Leadership, Knowledge, Solutions…Worldwide. Project Risk Management for Cyprus Nicosia 28 th March 2014 Paul.T. Managing Director Marsh Energy Practice; London Right from the Start

Marsh—Leadership, Knowledge, Solutions…Worldwide. 1 12/09/2015 Marsh & McLennan Companies Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE:MMC), which has over 54,000 employees worldwide and approximately $12 billion in annual revenue. Marsh & McLennan Companies Marsh A global leader in insurance broking and risk management. Mercer A global leader in talent, health, retirement, and investment consulting. Guy Carpenter A global leader in providing risk and reinsurance intermediary services. Oliver Wyman A global leader in management consulting. NERA Economic Consulting Competition, regulation, public policy, finance, and litigation 2

Marsh—Leadership, Knowledge, Solutions…Worldwide. 2 The Benefits of Risk Management – Right from the Start  Risk Management – The protection of:  Assets.  Revenue.  Liability to others. – Broadest analysis – Minimum cost  Benefits to Cyprus – World-class HSE for all future facilities. – Cyprus’ balance sheet is protected by risk transfer. – The people of Cyprus will see the benefits of best in class risk mitigation and impact on your beautiful island home.

Marsh—Leadership, Knowledge, Solutions…Worldwide. 3 LNG Projects – Best Risk Management Practice from Day 1

Marsh—Leadership, Knowledge, Solutions…Worldwide. 4 Project Risk Management A sequence of project phase activities to assist Cyprus based projects manage risk exposures ‘right from the start’ in order to:  Attract finance.  Minimize insurance costs and cost of risk over project life cycles.  Enhance HSE quality at the earliest possible and most cost effective stage.  Seek to satisfy all project stakeholders’ interests.

Marsh—Leadership, Knowledge, Solutions…Worldwide. 5 Project Risk Management - The Process Feasibility Study Preliminary Design EPC Contractor Selection Detailed Design Procurement Construction Commissioning 1A 1B Operation Contractual Risk Review and Insurance Specification Ongoing Risk and Insurance Services Project Risk Register Insurance Broking Services Pre-Start Up Loss Control Review 3 Typical Schedule (months) Design Phase Risk Review A 1B

Marsh—Leadership, Knowledge, Solutions…Worldwide. 6 Project Risk Registers (Risk Action) - Planning for Cyprus Risk - High Risk – Moderate to High Risk – Very HighRisk - High Risk – Low to Moderate Risk – Low Insignificant Minor Moderate Major Catastrophic RemoteUnlikelyMediumLikelyExpected Resource AllocationM Customer NeedsH EfficiencyI Product Life CycleL BrandA CompetitorG Budgeting and ForecastingB Succession PlanningO Business PortfolioC Investment EvaluationK Change ReadinessD Mergers & AcquisitionsN Competencies/SkillsF Hiring/RetentionJ Business InterruptionP CommunicationsE M H L A G B C K D N Q F J P E R I O 1A

Marsh—Leadership, Knowledge, Solutions…Worldwide. 7 Design Phase – Ranking of Risk Quality 4 – excellent 3 – good 2 – average 1 - basic 0 - poor  Risk ranking: – Achieves project due- diligence and differentiation. – Best in class risk mitigation. – Widest insurance coverage to protect Cypriot interests. 1B

Marsh—Leadership, Knowledge, Solutions…Worldwide. 8 8 Ensure the Ultimate Risk Never Happens! AfterBefore

Marsh—Leadership, Knowledge, Solutions…Worldwide. 9 Marsh Cyprus - Services and Solutions Risk Management Services and Solutions Claims Management Services Political Risks Trade Credit Risk Risk Transfer and Insurance Broking Professional Liability Property Risks Environmental Risk Employment Practices Liability Risk Consulting Public entities Serving: Multinational organisations Large national firms Small and medium enterprises Associations and affinity groups Private clients