Introduction to DUCO June 2005 DUCO Umbilicals 27th June 2006 Subsea North East Launch Alasdair MacDonald

Introduction to DUCO July Overview Duco manufactures Control Umbilicals for Subsea Production Systems  Electrical and hydraulic power transferred from host facility to subsea wells  Fluids to assist well productivity tranferred from host facility to subsea wells  Control signals between wells and host facility to monitor production. Worldwide market Broad client base  Majors and Independant Oil Companies  State Oil Producers  EPIC contractors  Wellhead equipment manufacturers International business with a local North East focus

Introduction to DUCO July Make Up of an Umbilical? Electric Cable Fibre Optic Cable Tube Fillers Outer Sheath Armour Layers Inner Sheath

Introduction to DUCO July UMBILICAL ASSEMBLY Typical Umbilical Lay-up

Introduction to DUCO July A Sense of Proportion - LENGTH

Introduction to DUCO July Dunlop enters umbilical business Southampton facility 1983 Joint Venture formed between Dunlop & Pirelli £7m DUCO moves to Walker Plant £5m New joint venture between Dunlop & Coflexip DUCO £33m DUCO LTD first umbilical manufacturer to be awarded API 17E licence £14m Coflexip Merge with Stena Offshore £25m DUCO Inc Channelview, Houston Opens £37m Technip & Coflexip merge £61m Angoflex Ltda factory opens £100m Reviewing options for further international and local expansion *Newcastle Revenue only

Introduction to DUCO July LOCATIONS DUCO Inc. USA Houston Angoflex Angola DUCO Ltd. Newcastle HQ

Introduction to DUCO July DUCO Ltd – Newcastle, UK Capacity 300km per annum Workforce : 350 approximately Facility located 30m (100ft) from 800m (2625ft) long quayside

Introduction to DUCO July SIGNIFICANT MANUFACTURING ACHIEVEMENTS Largest Single Length Thermoplastic Umbilical Produced by Newcastle Facility  Exxon Mobil Arthur : 31km ; 983 tonnes ; 146mm diameter Supplier of the GOMEX longest umbilical (DUCO Inc.)  SHELL, MENSA DEVELOPMENT, 106 km Supplier of the world’s heaviest and largest umbilical (DUCO Ltd.)  PETROCANADA, TERRA 170kg/m, 320mm diameter Supplier of the world’s largest number of components (DUCO Ltd.)  TALISMAN, BUCHAN ALPHA, 98 HOSES Currently manufacturing world’s heaviest umbilical  BP SECU 305mm 190kg/m Safety Performance  In excess of 1400 days incident free

Introduction to DUCO July WHY IS MARKET SO ATTRACTIVE? High oil price here to stay Next 5 years:-  40% increase in subsea production  Doubling FPSO’s Planned delays to decommissioning Enhanced recovery to existing subsea production systems By 2013 oil demand predicted to exceed supply