UK / Norway Mentoring Programme 20 Daryl Craig Proposals Engineer 16/03/2010

2 16/03/2010 Brief Company Overview Established in Company now employs 80 personnel including from process, mechanical / design and electrical engineers, project managers, mechanical technicians and fabricator welders. Premises  Main Facility 18,000 sq ft in Arbroath Scotland  Recently taken on a facility of the same size, 200 yards from current site  Overseas Base in Jebel Ali (UAE) allowing the company to service the Middle East and Caspian Sea Markets. Primary business in the Engineering; Manufacture, Refurbishment and Maintenance of Oilfield Well Service, Drilling & Process Equipment. Current Main Clients: Atlas Copco, BJ Sevices, CUDD Energy Services, Dresser Rand, Halliburton, Q-Serv, Schlumberger, Talisman, Total, Weatherford.

3 16/03/2010 Mechserv Strategic Objectives Improve Market share in the new process and service departments – Building on recent successful contracts with customers such as Total and Tullow Oil.  E.g. Minor modification / maintenance offshore work, extended well test projects, Annuli management.  Targeting mainly oil company’s & major contractors. Reduce dependency on UK North Sea market  Most obvious market is Norwegian North Sea due to close proximity and already having small presence in market.  South East Asia - alliance with an established company in Singapore Elevate company profile – A long running campaign including advertising, trade shows, new website etc

4 16/03/2010 Challenges – Growing Process & Service New competitors Possibility of competing with existing customers These competitors are Generally larger organisations with long standing relationships / contracts with the customers Technology – New equipment / standards - the company are less familiar with the standards and regulations etc Attracting and retaining high quality staff - Competing with wages / packages offered by established competitors and other similar companies.

5 Challenges – Growing Process & Service New potential customers, predominantly operators Will likely have never heard of Mechserv – difficult to gain access to right people and trust / credibility. Used to dealing with larger suppliers & high value contract Insurance costs / Liability – Much higher liability involved if something goes wrong on a platform so costs need to be carefully considered. Support services have to be aligned with operators expectations. Different risks have to be considered such as Haz-ops, Sim-ops, Haz-ids etc & while we have this expertise in these areas we need to new clients aware of this 16/03/2010

6 16/10/2010 Challenges – New regional Markets Norwegian market  Location – Not having an office / facility in Norway –Is it possible to successfully do business without this? –How do we increase our profile in Norway without having a constant presence there?  We have excellent knowledge of Norwegian systems standards, Norsok, documentation control but how do we make the most of this?  We have significant cost benefits to offer but we need access to the right people to make this count..

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