Local Content Reflections & Opportunity Areas Maputo - Feb’ 2014 Company of ENH, EP Group

Agenda ENH Logistics: Local Content Reflections & Opportunity Areas2 1ENH Logistics as a Company 2Local Content Reflections 3Opportunity Areas for SME’s

ENH Logistics as a Company Company at a glance 3 ENH, E.P. Group and Activity Areas of ENH Logistics: ENH Logistics is a subsidiary of ENH, E.P., Mozambican public owned company that has as its main activity: Exploration and Production (E&P) of Oil & Gas. ENH, E.P. Corporate GroupActivity Areas of ENH Logistics Infrastructure Enabler Logistics Services Provider Industrial Development Enabler Goods & Services Provider  Supporting the Industry, by enabling: ports, railways, roads, energy, ‘comms, airports, pipelines.  Supporting Industry demand on specific logistics services required by operators.  Promoting other industrial clusters that can support or benefit from the Oil & Gas Industry development.  Supporting demand on “generic” categories: housing, medical care, consulting services, training, etc. ENH Logistics: Local Content Reflections & Opportunity Areas

ENH Logistics as a Company Our Vision, Mission and Values 4  Provide profitable logistics services, with high quality and safety standards, to support the Oil & Gas companies in Mozambique, contributing to the development of the country through diversified areas of participation and by implementing socio-environmental responsibility policies that can benefit the local community, while providing a sustainable growth to our activities.  Leading the logistics services provision in the Mozambican Oil & Gas Industry, with high quality and services standards, using an integrated and holistic approach on the services provided to the Oil & Gas value chain.  “National Pride”  Superior Execution  Workplace safety  Set the industry standard  High moral standards  Social/ Environment policies ENH Logistics: Local Content Reflections & Opportunity Areas

ENH Logistics as a Company Our Internal Organization 5 We have “set” our internal organization aligned with our activity areas, already described.  TLO (Offshore Terminal);  Multiple services related to the Terminal;  Other services.  Natural Gas, Cargo and People Transport;  Coastal Navigation.  Real Estate Management;  Development Projects;  Other services.  Air Transport, VIP, Natural Disasters;  Emergencies (EMS), Search and Rescue;  Initialization Operations;  Helicopter Leasing.  Infrastructure Management (Hospitals);  Research services.  LNG maintenance services;  Non-specific maintenance services. ENH Logistics (Business Units): ENH Logistics: Local Content Reflections & Opportunity Areas

ENH Logistics as a Company Current Challenges & Objectives 6 Provide high quality services to support Industry operations in the country Creating an internal capacity to be able to effectively support the Oil & Gas Industry demand Create incentive programs to support the national participation of Mozambicans in the Oil & Gas Industry Establish national companies that can support the Industry (especially providing logistic services) Develop logistics capabilities in order to support the multiple hydrocarbon projects to be developed in the country Promote a sustainable growth in these companies by establishing long term contracts with the operators Eradicate poverty and contribute to the social development in Mozambique Define ENH Logistics as the “main logistical vehicle” in the Oil & Gas Industry operations in the country Increase employment opportunities to Mozambican human resources, through entrepreneurship and capacitation Capture Oil & Gas demand for human resources and develop a national capability program to answer it ENH Logistics: Local Content Reflections & Opportunity Areas

ENH Logistics as a Company Main Projects Developed/ In Development 7 In the current context of the Mozambican economy and the own situation of the company ENH Logistics, our main priorities are: Infra-structures development and Local SME involvement and Industrial development. Main Projects currently being developed by ENH Logistics: Camp site in PalmaPemba PortLocal Content in O&G ENH Logistics: Local Content Reflections & Opportunity Areas Joint Ventures Companies Palma “Use of Land” AviationMarine ServicesMaintenance

Agenda ENH Logistics: Local Content Reflections & Opportunity Areas8 1ENH Logistics as a Company 2Local Content Reflections 3Opportunity Areas for SME’s 4Mozambican Participation

Local Content Reflections Our view of Local Content 9 Local Content Development promotes the generation of additional value to the country beyond the direct investment of foreign companies in the Industry. ENH Logistics: Local Content Reflections & Opportunity Areas What is “Local Content Development”: ENH Logistics Definition Added Value Generated in the Country Oil & Gas Investment Local Structure (Beneficiary) Local Structure (Support) Example: Civil ConstructionExample: GTL Plant “Promote conditions to be able to locally suport and benefit from the operations of the Industry” Increase value generated by the development of the Industry:  Building capacities and enabling local companies to participate on operations;  Capacitating local resources to be involved and lead companies in the Industry.

Local Content Reflections Roadmap of Local Content Program 10 Considering the previously mentioned guidelines and our will to mobilize this Industry towards this objective, ENH Logistics is proposing to follow this roadmap of activities: Proposed Roadmap – Local Content Program: ENH Logistics: Local Content Reflections & Opportunity Areas

Local Content Reflections Typical Dimensions & Objectives 11 Considering the most important dimensions of a Local Content Development Program, we shall act on specific measures to promote knowledge transfer and participations of local resources and suppliers. ENH Logistics: Local Content Reflections & Opportunity Areas Local Content Program Strategic Guidelines: Human Capital Capacitation Industrial Development Social Responsibility Actions Social Responsibility Actions PromotingCoordinating  Know-how transfer to local resources (training programs);  Local leadership programs;  Definition of a minimum participation of local resources in the Industry.  Identification & prioritization of local competitive sectors;  Local capacity building on suppliers of sectors with short-term competitiveness prospect;  Creation of joint-ventures.  Efforts of all companies involved within this Industry to be able to reallocate their goodwill according to Mozambique’s needs and Development Plan.

Agenda ENH Logistics: Local Content Reflections & Opportunity Areas12 1ENH Logistics as a Company 2Local Content Reflections 3Opportunity Areas for SME’s

Opportunity Areas for SME’s Final Investment Decision of the LNG Project 13 It is expected that until the end of 2014, the final investment decision (FID) related to the Mozambican LNG Project will take place. Mozambican LNG Project (FID = 2014): ENH Logistics: Local Content Reflections & Opportunity Areas Illustrative picture of Palma (LNG Plant) Potentially Largest LNG Plant Ambitious Schedule Final Investment Decision  stage  Current schedule of the Project considers first two trains to be operational by the end of  Planned for the second semester of this year, 2014.

Opportunity Areas for SME’s Urbanization Plan of Palma (LNG Plant Facilities) 14 The Urbanization Plan for Palma currently being finalized, has created some specific opportunities that can be considered for companies willing to contribute and benefit from the LNG Project. Palma “Use of Land” Plan: ENH Logistics: Local Content Reflections & Opportunity Areas Illustrative Urbanization Plan for Palma ( ha)  Industrial Park: ha  Business Center: 609 ha  Congress Center: 534 ha  Services & Commerce: 256 ha  Housing & Equipment's: ha  Tourism Buildings: 179 ha  Leisure & Sports: ha  Ecological Park: ha  … Facilities already planned: LNG PLANT Project

Opportunity Areas for SME’s Major Opportunities in the Logistics Area 15 Considering the development of the LNG Project and the Local Content Development Initiative also commented before, we believe that there is a strong “operating ground” for Small & Medium Sized companies (SME’s) to position themselves on a competitive perspective to this Industry. ENH Logistics: Local Content Reflections & Opportunity Areas Logistics Opportunities: Cargo & Personnel Transportation 1 Industrial Services 2 Infra-Structures & Construction 3 4 General Services  Shipping Lines;  Vessels Operators;  Airfreight Operators;  Transit & Supply Services;  Clearing & Forwarding;  Heavy Lift Transport.  Pipe Coaters;  Gas Marine Services;  Ship Repair;  Specialized Industry construction;  Drilling Services.  Marine Construction;  Cement Services;  Machinery;  Subsea Equipment;  Services & Tools;  Fabrication & Engineering.  Maintenance & Repair;  Catering;  Training & Recruiting;  Facilities Management;  Housing;  Environmental Services.

Opportunity Areas for SME’s Cargo & Personnel Transportation: Detail 16 With the objective of providing a clear picture of each area, please consider the following details, beginning with Cargo & Personnel Transportation, … ENH Logistics: Local Content Reflections & Opportunity Areas Typical Areas: Cargo & Personnel Transportation Shipping Lines Transit & Supply Services Vessels Operators Clearing & Forwarding Airfreight Operators Heavy Lift Transport

Opportunity Areas for SME’s Industrial Services: Detail 17 …, Industrial Services, … ENH Logistics: Local Content Reflections & Opportunity Areas Typical Areas: Industrial Services Pipe Coaters Industry Construction Gas Marine Services Drilling Services Ship Repairs

Opportunity Areas for SME’s Infra-Structures & Construction: Detail 18 …, Infra-Structures & Construction, … ENH Logistics: Local Content Reflections & Opportunity Areas Typical Areas: Infra-Structures & Construction Marine Construction Cement Services Machinery Subsea Equipment Services & Tools Fabrication & Engineering

Opportunity Areas for SME’s General Services: Detail 19 …, and General Services. ENH Logistics: Local Content Reflections & Opportunity Areas Typical Areas: General Services Maintenance & Repair Catering Training & Recruiting Facilities Management Housing Environmental Services

“Serving the Oil & Gas Industry” Company of ENH, EP Group