Investor

Presentation
15 May 2009

Maroun Semaan
Group Operating Officer

New organisational structure

New organisational structure
implemented 1 January 2009

Main drivers:

Provide a platform for

continued growth

Maroun Semaan appointed Chief

Operating Officer

Share best practice

Improve integration of services

Seven business units

and revenue synergies

Develop the management

bench
Engineering & E&C Ventures Engineering
Construction
Services
Sharjah EPC
business

Petrofac
Emirates

Reimbursable
engineering

Saudi Arabia

Woking

Petrofac IKPT

Mumbai
Chennai

Offshore
Training
Engineering &
Operations
Brownfield

Health & Safety

training

Offshore
projects &
engineering

Technical
training

Facilities
Management

Consultancy

Production
Solutions

Energy
Developments

Dubai Petroleum Co-investment in

oil & gas assets
SPD
Eclipse
Caltec
i-Perform
Plant Asset Mgmt
3

Divisions
(pre 1/1/9)

New organisational structure

Engineering & Construction

Operations Services

Energy
Developments

Maroun Semaan

Reporting
Business units
segments
(post 1/1/9)
(post 1/1/9)

Reimbursable
engineering
services

Facilities Man,
exc Dubai Pet,
SPD, Caltec

Lump-sum EPC

Brownfield
engineering

Services
(pre 1/1/9)

Chief Operating Officer

Training

Dubai
Petroleum,
SPD, Caltec,
Eclipse,
i-Perform

Energy
Developments

Production
Solutions

Energy
Developments

Offshore
projects &
engineering
Engineering & Engineering & Engineering
Construction Construction Services
Ventures
Sharjah

Offshore
Training
Engineering &
Operations

Engineering & Construction

Other
Offshore
Engineering & Engineering & Engineering & Engineering
Services
Construction Construction Operations
Ventures
Sharjah

Training

Production
Solutions

Energy
Developments

Engineering & Construction Sharjah

Managing Director: Subramanian Sarma
Sharjah lump-sum engineering, procurement and
construction (EPC) operation experienced
significant growth and success:

E&C backlog by region* (April 2009)

2%

38%
60%

Revenue 5 year CAGR 46%

Well positioned to be Tier 1 EPC contractor
E&C backlog (including E&C Ventures) at record
levels at US$6.7 billion at end April 2009; includes
US$5.0 billion of new awards to date in 2009

Middle East

North Africa

CIS

* E&C Sharjah and E&C Ventures combined

Business operating near capacity, but bidding

activity continues; key focus areas remain MENA
and CIS
Innovation and cost-effectiveness key to leading
the business forward
5

Engineering Services
Managing Director: Rajesh Verma

E&C +ES employees by region* (Dec 2008)

Brings together:
33%

37%

Woking reimbursable engineering services:

consultancy, FEED, PMC/EPCM support etc
10%

Lower cost Mumbai and Chennai operations, which

20%

support Woking and Engineering & Construction

Aim to achieve Tier 1 status

Focus to expand through:

Sharjah

Woking

E&C + ES employees*

Reimbursable projects in MENA, West Africa and CIS

Technically complex sectors such as LNG, heavy oil

India

Sites/other

4,900

3,900
2,900

and refineries

Continue to optimise resources in lower cost

centres to improve group competitive position
2006

2007

2008

* Including agency and contract staff and the

6
groups share of joint venture employees

Offshore Engineering & Operations

Managing Director: Bill Dunnett

OEO employees*
4,400

4,100

4,200

2007

2008

Includes groups MMO businesses:

Operations Management (Duty Holder)
Brownfield
Also includes Offshore Engineering & Projects
service line to provide:
project management and engineering and
construction services to global offshore and subsea
development market

2006

* Including agency and contract staff and the

groups share of joint venture employees

LTI/RI frequency rates

0.68

builds on capability developed in Engineering

Services and Brownfield
0.38

Aim to create premier international offshore

engineering and operations business
Safety, efficiency and volume of business are key
drivers to ongoing success

0.29
0.12

2006

0.09

2007

0.05

2008
7

Training
Managing Director: Leigh Howarth
Comprises:

Global training delegates

50,000
40,000
35,000

Competence-led training services, including health

& safety, fire, survival and technical training

Consultancy services to identify or assess

competency gaps or risks within an organisation

Outsourced tailored managed solutions

Strong need to develop competent and skilled
operations personnel for oil & gas industry

2006

2008

Training employees by region* (Dec 2008)

Recent growth driven by international expansion

new training facilities established in Sakhalin,
Houston, Kuala Lumpur, Baku, Singapore and Dubai

6%

6%

20%
60%

Now manage 16 facilities in 8 countries

Further international expansion / new training
centres key to continued growth

2007

8%

UK

Houston

UAE

Singapore

Other
8

Production Solutions
Managing Director: Gordon East
Production Solutions brings together many of groups
specialist consultancy businesses:

Employees by activity* (Dec 2008)

50

50

210

SPD Group well operations management

620

Caltec production technology

Eclipse production engineering
Plant Asset Management asset performance
i-Perform business performance

Dubai Petroleum

SPD

Eclipse

Other

* Including agency and contract staff and the

groups share of joint venture employees

In addition, Dubai Petroleum service operator

contract will report through Production Solutions
Business aims to package together services to
provide customers with solutions to enhance
production and improve reservoir recovery
Remuneration based upon success, for example,
tariff or quasi-equity structures

Marwan Chedid
Managing Director, E&C Ventures

E&C Ventures, contents

Mission
Organisation
Macro market analysis
Ventures

Petrofac Emirates
Petrofac KSA
Petrofac IKPT (LNG)
Operations

ASAB Project (Abu Dhabi)

Karan (KSA)
Conclusion

11

E&C Ventures, mission

Fuel long term growth in Engineering & Construction:

Petrofac Emirates (UAE & Mubadala Investments)

Petrofac Saudi Arabia
Petrofac IKPT (LNG)
Broaden products lines from oil & gas into Refinery, Petrochemicals,
LNG, etc
Introduce further new ventures to fuel growth by geographic and product
diversification

12

E&C Ventures, organisation

Mubadala
Petroleum Services
Company

Petrofac E&C
Ventures

LNG

Saudi Arabia

United Arab Emirates

Petrofac IKPT

Petrofac Saudi Arabia

Petrofac Emirates

LNG venture projects

Cost effective
engineering support

Proposal support

In-Kingdom

full EPC

Out-of-Kingdom portion
of large EPC

UAE
Mubadala influenced
projects in other
countries

13

E&C Ventures, market analysis, opportunities

Short and medium-term potential market: c. US$130 billion*
LNG projects in North Africa, CIS etc

Petrofac
Saudi Arabia
US$60 billion

Petrofac IKPT
US$30 billion

Petrofac Emirates
US$40 billion
Refinery expansion projects,
onshore gas developments, onshore
facilities for offshore gas developments
and clean fuels programs

Onshore field development (e.g. ADCO

Project 1.8), onshore facilities for
offshore gas development (e.g. Gasco
IGD programme), refinery expansion

* Generally, projects bid in packages with values of US$0.5 billion to US$3 billion

14

E&C Ventures, macro market analysis - UAE

Abu Dhabi oil & gas market experiencing boom period despite worldwide
financial crisis; visible business for next two years
Petrofac Emirates is a joint venture with Mubadala Petroleum Services
Company LLC, a wholly-owned subsidiary of Mubadala Development Company
(Mubadala)
Mubadala is a Public Joint Stock Company headquartered in Abu Dhabi
focussed on developing and managing an extensive and economically diverse
portfolio of commercial initiatives, independently or in partnership with
leading international organisations
Petrofac Emirates will pursue associated opportunities, focusing on
significant EPC projects for UAE and international clients where Mubadala is
an investor

15

E&C Ventures, macro market analysis - KSA

Saudi Aramco to spend around US$60 billion including 144 projects over the
next five years in boosting onshore and offshore oil & gas production
Saudi Aramco is concentrating US$27 billion in 17 mega projects (> US$500m),
US$7 billion in 30 large projects (US$100-500m) and balance on medium to
small projects (< US$100m)
Saudi Aramco has initiated programme to encourage local and international
companies to cooperate and create local EPC skills to execute in Kingdom
small-to-large size EPC projects (up to US$500m)

Saudi Aramco aim to achieve Saudization programme: 50% local content

within 5 years
Saudi Aramco has started identifying projects from expansion programme to be
awarded to in-Kingdom EPC companies
Shortly SABIC (Saudi Basic Industries Corporation) will follow same model for
downstream petrochemical projects
SABIC potentially large market; Petrofac in process of gathering information
16

E&C Ventures, macro market analysis LNG

Alliances

Development of strategic LNG alliance

Expertise

Development of in-house expertise through structured training

programmes (IKPT, Woking)

Focused recruitment of key industry (pan-EPC) employees

Technology

Explore use of alternative process technologies

17

E&C Ventures, ASAB full field development

Client, Abu Dhabi Company for Onshore Operations (ADCO)
Project, brownfield except greenfield central degassing station at ASAB
Petrofac successful against competition from:

Saipem
Tecnicas Reunidas and CCC joint venture
Technip
Past experience in UAE

ASAB high pressure gas injection (2000-2001)

EPCC of new gas processing facilities at Sajaa gas plant for Crescent
Petroleum (2004-2005)
ASAB awarded January 2009
44 month schedule
Base contract value, US$2.3 billion
18

E&C Ventures, ASAB full field development

Project outline:
Develop SAS fields for enhanced production over extended time in phased
manner
Increase current production to sustainable production rate of 600,000 bpd
and peak (technical) rate of 720,000 bpd of stabilised crude oil from three
SAS fields with ASAB as hub
Replace / expand / enhance/demolish ageing facilities to ensure their
ability to operate safely and more efficiently
Petrofac scope:
Development of new greenfield Central Degassing Station (CDS) comprising
4 separation trains with degassing gas lift compression, produced water
treatment and main oil storage and pumping facilities
Modification to 5 existing Remote Degassing Stations (RDSs) and conversion
of existing ASAB CDS into RDS-6
63 wellhead modifications and new wellheads; approximately 516 kms of
flowlines and pipelines including main oil line to BAB field

E&C Ventures, Karan utilities & cogeneration

Client, Saudi Aramco
Petrofac successful against competition from
Snamprogetti/Saipem
HEC
Awarded, March 2009
Planned completion, December 2011
Project outline:
To support Aramcos strategy to meet the In-Kingdom energy demand from
2012 onwards; without the project, Master Gas System would have a deficit
Facilities to produce 1,300 standard cubic feet per day (mmscfd) of sales gas,
80 mmscfd plant fuel and 1,350 metric tonnes (MT) of sulphur per day
Karan facilities will be integrated in existing Khursaniya gas plant, 40 km
north of Jubail
20

E&C Ventures, Karan utilities & cogeneration

Petrofac scope:
Covers utilities, cogeneration train, sales gas export pipeline and offsites (gas
and sulphur facilities by others)
Cogeneration: combustion gas turbine generator and heat recovery steam
generator supply
Auxiliary steam boiler
Sales gas export pipeline: length 47 km, diameter 40-inch
Additional condensate deaerator system
Upgrade of boiler feed water systems, condensate and steam systems,
nitrogen, cooling water, fire water and fuel gas systems
New electrical substation
Modification to high voltage gas insulated switch gear
14 km of crash rate fence and patrol roads

E&C Ventures, conclusion

UAE opportunities in oil & gas, refinery and petrochemicals
International potential alongside Mubadala
Major Saudi opportunities from 2010 especially in refining sector
LNG opportunities are major and longer-term, structurally attractive market
with limited competition due to size and complexity of projects
Short and medium-term potential market robust

22

Amjad Bseisu
Chief Executive, Energy Developments

Strategy
Energy Developments (ED) invests alongside the groups partners in oil & gas
upstream developments and energy infrastructure, offering differentiated
risk/reward models
Partnership approach improves alignment, mitigates risks and reduces costs
whilst generating more value for Petrofac and its partners
Value created by ED is measured in NAV: objective is not to increase reserves
or production year-on-year
ED selectively looks at small field and late-life asset opportunities where it
offers differentiated capability in engineering, operations and/or commercial
competence
While ED is wedded to the business model, opportunities to sell or swap part
or all of an asset would be considered
Hedging considered on asset-by-asset basis: objective to hedge
approximately 75% of low-case production estimate once steady state
production achieved; hedging likely to be on rolling 12 month basis

Rob Jewkes
Managing Director & EVP Project
Development & Operations,
Energy Developments

Portfolio of producing assets

Chergui, Tunisia

Ohanet, Algeria

Don Development, UK

KPC, Kyrgyzstan

Cendor, Malaysia

26

Don development
Group acquired interests in West Don and Don
Southwest fields in 2006
Following decision to utilise Northern Producer
floating production facility, field development
programme (FDP) approval granted in late May 2008
First oil achieved
April 2009, less than
one year from FDP
approval
Combined peak
production expected
to reach in excess of
40,000 barrels per
day (bpd)

27

West Don
Co-venturers: West Don

Commenced production late April 2009 from

first producer well
Second producer well and injector well
expected to commence in Q3 2009

Peak production then expected to reach

25,000 bpd
First tanker offload c. 500,000 bbls expected
late May

Petrofac

27.700%

Valiant

17.275%

Stratic

17.250%

First Oil

19.275%

Nippon

18.500%

Geological Parameters
Formation Depth

: 10,650 ft TVDSS

Formation

: Brent

Oil/Gas Gravity (deg API)

: 34.0

Formation Temperature (deg F) : 251.5oF

CO2 (%)

: 1.48%

H2S (%)

: None Reported

End-2008 Reserves (mmboe)

P90

P50

Gross

12.8

20.3

PED Entitlement

3.6

5.6

28

Don Southwest
Co-venturers: Don Southwest

Production expected to commence Q2 2009

Initial production expected to be from two
producer wells
Injector wells to
be tied back in
Q3 2009
Further
development
potential
expected from
near field
opportunities

Petrofac

60.0%

Valiant

40.0%

Geological Parameters
Formation Depth

: 11,200 ft TVDSS

Formation

: Brent

Oil/Gas Gravity (deg API)

: 38.0

Formation Temperature (deg F) : 260oF

CO2 (%)

: 1.4%

H2s (%)

: None Reported

End-2008 Reserves (mmboe)

P90

P50

Gross

14.4

27.6

PED Entitlement

8.6

16.6

29

Cendor
Co-venturers

The field continues to perform well

Expected to produce c. 14,300 bpd in 2009

(2008: 14,700 bpd)

Produced over 13 million barrels to date

MOPU YTD uptime: 100% (2008: 99%)
Near field drilling continuing to prove up
reserves for Phase 2
Phase 2 development programme in place;
option selected; FEED to commence 2H 2009

Petrofac

30% & Operator

Petronas Carigali

30%

KUFPEC

25%

PetroVietnam E&P

15%

Geological Parameters
Formation Depth

: 1300mTVDss

Formation
H20)

: H group (H15,

Oil/Gas Gravity (deg API)

: 42

Formation Temperature (deg F) : 115oC

CO2 (%)
60%

: Variable 23% to

H2S (%)

: Zero

End-2008 Reserves (mmboe)

Phase 1 P90

Phase 1 P50

Gross

17.4

29.1

PED NET

3.5

5.2

30

Chergui
Export commenced August 2008, 16 months
after Petrofac appointed Operator
Nameplate capacity of Central Processing
Facility (CPF) 20 mmscfd
Gas sales exceeding nameplate capacity by
20% following commissioning of refrigeration
unit: plant debottlenecking continues to
increase capacity further
Offtake contract with STEG; headroom
available above the contracted rate
Further seismic
work undertaken:
field expansion
options under
evaluation

Concession Owners
Petrofac

45% & Operator

ETAP

55%

Geological Parameters
Formation Depth

:4600 ft ss

Formation
Eocene nummulitic limestone

: Reineche -

Gas Gravity / Condensate

0.65; 65 API

: specific gravity

Formation Temperature (deg F) :175F

CO2 (%)

:0.02%

H2S (%)

:0.00%

Condensate yield

:12 bbls/mmscfpd

End-2008 Gas Reserves (bscf)

P90

P50

Gross

41.9

53.1

PED Entitlement

18.8

23.8

31

Business development
Regional focus concentrated on existing areas of investment, i.e. UKCS, MENA
and Far East

leveraging partner relationships, both in-country and out-of-country

local presence provides early insight into opportunities with commercial
experience

local sub-surface knowledge enables early assessment of risk outside of

our control
Particular focus on infrastructure projects where there are synergies with
existing operations and where our service businesses have strong relationships
and expertise
Current illiquidity in financial markets is providing increased flow of
opportunity
Opportunity to exchange interests in developed assets also provides a
valuable enabler for potential new opportunities
32

Investor
Presentation
15 May 2009