SubseaMarketReview

Subsea2011
February9 10,2011

2011 Quest Offshore Resources, Inc.

PresentationSummary

QuestOffshore
Recentactivityandtrends
Forecastactivity
Contractorsperspective

2011 Quest Offshore Resources, Inc.

Data Contained Herein (Unless Otherwise Noted)

Is Based on On-stream Year

Forward-Looking Statements
Statements in this presentation regarding Quest Offshore Resources or its management's intentions, beliefs or expectations,
or that otherwise speak to future events, are "forward-looking statements. Future results and developments discussed in
these statements may be affected by numerous factors and risks, such as the accuracy of the assumptions that underlie the
statements, the success of the oil and gas exploration and production industry, drilling results, uncertainties in interpreting
market data, changes in laws and regulations, the ability to respond to challenges in international markets, including
changes in currency exchange rates, political or economic conditions, trade and regulatory matters, general economic
conditions, and other factors and risks. Actual results and developments may differ materially from those expressed or
implied in this presentation.
=COPYRIGHT NOTICE=
This publication may not be distributed, reproduced, stored in a retrieval system or transmitted in any form, or by any means,
electronic, mechanical, photocopier, recording or otherwise, in whole or in part, without the prior written permission of Quest
Offshore Resources Inc., Houston.
Careful attention should also be paid by bona fide subscribers to their license agreement with Quest Offshore Resources
Inc., Houston, in terms of forwarding this publication. Any queries or questions in this respect can e-mailed to:
corp@questoffshore.com.
2011 Quest Offshore Resources Inc.

2011 Quest Offshore Resources, Inc.

TheMission
Toprovidemarketexpertise,strategicanalysis,marketing
communicationandconsultancyservicestothedeepwateroiland
gasmarketsglobally
Capabilities
Adedicatedteamofsectorspecialiststhatfocusonqualitativeand
quantitativedatatoidentifyglobalmarketopportunitiesfor
deepwatertechnologies
Coverage
Worldwidedeepwaterbasins ExplorationthroughSURFand
Marineinstallationsegments

2011 Quest Offshore Resources, Inc.

ProductPortfolio
OverallScope:
Tracking800explorationprospects 150currentlyactive
Followingover2,500deepwaterprojects almosthalfareforecastprojects
Drilling

SubseaProductionEquipment
Umbilicals
Risers
Flowlines

SubseaProcessing&Power
MarineConstructionVessels

FloatingProductionSystems
GlobalShipyardCapacity
RegionalReports

WeeklyandMonthlyJournals
Conferences
Promotionopportunities

2011 Quest Offshore Resources, Inc.

GoM
Brazil
AsiaPacific

Exhibitions,wallmaps,atlases

OurClients
Contractors
Drilling
Downholeservices,completions,
chemicals,ROV

Engineering
Conceptualdesign,FEED,detailed
engineering
Flowassurance
OperationsandMaintenance
Lifeoffieldextension

Installationcontractors
Pipelay&SURF,heavylift,

Servicescontractors

FPSOOperators
Manufacturers

Subseatrees
Controls
Pumps
Pipelinesandcoatings
Umbilicals
Cables

Operators
Financialservices,bankingandinsurance
Classificationbodies

Diving,ROV
Survey

2011 Quest Offshore Resources, Inc.

Whyfocusonsubsea?
Maturing

Enabler

Economics

Subsea Widely Accepted Application; Has Become More Reliable

Subsea Technology Can Unlock Reserve Potential & Max. Production

Subsea is Often Efficient, Faster & Cheaper Alternative, Improving NPV

Future

Long-distance Tie-backs, Compression, Boosting, Pumping, Separation

Opportunity

For Increased Utilization and Continued Technological Innovation

2011 Quest Offshore Resources, Inc.

RecentActivity
OilPricevs ExpenditureonSubseaDevelopments
US$MM

9000

Oil

140

8000

Expenditure
120

7000
6000
5000

80

US$

100

4000
60

3000
40

2000
20

1000
0

2004200520062007

2011 Quest Offshore Resources, Inc.

200820092010

RecentActivity
ExpenditurebyRegion
US$MM

$9,000
$8,000

Africa/Medit.
NorthAmerica
NWECS/Arctic

$7,000
$6,000

AsiaPacific/MiddleEast
SouthAmerica

$5,000
$4,000
$3,000
$2,000
$1,000
$0
2004

2011 Quest Offshore Resources, Inc.

2005

2006

2007

2008

2009

2010

RecentActivity
OilPricevs DevelopmentType
US$

OilPrice

90

SubseaTiebacks
140

80

StandaloneDevelopments

70

120

60

100

50
80
40
60

30

40

20

20
0

NoofDevelopments

160

10
20002001200220032004

2011 Quest Offshore Resources, Inc.

2005

2006

2007

2008

20092010

10

EnergyConsumption(mboe/d)
400

350

300

250
NonOECD

200

OECD
150

100

50

2029

2027

2025

2023

2021

2019

2017

2015

2013

2011

2009

2007

2005

2003

2001

1999

1997

1995

Source:IEAWorldEnergyOutlook2009
2011 Quest Offshore Resources, Inc.

11

OperatorActivity
ExplorationbyOperatorCategory(2004~2013+)
200

1800
OperatorCount

1639
1600

ExplorationTargets

NoofOperators

160

1400

140

1200

120

1000

100

182

Nooftargets

180

800

80

721

714

600

60

400

40
20
7

IOCs/Majors

2011 Quest Offshore Resources, Inc.

200

27

0
NOCs

Independents

12

OperatorActivity
20MostActiveOperators
200
180

Undrilled(322)

160

Drilled(1164)

Nooftargets

140
120
100
80
60
40
20
0

2011 Quest Offshore Resources, Inc.

13

OperatorActivity
DiscoveriesbyRegion
70

2004
2005

60

2006
2007

NoofDiscoveries

50

2008
2009
2010

40

30

20

10

0
AfricaMed

2011 Quest Offshore Resources, Inc.

AsiaPacific

NorthAmerica

SouthAmerica

NWECS/Arctic

14

ForecastActivity
ForecastOilPricevs SubseaCapex
US$

16000
14000

US$MM

120

OilPrice
Expenditure

100

12000
80

10000

60

8000
6000

40

4000
20

2000

0
20092010

2011 Quest Offshore Resources, Inc.

2011

2012

20132014

15

ForecastActivity
ForecastSubseaCapexbyRegion
US$MM

$18,000

Africa/Medit.

$16,000

SouthAmerica

$14,000

AsiaPacific/MiddleEast
NorthAmerica

$12,000

NWECS/Arctic

$10,000
$8,000
$6,000
$4,000
$2,000
$0
2011e

2011 Quest Offshore Resources, Inc.

2012e

2013e

2014e

2015e

16

ForecastActivity
Forecastprojectsbytreecount
100

45
2011

90

2012

35

2013

30

2014

80
NoofProjects

NoofProjects

40

25
20
15
10

70
26+Trees

60

1125Trees

50

610Trees

40

35Trees

30

12Trees

20

10

0
12Trees 35Trees

2011 Quest Offshore Resources, Inc.

610
Trees

1125
Trees

26+
Trees

2011

2012

2013

2014

17

ForecastActivity
AverageNumberofYearsBetweenDiscoveryandSanction
AsiaPacific&MiddleEast

SouthAmerica

NorthAmerica

Africa&Mediterranean

NWECS/Arctic
0

2
SubseaTieback

2011 Quest Offshore Resources, Inc.

6
Years
StandaloneProject

10

12

18

ContractorsPerspective
Capabilitiesandlimitations
Pipelay
Method
Linepipeorreeled

Max.Pipediameter
Waterdepth
Locationofassetsandsupport

Geotechnicalinvestigations

Sampling
Drilling
Waterdepth
Locationofassetsandsupport

2011 Quest Offshore Resources, Inc.

Survey

Sensors
Towed,autonomous,ROVdeployed
Combinedwithgeotechnical
Waterdepth
Locationofassetsandsupport

Diving

Mechanicaltieins
IRM
Waterdepth
Locationofassetsandsupport

19

ContractorsPerspective
AtwhichstageofthedevelopmentcanIparticipate?
TypicalOperatorsFieldDevelopmentProcess
Appraise
/Define

Concept
Select

FEED

Execute&
Construct

Operate

COP

QuestProjectStatus
Prospect

Construction

2011 Quest Offshore Resources, Inc.

Discovery

Flowing

Appraisal

Conceptual

Suspended

FEED

Decommissioned

20

ContractorsPerspective
Prospects,DiscoveriesandAppraisals
Opportunities

Filterdata
SearchCriteria

Rigsitesurveys
Geotechnicalinvestigation
Drillingservices
Rigpositioning
ROVsupport
Engineering(Conceptual)

Waterdepth
GeographicLocation

Lookahead
Engineering(FEED)

1501m+

100

151 1500m
NoofProspects

80

<150m

60
40
20

Longlookahead
1/3rd ofprospectsexpectedtobe
developedafter2016

2011 Quest Offshore Resources, Inc.

AsiaPac

SAM

NAM

Af/Med

NWE/A

21

ContractorsPerspective
Concept,FEED
Opportunities
Engineering(FEED)
Survey
Geotech
SPU
FPSO
Construction

Filterdata
SearchCriteria

Waterdepth
GeographicLocation

Lookahead
Divertieins
Survey
Precommissioning

1501m+
50

151 1500m
<150m

NoofProspects

40
30

20

10

Timelineshorteningasprojects
firmup
Lessthan10%willbedeveloped
after2016

2011 Quest Offshore Resources, Inc.

AsiaPac

SAM

NAM

Af/Med

NWE/A

22

ContractorsPerspective
Pending/Construction

Opportunities
Installation
FPSO
ConstructionSupport
Divertieins
Survey
Precommissioning

Filterdata
SearchCriteria

Waterdepth
GeographicLocation
1501m+

40

151 1500m
<150m

NoofProspects

30

20

10

Theseprojectsalmostcertaintogo
ahead
Onlyoneisscheduledforpost2016

2011 Quest Offshore Resources, Inc.

AsiaPac

SAM

NAM

Af/Med

NWE/A

23

ContractorsPerspective

Otherindicators
Subseatrees
Leadingindustryindicator
Longleaditem
Sizeofthedevelopment

Samecanapplyto:

FPSOs
Pipe
Umbilicals
OtherSPUcomponents

2011 Quest Offshore Resources, Inc.

24

ContractorsPerspective
Allprospects

Opportunities
Survey&Positioning
SPS
Subseainstallation
Treesonwire
ROVintervention
Divertieins
Diverlesstieins

Filterdata
SearchCriteria
NoofProjects
NoofSubseaTrees
180 Type&noofTiebacks
160

NoofProjects

2000

FPSOTieback

1800

P/ForManifoldTieback

140

#SSTrees
NWECS/Arc.
Africa/Med
NAM
SAM
AsiaPacME

120
100
80

1600

AveTrees/
Project
4
12
5
25
7

1400
1200
1000
800

60

600

40

400

20

200

0
NWECS/Arc.

2011 Quest Offshore Resources, Inc.

NAM

AsiaPacME

SAM

Afr/Med
25

ContractorsPerspective
OperatingDevelopments
Filterdata
SearchCriteria

Opportunities
IRM
Wellmaintenance

Operatingfields
Waterdepthandgeographiclocation
Pipelinelength,noofSStreesandFPSOs

1400

NumberofSSTrees&FPSOs

60,000

1200

2,000

50,000

1000
AsiaPacME

800

SAM

600

1,500

40,000

1,000
30,000

NAM
AfricaMed

400

NWECS/Arc.

200
0

500
20,000

44

60

49

57

99

10,000
0

SS
Developments
2011 Quest Offshore Resources, Inc.

Pipeline(km)

SSTrees

FPSOs

26

ContractorsPerspective
MarketStudy Lightinstallation/divingcontactor,AsiaPacificregion
Target
Short,smalldiametersubseatiebacks

SearchCriteria
Waterdepth(120m),Reeledpipe(max8od,20kmlength)

Outputs

9prospectsinAustralia,Cambodia,China,IndonesiaandVietnam
Installationdatesrangefrom2012to2016
3tiebackstoplatforms
6tiebackstoFPSOsincludingonenewbuild
Prospectiveclients:
Apache,Chevron,CNOOC,HuskyOil,PremierOil(2),PTTEP,Santos(2)andWoodside
Petroleum

Widenthesearch
250mwd
TwomoreprospectsinAustralia
2011 Quest Offshore Resources, Inc.

27

ContractorsPerspective
MarketStudy ROV/ROVSV contractor,Nigeria
Target
Subseainspection
Shell,Bonga

Criteria
Operatingfields,subseaproduction

Outputs
Operatorsofsubseafields
7(Addax,Afren,Chevron,Eni,ExxonMobil,Shell,Total)

WaterDepthRange
Operatingfields1460m(Chevron,Agbami)
Prospects 2,479(Shell,Bobo)

Pipelines
Exportlines 1,980km(including6landfalls)
InfieldLines 361km

WaterDepth 1200m
Exportlines 94km
InfieldLines 71km
Umbilicals71km
SubseaTrees 46
Manifolds 5
FPSO 1
Risers 15

SubseaEquipment
SubseaTrees 174
Manifolds 30

FloatingProduction&Storage

Offshore/deepwater 9
Inshore/terminals 9

2011 Quest Offshore Resources, Inc.

28

ContractorsPerspective
Demandforlightconstructionvessels

Vesselsforumbilical,module,spoolandjumperinstallation
Potentialshortfallbasedoncurrentfleetsize
Expectedtobemadeupbynewbuildsbeingdeliveredtoglobalfleet

2011 Quest Offshore Resources, Inc.

29

Supply&Demand
Demandforheavyconstructionvessels

Vesselsforflowline,exportlineandriserinstallation
Potentialshortfallbasedoncurrentfleetsize
Expectedtobemadeupbynewbuildsbeingdeliveredtoglobalfleet

2011 Quest Offshore Resources, Inc.

30

ContractorsPerspective
Demandforsubseatrees

Mean caseindicatesproductioncapacitywillbefullyutilisedby2014
Highcaseindicatesthatproductioncapacitywillbeexceeded
Possiblescenario:Supplyofsubseatreescannotmeetfuturedemand

63%
25%
45%

2009-2016e Awards = Mean Case

2011 Quest Offshore Resources, Inc.

31

Summary
MarketAssessment

Segment
Geographiclocation,waterdepth,etc
Scopeofwork Survey,constructionsupport,IRMetc.
Capabilitiesandlimitations e.g.waterdepthlimits

Identifyprospects

Client
Sizeandvalue
Schedule
Specificlocation
Forecast,PrioritiseandTarget

Becomeinformedandabletoapproachcustomerwithasolutionforhisrequirements

Analysecapacitytomeetfuturedemand

2011 Quest Offshore Resources, Inc.

32

ThankYou
BillDonaldson
bill.donaldson@questoffshore.com
www.questoffshore.com
Savethedate...

Inpartnershipwith

2011 Quest Offshore Resources, Inc.

33