1. collaboration | commercialisation | diversification | internationalisation Subsea NE Launch Event 27 th June 2006

2. collaboration | commercialisation | diversification | internationalisation BEL VALVES Richard Dodd Managing Director

3. collaboration | commercialisation | diversification | internationalisation Capability & Business Focus - Group Privately Owned 3 rd Generation Family Business –British Engines Limited (BEL) –Established 1922 –Employees of 969 World Wide –Group Turnover circa £80m –Pre-1950 Sub-Contract Machining –Post-1950 Strong Product Focus - Valves, Pumps, Glands Value Added Engineering, Manufactured in House Niche Products & Markets with Ownership of Design Investors In People – Stability of Workforce –Apprentice Intake 15 to 18 per year – 4 Year Programme Health, Safety & Environment – Culture Driven / Focus

4. collaboration | commercialisation | diversification | internationalisation BRITISH ENGINES INDIA

5. collaboration | commercialisation | diversification | internationalisation Company History – BEL Valves Formed in 1950 to Support ICI Teeside Diversified from PetroChem to Oil & Gas – mid 70s Employees of 358 World Wide Turnover, £44m Main Focus Offshore and Subsea Valves – 50/50 Supply of Complete Package of Valve, Actuator, Controls Marketing, Design, Manufacture, Commissioning & Maintenance Core Values – Customer Intimacy & Product Leadership

6. collaboration | commercialisation | diversification | internationalisation Capability & Business Focus Complete Package of Valve, Actuator, Controls –Through Conduit Slab & Expanding Gate Valves –Subsea Ball Valves –Swing, Piston Check & Globe Valves Key Applications –High Pressure (5,000psi to 15,000psi) –Sour Service (Exotic Materials – Inconels) –From Wellhead up to Separators / Scrubbers –Manifolds, HIPPS, ESD, Receivers, Metering, Chemical Injection Worldwide Customer Base –Operators to Contractors to SPS Providers to Installers. –Key Markets – North Sea, Deepwater West Africa & Caspian

7. collaboration | commercialisation | diversification | internationalisation Recent Key Projects Subsea:Topside: Shell BongaBP Tanguh Total DaliaConocoPhillips Suban II & Belanak BP Block 18Agip Kashagan BP West of ShetlandsBP Shah Deniz ExxonMobil Kizomba CChevronTexaco Tengiz Statoil Tyrihans, Snohvit, KristinBP ACG BG Simian/Saphire & WDDPetrobras P50, P53, P54 BP KingStatoil 2/4M & Statfjord LateLife Chevron TahitiNPCC OGD 3 Woodside Vincent

8. collaboration | commercialisation | diversification | internationalisation Recent Key Projects (cont) And UK (25%): –ChevronTexaco Captain C –CNR Brenda, Lyell –Kerr McGee Dunbarton, Affleck –Shell Gannet, Merganser, Pierce, Starling, Howe II –BG Atlantic/Cromarty, Maria –PetroCanda Pict –ConocoPhillips Callanish/Brodgar –Tallisman Tweedsmuir –BP Farragon, Rhum And............

9. collaboration | commercialisation | diversification | internationalisation Capability & Business Focus - Valves Investment in New Plant and Equipment – BEL Valves –Total Investment: £2.6m (2004) & £1.7m (2005) –Total Planned Investment £1.4m (2006) –Doubled Machining and A&T Capacity in 3 Years Capacity Increase in Manpower of 35% –The Oil & Industry is busy (+2011?) –Both through UK supply –& EU Labour Support - the UK market is saturated! Business Process Re-Engineering –Implementation of New Business System –Agile and Lean Manufacturing – “Business Excellence” Aligned Material Suppliers – UK & Abroad

10. collaboration | commercialisation | diversification | internationalisation Company Status and Future Plans Attain Profitable Growth through Integration (Up & Across) –Requires Investment in Facilities. –Requires Investment in Business Excellence – People & Processes –Focus on New Markets - Gas Storage & Nuclear. Retain Technology and Product Lead –HIPPS Systems – Subsea & Topside –Deepwater –HP – 20000 psi Regional Support –Training and Education –Skilled Labour Pool – Both Staff & Works. –Product Technology Development support –Growth & Expansion – Support.

11. collaboration | commercialisation | diversification | internationalisation 5 Minute Q & A Thank You. Richard Dodd rd@bel.co.uk +44 191 265 9091