EIC, Aberdeen 17 March Graham Clarke and Allan Baird

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2 EIC, Aberdeen 17 March 2015 Graham Clarke and Allan Baird

3 Agenda Background information on Amec Foster Wheeler: - General; Vision and Values; Key Facts and Services; Markets and Sectors. How to do business with Amec Foster Wheeler: - SCM Expectations of Suppliers; Supplier Selection; Supplier Performance Management. Cost reduction initiatives; Current work and opportunities with. 3

4 General Diversifying our business across four key markets; Extending our services across the whole oil and gas value chain; offshore and onshore upstream, midstream/lng, refining & chemicals; Enhancing our offering in clean energy/power, mining, environment and infrastructure; Widening our geographic footprint with offices in more than 50 countries; Strengthening customer relationships through consistently excellent delivery of capital efficient solutions; Increased scale and efficiency. 4

5 Vision and Values We have a clear vision which encompasses our ambitions for the future. Our values express who we are and what we stand for: - To be the most trusted partner for our customers by consistently delivering excellence bringing together the knowledge, expertise and skills of our people from across our global network. Add a coloured transparent segment and Delivering caption on if our promises required. 5

6 Key Facts and Services Headquartered in London and listed on: - London Stock Exchange (AMFW) New York Stock Exchange (AMFW) >50 countries >US$10bn revenues Services: - Consultancy; Engineering; Project management; Project delivery; Ongoing asset support; Specialised power equipment. >40,000 people >150 years of history 6

7 Strategy & Business Development Asia, Middle East, Africa & Southern Europe Americas Northern Europe & CIS Global Power Group Markets and Sectors Markets Sectors Business units Oil & Gas Upstream Midstream Downstream Mining Mining & Minerals E&I Water Transport Government Industrial / Pharma Clean Energy Renewables / Bioprocess Nuclear Transmission & Distribution Conventional Power 7

8 How to do business with Graham Clarke

9 SCM Expectations of Suppliers At we: - Recognise the important role our suppliers have in the development and ongoing success of our business; Believe that successful relationship management within our supply chain is fundamental to our delivery of safe and excellent projects; Expect our chosen suppliers and contractors to: - deliver on their promises; aid us in delivering projects excellently; be safe; take care of the environment; be ethical and fair. Expect our suppliers and contractors to share our core values. 9

10 Influence on Supplier Selection customers influence Project Supplier Lists to different extents. The degree of influence depends on a number of variables i.e.: - Relationship between and its customers; Type of contract i.e. Fixed Price / Target Price / Reimbursable; Culture of customer; The existence of any customers agreements; Phase of any particular project e.g. study, FEED or EPC execution; Early supplier involvement to protect project schedule; Continuity of supply throughout Brownfield phase of any particular project (standardisation). 10

11 Supplier Selection use various supplier selection tools dependable on business sector and customer s requirements: - Brownfield Projects - FPAL, pre-qualification; Asset Management - AVL, customer AVL s and pre-qualification; Greenfield Projects - FPAL, project AVL s and pre-qualification. In all cases we are looking for: - Strong financial / commercial structure; Technical excellence, quality and competent personnel; Proven systems, procedures and control mechanisms to support execution and delivery; Alignment with values, Code of Business Conduct; ISO9001/29001, ISO14001 certification and OHSAS accreditation; Excellent HSSE track record. 11

12 Supplier Performance Management are committed to conducting two way supplier / contractor performance appraisal using a structured and consistent approach; Supplier performance is evaluated using various systems: - Supplier Performance Assessment system; E-procurement system; FPAL database. Continuous supplier/ contractor performance appraisal. Performance information is available to assist all projects with: - Compiling Bidders Lists and Bid Evaluation; Reviewing customer s nominated suppliers. Structured and consistent approach across business units. 12

13 Cost Reduction Initiatives Allan Baird 13

14 3D Modelling in 1980 s 14

15 Remember the Good Old Days 1990 s Early 1990s; Oil prices of $12 a barrel; CRINE - Cost Reduction In the New Era; Collaborative effort to find ways of reducing costs; CRINE Report published in recommendations for functional rather than prescriptive specifications, shared working practices, a sole industry body for prequalification and a reduction in paperwork through the procurement process; The industry was able to reduce costs by 40%; Some industry commentators have gone as far as stating that CRINE platforms are less efficient, and even less safe ; Recent strong steer from HSE...whilst they recognise the need to reduce costs...we must not compromise on safety; They will be watching closely... 15

16 3D Modelling Now

17 Cost Reduction Drivers 2015 The UKCS Oil and Gas Industry continues to face significant cost challenges: - $53 barrel currently, was trading at $115 in June 2014; Expect average price per barrel of $70 in Investment in UKCS is likely to depend upon how the industry meets these cost challenges. 17

18 Cost Reduction Opportunities Discuss? In summary...what we need from you! Innovation; Efficiency; Assurance...Quality, Cost, Schedule. How the industry meets these cost challenges. 18

19 Current Work and Opportunities Graham Clarke

20 Current Opportunities AJS ECAPS Integrated cost, planning, maintenance project and operations management. 50 offshore assets in Southern North Sea. 2 gas plants in Den Helder (NL) and Bacton (UK). Long term relationship since East Irish Sea Onshore and Offshore Assets. Successful Integration of Centrica / Amec Foster Wheeler team. Extend Field life beyond Term: Mechanical: Pumps, Foam Injection Package, Compressor Upgrades. Piping: Valve and Pipe Spool Fabrication. Electrical: Transformers, Switchboards, Cable. Instruments: Bulks and Valves. Structural: Fabrications. Mechanical: Pumps. Piping: Valves and piping material bulks. Electrical: Bulks. Instruments: Bulks. Fabrication: Structural and pipe spool fabrications, heat treatment, dimensional surveys, HV surveys. Contact: Jim Landamore Tel: Contact: Nick Fletcher Tel: +44(0)

21 Current Opportunities BG Group BP GPO North Sea Projects Everest and Lomond. Engineering, procurement, construction, commissioning and project management services. SVT Laggan Tormore Condensate Handling Kinneil LPG Chilldown Project. ETAP ALQ, currently in DEFINE (FEED) Fabrication to be completed approx end 3 rd QTR 2015, currently undertaking Long Lead Procurement. Magnus Life Extension Project, ETAP Life Extension Project. Mechanical: Metering equipment, open drain projects, caissons. Piping: Valves and Pipe Spool Fabrication. Electrical: Bulks. Instruments: Bulks and Valves. Structural: Fabrications. Contact: Ryan Esslemont Tel: +44(0) Mechanical: Rotating equipment, HVAC. Piping: Valves. Electrical: Transformers, Switchboards, bulks. Instruments: Field Instruments, AC/ DC UPS. Fabrication: Surveys. Contact: Mike Hume (ETAP) Tel: +44(0) Michael O Hare (LPG) Tel: +44(0)

22 Current Opportunities BP Clair Ridge HUC GDF Suez Cygnus Field Development Primary engineering and project management services consultant. Second phase of development. Hook up and commissioning services. Target for first oil is Designed for 40 years of production. Awarded HUC support contract. Follows on from the FEED and detail design work executed by. First gas scheduled for Q Production due to account for around 5% of the UK s gas production by Mechanical: Various. Piping: Valves and pipe spool fabrication. Electrical: Bulks and Cable. Instruments: Valves and Bulks. Structural: Fabrications, Surveys. Mechanical: Various. Piping: Bulks, Valves and Pipe Spool Fabrication. Electrical: Bulks. Instruments: Conditioning monitoring system, Safety equipment. Structural: Fabrications, Dimensional Surveys. Contact: John Hutchins Tel: +44(0) Contact: Marti Scott Tel: +44(0)

23 Current Opportunities (BOL) E&C BOL Alder Topsides EPC Brownfield Modifications. Term 2015 (1 x 5 Year Possible Extension). Britannia Asset. Main Focus: 2015 Flotel and Shutdown Campaigns. Milestone achieved with the completion of the design for the 850T Greenfield module. Completion of Brownfield design Q Module fabrication commenced. Main Focus: 2015 Flotel and Shutdown Campaigns. Mechanical: Various. Piping: Valves and Pipe Spool Fabrication. Electrical: Bulks. Instruments: Bulks and Valves. Structural: Fabrications. None Procurement to be completed with existing Platform and COP Procurement Frame Agreement Vendors. Contact: Dave Hutcheon Tel: +44(0) Contact: Ross McKenzie Tel: +44(0)

24 Current Opportunities Central North Sea E&C Southern North Sea E&C EPC Brownfield Modifications. Term 2015 (5 x 1 Year Possible Extensions). Judy, Jade and Jasmine Assets. Main Focus: Flow-lines, Compression Optimisation project and Process Efficiencies. EPC Brownfield Modifications. Term 2015 (5 x 1 Year Possible Extensions). 42 Assets (4 Hubs with NUIs) and TGT Gas Terminal at Gt Yarmouth. Main Focus: Integrity Campaigns of aging asset and process efficiency. Mechanical: Various. Piping: Valves and Pipe Spool Fabrication. Electrical: Bulks. Instruments: Bulks and Valves. Structural: Fabrications. Mechanical: Chemical Injection Package. Piping: Valves and Pipe Spool Fabrication. Electrical: MCC Board, Bulks. Instruments: Bulks and Valves. Structural: Fabrications (small scopes). Contact: Dave Hutcheon Tel: +44(0) Contact: Dave Hutcheon Tel: +44(0)

25 Current Opportunities Dunlin Nexen Project Operating Support Contract (OSC). Engineering and Construction (E&C) Contract. Provide operations and maintenance support as well as Brownfield modifications for Dunlin Alpha platform. Term: years remaining of a 6 year engineering, procurement and construction (EPC) contract. Operational modifications and Brownfield projects. Buzzard, Scott and Golden Eagle platforms. Mechanical: Air Compressor Replacement. Piping: Valves, Pipe Spool and Support Fabrication. Electrical: Bulks. Instruments: Bulks, Cable, Gauges and Transmitters. Structural: Fabrication Helideck Access Platform, PLQ Tank Support Frame. Mechanical: None Piping: Minor Pipe Spool Fabrication & Bulks Electrical: Bulks. Instruments: Bulks Structural: Minor Fabrications & Pipe Supports. Contact: Kimberley Duncan Tel: +44(0) Contact: Alan Purkis Tel: +44(0)

26 Current Opportunities Talisman MonArb Project TAQA Cladhan EPCC Brownfield Modifications Currently Offshore Campaign for production.. Due to go back into operation Q First Oil Q EPC of modifications on the Tern platform to accommodate a new subsea tie-back to the Cladhan field. will provide commissioning support. First oil expected end of Q3 2015/beg Q Mechanical: None mainly offshore installation activities. Piping: Valves and Fabrication, across various WBS scopes. Electrical: Power and Switchgear upgrades. Instruments: New ICSS, DCS, ESD, F*G, LER and UPS installation scopes. Piping &Structural: Pipe-spool, structural fabrications. Mechanical: None (All Po s placed). Piping: Valves and Pipe Spool Fabrication. Electrical: Bulks and Cable. Instruments: Bulks; Pipeline Slug Control Systems; Cable, Pressure Transmitters. Structural: Pipe Supports, Deck Penetrations and additional structural steelwork fabrications. Contact: Alistair Arthur Tel: +44(0) Contact: Ethel Morrison Tel: +44(0)

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