OPPORTUNITY ASSESSMENT New Zealand EnergyMarket
PRIMARY ENERGY 2016
908 PJ
Hydro 10%
Fossil Fuels : 60% Renewables : 40%
Geathermal 22% Gas 22%
Coal 22%
MERIDIAN ENERGY LIMITED
Other Renewables 8%
Oil 32%
ELECTRICITY MIX
100% Renewble
Historic 2010 Fossil Fuels 25.9%
Hydro 56.3%
Biogas 0.3%
Wood Thermal 0.7%
Geothermal 28.6% Hydro 56.2%
Wood Thermal 0.8% Biogas 0.5%
Geothermal 12.8% Wind 3.7% Wind 3.7%
MERIDIAN ENERGY LIMITED
Wind 19.3%
Additional renewable electricity: 41,620 GWh/y ‘In the pipeline’ => 15,000 GWh/y Difference: 26,620 GWh/y; 5.5 - 7.6 GW of wind (offshore/onshore) Build rate: 550-760 MW/y over next decade!
MERIDIAN ENERGY LIMITED
Wind energy contributes approximately 6% of the country’s electricity demand
2012 TO 2030
According to the NZ Wind Energy Association. this is lkely to reach 20% by 2&0. The growth of energy is key to reaching the Government's target of 9096 renewable generation by 2025.
MERIDIAN ENERGY LIMITED
Your Tagline New Zealand has 17 wind farms operating. These wind farms currently have a combined installed capacity of 690 megawatts. They supply around 6% of New Zealand’s annual electricity generation, which is about the same amount of electricity as 300,000 kiwi homes use in a year. There is currently approximately 2,500 MW of wind generation consented in New Zealand and developers are exploring sites throughout New Zealand for new wind farms. Developers generally progress from holding a consent to build once they are satisfied that market conditions will provide a commercial return. It is not expected that all consented wind generation will be constructed
MERIDIAN ENERGY LIMITED
Developer
Project
Region
Capacity (MW)
Contact Energy Genesis Energy Mercury Mercury Meridian Meridian Meridian Meridian Tilt Renewables Tilt Renewables Tilt Renewables Tilt Renewables MainPower Taharoa C and PowerCoast Ventus Windflow TOTAL
Waitahora
Southern Hawkes Bay Northern Wairarapa Manawatu Tararua District Ruapehu & Rangatikei Hastings Hastings Hurunui Clutha Gore Franklin South Taranaki Humnui Kawhia Waikato Wellington
1 56 800 1 80 31 7 1 30 225 48 76 1 60 240 18 1 30 78 54 27 12
MERIDIAN ENERGY LIMITED
Qastle Hill aw Emma Hurunui Mahinerangi Kaiwera Downs Awhitu Waverley Mt Cass Taharoa Ianmatamg Long Gully stage 2
2521
Estimated total employment (FTEs) benefit
In 2011, the wind energy industry generated 649 FTE jobs. Figure 1.1 summarises the employment benefit of wind farms in 2011.
2011
Operation and maintence, 186.29
Planning and project development, 158.24%
Of this total employment benefit, 305 FTEs were in construction and installation‘ vmne 186 FTEs and 158 FTEs were in 0&M and planning and project development, respectively. Construction and installation 305.47%
MERIDIAN ENERGY LIMITED
Estimated total GDP benefit
The wind energy industry contributed $65 milion to GDP. figure 1.2 summarises the GOP benefit 01 the wind energy industry in 2011. In terms of GDP. the wind energy contributesabout $65 million to me national economy. Of this. $28 million is from construction and installation activity. while $22 million and $15 milion are from O&M activities and planning and project development of wind farms built from 2010 to 2011, respettively
MERIDIAN ENERGY LIMITED
$2011m, 2011
Operation and maintence,22,34%
Planning and project development.15,23%
Construction and installation, 28,43%
TABLE 1.3 ECONOMIC CONTRIBUTION OF 3,ST OF INSTALLED WIND CAPACITY
BY 2030
A larger wind energy industry in New Zeatand will result in bigger economic benefits in terms of GDP and employment Under a scenario where there is 3.50oMW of installed wind capacity throughout New Zealand in 2000. the employment and GDP generated by the wind energy hdustry is likely to double.Table 1.3 summarises the economic benefits ofthewind energy industry under a 3.50oMW scenario.
DIRECT
TOTAL
GDP($201M)
81
150
EMPLOYMENT(FTES)
764
1,430 SOURCE : BERL
Overal. the total economic benefit associated with 3.500 MW of wind capacity will be about 1,400 FTEs and about $156 million in GDP by 2030. The key sectors that are likely to benefit from the wind energy industry‘s expansion are those businesses that are involved along the lifetime ol wind farms.Time include those in wind farm development, DU NEDIN es, finance and other bushess services, retail trade. component manufacturing, industrial goods consulting servic distribution, and construction. The combined installed capacity of wind farms completed between 2010 and 2011 is about 110MW
MERIDIAN ENERGY LIMITED
2012 TO 2030
Estimated total employment benefit
Much ofthegrowth in employmentwillbe in the 0&M workforceastherewill bea largernumberol wind farms to manage. Figure 1.3 shows the total employment benefit under a scenario where the industry gows by 15oMW each year from 2012 to 2030. broken down by phase of development 1,600
NUMBER OF FTES
1,400 1,200 1,000 800 600 400 200
203 0
202 9
202 8
202 7
202 6
202 5
202 4
2023
202 2
202 0
201 9
201 8
201 7
201 8
201 5
201 4
201 3
201 2
0
By 2030. the potential total employment benefit of the wind energy industry is about 1.400 FTEs-Figme 1.4 shows the breakdown of the potential employment impact at the wind enefgy industfy by 2030.
MERIDIAN ENERGY LIMITED
NEW ZEALAND’SOIL AND GAS INDUSTRY:
An Overview
New Zealand has a long history in the Oil & Gas industry that dates back over 150 years with discoveries can be traced back to 1865 New Zealand is a frontier for oil & gas exploration, both on-shore and offshore Being a fast-emerging oil and gas producer with many underexplored basins and significant petroleum potential, New Zealand differs from most global oil destinations New Zealand's oil exploration and production in New Zealand is currently all in the Taranaki region on the west coast of the North Island, with new on and offshore fields in this continuing to drive the industry, along with exploration work in a number of other locations around the country In recent years many further significant gas and oil fields that have come on-stream, including Mangahewa (1998), Pohokura (2006), Tui (2007), Cheal (2008), Maari (2009), Kupe (2010) and Sidewinder (2011) Natural gas is currently produced from 18 gas fields - 13 onshore and 5 off-shore - with key contributions coming from the off shore Pohokura and Maui fields, as well as Kapuni With the recent bill passing that has banned all future offshore permits, NZ now has only seven years gas left.
MERIDIAN ENERGY LIMITED
2012 TO 2030
NEW ZEALAND’SOIL AND GAS INDUSTRY: UPSTREAM
MIDSTREAM
DOWNSTREAM
ENERGY INFRASTRUCTURE
END MARKET USERS
Discovery and abduction of oil and natural gas
Transportation of oil and gas viapipes and storage of excess
Marketing and distribution of refinedoil andgastoend users
Oil 8. Gas Exploration 8. Production
Crude On a. Refined Products Pipenne & Storage
Oil & Gas Refining
EXPLORATION & PRODUCTION
Coal & Consumable Fuels on a. Gas Drilling
Oil 8. Gas Services and Equipment
Diversified Midstream Pipeline & Storage Manne Shrpocng a. transportation
Natural Gas Gathering & Processmg Natural Gas Pipelrne & Storage Oil Field Services
MERIDIAN ENERGY LIMITED
Oil & Gas Marketing & Distribution Commercial / Residential Industrial Gases
Diversified & Specialty Chemicals Utilities & Poorer Generation
Upstream Oil & Gas Life Cycle Acquisition contact signing
Exploration Discovery
Appraisal Sanction
Development First Production
Production End Production
Abandonment Contract expiry
MERIDIAN ENERGY LIMITED
2012 TO 2030
Activities to obtain a right to explore a block/area thfough concession/contractual system Activities to search for oil & gas deposit on the certain location beneath the earth surface Activities to define the oil & gas volume and characteristic more precisely after discovery Activities to build the subsurface & surface facilities to produce oil & gas safely and effiiciency Activities to extract. process. and export oil & gas as per contract agreement Activities to plug welts permanently. remove surface Aacilities. and restore the field as per initial state
Your Tagline Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
MERIDIAN ENERGY LIMITED
NEW ZEALAND’S AND GAS LANDSCAPE :
AT A GLANCE
15NRN-R1: offshore northland reinga new Caledonia basins 186,181km2
AUCKLAND
15TAR-R1: OffshoreTaranaki basin 53,253 km2 WELLINGTON
15TAR-R2: OnshoreTaranaki basin 1,039 km2
15WEC-RI OnshoreWest Coast basin 2,000 km2
15WEC-R2: OnshoreWest Coast basin 1,046 km2
DUNEDIN
15GSC-RI: OffshoreGreat-South and Canterbury basins 141,757 km2
MERIDIAN ENERGY LIMITED
15PEG-RI offshorePegasus and offshoreEast Coast basins 11,015 km2
New Zealand is surrounded by various offshore and onshore oil & gas exploration basins (with government releasing more areas for exploration). NZ has two large areas of offshore exploration, i.e. Northland-Reinga-New Caledonia Basins 186,181 km2 and Great-South and Canterbury Basins 141,757 km2
NEW ZEALAND’S ONSHORE MAP:
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis auteirure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidata non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
MERIDIAN ENERGY LIMITED
AT A GLANCE
NEW ZEALAND’S OIL AND GAS INDUSTRY
New Zealand produced
35,500 (2017) barrels of oil per day
New Zealand Oil & Gas industry created 11,720 (FTEs)
Oil & Gas contributed $1.5B in royalties to government revenue over the last 4 years
MERIDIAN ENERGY LIMITED
OPPORTUNITY
Natural Gas provides instant heat, energy and hot water supply to
245,000 NZ Households
Gas underpins 32% of New Zealand’s electricity generation
96% of New Zealand’s crude oil production is bought by global markets]
NEW ZEALAND’S OIL AND GAS INDUSTRY
New Zealand fields produced 208 PetaJoules of gas in 2013
New Zealand Oil is the
4th highest export earner
New Zealand Government aims to increase exports ten-fold
$3B to $30B by 2025
MERIDIAN ENERGY LIMITED
OPPORTUNITY
Natural Gas provides 22% of New Zealand’s primary energy supply
Natural Gas is used by over
10,000 commercial users (e.g. Hotels, hospitals, etc.)
96% of New Zealand’s crude oil production is bought by global markets]
NEW ZEALAND’S OIL AND GAS INDUSTRY 2015 1H
TGS Nopec
Energy Holding Offshore STATOIL
Woodside
Loyz NZ Ventures Octanex Todd OMV OMV
Anadarko Anadarko
NZOG Devon
NZOG Developments Anadarko Shell
MERIDIAN ENERGY LIMITED
2H
2016 1H
2H
2017 1H
2H
2018 1H
2H
2019 1H
2H
2020 1H
2H
PERMITS AND PIPELINE 2021 1H
2H
2022
2023
2024
2025
1H
1H
1H
1H
2H
2H
2H
2H
2026 1H
2H
NEW ZEALAND’S OIL AND GAS INDUSTRY 2015 1H
Shell Greymouth Gas Taranaki Woodside Todd NZOG NZOG Energy Petroleum OMV Chevron Chevron Chevron New Endeavour Resources OMV OMV ONGC Videsh
MERIDIAN ENERGY LIMITED
2H
2016 1H
2H
2017 1H
2H
2018 1H
2H
2019 1H
2H
2020 1H
2H
PERMITS AND PIPELINE
2021 1H
2H
2022 1H
2H
2023 1H
2H
2024 1H
2H
2025 1H
2H
2026 1H
2H
NEW ZEALAND’S OIL AND GAS INDUSTRY
OPPORTUNITY
White Collar
Marine and Subsea
Heavy lift contractors Pipelay contractors Production Platforms (Floating or fixed) Marine / subsea contractors Decommissioning contractors
Facilities
Engineering, ops, maintenance and contractors
Platform and topsides design and fabrication
Wells
Engineering consultancies
Drilling contractors
Drilling contractors
Well engineering consultancies
Well engineering consultancies
Reservoirs
Wells services contractors
Seismic acqu & processing contractors
Reservoir engineering / management consultancies
Operators
Workforce Requirement
c.6months
c.12months
c.12months
c.18months
Appraisal & Concept Studies
FEED
Detailed Engineering
Construction &Hook-up Commissioning
Concept Identification
MERIDIAN ENERGY LIMITED
Final Investment Decision (FID)
c.12months
c.9months
Operating
Operating
Decommissioning
NEW ZEALAND’S OIL AND GAS INDUSTRY
Labour costs in the O&G sector in NZ is 40% lower than in Australia
The O&G labour market in NZ grew at a CAGR of 11.07% during 2010 – 2014, and is further forecasted to increase
There is a need for contract labour across the value chain of O&G industry in NZ
MERIDIAN ENERGY LIMITED
G R O W T H D R I V E R S
LABOUR MARKET DRIVERS
The outsourced labour market for the O&G sector in NZ is large and is currently valued at $200M
Drilling rigs can be staffed up to 220 people at any given time generating monthly revenue of $1.3M - $3.5M
NZ O&G industry has labour need from two segments; On-shore White Collar Workers and Off-shore Blue Collar Workers
NEW ZEALAND’S OIL AND GAS INDUSTRY
Attracting skilled labour is a key constraint for growth in the O&G sector. Increasing activity means that the demand for skilled labour will also increase
01
LABOUR MARKET CHALLENGES
02
O&G sector needs to invest in professional training for its drilling workforce to meet the growing demand for expertise, especially when offshore explorers hire drilling staff whose experience is mainly onshore
Challenge With a skills shortage being inevitable in the O&G sector, the companies are looking for overseas employees to make up the workforce shortfall
03
04
Skills shortage is inflating the wages and salaries of employees, thereby acting as a road block to develop business opportunities
Above challenges substantiates the opportunity that lies ahead for a Recruitment and Training company for the Oil & Gas industry in New Zealand ‌ MERIDIAN ENERGY LIMITED
NEW ZEALAND’S OIL AND GAS INDUSTRY With the O&G industry in New Zealand growing and sourcing skilled labour becoming increasingly difficult, Onestaff has a great opportunity to enter into the market and become a strong partner for the growth of Energy industry
OPPORTUNITY AREAS Company X would be New Zealand’s only NZ owned offshore support company with a nationwide foot print that could offer turnkey resourcing support across white/blue collar labours Although Offshore is the main target due to large revenues and margins, these services can be extended to on shore operations around New Zealand and into the renewables sector. The services that can be offered are White Collar recruitment, Contractor management, Drilling crew management, Marine crew management, Production crew management, Catering crew management, Ships agency services, Marine consultancy and Supply base management
MERIDIAN ENERGY LIMITED
OPPORTUNITY
COMPETITIVE LANDSCAPE:
WHITE COLLAR O&G
MARINE / RIG MANNING
AT A GLANCE
VESSEL OPERATIONS
Stellar
Atlas Professionals
Swire Pacific
TRS
New Zealand Offshore Services
Farstad
Hays
Tidewater
Air Energy
Dof ASA
Dare
Seaworks NZ
Carrington Recruitment
Western Work Boats NZ
MERIDIAN ENERGY LIMITED
Energy LABOUR BUSINESS UNIT
START UP PREPARE MARKETING MATERIAL / REQUIRED CERTIFICATES / MEMBERSHIP MARKETING AND RECRUITMENT DRIVE INTERNATIONAL MARKETING TOUR AWARD OF AT LEAST ONE MAJOR OFFSHORE PROGRAM
OFFSHORE PROJECT OPERATIONS REVIEW OF SUMMER OPERATIONS AND FOLLOW-UP
MERIDIAN ENERGY LIMITED
JUL
AUG
PROJECT TIMELINE
SEP
OCT NOV DEC
JAN
FEB
MAR APR
MAY JUN