subsea Engineering design Heavy fabrication and construction Project management Pipeline engineering R&D Education and training Process and refining Subsea Activity North East England Companies 50 Employees 5000 Turnover Approximately £1billion Over 60% export related “North East England is a centre of excellence for subsea with vast international experience” The Challenge for the Region The North Sea does not provide the levels of activity that it used to The North Sea activity is predominantly centred in Aberdeen with less spend occurring in our region The Opportunity for the Region London, Aberdeen and some key cities in neighbouring countries, provide the North East of England supply chain with a gateway to international business Oil & Gas UK members are a significant part of this gateway UK Gateway Examples • Subsea 7: Global Headquarters Aberdeen • Technip : North Sea and Canada projects run from Aberdeen • PSN: Global Headquarters Aberdeen • KBR : Procurement for selected international projects done from Leatherhead. Primarily for Europe, Middle East, Africa and Soviet Union. • Petrofac (E&C): Procurement for selected international projects done from Woking plus project management BEL Valves – Opportunities In the Supply Chain • The BEL Valves markets have changed significantly over the past 10 -15 years • We were predominantly a UK and Norway platform valve supplier • With the growth of the domestic subsea market we developed our technology to become a significant player in this market too • This investment in trading relationships, products and technology has provided the platform for us to grow internationally while we continue to remain fully engaged with the North Sea activity albeit at reduced levels BEL Valves Recent Examples Kizomba C – ExxonMobil Angola Via Vetco Oslo BEL Valves Recent Examples Dalia – Total Angola Via Aker Solutions Oslo BEL Valves Recent Examples West Delta Deep – Burullus Egypt Via Technip Aberdeen BEL Valves Recent Examples Tengiz – TCO Kazakhstan Via PFD Camberley BEL Valves Recent Examples Kashagan – Agip Kazakhstan Via Agip KCO London BEL Valves Recent Examples Shah Deniz – BP Azerbaijan Via Technip Paris BEL Valves Recent Examples ACG – BP Azerbaijan Via KBR Leatherhead PSN Aberdeen BEL Valves 2010 Update… OpCo Field Country Contractor PO Source ExxonMobil Kizomba Angola GE Vetco Oslo ExxonMobil Kizomba Angola Acergy Paris Chevron Gorgon Australia GE Vetco Oslo Burullus WDD7 Egypt Technip Oslo Burullus WDD8 Egypt Technip Paris Total Usan Nigeria Saipem Paris BP Shah Deniz 2 Azerbaijan JPK London Shell Kashagan 2 Kazakhstan tba Hague KPO Karachaganak Kazakhstan tba London How NOF Energy Can Help Who are we • NOF Energy’s main objective is to be the UK’s leading business development organisation for businesses involved in the oil and gas and related energy sectors. Membership profile: 50% North East England 20% Scotland 30% Rest of UK Manufacturing companies Service providers Strategic members such as large clients UK partners such as Oil & Gas UK, One NorthEast, EEEGR, UKTI, BERR Global partners NOF Energy Core activities Our role and how we assist UK companies Identifying contract opportunities and helping members win a share of these Providing members with the knowledge and skills to trade overseas Organising inbound and outbound trade visits Mapping the capabilities of NOF Energy members Gathering industry intelligence and information An Aberdeen office to assist with opportunities from this key city Assisting members with staff recruitment Marketing NOF Energy members, the region and UK capabilities in the oil and gas and energy sectors “NOF Energy has helped UK companies generate over £30 million worth of business in the last few years” NOF Energy – Contact Us Neil Kirkbride Chairman Tel: +44 (0)191 269091 nk@bel.co.uk George Rafferty Chief Executive Tel: +44 (0)191 4174254 grafferty@nofenergy.co.uk Joanne Leng Director Business Development Tel: +44 (0)191 4174254 jleng@nofenergy.co.uk www.nofenergy.co.uk