1. EPC – SPIE Oil & Gas Services Bonsai Team – 12.01.2010

2. Summary  1°) EPC  2°) SPIE Oil & Gas  3°) Strategy  4°) Example  5°) Human aspects

3. EPC  EPC: Engineering Procurement and Construction  Design the installation, procure materials and construct it  LSTK: Lump Sum Turn Key  LS: Payment of a fixed sum for the delivery  TK: The scope of work includes start-up of the facility to a level of operational status  EPCM: Engineering, Procurement, Construction Management  The contractor ≠ the constructor  Procures and manages the construction process  EPCS: Engineering, Procurement, Construction and Start up  Company realizes the commissioning of the product by a maximum of three usual stages  EPCI: Engineering, Procurement, Construction and Installation  Set it up at the offshore site

4. SPIE, L’ambition partagée  Turnover 2008:  + 8,4 %  3,75 B€  Operational results:  + 26 %  172,9 M€ Multi-Technical services SPIE Ile-de-France Nord-Ouest SPIE Ouest-Centre SPIE Sud-Ouest SPIE Sud-Est SPIE Est SPIE Matthew Hall (UK) SPIE Benelux Specialized Services SPIE Communications SPIE Oil & Gas Services SPIE Nucléaire

5. SPIE Oil & Gas Services Core business: - Maintenance - Services - EPC Clients: - main companies (Total, Exxon Mobil) - main contractors (Technip, Saipem, Ponticelli)

6. SPIE Oil & Gas Services Interview M. Hachin Director, Systems Projects Business Unit

7. Strategy  Earlier strategy:  Large EPC projects  Pipeline project in India that almost « killed » the company  Today’s strategy:  Focus on maintenance and services (Core business)  Size limited projects  1 to 3 years and no more than 50 millions €  Restricted to Oil & Gas branch

8. Activities  Main type of contracts:  EPCS Lump Sum in majority of cases  QHSE = Quality, Hygiene, Security and Environment  Respects internationals QHSE regulations  “Everybody is responsible for what he is let others do”  Transparency of QHSE results  Evaluation of all subcontractors  “If the subcontractor is not mature enough in terms of QHSE  Compensate by more control

9. Go no Go Bid no Bid Decision Comission Organization  Derived from history and opportunities  Decisional organization:  Up to 6 millions, decision is made by regional directors  Between 6 and 15 millions  Decision Mr. Hachin  More than 15 millions  Risk Engagement Commission  Three steps:

10. Examples  Pipeline construction in Algeria  Pipes, pumping stations, information systems, turbo pumps …  Pre-Engineering, fine engineering, material selection in terms of functionality, then choose the different subcontractors  Relation with the client is really important  Relational qualities for the project manager

11. Human aspects

12. Generalities  10 millions Euros Project  10 persons directly involved EPC = Credibility  International mobility  Intern evolution possibilities  Multi technical environment

13. Human aspects Project Manager Desk, costing work as Fieldwork - Relation - Technique - Organisation Winning teams Project Manager Clients Team Subcon- tractors

14. Human aspects Responsibilities of project managers = EPC Success Delegate Control Success = Satisfaction Problem: Senior PM to train Junior PM Questioning Critical thinkingversus Anticipation Experience

15. Conclusion  Being successful in EPC business  Good project managers  Good team to support them  “The method to secure markets is to secure the effective people”  Strategy  Cash cow  Maintenance, Services  Visibility and credibility  EPC  Working on relation and trust with customers  Limit risk thanks good internal decisional processes  QHSE

16. Thank you for your attention. If you have any question ??? Thank you for your attention. If you have any question ???