Newco

Sherpa Offshore

Newco will be based in Singapore and is formed to fill a

unique space in the Offshore sector for an independent/nonaligned expertise to support Oil Majors and Vessel Operators
looking to capitalize on the dash to gas which is changing
the energy scene world wide but particularly in Asia which is
set to be at the heart of both production and consumption of
NG.
Newco will design, build and operate vessels in the sector

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Objectives
Sherpa Offshore

Newco will focus on the potential of LNG made available

from the production base to fuel the vessels and rigs associated
with the development of the gas field. Initially, the Platform
Support and Multi-Purpose Offshore Vessels, but also Tugs,
Bunkering Barges and Rig Platform power generation.
Newco will work with established companies in the sector ,
nationally and internationally, to focus on equipment and
system design and manufacturing capabilities and to harness
Singapore's investment in higher education institutions.

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The Future Is Only 3 Years Away,

and It's Located in the Pacific

Sherpa Offshore

Liquefied natural gas is only set to grow in

importance. According to Chevron, demand will
double by 2025. That's why the company, along with
Apache Corp, ExxonMobil, and Royal Dutch Shell, is
completing $80 billion worth of LNG projects off the
coast of Australia.
Daily Finance
16th March 2014
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The big picture

Sherpa Offshore

A useless by-product of crude oil production until the second

half of the 20th century, natural gas now accounts for 22
percent of the world's energy consumption. And the demand is
growing.
At a geopolitical level the massive reserves of natural gas
made available by the fracking process will create a new
infrastructure for the consumption of gas as a primary fuel
source for power generation and transportation.
Asia remains a growing consumer, particularly with (1)
Chinas latest Five-Year Plan calling for an increase in natural
gas usage, (2) Japan replacing lost nuclear capacity with gasfired plants, and (3) Indonesia committing to increased gas
use for power generation, road vehicles, and ships.
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The future
Sherpa Offshore

Source ABS
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The Cost Benefits

Sherpa Offshore

With dwindling reserves and more

expensive extraction costs, oil prices are
forecast to remain above $100bbl. In
contrast, current NG reserves have a 250
years outlook at expected consumption
rates.
Whilst the price of LNG currently varies
throughout the world, this position is
forecast to stabilise at a significantly
lower cost per Btu than crude oil.

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This scenario will clearly support the

development of LNG as a marine fuel,
however the Newco proposition is that
the fuel will be a bi-product of the gas
production process and available at
source. The price allocated to the fuel
can therefore be considered as part of the
field operating cost somewhat
independent of international trading
prices.
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The security of supply

Sherpa Offshore

The economic advantage of utilising LNG fuel for vessels supporting offshore gas
fields makes a solid financial proposition when the higher CAPEX versus lower
OPEX is played across the life of the project ..especially when the LNG fuel can
be taken directly from the export train.
The economics become compelling in a future scenario when the availability and
cost of supplying oil fuels (particularly low sulphur fuels) to remote sites is
factored-in and the capital cost and space penalty of scrubbers.

These conditions are reflected in the major gas field developments in Asia Pacific
which have the potential for a paradigm shift in creating a responsible market for
future LNG powered Offshore Support Vessels which are cost effective, selfsustainable and environmentally friendly.

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The technology
Sherpa Offshore

LNG fuel is safe.

It has been carried as a cargo for over 50 years without a
serious mishap.
It has a high ignition temperature (> 500 C), does not burn (it
has to evaporate first) and has a low flame rate at
atmospheric pressure.
The technology
associated with its
use as a fuel is
understood

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The environmental benefit

Sherpa Offshore

The worlds 16 largest ships emit as much as all

800 million cars in the world; One ship can emit
5000 tons of sulphur per year
(source: The Guardian)

If the shipping industry were a country, it would

be the 7th largest producer of CO2 in the world.
(source: Shipefficiency.org)

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Saving the planet

Sherpa Offshore

Three primary solutions are available to address increasingly strict

emissions requirements,
Ultra-low sulphur fuels,
Exhaust gas scrubbers,
Use of LNG as a fuel.
Although requiring more expensive upfront capital expense or
conversion costs, there is a strong body of opinion which concludes
that LNG fuel represents the only practical solution to addressing future
IMO targets for emission limits
LNG reduces
CO2/GHG by 20%-25%;
SOx and particulates by 100%
NOx by 85%-90%
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The good guys

Sherpa Offshore

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Latest movers
Sherpa Offshore

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Getting in on the act

Sherpa Offshore

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The bigger picture

Sherpa Offshore

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Local knowledge
Sherpa Offshore

Thai Oil 4
1300 m3 LPG Carrier
(2 cylindrical tanks x 650 m3)
ABS +A1 Liquefied Gas Carrier +AMS
Built Keppel Singmarine 1973

Lewek Constallation
Ultra deep-water Pipelay / Construction Vessel / DP3
LIFTING CAPACITY
:3000 TONNES
SUBSEA PIPE LAYING DEPTH :3000 M
DNV CLASS NOTATION
DNV 1A1 Ship Shaped Pipelaying Vessel, Dynapos
Autro, ICE-1A, Clean DESIGN, Held-SH,
Crane, EC0, BIS, COMF (V3, C3), NAUT-OSV (A)
Built Triyards 2014

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www.navnautik.com

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LNG Infrastructure Support Vessels

Sherpa Offshore

Ship-ship bunkering source Teekay Shipping

5000 m3 LNG/ 5000 m3 MDO/HFO
COMBINED BUNKERING VESSEL

LNG ESCORT TUG

(WITH INTERCHANGABLE LNG
ISO CONTAINERS)

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ABS / BV / DNV-GL / LRS

ESP, Liquid Gas Carrier, Ship Type 2G, LNG,
Independent Type C, Min Temp 164o C,
Oil Tanker FP>60o C, Unrestricted
Navigation, Clean Design, In Water Survey

Singapores investment in Offshore

Technologies

Sherpa Offshore

Intellectual Property

Newcos objectives are congruent with

Singapore's technology investment plans
A key measure of success will be the
identification and registration of patents
which will underpin the Companys and the
Countrys reputation as a pioneer in
developing LNG as a responsible fuel
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Singapore Maritime institute (SMI):

Sherpa Offshore

350SGD Million
for R&D, education,
training and policy
Support up to 100% of
the approved direct costs
Public-private
partnerships
R&D to be conducted in
Singapore
Support granted through
open thematic grant call
Project driven

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Maritime institutes are

formed at major
universities to drive and
coordinate research

Educate workforce for

the offshore industry
NUS: Master of Science
in Offshore Technology
Ngee Ann: Diploma in
Marine & Offshore
Technology

Development of Marine &

Offshore testing facilities in
Singapore
Set up of simulator
facilities
Towing tank, wind tunnel,
Centre of Innovation
Marine & Offshore
Technology at Ngee Ann
Low Speed water tunnel,
small engine test room,
steel structures testing
facility at NTU
DNV, ABS, Lloyds setting
up own R&D institutes with
up to 50 engineers
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Thinking outside of the box

Sherpa Offshore

Our challenge is to persuade the producers to think

differently about the field investment opportunities

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A personal view
Sherpa Offshore

Welcome to The Society For Gas as a Marine Fuel

The Society For Gas as a Marine Fuel (SGMF)
encourages the safe and responsible operations of
vessels using LNG as fuel and all marine activities
relating to the supply of LNG used for fuel

Singapore is one of the worlds leading

bunkering centers and is investing in
LNG bunkering facilities.
Pavilion Gas are focused on moving
molecules My personal view is that
we need to go further and establish a
similar body charged with
coordinating the investment in
downstream technology and support
capabilities.
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Thank you from both of us

Sherpa Offshore

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