Straddling the Divide – Oil & Gas in to Renewables I Alan MacLeay – Engineering Director Renewables 10 November 2018

Alan MacLeay, Engineering Director, Renewables 10 November 2018

Our Track Record in Offshore Wind WTG Foundations Greater Gabbard Sherringham Shoal Gwynt y Mor Riffgat Borkum West II Meerwind Sud/Ost Baltic 2 Dudgeon Substations Greater Gabbard / Galloper Thanet Anholt Nordsee Ost Westermost Rough Dan Tysk Sylwin HVDC Sandbank Dong x 5 10 November 2018

Key Differences (1) Developers tend to be from an onshore utility background. Consenting / environmental specialists Legal teams Financiers Cost controllers Onshore electrical / SCADA specialists Wind resource specialists Limited marine / offshore experience. Remote procurement teams Systems you haven’t heard of. Forms of Contract you haven’t heard of. Liabilities / Warranties more onerous than you are used to. 10 November 2018

Key Differences (2) Offshore wind developers consider the oil & gas supply chain to be: Working in a location further offshore than their project. Focussed on different H&S issues. Dirty (environmental focus) Expensive, gold plated / over specified. Bespoke. Slow to innovate. Arrogant. Risk averse. They’ve never heard of you! For market entry you need a good pitch, a good track record and offer something special or irresistible!

Key Differences (3) Developer’s (driven by project finance / banks) want fewer contracting interfaces. 20+ down to 3 contracts Large EPCI contracts Forces collaboration SME encouraged to talk to Tier 1 contractors. Developer’s (driven by banks) want to offload project risks to the supply chain. Cost reduction agenda High levels of repetition & standardisation Opportunities for innovation 10 November 2018

Forms of Contract

Beatrice (SSE 50%, Repsol 25%, CIP 25%) 498MW (83 x 6MW) The Offshore Wind Alliance: Siemens Wind Siemens STDL Seaway Heavy Lifting Bifab Atkins https://www.sseopen4business-highlands.com/sse/publicSearchForm.html 10 November 2018

Moray (EDPR 67%, Repsol 33%) 504MW (63 x 8MW) Vertically Aligned EPCI Packages Wind Turbines Wind Turbine Foundations Design Competition MV Cabling MV/HV OSP Export Cable Onshore Works http://morayoffshorerenewables.com/Supply-Chain.aspx 10 November 2018

Inch Cape (Repsol 51%, EPDR 49%) 584MW (73 x 8MW) 2 main work packages: Wind Farm Balance of Plant EPCI Transmission Works EPCI Bidders: ABB Alstom Grid Boskalis Ballast Nedam - Ferrovial DEME Geosea Siemens T&D Seaway Heavy Lifting Marubeni - Technip Van Oord http://www.inchcapewind.com/news/RFP_Process 10 November 2018

Neart na Gaoithe (Mainstream) 450 MW (75 x 6MW) Preferred Contractors: Siemens Wind DEME Geosea Siemens STDL / Prysmian http://www.nngsupplierdatabase.com/ 10 November 2018

Are there any new innovative techniques or equipment that have been developed specifically for this industry?

Supply Chain Contacts Finlay.Smart@Subsea7.com +44 1224 527261 Jhermans@shl.nl +31 79 363 78 03 TVerweijen@shl.nl +31 79 363 77 52 Title Presentation 10 November 2018