Exploring Growth in

the Liftboat Market
Chan Eng Yew
CEO, TRIYARDS Group

Asian Offshore Support Journal Conference 2015
8 September 2015
Macro overview
Developments in the Oil & Gas Industry in
2015
Oil prices down by 65% since Jun 2014; reaching lowest levels since the Global Financial Crisis

US$41.59
(24 Aug 2015)

Extensive capex and cost reductions by major Oil & Gas players; massive lay-offs/ restructuring
announced globally in anticipation of protracted downturn

Sources: DNB, IHS, Reuters 3
Southeast Asia – A Region of Diverse
Growth and Resource Needs

Indonesia, Malaysia and Brunei lead the oil and
gas production in SEA while potential growth lies
in countries such as Vietnam and Myanmar.
Source: IEA 4
Drivers for Oil & Gas Production in SEA
Demand for energy in SEA is expected to grow by 80% through 2035

Crude oil prices drive E&P activities and demand for liftboats – viable in SEA countries despite
current oil prices due to relatively low breakeven cost

Sources: IEA, IHS, OECD 5
Drivers for liftboat demand in
Southeast Asia
Key Features and Applications of Liftboats

Key Features Applications

• Self-propelled, self-elevating offshore • Construction / installation /
working platform for shallow water commissioning of offshore platforms
applications • Operations, maintenance and
• Multi-purpose modifications of offshore platforms
• Large, open deck space • Upgrading of offshore platforms
• Equipped with crane • Oil well intervention
• Stable platform for construction & • Removal of old platforms / P+A /
maintenance of offshore production decommissioning
platforms • Windfarm installation / maintenance
• Capable of carrying equipment and • Accommodation / living quarters for
supplies construction and service crews
• Combines capabilities of:
i. Conventional crane/ deck barge
ii. Legs and jacking system of MODU
iii. Propulsion of standard workboat

Sources: Aries Marine, EXIM Bank 7
Why Are Liftboats an Attractive Proposition?

Cost effective solution – applicable across wide spectrum of the offshore industry, from O&G
field construction to decommissioning; and renewables assets
Proven concept with NOCs and IOCs
SAFETY/
STABILITY

MOBILITY

COMPETITIVE
DAY RATE

OPERATION
UPTIME

Addressable Markets for SEA

Maintenance
Exploration Field Construction Production Modifications & Decommissioning
Operations

- SEUs typically - Accommodation - Accommodation - Accommodation
not active in - Crane Support - Well Services / Intervention - Crane Support
this phase (Construction) - Enhanced Oil Recovery (EOR) (Removals)
- Modification & Maintenance

8
Evolution of Liftboats Over The Years

1950’s – Jehu 1980’s – Dolphin Post 2000’s – Teras Fortress 2

• First liftboats were simple • Introduction of hydraulics/ • Liftboats of >150ft had
in design rack & pinion jacking been built since 1990s
• Only had 4 legs with 2 mud system • Capable for operations in
mats that retracted into the • 3-legged concept deeper waters
hull for smooth water flow • Working depths of 150ft or • Can be used for offshore oil
• Elevated by cables & less & gas / renewable energy
pulleys applications
• Seismographic surveys/
support for fixed platforms

Sources: Elevating Boats Inc.; High Waves: History of the Offshore Liftboat, Offshore Magazine, Jan 1999; Innovative Designs on Accommodation Jack-ups from GustoMSC , Mar 2015 9
Demand Outlook
Demand driven by shallow water production, which is less affected by capex moderation.
High potential in SEA due to limited units currently in supply.
Young market in SEA with high opportunity due to the small amount of Shallow water spending as % of total E&P spending
supply at the moment M. East and SEA expected to show highest demand growth for SEUs
3500 10% 92%
3257 100% 88%
82% 78%
80%
61%
3000 60%
40%
2500 20%
0%
Middle East SEA N. America NW Europe West Africa
2000 and North
1717 Africa
5%

1500
SEU in SEA are typically higher spec – with higher water depth rating
and more accommodation berths
200
1000 Average water
160
697 depth (m)
150
487 108 Average POB
500 392 91
100
150 62
35 36 50 49
7 31 50 34 27 32 26
0 0%
N. America SEA Middle East West Africa NW Europe
0
and North
Africa SEA Middle East NW Europe West Africa N. America
and North
Installed O&G platforms Liftboat supply Africa 10
Source: DW SEU Report 2014
10
Market Potential – A Bright Spot within a
Depressed Offshore Market?

Market Outlook
Region No. of SEUs No. of platforms Ratio of platforms
per SEU

North
~250 ~3,200 13
America (GOM)

~28
APAC ~1,700 61
(by 2018)

Potential Market Size ~100 SEUs

Resilience amid low oil prices

 Compared to a sharp decline in utilisation for
global rig fleet, demand for liftboats relatively
resilient.
 Gulf Marine Services recorded >95% utilisation for
liftboat fleet
 TRIYARDS announced 5 newbuild liftboat
contracts in 2015 despite weak demand for
drilling rigs

Sources: Credit Suisse, Macquarie 11
Assessing the Competitive Landscape
and Barriers to Entry
Assessing the Competitive Landscape and
Barriers to Entry
Key Considerations for Operators
• Under-penetrated market in APAC
• Low capex outlay compared to jackup rigs
• Resilient charter rates (between US$20-80k/day) vs. jackup rigs and traditional OSVs (which have
declined >30% since 2014) depending on vessel specs and working depth
• Various fabrication yards with newbuild capabilities, such as TRIYARDS
• Stringent pre-Q and operational requirements by field operators most significant barrier of entry
• Potential increase in competition due to low barriers to entry and traditional OSV players
entering the market amidst low OSV charter rates/ utilisation

Established Players Potential / New Entrants
APAC / Middle East Operators

International Operators

Source: Credit Suisse 13
Assessing the Competitive Landscape and
Barriers to Entry
With more oil platforms
As a niche market that has
requiring upgrading,
been under penetrated,
maintenance &
offshore service providers
replacement, the demand
are taking opportunities to
for liftboats is improving
enter the market.
particularly in Southeast
Asia.

Regional Segmentation to 2020

Demand for jack-up units, particularly in the Middle East
and South East Asia markets, has increased in recent
years. Jack-ups increasingly replacing vessels/barges for
construction and maintenance duties at shallow water
field in these regions.

Sources: Douglas Westwood, EXIM Bank 14
Outlook for Liftboat and
Chartering Strategies
Outlook for Liftboat Business &
Chartering Strategies
Southeast Asia – Regional Profile

• SEA region driven by commercials;
• Low cost alternatives create sustainable business model;
• Long term contracts on offer with low OPEX obligations;
• Occasional high day rate/ technically challenging projects

Preferred Technology

• Shallow/ Medium water depth: DP/ Moored monohulls, jack-up units, DP/ Moored semi-
subs
• Deep water: DP/ Moored semi-subs, DP/ Moored monohull units

Service Required

• Maximisation on PoB, inc. 2 & 4 men cabins
• DP2 generally accepted, as is moored

Source: Ryan Stewart – The Business Case for Flotels
16
Vessels Suitable for Southeast Asia Market

BH335
• ABS Class Self-Propelled & Self-
Elevating unit accompanied with a
large deck area and high capacity
cranes

• A true workhorse for shallow water
field services, such as:

1) Work over
BH450 2) Coiled tubing
3) Wire-line operations
4) Platform maintenance and upgrade
programs
5) Accommodation for 160 (BH335) /
250 men (BH450)

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Enhanced Design & Future
Developments
Liftboats of the Future

State-of-the-art, customisable solutions, capable of operating in deeper waters and harsh environments
(such as the BH-series and variants) propelling TRIYARDS as a regional market leader
BH300 BH320 BH335

BH336 BH450 TSU475

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Liftboats of the Future

Innovative designs key differentiators to
stay ahead of competition

• Compact and lightweight
innovative cantilever design
• Modular unit
• Integrated coiled tubing and
wireline support
• Capacity for pipe / equipment
storage on cantilever
• Large hoisting capacity

Source: Gannett Offshore 2020
Conclusion

• Asia Pacific liftboat market remains under-penetrated compared to US GoM
and West Africa

• Demand improving in Southeast Asia due to more platforms requiring
upgrading, maintenance and replacement

• Utilisation and charter rates relatively resilient vs. jackup rigs and OSVs amid
low oil price environment

• Lower capex requirements and barriers to entry present opportunities for
new entrants to build up fleet rapidly

• Liftboats with higher specifications and capabilities for operating in deeper
waters and harsh environments key differentiators to stay ahead of
competition

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Business overview
Business Overview
Integrated Fabrication Solutions Provider
 Headquartered in Singapore and listed on
the SGX Mainboard
 Provides integrated full-service engineering,
fabrication and ship construction solutions
 Skilled labor and engineering capabilities
 Strong track records in the fabrication of self
elevating units (SEUs) in Southeast Asia
 Diversified and rapidly expanding client base

Exploration and Production and
Transportation Refining
Field Development Services

Offshore Service Platform (SEU) Industrial/ Renewable Energy
Ship Repair & Conversion
& Drilling Rig (TDU) Fabrication

Offshore Support & Construction Our track records since 2007
Vessels / Multi-Purpose Support
Vessel/ Wind-farm Support & Aluminum Support Vessel Type of Unit(s) Indicative
Principal specification
Accommodation assets delivered Market Value
Liftboats/ 9 Up to 450 ft leg length USD 55-90m
Military/Paramilitary SEUs Service Speed : 6 knot
Offshore Fabrication Compliant to southern north sea
Patrol Boats
MPSV 1 Ice Class, DP3 USD500m
3000 Mt Crane, 239 pax
Offshore Heavy Lift Equipment AHTS 1 92 m, DP2 USD 50-60m
(Knuckle Boom Crane, Leg 250 ton bollard pull
Encircling Crane)
PSV 2 3,500 DWT, DP2 USD 25-30m
Oil Tanker 2 6,000 DWT, DP1 USD 10-15m
Offshore fabrication projects in aggregate market value of
approximately USD 10m 23
Business Overview
Current Ongoing Projects
TRIYARDS Group is currently involved in the construction of a multitude of newbuild projects, including
9 liftboats
FPSO Turret (LHS)
Liftboat No. 2 (M300-L4P) Liftboat No. 3 (BH300-L4T)
Liftboat No. 1 (BH320-L4T - RHS)

Liftboat No. 4 (BH335) 40m Aluminium Crew Boat Industrial Projects

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22.
Q&A