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AMEC Natural Resources – Strategy for growth

Neil BruceChief Operating Officer, AMEC Natural Resources

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The market is geographic

ChinaRefining and

petrochem

SE AsiaO&G developments,

FrontierAreasCaspian,Russia

Middle EastO&G, Petrochem,

GTL

North Sea

W Africa

GOM

Athabasca

Australia / Oceania

North

America

Frontier

Mining

Established locations

South America

India

Oil Sands

Africa

Asia

Brazil

N Africa

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Knowledge and resource centres

Average number of employees currently 8,000 – an 18% increase on 2006

3200 in the Americas

3300 in Europe & West Africa

1500 in our Growth Regions

4U

pst

ream

85%

D

ow

nst

ream

5%

Mid

stre

am10

%

mining

Natural Resources Areas of operation

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Natural Resources businesses today

55% NaturalResources

% AMEC profit 2006#

# As restated 25 June 2007; profit for continuing operations before corporate costs, intangible amortisation and exceptional items

* Excluding lump sum fabrication (now ceased)** Oil Sands Engineering and Infrastructure

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Agenda

Oil and Gas Services

Oil and Gas Markets

Our services

Our customers Our competition

Natural Resources

Financials

What differentiates us?

Strategy for growth

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Simplified cycle for oilfield services

Exploration and AppraisalAsset Development (CAPEX)

 

Asset Support (OPEX)

Activity Seismic surveying of geological

structures

Wireline logging and formation evaluation

Drilling, completion and installation of wells

Engineering design, fabrication, commissioning and installation of facilities to extract and process oil, gas and condensate

  Brownfield Projects,

Facilities Engineering,

Operations and

Maintenance Support,

Production Operations,

Duty Holder

Facility Seismic survey vehicles and ships

Well logging and formation evaluation equipment

Land rigs; drilling and fishing tools and equip’t; drilling fluids

Well construction , completion and servicing equip’t

Well production and intervention systems

Offshore fixed platforms - from small NUIs to large complex structures

Offshore floating production units (incl oil storage)

Onshore booster stations, gathering centres, tank farms, gas-oil separation plants

  Offshore platforms and infrastructure; onshore oil and gas fields

AMEC play in the Mid-to-Late cycle

Hub development

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AMEC Oil and Gas Services - activities

Design &Construct

Hook-Up &Commission

Operate Decommission

Facilities Engineering

Operations and Maintenance Support

Brownfield Projects

Production Operations

Duty Holder

Concept &Front End

Major Greenfield Projects

Front End Consultancy

AssetSupport(Opex)

Asset Development(Capex)

Capex 52%

Opex 48%

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Asset Development Services - CAPEX

Global experience of delivering large and complex projects

Leaders in front end and project management services

Centres of excellence in key locations including Houston, London and Calgary

Moved away from lump-sum construction towards integrating the supply chain

Revenue profile includes short-term reimbursable consultancy services, leading on to large reimbursable engineering contracts (3-5 years)

Front End services

Technology

Engineering

Major Projects

Programme / Project management

Capex 52%

Opex 48%

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Imperial Oil/ExxonMobil Canada – Kearl Oil Sands Project

Asset Development Services - CAPEX

KOC PMC*, Kuwait

* Programme Management Contract

Enbridge - Southern Access and Southern Lights pipelines, Canada/USA

PetroChina - Guangxi refinery, China

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Asset Support Services - OPEX

Leading international asset support provider

Servicing more than 200 facilities daily and operating from over 10 locations worldwide

Strong position in Europe and in growth areas such as the Caspian and South East Asia

Leading provider of brownfield services - aimed at extending the life of assets in mature regions

Revenue profile includes long-term (3-5 year) contracts, typically cost reimbursable with performance related benefits

Position on Duty Holder through Fairfield in the UKCS

Production Operations (Duty holder)

Operations & Maintenance

Facilities Engineering

Brownfield Projects

Capex 52%

Opex 48%

12Brownfield projects- AMEC’s leading track record

AIOC Chirag Water Injection

BP Harding

Chevron Alba

BritSats BP Rhum/Bruce

ExxonMobil Skene

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Asset Support Services - OPEX

Shell ONEgas,UK & Dutch North Sea

ConocoPhillips Bayu-Undan,South East Asia

CWP Project, Baku, Azerbaijan, Caspian Region

Fairfield Energy - Dunlin assets, UK North Sea

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OPEX – Duty Holder services

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Operating Company ( reservoir / facilities owner, decommissioning responsibility )

ISC/MMSC/Partnering

Supervision &Services

Labour SupplyOnly

Facilities / Operations Management ( Dutyholder)

Duty Holder In

crea

sin

g v

alu

e

Broadening our scope

Broadening our scope

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Specialist Services

Earth & Environmental

Training and development

Technology Solutions – Convero Project Management

Project Management Academy

Operations excellence

Project Management Systems Consultancy services Technology solutions

Underpinning our asset development and asset support work, we have a suite of unique services and tools that enables us to deliver projects around the world, including:

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Our business model - it differentiates us

CAPEX OPEX

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The competitive landscape

Refineries - Engineering

Petrochemical plants - Eng.

Gas Processing

Maintenance, mods, operations

Pipelines - Engineering

Oil Sands - Downstream

Oil Sands - Upstream

Maintenance, mods, operations

Onshore facilities engineering

Project Management

Pipelines

Subsea

Hulls/Mooring

Facilities/Jacket

Exploration & Drilling

Refineries - Engineering

Petrochemical plants - Eng.

Gas Processing

Maintenance, mods, operations

Pipelines - Engineering

Oil Sands - Downstream

Oil Sands - Upstream

Maintenance, mods, operations

Onshore facilities engineering

Project Management

Pipelines

Subsea

Hulls/Mooring

Facilities/Jacket

Exploration & Drilling

PetrofacWood GroupHalliburton

+ KBR

AkerKvaernerSchlumbergerAMEC PetrofacWood GroupHalliburton

+ KBR

AkerKvaernerSchlumbergerAMEC

Off

sho

re E

ng

.

Major Player

Capability

Do

wn

stre

amU

pst

ream

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Nature of contracts

AMEC business model focussed on services with high value add

CAPEX E&C business model, multiplier contracts with rewards

OPEX largely reimbursable with performance incentives

We do no lump sum contracting in Oil and Gas Service

Will take on limited risk:

– where the customer wants it and where it adds value to both parties

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Financial summary

55% NaturalResources

% AMEC profit 2006# % Natural Resources revenues 2006*

£ million 2006

Revenue* 818.0

Adjusted profit# 59.1

Margin* 7.2%

Net assets 72.6

Order book 1.03bn

Average number of employees 6,766

# As restated 25 June 2007; profit for continuing operations before corporate costs, intangible amortisation and exceptional items* Excluding lump sum fabrication (now ceased)** Oil Sands Engineering and Infrastructure

72% Oil and Gas Services

15% Oil Sands**

13% Minerals and MetalsMining

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Financial summary

* As restated 25 June 2007; excluding lump-sum fabrication, now ceased

2006 revenues £818.0m*

Americas39%

Europe48%

Rest of World13%

CAPEX52%

OPEX 48%

Revenues by region Revenues by CAPEX / OPEX

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Financial summary

Natural Resources* – Profit and margin**

* As restated 25 June 2007** Excluding lump-sum fabrication, now ceased

2006 adjusted profit £59.1 million

CAPEX 64%

OPEX 36% Total7.2%OPEX

c.5%

CAPEXc.9%

%

0

2

4

6

8

10

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Financial summary Analysis of backlog

Order book at 30 June 2007 £1.14bn

Order book reflects strength of end markets

OPEX62%

CAPEX38%

Jun Dec 2007 2006 Growth

Order book £1.14bn £1.03bn +11%

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What are our differentiators?

Asset Development (CAPEX) Proven ability and track record in complex projects in frontier areas Specialist pipeline design capability Strong engineering centres Asset Support (OPEX) World-class capability in brownfield engineering Leading Asset Support contractor in UK North Sea

– Moved into Duty Holder

Oil and Gas Services Strong health and safety track record Global centres of advanced engineering expertise Proven access to resources Environmental Services

25Resource Constraints A flexible approach

26Resource Constraints A global strategy

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World class knowledge and resource centres

WorldwideCentres of Excellence

AberdeenCalgaryHouston

Kuala LumpurLondonToronto

High Value Centres Baku

IndonesiaKazakhstan

Perth Santiago

SedgefieldShanghai

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World class engineering systems

Advanced Engineering Solutions

Computational Fluid Dynamics (CFD

Finite Element Analysis (FEA)

3D Laser Scanning (Point Cloud)

Full Service Environmental Consultancy

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World class technology from centres of expertise

Local resource and delivery solutions

Creates sustainable growth

Resource Constraints A sustainable approach

30Frontier locations / Complex facilitiesAMEC's response

AMEC Natural Resources has developed expertise in:– large, complex / deepwater production and processing facilities

– blending of regional approaches

– production enhancement / brownfield engineering of existing facilities

– Arctic environments / earthquake-prone regions

– Immature and logistically challenging remote locations

In-house specialist consultancy services – to deliver a sustainable solution

– training and development

– environmental studies

Breadth of capability spanning service life of the assets– from conceptual design to Duty Holder

– remote support from centres of excellence across the regions

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CIS

Key relationships NOCs and IOCs

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Broadening our customer base

2006IOCs Albian Sands Energy AIOC Amerada Hess BG BP Centrica ConocoPhillips Eurogas ExxonMobil Marathon Nexen Petro-Canada SEIC Shell Star Energy Talisman Total Woodside

NOCs KNOC (Korea) KOC (Kuwait) NIS (Serbia) PDO (Oman) PetroChina Saudi Aramco Takreer (UAE)

Others Bayer China Worldbest De Beers Falconbridge Inco Ineos Chlor Newmont Ningxia PotashCorp

1999 Albian Sands

Energy

BP

Exxon

Inco

Lasmo

Marathon

Norsk Hydro

Phillips

PotashCorp

Saudi Aramco

Shell

Syncrude

Teck Cominco

Texaco

Rio Tinto Samsung Heavy

Industries Syncrude Teck Cominco

33AMEC Oil and Gas Services Long-term customer relationships

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AMEC Oil and Gas Services Summary

5 year track record of progress:

Improved portfolio of services

New customers

New regions

Better quality earnings

Strong growth

UK CentricUK Centric

AzerbaijanAzerbaijan

CanadaCanada

KuwaitKuwait

SakhalinSakhalin

Global capabilityGlobal capability

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AMEC Natural Resources - Strategy for growth

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Leading supplier in the UK North Sea

Strong position in growth markets – eg CaspianLong-term growth market- Oil and gas to remain the world’s dominant source of energy- Strong demand for engineering and project

management servicesStrategy for growth- Grow services related to core activities- Increasing emphasis on operational support- Capacity and geographical expansion

Natural Resources markets Scaleable market positions

Leading supplier in surface mining sectorLong-term growth market- Technological advances reducing costs of production- Security of supply- Strong growth in output predictedGood scope for organic growth andinvestment in the in-situ market

* Revenue split 2006, excluding lump-sum fabrication** Oil Sands engineering and infrastructure

Leading position in North AmericaLong-term growth market- Increasing global demand fornatural resources- High levels of investment in miningassets, especially in South Americaand AustraliaSignificant opportunities to leverageNorth American expertise into growth markets

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Baard Energy – Ohio River Clean FuelsBP – Mad Dog/HolsteinBP – Mardi Gras Transportation SystemBP Pipelines (North America) programCNQ – Horizon oil sandsEnbridge – Southern Access PipelineExxonMobil – Golden Pass pipelineExxonMobil – Sable Offshore Energy ProjectImperial Oil – Kearl oil sandsPetrobras – CottonwoodPetro-Canada – Fort Hills oil sandsShell – Muskeg River oil sandsSyncrude – Aurora oil sandsSynenco Energy – Northern Lights oil sands Williams – Canyon Station

Afren – Okoro and SetuExxonMobil – KizombaChevron – Area A Gas Management programSamsung – Chevron’s Takula Gas Processing PlatformShell – Bonga

BP Indonesia - Crane Lifting & Maintenance ConocoPhillips Australia – Bayu UndanShell Philippines – MalampayaTotal Indonesia – Tatun and Tunu 11Woodside Energy – Australian Assets Organic Power Ltd – Jakarta Waste-to-Energy Project Premier Oil - West NatunaPGN South Sumatra-West Java Phase 2 Pipeline

Bayer – Caojing polycarbonatesCNPC – QinzhouHuntsman, BASF, SLIC – asset support servicesPetroChina – DushanziShenhua Ningxia Coal industry Group – Ningxia coal-based chemicals

Azerbaijan International Oil Company – PCWU platformBP – EMMSKPO – Karachaganak Unit 2 materials replacementSakhalin Energy Investment Company – Sakhalin II

Anadarko – El MerkKuwait Oil Company (KOC) – Central and Southern fieldsKOC/Saudi Arabian Texaco Joint Operations – Wafra fieldWaha Petroleum – Blocks 32, 50, 59Wintershall – Jakira fieldZuetina Oil Company – Blocks NC 173/1, NC 74A/B, 103

Americas

Africa

Middle East/ North Africa

South East Asia

China

CIS

Europe

BG Group – North Sea facilities; MariaBP – Coryton refineryBOL – BritanniaBP – Forties Pipeline SystemBP – HardingBP – Rhum/BruceCentrica – CSL assetsChevron – Pembroke RefineryConocoPhillips – BritSatsNIS – Novi Sad refinery, SerbiaShell – CorribShell – ONEgasShell – Sigma3Star Energy – Humbly GroveTalisman - TweedsmuirTOTAL – Milford Haven refinery

Current projects Natural Resources

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Core business overview Natural Resources

Current Position

Opportunity

Oil and GasServices

Strong niche positions (UKCS Brownfield, frontier solutions and complex facilities) with a developing geographic mix

Significant growth opportunities in frontier markets

Leading supplier of upstream asset development and asset support services to IOC/NOC/Independents in targeted niche markets within select geographies

Export Brownfield expertise Develop adjacent services Build regional capability via

alliances and acquisitions

Future Position

Strategy

Oil Sands

Leading provider of EPCM services to the Canadian Mineable Upstream Oil Sands market

Increasing presence in In-Situ Upstream Oil Sands

Solid industry with strong future growth trends

In-Situ growing in relative importance

Leading supplier of EPCM services to the Canadian Upstream Oil Sands industry

Maintain leadership position Acquire further In-Situ

capability

Minerals and Metals Mining

Leading supplier of engineering to N. American base/precious metal and diamond mining industry

Limited presence beyond Americas

Strong global demand for minerals

S. America and Australia key growth markets

Top tier position in global consultancy and N. American EPCM

Enhance presence in Americas and build top tier position in EPCM

Acquire Australian capability

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Strategy for growth

Grow services related to core activities

Enter in-situ oil sands

Capacity and geographic expansion

Oil and Gas

International expansion

Capacity expansion

Minerals andMetals Mining

Extended cycle of opportunity in all areas of activity

– Opportunity to leverage performance

Opportunity to increase volume and quality of earnings

– Duty holder/Brownfield

– Word class engineering technology

Well established strategy to increase resource base

Strong balance sheet will fund infill acquisitions

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A strong and growing business

A business transformed

Market leading positions– Geographical/ engineering technology

Growing customer relationships– IOC/NOC

Proven access to resources– Expertise/high value centres

Strong track record of growth– Revenue and profit– Resources– Order book

Extended cycle of opportunity across all areas of activity– 10+% growth in end markets