DORIS ENGINEERING

DORIS
ENGINEERING
ACTIVITY REPORT
2014
S U M M A R Y
ACTIVITY REPORT 2014
General Information
2 /3 S u b s i d i a r i e s , A ff i l i a t e s
3 C a p i t a l S h a re
3 B o a rd o f D i re c t o r s
3 C o m p a n y M a n a g e m e n t
3 A u d i t o r s
Report on the activity
of the company
5
11 15 16 The Company’s Activities during the Past Year
Subsidiaries, Affiliates, Joint Ventures,
New Developments
Future outlook
Important events after the closing of the accounts
ACCOUNTS
(see appendix)
DORIS Engineering
58 A, rue du Dessous des Berges - 75013 PARIS
Société Anonyme au capital de 3.571.440 € - Siret 338 274 491 00012 - Code APE 7112 B
1
S ubsidiaries
A ffi l ia t es
DORIS
E ngineering
Angola
uniTED STATES
DORIS Engenharia Angola Lda
DORIS Inc.
Edificio IRCA - 5° andar
Avenida Amilcar Cabral N°211
Ingombotas - LUANDA
Phone: +244 222 33 21 20
Three Memorial City Plaza
840 Gessner, Suite 400
HOUSTON, TX 77024
Phone: +1 (713) 973 2520
Fax: +1 (713) 973 2578
ArgentinA
DORISAR
Talcahuano 758 Piso 2e B
1013 BUENOS AIRES
Phone: +54 (11) 4 373 83 65
Fax: +54 (11) 4 373 03 29
STAT Marine LLC
10777 Westheimer, suite 830
HOUSTON, TX 77042
Phone: +1 (713) 782 0122
Fax: +1 (713) 782 0312
France
AUSTRALIA
GÉODYNAMIQUE & STRUCTURE
DORIS Engineering Australia Pty Ltd
157, rue des Blains
92220 BAGNEUX
Phone: +33 (0) 1 46 65 00 11
Fax: +33 (0) 1 46 65 58 54
Level 1, 10 Kings Park Road
West Perth WA 6005
Phone: +61 8 1350 6055
BrAZil
DORIS Engenharia Ltda
Av. Almirante Barroso, n°139
Sala 801
Centro - RIO DE JANEIRO - RJ
CP : 20031-002
Phone: +55 21 2232 5011
Fax: +55 21 2232 4482
Canada
DORIS DEVELOPMENT CANADA
P.O. Box 29119
ST JOHN’S - NL A1E 3T9
Phone: +1 (709) 570 5244
DORIS CONPRO Ltd
16 Waterford Heights South
ST JOHN’S - NL A1E 1G4
Phone: +1 (709) 749 1193
OCÉANIDE
Port de Brégaillon - B.P. n° 63
83502 LA SEYNE-SUR-MER cedex
Phone: +33 (0) 4 94 10 97 40
Fax: +33 (0) 4 94 94 42 27
SEA TANK Co
58A, rue du Dessous des Berges
75013 PARIS
Phone: +33 (0) 1 44 06 10 00
Fax: +33 (0) 1 45 70 87 38
STAT Marine SAS
Centre Atria
5, Boulevard de Prague
30000 NÎMES
Phone: +33 (0) 4 66 36 65 65
Fax: +33 (0) 4 66 36 65 66
STAT Services SAS
Bât. First - Z.I. du Port de Brégaillon
83511 LA SEYNE-SUR-MER cedex
Phone: +33 (0) 4 94 10 80 04
Fax: +33 (0) 4 94 10 80 05
2
CAPITAL SHARE
DORIS PERSONNEL
34%
VINCI Construction
20%
GRAAVEN Holding SAS
20%
CM-CIC Investissement 16%
PONTICELLI Frères
10%
BOARD OF DIRECTORS
Mr Loïc des DÉSERTS
UNITED KINGDOM
Chairman
ODE
(Offshore Design Engineering)
St. George’s House,
5 St. George’s Road
Wimbledon, London,
SW19 4DR
Phone: +44 (0) 20 8481 1190
Fax: +44 (0) 20 8546 4346
Mrs Pauline BÉRAUD
(FCPE DORIS Actionnariat)
Mr Jean-Baptiste CHAMPEAU
(FCPE DORIS Actionnariat)
VINCI Construction
Mr Richard FRANCIOLI
(Permanent Representative)
STAT Marine Ltd
Innovation House,
Innovation Way,
Sandwich,
KENT, CT13 9FF
Phone: +44 (0) 122 776 4300
Fax: +44 (0) 122 776 4301
INDONESIA
Mr Jean-Michel LANG
(VINCI Group)
GRAAVEN Holding SAS
Mr Benoît LECINQ
(Permanent Representative)
CM-CIC Investissement
Mr Alain BÉNISTY
PT.SINGGAR-DORIS
(Permanent Representative)
Po. Box 13
Wisma GKBI
JI. Jendral Sudirman No 28
JAKARTA 10210
Ponticelli Frères
Mr Jean-Jacques LESTRADE
NIGERIA
STAT Marine Nigeria Ltd
94 Awolowo Road, Ikoyi,
LAGOS
Phone: +234 1 4615636 - 4630183 +234 803 4695621
(Permanent Representative)
COMPANY MANAGEMENT
Mr Loïc des DÉSERTS
Chairman
Mr Nicolas PARSLOE
Chief Executive Officer
Mr Pierre-Yves BURBAN
Vice-President Sales & Marketing
Mr Michel CAPLAIN
Administration & Finance Manager
Mr Francis CARMIGNIANI
Vice-President Engineering
Mr Cyrille SAILLY
Company Secretary
Mr François THIÉBAUD
Vice-President Operations
AUDITORS
ARPÈGE
BM&A
3
FINANCIAL
YEAR 2014
ACTIVITY REPORT
4
1 / THE Company’s Activities during the Past Year
GENERAL
The activity of DORIS Engineering and the Company’s subsidiaries was maintained at a high level throughout 2014. The Company’s
accounts show a pre-tax turnover of 67.6 M€ (-22.1% on the previous year). Consolidated, the turnover was 270.7 M€ (+22.4 %).
Considering a constant consolidation perimeter (excluding the acquisition of 50% of the British subsidiary ODE), the increase in
consolidated annual turnover would have been +12.3%.
The consolidated turnover for 2014 is, once more, a new high record for the DORIS Group.
The year 2014 was an unusual one for the energy sector. The (Brent) oil price per barrel, averaged across the whole year, remained high
(99 USD, lower by 8.8% when compared to 2013); the year was split into two periods: until August 2014, the price per barrel maintained
a level above 100 USD (with a high at more than 115 USD in June); it then fell abruptly, notably from October 2014 to reach a level
of 64 USD in December 2014, a drop of approximately 40% in four months. It should be noted that this fall continued at the start of
2015, with a lowest price reached in January 2015, below the symbolic level of 50 USD (an average of 47.7 USD in January 2015). The
operators, who had already launched cost reduction measures during 2014, accelerated the process at the end of the accounting
period: certain projects were suspended or delayed and others, quite simply, cancelled.
In this very specific set of circumstances, the DORIS Group experienced a sustained work load with a contrast in the effects on the
head office compared to the subsidiaries: the head office work load reduced a great deal (in comparison with the previous year which,
it should be emphasised, was a record). On the other hand, the subsidiaries increased their turnover during this accounting period;
in total their activity made up 75% of the Group turnover, and this with a profitable result for every entity. This evolution over the long
term is illustrated in the graphic below.
300
250
200
150
100
50
Million
Euros
0
DORIS Engineering Revenues
Subsidiaries Revenues
Consolidated Revenues
The head office of the Company has led large projects, mobilizing most of its teams executing FEEDs and Basic Engineering and/or
Detailed Engineering projects with a high added value.
In parallel, a large number of studies, generally smaller in scale and highly technical, have been executed for concept selection studies
or feasibility studies. These have drawn on the skills of a large proportion of very experienced engineers and specialists.
DORIS Engineering Board of Directors meeting 11 June 2015
5
Basic engineering and
conceptual studies for
oil companies and other
hydrocarbon clients
DORIS Engineering has continued to assist its oil company clients
in the development of offshore hydrocarbon fields for both oil and
gas.
Our Company has also carried out additional studies for the North
Sea Edradour field for TOTAL in Great Britain in order to incorporate
the Glenlivet field. This gas field is situated in 450 metres water
depth 90 km North-West of Shetland, in the North Sea, only 17 km
from Edradour. The objective of these studies has been to optimise
the tie-in of Edradour and Glenlivet to the subsea section of the
Laggan Tormore development. Note that the Laggan Tormore field
was itself the subject of a FEED carried out by the Company in 2009.
The N’Goma FPSO during construction phase survey
(ENI Angola - Angola)
N'Goma FPSO. This project mobilised a full team in Paris for the
whole year to execute these projects for the Italian operator and will
continue for a part of 2015.
DORIS intends to maintain its pre-eminence in the activity of basic
engineering, the true heart of the business, because this allows
the development of know-how and skills of the company’s teams
and over the longer term to be integrated into these projects from
the earliest stages. The Company can then follow through the
life of these projects either in assisting the clients, or by working
with contractors, taking responsibility for detailed engineering
and procurement. This model, based on our unique know-how,
continues to be exported through our subsidiaries with success.
General 3D view of Glenlivet field
(TOTAL E&P UK - UK)
DORIS also carried out the FEED and various optimisation studies
for Zinia. Zinia is one of the developments of Pazflor, for TOTAL
E&P Angola. Situated 150 km from the Angolan coast, Pazflor
exploits four reservoirs in water depths from 600 to 1,200 m. The
reservoirs consist of two types of oil with different characteristics
which are treated at the surface on board the Pazflor FPSO. This
FEED studied the modification of existing equipment to optimise
the recovery from the new resources discovered in this additional
development in Block 17. It should be underlined that DORIS has
been involved in this key project from its conceptual phase. This
project is also of particular significance because it was successfully
carried out in consortium with the Company’s Angolan subsidiary
DORIS Engenharia Angola Lda (DEAL) in order to respect the
“Angolan Content” required by the local authorities.
Our Company has also carried out studies on the Block 15/06
(West Hub and East Hub) operated by ENI in Angola. The field is
situated 130 km from the Angolan coast (near Soyo) in deep water
with water depths reaching 1,500m. The East Hub section (Cabaça)
was the subject of conceptual studies of subsea tie-backs of new
reservoirs to the existing FPSO. For the West Hub (notably Mpungi
and Vandumbu), the Company carried out optimisation studies on
the subsea equipment required to recover oil for processing on the
6
In parallel, in basic engineering, DORIS has continued its
collaboration within the ADC consortium which is composed of
SONANGOL and DORIS. Three subjects studied in 2013 were
completed in 2014: the abandonment of deepwater offshore fields,
the collection of metocean data in real time and the collection of
feedback experience from the monitoring of subsea pipelines.
From mid 2014, studies on three new subjects have been initiated,
namely: the management of sand in the riser system during oil
extraction, the management of naturally radioactive waste produced
during hydrocarbon production, NORM management (“Naturally
Occurring Radioactive Material management”) and lastly a study
called “Standardization” for which the objective is the optimisation
of the development of deepwater offshore fields.
The participants in these studies are BP, CHEVRON, ENI,
EXXONMOBIL, PETROBRAS, TOTAL and, of course, SONANGOL.
These studies, selected by SONANGOL, allow DORIS to work on
key subjects, and at the same time to deepen our footing in Angola
in parallel with our subsidiary DEAL, and to collaborate with the
best specialists within the principal world-leading international oil
companies.
We note the increasing frequency of requests for our Company to
step in at a very early stage alongside operators at the “conceptual”
level, at the “pre-project” stage or for “feasibility studies”. This is
notable in the following cases: FLNG strategic studies, where the
clients wish to remain confidential, the pre-FEED of Bonaparte for
GDF-SUEZ in Australia which has generated a need for personnel
to be sent to assist the client operating team, the ADC studies
mentioned above and the project Falcão, detailed below, carried
out by the Company for SONAGAS.
DORIS has effectively completed the FEED for Falcão on behalf of
SONAGAS, the subsidiary which specializes in gas for the Angolan
operator SONANGOL. ALNG (Angola Liquefied Natural Gas), a
consortium led by CHEVRON, has developed a LNG plant near
Soyo, in the north of Angola, for gas export. A part of the gas will
be distributed locally via a plant. Falcão is the name of the gas
distribution system (the GRDU – “Gas Reception and Distribution
Unit”) for which SONAGAS is responsible, situated between the
LNG plant and the gas distribution unit at Soyo. The objective of
the study is to permit SONAGAS to determine the characteristics
of the GRDU. This study followed two preliminary studies carried
out in previous years for SONAGAS (DPG FEED in 2011 and GRDU
FEED in 2011/2012) could lead onto other studies (FEED, Detailed)
in the near future.
The DORIS process teams are capable of studying production
equipment for fields producing several hundred thousand barrels
per day, or the equivalent in gas. The Company has competence
and references in this domain, having acquired a well-respected
know-how for construction engineering and procurement of oilfield
equipment. DORIS has established its position as a reference for the
highly technical studies of HIPS (High Integrity Protection Systems),
and continues with studies in this domain, notably those for
TOTAL in Nigeria, in Myanmar and in Congo. The mastery of “flow
assurance” is now solidly anchored within the technology portfolio
of the Company and DORIS Engineering is globally recognised as
an expert in this domain. The American subsidiary DORIS Inc is also
recognised as a top level player in this domain.
The Company has also gained references “onshore” since its
execution of the FEED for Timimoun in Algeria (the Timimoun
project was carried out for the Groupement TIMIMOUN during
2009/2012) and in Peru (Block 67 project for PERENCO in 2011) and
in Gabon (FEED for the redevelopment of the Coucal and Avocette
fields 2012 – 2013). The Falcão study (see above) and the follow-on
of the Yucal Placer project in Venezuela, which will be detailed later
(§ Detailed Engineering) demonstrate the capacity of our teams to
deliver studies of this type with high added value.
Detailed engineering
In parallel with its engineering work for oil company operators,
DORIS carries out detailed engineering work for contractors or
directly for operators.
The 2014 period is characterised by a strong growth in the number
of detailed engineering projects thanks to which the Company had
a high level of activity over the whole of this period.
Firstly, the Company has been working on the Yucal Placer project,
mentioned above, carried out for YPERGAS, a JV operated by
TOTAL’s subsidiary in Venezuela. This onshore gas field is 120 km
southeast of Caracas. This complex field (high temperature, H2S
and CO2) was discovered in 1948. Following the basic engineering
executed in 2013, the Company completed the detailed engineering
in mid 2014. This project is in its last phase with activities in follow-up
of procurement being carried out by the American subsidiary DORIS
Inc. under subcontract. The technical complexity of this project has
been amplified by the need to execute it in Caracas. At the start of
the detailed engineering phase the project effectively moved to be
carried out from the offices of INELECTRA/OTEPI subcontractor in
Venezuela, a country which is now close to revolution. This project
has now been stopped by the operator and DORIS has no personnel
in the country.
OFON 2 field 3D model of OFD1 platform
(TOTAL E&P Nigeria/PONTICELLI – Nigeria)
Our Company executed the engineering of the modification of
existing structures on OFON 2 in collaboration with PONTICELLI
who held the EPCI contract from TOTAL in Nigeria. The objective
of this project is to use the gas, which previously had been burnt,
and to increase the production capacity of the field which has been
operated since 1997 by TOTAL E&P Nigeria. This “brownfield”
study work was started in 2012 and continued throughout 2014. The
offshore operations have been a great success.
As mentioned in the introduction, the principal new contracts for
the Company in the 2014 period consisted of detailed engineering
studies, mainly for contractors.
Firstly, the detailed engineering for modules MO8A and MO6
under subcontract to DSME (DAEWOO Shipbuilding and Marine
Engineering Co. Ltd.) for the Ichthys field operated by the Japanese
company INPEX; the detailed description of these works is
presented below (§Project Management/Turnkey Contracts). This
project mobilised a large team during the whole of this reporting
period and this will continue during the first quarter of 2015.
Secondly the Egina FPSO project, as subcontractor to the Korean
shipyard SAMSUNG Heavy Industries (SHI) for TOTAL Upstream
Nigeria. The Egina field is 200 miles from the Nigerian coast in a
water depth of 1,550 m. The project consists of follow-up of the
detailed design of the topsides. This occupies two teams, one
based in Paris and the other in Lagos, integrated into the SHI teams.
In addition our company has carried out detailed engineering of
the subsea integration of the N’Kossa field into the network NKF2,
for TOTAL E&P Congo. NKF2 collects gas coming from the existing
fields in Moho (Phase 1E) and future supplies (Phase 1Bis and Moho
Nord). N’Kossa is 25 km from the Moho Bilondo FPU (Floating
Platform Unit) and 50 km from the Djeno terminal. The Company
has also assisted the client in following up the procurement of
equipment necessary for the execution of this project. It should be
7
recalled that DORIS has participated, over a number of years, in all
the TOTAL developments in Congo.
capacity of 8.4 million tonnes per year. The teams follow each phase
of the construction of the vessels (end of the FEED in London,
detailed engineering in Houston for one and in Kuala Lumpur for
the other, followed by fabrication in Korean shipyards). During 2014
the teams were essentially based in Singapore and Korea.
The N’Kossa floating platform during marine operations
(TOTAL E&P Congo - Congo)
Finally, DORIS has carried out the detailed engineering of the
modifications of the platforms on the Yadana field, as subcontractor
to the Indonesian company PT GUNANUSA UTAMA FABRICATORS.
Yadana is operated by TOTAL E & P Myanmar and is 60 km from
the coast in a water depth of 45 m in a zone subject to significant
seismic activity (Andaman Sea). Certain equipment, notably the
bridges linking the different platforms, needed to be reviewed and
subsequently strengthened to comply with the new seismic security
criteria, taking into account the data observed during the most
recent significant earthquake which occurred in 2011. It should be
recalled that the Company has, in the past, carried out numerous
complex studies for the operator, notably linked to subsidence
phenomena.
Project Management /
Turnkey contracts
Within the framework of the IPMS contract (Integrated Project
Management Services) for the Ichthys project, where the contract
is held by the Australian subsidiary DORIS Engineering Australia
Proprietary (DEAP described below), since August 2011, the
Mother-Company has continued to mobilize a complete project
management team. This team has been assisting in the engineering
and construction of two vessels: a CPF (Central Processing Facility)
to lift the gas and condensate and an FPSO to process and store
the fluid hydrocarbons. Operated by the Japanese organisation
INPEX, this gas field is off the North West Australian coast, more than
800 km from Darwin. This giant project, for which initial investment
is estimated to exceed 30-35 billion dollars, foresees, in addition to
the construction of the two vessels, a 42” export pipeline of over
885 km to a land-based liquefaction plant (LNG) at Darwin with a
8
3D view of the M8A Module of the Ichthys FPSO
(INPEX/DSME - Australia)
The contract is held by a JV (50/50) between our Australian
subsidiary DEAP and local partner CLOUGH; it has an initial value of
250 MAUD (170M€) and a six year duration.
The Company also carried out follow-up work to a project
management assistance contract for the Avant-Port de la
Condamine for the client Service de Travaux Publics of the
Principality of Monaco. After the initial risk analysis study on the
maintenance of the ball joint of the jetty executed in 2013, DORIS
has carried out a study producing budget estimates for the most
important tasks to be carried out in 2014 and the cost of assistance
to the entity managing the works.
The Company did not execute any turnkey contracts in 2014.
Technical Assistance
Due to the high technical expertise of its engineers in a wide
range of specialities, during the year the Company has seconded
significant numbers of its engineers to its clients for specific projects.
The specialities covered include process, rotating equipment,
structures, procurement and project management.
The principal clients for these services in 2014 have been: TOTAL
in France or abroad, PONTICELLI in Nigeria, GDF-SUEZ in France
and of course INPEX for the Ichthys contract executed in JV by the
Australian subsidiary DEAP and their local partner CLOUGH. The
Company has also seconded personnel for the follow-up and local
support on the contracts for which studies have been carried out
at an earlier stage, as for example the Moho Nord FPU (Floating
Production Unit) at the HYUNDAI HEAVY INDUSTRIES (HHI) yard in
Korea, or at DSME for the Ichthys contract. This was also the case
for the Egina contract carried out as subcontractor to SHI: one part
of the team was mobilized to work with the SHI engineering team
in Lagos, another part worked with the Melbourne-based Australian
subcontractor (WORLEY PARSONS) and another group in the SHI
Korean yard at Geoje.
Articulated Wind Column (AWC) model testing in OCÉANIDE facilities on behalf
of MARINE ENGINEERING ENERGY SOLUTION (MEES)
and DORIS Engineering
Coastal Engineering
Our Company has not carried out any coastal engineering studies
in 2014.
3D view of the Yombo field FPSO
(PERENCO - Congo)
Research and Development
Our Company has continued to devote a significant part of its
activity to research and development. This has been, from the
outset, the key to DORIS’s profitability and its development.
This research can take different forms:
• Research and development for oil company operators, for
example works on an autonomous subsea installation;
• Work co-financed by CITEPH (Concertation pour l’Innovation
Technologique dans l’Exploration et Production des
Hydrocarbures). It is within the framework of this programme
that DORIS participates in these works and/or co-finances
them. New research subjects have been developed in 2014:
vibrations of pipework induced by turbulent flow, aerodynamic
coefficients for complex structures; “VIV Reynolds 2” or
improvement of the understanding and predictive analytic
tools for risers in vibration induced by vortices at high Reynolds
numbers and, in addition, the fluid/structure interaction around
a riser… DORIS has taken an active part in setting up the
CITEPH, acting simultaneously as a partner and as a financier;
Diversification
Even though the majority of the Company’s activity is linked to
offshore hydrocarbon developments, DORIS has established the
value of its expertise in other sectors requiring the engineering
and management of complex systems in difficult areas. This is the
case for the contracts for onshore projects in Algeria, in Peru, in
Gabon or in Venezuela and in Angola mentioned above (in remote
locations and in the desert), with renewable energy (offshore wind
turbines for several clients) as well as specific marine operations and
equipment or on completely different subjects (as for example with
studies for the CNES – Centre National des Etudes Spatiales) where
new opportunities present themselves, thanks to the reputation of
the Company.
• Work on Offshore Wind Farms in water depths equal to or
greater than 50m;
• Finally, a number of strategically important works were entirely
self-financed, such as LNG terminals, the adaptation of new
materials for use offshore, and different production systems for
great water depths.
It should be noted that, wherever possible, these innovative
concepts are protected by patents, sometimes in co-ownership with
our clients or partners.
Horne & Wren Platform, decommissioning and removal followed by ODE
(TULLOW OIL - UK)
9
Representatives
from DORIS Group
subsidiaries
3D view of the M06 Module
of the Ichthys FPSO
(INPEX/DSME - Australia)
10
2 / Subsidiaries, Affiliates, Joint Ventures,
new developments
Subsidiaries
ODE (100%)
On 7th March 2014 DORIS became 100% owner of ODE (United
Kingdom) following the purchase of the shareholding held by
SAIPEM in this company.
ODE has developed an important flow of work in the field of new
energy sources, with several large projects for offshore wind farms,
which today represent nearly 30% of its turnover. The company has
a satellite in the Middle East (ODENA in Egypt).
for Solan, carried out initially as subcontractor to BURNTISLAND
FABRICATIONS (BiFab), and then under direct contract from the
operator PREMIER OIL. In contrast, the activity level of the Great
Yarmouth office has remained at a high level thanks to multiyear
contracts for RWE and E.ON, and for offshore wind farms with
IBERDROLA.
SEA TANK CO (100%)
This company is reactivated from time to time, primarily in
connection with service contracts.
DORIS DEVELOPMENT CANADA (100%)
DORIS Development Canada (DDC) was established in St. John’s,
Newfoundland to meet the needs of the Hibernia contract.
Following this project, DDC served as a support for DORIS’s
participation via DORIS-CONPRO, in the Terra Nova contract. This
subsidiary remains dormant but is ready to be reactivated in the
event of the re-launch of projects in Canada.
DORIS-CONPRO (100%)
It is through this company structure, in liaison with DDC that DORIS
will develop their activities in Newfoundland. This company has
been made dormant; it will be reactivated in case of new local
developments.
Disouq CPF – Engineering & construction support performed by ODENA
( Egyptian ODE subsidiary) (DEA Egypt - Egypt)
In 2014 the activity of this subsidiary based in London, Great
Yarmouth and in Cairo (Egypt) has decreased a little due to the
slowdown of the engineering activities in London. This reduction
in activity level was particularly related to the end of the FEED
It will be recalled that DORIS became, directly and indirectly (via
DDC), the 100% shareholder of DORIS-CONPRO at the beginning
of 2012.
DORISAR (75%)
This Argentinian subsidiary has executed works for TOTAL Austral in
the past, but is currently dormant.
DORIS Inc. (100%)
DORIS Inc. is a 100% DORIS-owned subsidiary, based in Houston to
carry out project work alongside clients based in the United States.
Created in 2000, DORIS Inc. is today an engineering company with
a solid reputation with American clients, in particular CHEVRON,
MAERSK, ADDAX, CONOCOPHILLIPS, COBALT, EXXONMOBIL
and others such as PEMEX the Mexican operator.
It will be recalled that 2013 was a year of transition for DORIS Inc.: the
Mother-Company installed an interim President during the major
part of the year, before nominating a new President at the end of
the year. It was also the year in which the company was restored to
profitable activity after three loss-making years.
Solan platform topsides installation with HEEREMA Thialf heavy lift vessel
(PREMIER OIL - North Sea)
In 2014 DORIS Inc. achieved an excellent result. On the one hand
thanks to ongoing work on contracts underway in the Gulf of
Mexico, with projects in Mexico (PEMEX), in West Africa in Nigeria
(CHEVRON) and in Cameroon (ADDAX). In addition, DORIS Inc.
obtained the FEED for Malange, a field operated by CHEVRON
in Angola. This very important project was carried out under
subcontract from the Angolan subsidiary DEAL, the main contractor.
11
This FEED, started in May 2014, created a strong increase in its
activity level, notably in the 2nd half of the year. The work continues
in the first half of 2015.
STAT MARINE (70%)
Since 2008, DORIS has held 70% of the STAT MARINE group, with
its employees owning the balance. This group, based in Nîmes,
Sandwich, Houston and Lagos, specialises in technical assistance
(90% of turnover) and engineering (the balance) and totals more
than 200 personnel.
DORIS ENGENHARIA LIMITADA (100%)
This Brazilian subsidiary was created in 2006 with the objective
of developing the group’s engineering activities in Brazil. Initially
it was held in JV with UNICONTROL. In 2011 DORIS bought the
shares held by UNICONTROL and today holds 100% of the capital
of DORIS Engenharia Ltda (DEL).
The year 2014 has seen several major events which more or less
paralyzed the country: the large strikes which preceded the football
World Cup in June – July; the presidential elections in October –
November, with uncertainty to the very end, saw the re-election
of Dilma Rousseff; and finally the corruption scandals which hit
PETROBRAS at the highest level as well as most of the local
contractors. Added to that there is a stall in growth in Brazil coupled
to badly managed inflation.
3D view of the Presalt FPSOs compression module M04 designed
by DEL (Brazil)
PT SINGGAR-DORIS (50%)
The company PT SINGGAR-DORIS (PTSD), co-owned with our
Indonesian Partner PT SINGAR MULIA (PTSM) was made dormant
on 31st December 2009. This is due to the lack of opportunities
offered by clients based in Jakarta.
DORIS ENGINEERING AUSTRALIA PTY LIMITED
(100%)
DORIS Engineering Australia Pty Ltd (DEAP) was created in 2011 to
hold the contract IPMS (Integrated Project Management Services
detailed above) for the Ichthys project for INPEX in Australia.
DEAP is co-holder (in 50/ 50 JV) alongside the Australian company
CLOUGH of the IPMS contract which has an initial value of
250 MAUD over its six year duration. This subsidiary could in the
future become involved in new projects in Australia.
AFFILIATES
OCÉANIDE (37.5%)
3D view of the Presalt FPSO’s compression module M01 designed
by DEL (Brazil)
In these extremely hostile circumstances the execution of the
212 MUSD contract over seven years, with PETROBRAS, signed in
2010 for the engineering and construction follow-up of eight FPSOs
for the “Pré-Sal”, has permitted DEL to maintain its activity level
over the whole year, where its competitors have found themselves
in difficulties. During 2014 this project is in the phase of detailed
engineering and support for the construction at the shipyard.
In parallel DEL has developed a solid base-load of work, notably
with the operators installed in Brazil: BG, REPSOL, TOTAL and
STATOIL as well as with the local contractors: ODEBRECHT, OAS,
UTC, QUEIROZ GALVÃO, ….
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This company, initially created to work on coastal engineering
problems, is also the operator of Basin de Génie Océanique First.
Through this role OCÉANIDE participates in the testing of numerous
prototype structures destined for the “deep offshore”.
DORIS is the principal shareholder of OCÉANIDE with 37.5% of the
equity alongside the other shareholders TECHNIP, DAHER and the
Principality of Monaco and is the operator of the company.
GÉODYNAMIQUE ET STRUCTURE (48.8%)
DORIS holds 48.8% of this engineering company which specialises
in soil mechanics, in particular problems related to seismic
phenomena, and nuclear engineering.
This company has been DORIS’s long-term partner for work where
these phenomena affect the structures that DORIS designs. This has
been the case with concrete structures for LNG projects, offshore
wind turbines and harbour structures.
DORIS ENGENHARIA ANGOLA LIMITADA (49%)
DORIS Engenharia Angola Limitada (DEAL), acquired in 2008, serves
as a vehicle for several members of the group (DORIS Engineering,
DORIS Inc. and STAT) to carry out work in Angola.
Using these methods DEAL has won several major projects in
Angola in 2014, notably the Malange project for CHEVRON,
subcontracting a part to DORIS Inc. in Houston. DEAL has also
signed a frame agreement with CHEVRON to execute engineering
on Blocks 0 and 14. Elsewhere, in technical assistance, DEAL has
built up a significant level of business with ENI for the supply of
personnel through a PMS (Project Management Services) type of
contract. DEAL is also active with local operators and notably with
SONANGOL P&P and SONAGAS.
However, the commercial success of DEAL is penalized by the
difficulty in operating in a country like Angola: control of currency
exchange by the central bank, risk of depreciation on the currency
of payment (Kwanza), establishment of new taxes (notably
unannounced increase on withholding tax levels). Taking into
account these operating problems the Angolan affiliate executed
a year with a balanced result.
VIA MARINA (16.7%)
DORIS, holds 16.7% of this company equally with its partners VINCI
Construction Grands Projects (VCGP) and GEOCEAN. The balance
of the capital (49.9%) is held by four individuals via the company
BBLM.
This company has been created to execute engineering works for
the transport of fresh water by flexible subsea pipelines. A contract
was executed for EDF in France during 2014 and negotiations are
still underway with the Public Works Ministry of Chile.
CLOV well jumper PJ 1011 during installation phase supervised
by DEAL Engineers (TOTAL E&P Angola - Angola)
Historically active in the provision of technical assistance, DEAL
has developed its own engineering activities: since 2011 DEAL has
executed in Luanda a five year contract for TOTAL E&P Angola
(“jumpers” for Pazflor). Since 2013 the engineering activity has
developed strongly as DEAL represents the “local content” part of
several important projects developed in cooperation with different
companies of the group. Angolan engineers recruited locally are
sent to the head office (Paris) or in other subsidiaries (Houston) in
order to gain induction to working practices and training. Once they
are trained in the company methods they execute engineering work
locally under supervision and management of staff expatriated by
the Mother-Company.
Joint Venture
ADC (Angolan Deepwater Consortium)
This association, which links the national Angolan oil company
(SONANGOL) and DORIS, aims to develop concepts that are suited
to Angolan conditions and to encourage sustainable developments
supporting the growth of national industry. Three new subjects
will be studied in 2015, these are: the management of sand in the
riser system during oil extraction, the management of naturally
radioactive waste produced during hydrocarbon production,
NORM management (Naturally Occurring Radioactive Material
Management) and lastly a study called “Standardization” for which
the objective is the optimisation of the development of deepwater
offshore fields.
These studies are carried out for the Angolan operators: BP,
CHEVRON, ENI, EXXONMOBIL, PETROBRAS, TOTAL and, of
course, SONANGOL; it should be noted that this has been going
on since 2001. It should also be noted that CONOCOPHILLIPS has
expressed the wish to join ADC.
new developments
DORIS has not created any new subsidiaries during the last three
accounting periods.
Malange field 3D view (CABGOC - Angola)
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Moho Nord TLP topsides installation
by HYUNDAI HD-10000
heavy lift vessel on HHI’s yard
in Ulsan (Korea)
(TOTAL/HHI - Congo)
The Moho Nord FPU
during construction
at Ulsan yard
(Korea) (TOTAL/HHI - Congo)
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DORIS booth at the Offshore Technology Conference
in Houston, May 2015
3 / Future outlook
The year 2015 has all the characteristics of a complicated year for the whole economy and particularly for the energy sector, which until
recently had avoided most problems. After a record annual high of 115.6 USD on 19th June 2014 the oil price per barrel (Brent) sank
by 61% over seven months to reach a low of 45.2 USD on 13th January 2015. Since the beginning of the year the price of the barrel has
oscillated between 50 and 60 USD. Analysts forecast that the price will remain at a low level (with respect to the last few years when the
price has almost each year broken historic records) for an extended period. Some of them anticipate a fall to around 40 USD.
Several macro-economic factors corroborate this evaluation: supply exceeds demand, there is a reduction in economic growth in Asia
and a massive increase in production from America, notably in hydrocarbons from shale... The macro-economic analysis is reinforced
by the reading of the geopolitical situation of this, the primary industry in the world: the refusal of OPEC members, led by Saudi
Arabia, to reduce their production quotas to counterbalance the increase in production from America, the application of pressure on
Russia in problems with the Ukrainian crisis...
To these macroeconomic factors are added local phenomena which amplify the risks to the development of the Company: the
appropriation of decision-making power by the NOCs (National Oil Companies) from the IOCs (International Oil Companies),
observed over the last years. Projects are often delayed, blocked or cancelled by national decision-making bodies (Nigeria, Angola,
Brazil ...) without forgetting the additional costs coming from the inevitable requirement for “local content”, occurring in a context of
downward pressure on prices.
In this context, the year 2015 could be seen as very difficult for the Company and its subsidiaries, after three record years. As mentioned
in the introduction certain projects have been delayed and others, quite simply cancelled.
It is therefore necessary to analyse the outlook for the DORIS Group taking into account the projects in hand and the order book for
each of the entities in the group.
The order book for the head office DORIS Engineering was boosted at the very start of 2015 by an important contract with a four year
duration (detailed below in section § Important Events after the Closing of the Accounts); this brought a medium term clarity of view
into this uncertain period. This contract, to be executed in Paris and in Angola, also helps the local subsidiary (DEAL) to be confident
of a part of its work load over the same duration.
In addition, certain subsidiaries have multiyear contracts; this is the case for DEAP in Australia for the Ichthys contract and DEL in Brazil
for the contract of the “Replicantes” for PETROBRAS, who also therefore have a well-filled order book. It should also be noted that
DEL in Brazil benefits from its strength and reputation to sign up new contracts, where its more fragile competitors are currently not
able to execute these contracts.
On the other hand, the outlook is less encouraging in other geographic areas. DORIS Inc. in the USA concentrates its commercial
efforts in the Gulf of Mexico but the projects are slow to be launched. The engineering teams in ODE, London suffer from the shortage
of North Sea projects; the base load of its activity is supported by the multiyear contracts based in Great Yarmouth.
Lastly the organisation dedicated to provision of technical support, STAT, will execute the 2015 period with the extension of the
previous year’s works but the outlook in the medium term is much more pessimistic; the operators are making cost reductions and
certain projects have been stopped. This heavy readjustment risks to cut more adjustable variable costs, such as the spending with
service providers such as STAT.
The recognised expertise of DORIS, its portfolio of innovative products, the broadening of its spectrum of activities (notably onshore),
its presence on five continents, its prudent management and its flexible and independent structure, should allow the Company to
overcome the problems presented during this next uncertain period.
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4 / Important events
after the closing
OF THE ACCOUNTS
A. As
mentioned above in § Future Outlook, DORIS
Engineering (and its Angolan subsidiary DEAL) have signed
an important contract at the beginning of February 2015:
the Dalia Debottlenecking project (DBN). This brownfield
engineering project on the Dalia FPSO operated by TOTAL
Clipper South Platform, asset management performed
E&P Angola consists of a complete set of services: a FEED,
by ODE (DEA - UK)
followed by detailed engineering then procurement
services. This project, with a duration of four years (of which
approximately two on the engineering phase), gives DORIS a certain visibility of the future in this period of uncertainty for all the
profession. It should be noted that the number of prospects for engineering companies is currently relatively limited.
B. The project DBN provides activity for the Angolan subsidiary, following 2014, a very busy year, particularly with the Malange
project for CHEVRON. It is to be noted that the Angolan subsidiary DEAL has had significant commercial success, following its first
success in engineering and the resulting positive feedback from its Clients concerning the local content achieved (notably TOTAL
and SUBSEA 7). DEAL has become a significant actor in the Angolan market and replies to all the CHEVRON tenders (via a frame
agreement), TOTAL of course, HEEREMA (as subcontractor for the installation engineering), ENI (in engineering for technical
assistance for which a PMS contract is underway). DEAL also frequently has direct contact with SONANGOL and SONAGAS.
DEAL is an important contributor for the DORIS Group in bringing business.
Nevertheless this good news is tempered by the risks inherent in this difficult country: delays to projects, permanent fiscal risks,
difficulties in paying suppliers outside the country which are linked to the exchange rate controls which have become tougher
again this year, local payments in Angolan Kwanza with a risk of depreciation.
C. For the Brazilian subsidiary (DEL), the phases of technical assistance for the detailed engineering, completed by construction
assistance to the shipyard, will continue in 2015. The contract for PETROBRAS has now reached the “plateau”. It is important
to note that the current phases of this highly important contract are reimbursable over the three years remaining to run (ending
in 2018) on this seven year contract (212 MUSD in total). This contract has a very strong local content. It is to be noted that in a
Brazilian atmosphere which is very subdued (growth slowed down, government weakened by the crisis in the giant PETROBRAS,
restructuring of the whole management of PETROBRAS, principal operator in the country), the Brazilian subsidiary has held its
position very well and, as in 2014, will make a positive contribution to the Group’s results in 2015.
D.
The IPMS contract, dedicated to the project Ichthys and held by DEAP which remained on “plateau” for two years (2013 and
2014), will start to wind down. The main part of the project has now moved to Korea at the shipyards of SHI and DSME for the
construction phase of the two vessels. This project, with an initial value of 250 MAUD over six years, mobilizes teams from the
whole Group: DORIS Engineering, DORIS Inc., ODE as well as the STAT group and contributes significantly to the results of the
Group.
E. As mentioned above the prospects for the American subsidiary DORIS Inc. (in Houston) and in England for ODE (London and Great
Yarmouth, now held 100% by DORIS) are more mixed. Their respective markets are particularly competitive and are weakened by
the current circumstances. The year 2015 will be a year of consolidation characterised by restructuring of the teams and searches
for new opportunities in their respective markets.
F. In this difficult international context, difficult for both oil companies and their supporting contracting infrastructure, the Company
will continue to invest (notably Research and Development using working capital) and search outside its current working regions
to find new potential markets in promising areas, for example in the Middle East or East Africa (Mozambique).
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DORIS Engineering
58 A, rue du Dessous des Berges - 75013 PARIS - France
Phone: +33 1 44 06 10 00 - Fax: +33 1 45 70 87 38
www.doris-engineering.com