Technip LNG, Gas Related & Downstream Onshore/Offshore Opportunities
JP Morgan Oil & Gas Conference, Nello Uccelletti, SVP Onshore & Renewables June 22, 2012
Safe Harbor
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his presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events and generally may be identified by the use of forward-looking words such as “believe”, “aim”, “expect”, “anticipate”, “intend”, “foresee”, “likely”, “should”, “planned”, “may”, “estimates”, “potential” or other similar words. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: our ability to successfully continue to originate and execute large services contracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry as well as other industries; currency fluctuations; interest rate fluctuations; raw material, especially steel as well as maritime freight price fluctuations; the timing of development of energy resources; armed conflict or political instability in the Arabian-Persian Gulf, Africa or other regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored export financing; losses in one or more of our large contracts; U.S. legislation relating to investments in Iran or elsewhere where we seek to do business; changes in tax legislation, rules, regulation or enforcement; intensified price pressure by our competitors; severe weather conditions; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards, IFRS, according to which we prepare our financial statements as of January 1, 2005; political and social stability in developing countries; competition; supply chain bottlenecks; the ability of our subcontractors to attract skilled labor; the fact that our operations may cause the discharge of hazardous substances, leading to significant environmental remediation costs; our ability to manage and mitigate logistical challenges due to underdeveloped infrastructure in some countries where we are performing projects. Some of these risk factors are set forth and discussed in more detail in our Annual Report. Should one of these known or unknown risks materialize, or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results to differ materially from those expressed in our forward-looking statements. These factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in this release are made only as of the date of this release. We cannot assure you that projected results or events will be achieved. We do not intend, and do not assume any obligation to update any industry information or forward looking information set forth in this release to reflect subsequent events or circumstances. **** This presentation does not constitute an offer or invitation to purchase any securities of Technip in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The information contained in this presentation may not be relied upon in deciding whether or not to acquire Technip securities. This presentation is being furnished to you solely for your information, and it may not be reproduced, redistributed or published, directly or indirectly, in whole or in part, to any other person. Non-compliance with these restrictions may result in the violation of legal restrictions of the United States or of other jurisdictions. **** References to Stone & Webster processing technologies and associated Oil & Gas engineering capabilities are subject to the closing of the acquisition announced on May 21, 2012.
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Technip Today With engineering, technologies and project management, on land and at sea, we safely and successfully deliver the best solutions for our clients in the energy business Worldwide presence with around 30,000 people in 48 countries Industrial assets on all continents, a fleet of 34 vessels (of which 4 under construction) 2011 revenue: €6.8 billion Strong commitment to Quality, Health, Safety & the Environment
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Use of Natural Gas Could Rise by 50% World Energy Consumption (1990 - 2030)
18,000 Renewables Hydroelectricity Nuclear
Million tones oil equivalent
16,000 14,000 12,000
Coal
10,000 8,000 Gas
6,000 4,000
Oil
2,000 0 1990
1995
2000
2005
2010
2015
2020
2025
2030
Source: BP Energy Outlook 2030, January 2012
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Opportunities all Along the Gas Value Chain Onshore Liquefaction Oil Field Facilities inc. Shale oil
Natural Gas Pipeline
Associated Gas
Coal bed methane
Qatar LNG
Khursaniyah, S. Arabia Offshore Liquefaction
Gas Processing Methane (C1) Non- Associated Gas
Prelude FLNG, Australia Gas Field Facilities inc. Shale gas
CO2 Sulphur Water
GTL
Oryx GTL, Qatar
C3/C4 C5-12 C5-20
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Petrochemicals - Ammonia/Urea
LPG Yansab, Saudi Arabia
Gasoline Condensate
Ethane (C2)
Steam cracker (Ethylene)
- Hydrogen - Polyethylene - Polyvinyl chloride…
Phu My Fertilizer, Vietnam
References Across Gas Related Facilities
Oryx GTL, Qatar
Yemen LNG
Yansab ethylene cracker, S. Arabia 6
Uzbekistan GTL FEED
Qatar LNG
Ras Laffan ethylene cracker, Qatar
Omfico fertilzer, Oman
Ningxia Hanas LNG, China
Mozambique LNG pre-FEED
Khursaniyah gas plant, S. Arabia
Dynamic Downstream Market
Eastern Europe & Russia: Refinery Upgrades & New Gas Developments North America: Prospects Driven by Low-cost Shale Gas Re-start of ethylene & petrochemical investments First opportunities in GTL, LNG
Refinery upgrades and greenfield ethylene & petrochemical complexes Remote gas reserves development driving LNG & GTL spending
Middle East and Africa: Huge Reserves Latin America: Fast Growing Economies GDP growth supports greenfield investments all over downstream value chain Steady pipeline of projects spread across countries FLNG opportunities offshore Brazil
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Favor greenfield leading edge developments for both export and local market
Asia Pacific: GDP Growth Large refining and petrochemical complexes to benefit from economy of scale Growing use of shale gas in China FLNG, LNG, and mini LNG development to serve Asian market
Onshore/Offshore Unique Positioning Our Strategic Priorities
Well diversified, profitable backlog
Vertical integration
Wide range of contract framework, from reimbursable to lump-sum Service offering covering the full value chain: from conceptual to start-up
Technology
Portfolio of offshore & downstream technologies
Key differentiating assets
High-end engineering capabilities
Execution capability
Strong project management skills
National presence
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Our Positioning
Global footprint with local engineering centers close to clients across countries
Diversified Backlog Across All Markets As of March 31, 2012
Backlog by geography
Backlog by market split Petrochems
Europe / Russia Central Asia
Other Deepwater >1,000 meters
4% 1%
Refining / Heavy Oil
Americas 27%
31%
20% 21%
€12,344 million
€12,344 million 11%
18%
Asia Pacific
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14%
Africa 13%
Middle East
Gas / LNG / FLNG
40%
Shallow Water
S&W Process Technologies Ongoing Acquisition: Complement our Onshore/Offshore Footprint A Wider Offer
Involvement From Conceptual to Start-up
Process Technologies
Licensing, engineering services & proprietary equipment
Conceptual, FEED, PMC
High-end engineering & design capabilities
Renowned process and project engineering skills
EP, EPCm, EPC
Full project management and execution scopes
Ability and willingness to take full EPC responsibility
Proprietary technologies
Technip Stone & Webster process technologies and associated oil and gas engineering capabilities, subject to the closing of the acquisition announced on May 21, 2012 10
Taking our Portfolio of Downstream Technologies Further Business Domains
Natural Gas
Technologies, Skills & Alliances LNG
Cryogenic separation Cooperation with Air Products and Chemicals, Inc. (APCI)
GTL
Exclusive co-developer of Sasol Fischer Tropsch reactor technology
Hydrogen
Steam reformer proprietary technology Alliance with Air Products
Fertilizer
Ammonia technology licensing cooperation with Haldor Topsoe
Ethylene
Complementary proprietary technologies with different clients & geographic bases
Intermediates derivatives polymers
Crude Oil
Refining
Polyolefins and others
Residual Fluid Catalytic Cracking Deep Catalytic Cracking
Technip 11
Stone & Webster process technologies and associated oil and gas engineering capabilities, subject to the closing of the acquisition announced on May 21, 2012
Leading Position in FLNG Complements our Expertise in Offshore Facilities Floating LNG moving from concept to reality 2 facilities under construction after FEED completion Several conceptual studies for various clients
Shell FLNG
Petrobras FLNG
15 year master agreement
LNG capacity: 1.2 mtpa
LNG capacity: 2.7 mtpa
LNG capacity: 3.6 mtpa
Offshore Malaysia
Pre-salt basin, Brazil
Prelude FLNG in Australia under construction by Technip
Floating LNG 1 under construction by Technip
Design competition won by Technip
(1) Floating Liquefied Natural Gas 12
Petronas FLNG
High-end Engineering: Enter Strategic Projects While Providing De-risked Revenue Stream
Ethylene XXI, Mexico FEED for Braskem-Idesa
Upper Zakum 750+, UAE
Petrochemical complex - 1,050 kilotons per year ethylene cracker
FEED for ADNOC
Gendalo Gehem, Indonesia
Technip‘s ethylene proprietary technology
Very large offshore gas development to increase field production to 750,000 bpd
FEED for Chevron
Brownfield onshore & offshore works
2 floating production units at water depths of 1,070 to 1,830 meters
Performed in Claremont, USA, Lyon, France, and Rome, Italy
Performed in Abu Dhabi office
Performed in Jakarta, Indonesia & Houston, USA
Petrocarabobo Upgrader, Venezuela Basic design, FEED and PMC for PDVSA 200,000 bpd upgrader, part of future larger development Performed in Caracas, Venezuela
Olam Fertilizer, Gabon FEED for Gabon Fertilizers Company
Rapid Complex, Malaysia
2,200 tons/day ammonia - 3,850 tons/day granulated urea
FEED for Petronas
Financing assistance
300,000 BPD refinery providing feedstock to petrochemical complex
Performed in Paris, France
Largest downstream complex in the region Performed in Kuala Lumpur, Malaysia
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Expertise in Successfully Delivering Facilities, Notably in Remote Areas: Yemen LNG
Early involvement in project First class experienced project management & engineers Outstanding HSE* record Strong local content: transfer knowledge and procure, subcontract & recruit locally * Health, Safety & Environment 14
Continuously Develop National Presence North Sea & East Europe: 2,500 employees
North America: 3,400 employees Canada
Norway
Vessels: 3
Russia
Spoolbase: 2
UK
Umbilical plant
Vessels: 6
Gulf of Mexico Spoolbase: 2 Mexico
Umbilical plant
USA
Asia Pacific: 6,700 employees
Centers of excellence: 9,700 employees
South America: 4,400 employees
1
Colombia
Vessels:
Brazil
Flexible plants: 21
Peru
Offshore bases: 2
Venezuela
R&D and test center
Vessels: 151
Australia
Vessel: 21
France
Flexible plant
China
Flexible plant
Italy
Construction yard
India
Umbilical plant
The Netherland
R&D and test center
Indonesia
Offshore base
Fleet management centers
Malaysia Singapore
81
Includes vessels & plants under construction Headcount and fleet as of March 31, 2012 15
Finland
Thailand
Middle East & Africa: 2,600 employees Abu Dhabi
Angola
Spoolbase
S. Arabia
Egypt
Umbilical plant
Qatar
Nigeria
Offshore base
Key Takeaways Quality, Health, Safety & the Environment as a core value Well diversified backlog enabling to carry out reimbursable and lump sum contracts with appropriate risk profile Broad service offer from concept to start-up Strategic geographical positions to benefit from regional trends Portfolio of well-established technologies Know-how to carry-out broad range of projects with track-record across markets Large customer base shared with our Subsea segment
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