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AMEC – 2013

2

AMEC at a glance

* As at 11 July 2012

Delivering excellence

3

Where we work

Countries and locations where we work

Mongolia

Our 27,000 employees operate in 40 countries

4

AMEC revenue by markets and geography

4

5

Serving four markets across three geographic regions

Samir Brikho Chief Executive

Americas 57% of revenue*

Simon Naylor

Oil & Gas

Mining

Clean Energy

Environment &

Infrastructure

Europe 27% of revenue*

John Pearson

Growth Regions 16% of revenue*

Hisham Mahmoud

Supporting growth to 2015 and beyond

One AMEC approach

*Approximate, based on H1 2012. Full comparatives on new basis to be issued with FY results

6

Consulting &

Front End

Design &

Construct

Hook-Up &

Commission Operate Decommission

Scope of activity 1-2% of TIC EPCM = up to 12% of

TIC

3% of TIC n/a n/a

Front End Consultancy

Greenfield Projects

Brownfield

(E&C and Projects)

O&M Support

Duty Holder

Late life management

AMEC scope • Prefeasibility

studies

• Feasibility studies

• FEED

• Execution planning

• Technical

consulting

• EPC / EPCM

• Detailed design

• Project management

• Construction

management

• Construction

• Supply chain

management and

procurement

• Project controls

• Factory Acceptance

Test (FAT)

• Pressure testing

• Safety system check

• Equipment checks

• Plant and production

start-up assistance

• Mechanical completion

• System commissioning

• Retrofits and

upgrades

• Duty Holder

• Operations

optimisation

• Maintenance

strategies

• Operational

readiness reviews

• Operator training

• Project management

• Engineering

• Planning

• Technical support

• Structural analysis

Out of AMEC’s direct

scope

Fabrication Installation of facilities Well Services

Drilling

Dismantling, cleaning,

removal, well abandonment

Well positioned across a mix of activities

Oil & Gas – AMEC’s position

Recognised for technical excellence

6

AMEC Performance Improvements

Capabilities Summary

AMEC

Production Enhancement

Energy Efficiency & Emissions

Reliability

8

Introduction

AMEC Production Efficiency

Central resource with capability distributed in

individual contracts

Broad international client base from Minnows to

Majors

Focus on improving Oil & Gas Operating

Performance

Maximising Oil & Gas Revenues

– High facilities uptime

– Optimum plant configuration for current

production envelope

– Optimised use of scare resources – power, WI,

plant capacity

Minimising Emissions

– Efficient produced water & sand management

– Minimal flaring & efficient use of available

power to reduce CO2

Avoiding Wasted Opex

– Reduced chemicals and use of diesel

Optimisation

Debottlenecking

Plant Stability

Reliable Equipment

Procedures & Processes

Competent People

Inherently Robust Plant Design

AMEC

Production Enhancement

Energy Efficiency & Emissions

Reliability

9

What can AMEC bring to the table?

Experienced process facilitators to brainstorm

the issues and gain a common understanding

of the production enhancement opportunities

Technical expertise in niche areas

Measurement & Allocation

Choke Modelling & Product Loss Reporting

Well Testing, Allocation & Hydraulic Modelling

Separation & Produced Water Handling

Process Control

Gas Compression

Power Generation

Experience & proven methodologies for

Improving Facilities Uptime

Debottlenecking

Troubleshooting & Optimisation

Training, Competence & Knowledge Transfer

Process Studies, Operations Support &

Troubleshooting

Uptime Improvement & Debottlenecking

Process Control & Production Optimisation

Competency & Training

Production Enhancement

Choke Positions

Well Test

Data

Flow Assurance Issues

Slugging

Gas Lift

Distribution

Separator

Operating

Pressure Water Injection

Qw, Pw

Header Manifold

Configuration

*

*

*

*

SURG

E LI

NE

Surg

e Con

trol L

ine

b1

Rec

ycle

Trip

line

* Surge test points

Surg

e co

ntro

l lin

e m

odified

by

S.O

.

Rec

ycle

trip

line

mod

ified

by

S.O

.

n * b2

(note 1)

Actual Volumetric Flow or

Suction Flowmeter Pressure Drop

Com

pres

sor H

ead,

Pol

ytro

pic

Hea

d or

Com

pres

sion

Rat

io

100 % speed

90 % speed

80 % speed

70 % speed

Note 1 : n = number of S.O. occurances

Safe

ty O

n

S.O.

RT

RT

Gas Lift

Qg, Pg

Gas Compression

Optimised

Where?

Exhaust

Emissions

Power

Generation

Opex

££££

10

Typical Downward Asset Performance Cycle

Unreliable Power

No Water Injection

Lower Oil Revenue &

No Fuel Gas

Higher Opex & Lower

Investment

Poor GT Maintenance

11

Usual Challenges Encountered

Maximising plant uptime and hence production

Gas compression control & operability

Power generation uptime & cost of ownership

Operating excursions outside design basis

Workarounds – known equipment underperformance

Energy usage & hence emissions reduction

Sand management & mitigation

Poor well testing and measurement system validation

Alarm handling

Slugging

Opex reduction

Obsolescence (especially control systems)

Training & competence of personnel

Throughput

Time

Operating

Target

Design

Limit Operational Safety Margin

Break

Even

Loss

Shut Down

Profit

Partial Shut Down

Plant Upsets

Lost

Opportun

ity

12

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Alarm ManagementReview

PC Alarm Tool

Visibility ofProduction Losses

Document Control

Change ControlProcedure

Settings Register

DCS Review

Mach. PerformanceMonitoring

Technical Query/Action Register

Capture OperatingConcerns

PC based tuningtool.

Control LoopAssessment

Training

Criticality BasedMaintenance

MaintenanceEffectiveness

Review

EquipmentReliability Review

Process UpsetReporting

PerformanceImprovementMeasurementOperational

Excellence TeamControl &

Operability Reviews

Override ControlProcedure

Controllers inManual Register

Operating & ControlPhilosophy

Single PointOwnership

CompetencyAssessment

Ergonomic Reviewof CCR

Vendor Assessment

Formal Induction

Advanced ControlReview

Capacity Review

ObsolescenceReview

ContingencyPlanning

Trip RationalisationReview

Steady StateProcess Model

Dynamic ProcessModel

DCS/ESD TX'sCompared on-line

CorrosionManagement

Best.(%)

Aver.(%)

Platform X Q204

This graph shows the highest

priority areas for performance

improvement. The further the

score from the centre of the web,

the larger the benefit that will be

obtained by focussing efforts on

that superior practice. All superior

practices have weighting factors.

Performance Improvement Chart

- Asset Benchmarking

13

Basic Building Blocks

High Uptime

• Controllers Tuned and in Automatic, Plant Stable - No Nuisance Tripping

• Effective Alarm & Critical Spares Management

• Reliable Power Generation & Utilities

Optimised Plant

• Best Choke Positions and Well/Header Configurations

• Best Process Setpoints, Alarms & Trip Settings

• Best Lift Gas & Produced Water Distribution

Competent People

• Well Trained & Motivated People

• Documented Operating & Maintenance Procedures

• Procedural Compliance Culture

Adequate Capacity

• No Uneconomic Process Bottlenecks

• Spare Equipment Available to Run

• Equipment Sized for Current & Future Operating Envelopes

14

Energy Efficiency

Eliminating future gas shortages

Making the most of what you have left

Reducing effect of climate change

Maintaining your public perception

Fuel cost becoming greater part of

Opex

Improving your overall business benefits

AMEC uses 4 pronged approach....

Energy Assessments

Hands on

Energy Tracker

On-line real-time

Emissions Forecaster

Web based Competency & Training

Energy Efficiency & Emissions

15

Typical AMEC Asset Improvement Approach:

Chose one or more target assets (surface issues predominate)

Form a joint team with clear objectives & KPI’s

Provide coaching/training support

Facilitate brainstorm sessions

Identify what we know and don’t know

Agree key issues, risks & opportunities

Review production losses/choke model &/or trend data

Action Energy Assessment, Control & Operability Surveys

Agree quick wins

Implement together

Share & celebrate success

Repeat cycle

16

Typical Review Outcomes

Increased awareness of asset specific constraints

Many myths eliminated

Workarounds captured and challenged

True constraints documented and challenged as conditions change

Process interdependencies mapped out and mitigated

Critical equipment re-prioritised for urgent repair

More controllers in auto, fewer process trip inhibited

Lower alarm rates, less operator distraction

Improved and more regular well testing

Better daily optimisation “on the day” - increasing oil won

More efficient use of available power

Higher average water injection rates leading to more oil

Improved water quality and lower gaseous emissions/C02

All leading to higher production efficiency and higher revenues

17

“Can we Measure Benefits Delivered?”

Yes, results of our work on an asset are usually immediate & obvious!

More oil, less flaring

More stable plant

Fewer alarms

Actual UKCS Production Efficiency results:-

Oct 83%

Nov 88%

Dec 97%

Jan 94%

Feb 97%

14% increase achieved

Typical payback < 3 months, sometimes measured in hours!

75%

80%

85%

90%

95%

100%

Oct Nov Dec Jan Feb

Actual Production Efficiency for UKCS Asset

PE%

18

Control System Excellence

AMEC has World Class expertise in

Retrofit Gas Turbine Control Systems

Retrofit Compressor Control Systems

SCADA (Supervisory Control and Data Aquisition)

DCS (Distributed Control System)

Historian Systems

PID (Proportional Integral Derivative) Plant Tuning

Providing Field Service Support for all the above

Our Differentiators are simple:

A Proven Track Record of Technical Delivery, on Time & on Budget

Safe, Compliant Solutions that Meet all Applicable Standards

Competent, Highly Motivated People

Robust 24/7 Support Service

19

AMEC Summary

Who

• Competent Topsides Improvement Team

• Strong Process & Controls Skills

What

• Plant, People, Procedures

• Process, Compressors & Power Gen

Why

• Higher Production Revenues

• Lower Emissions & Opex

Process Studies, Operations Support &

Troubleshooting

Uptime Improvement & Debottlenecking

Process Control & Production Optimisation

Competency & Training

Production Enhancement

Gas Turbine & Compressor Control

Retrofits

Remote Monitoring

& 24/7 Field Service Support

SCADA/DCS/ESD SIL & Alarm Management

Competency & Training

Systems & Machinery Controls

Energy Assessments

Hands on

Energy Tracker

On-line real-time

Emissions Forecaster

Web based Competency & Training

Energy Efficiency & Emissions

Steady State Operations

21

Asset Management

Partnership in delivery across AMEC

22

ISC – Key features

• Highly integrated joint contractor/customer organisation

• No man marking, common tasks and targets, company personnel working for contractor

management and vice verse, soft issues given the same priority as “traditional” performance

measures, continual improvement embedded in the culture of the team.

• Performance assurance is driven through scorecards

• Integrated Asset performance scorecard with true win-win orientation.

• Multi location (front office/back office concept)

• Work done at the most cost effective location with extensive use of e-technology.

• Full spectrum of ISC services

• Comprehensive range of services provided by the ISC allows for maximum dilution of overheads.

• Highly focussed delivery philosophy

• Excellent delivery is a team expectation; all delivery failures are investigated to determine

learning opportunities.

• Benefits to Customer

• Open book on commercial and all delivery aspects

• Significant increases in efficiency, both on and offshore, throughout the duration of the contract

led to the client extending the contract duration.

• Campaign Maintenance: the aggregation of assets has enabled campaign maintenance to be

introduced, leading to savings of up to 30% on specific maintenance routines.

23

ISC - Experience

• Shell – Sigma 3 Integrated Support Contract

This contract provided engineering, maintenance and offshore services on the

installations that make up the Mature, Brent and Central Assets in the UKCS since

2002 - 2011

• BP – Forties Pipeline & Unity Support Contract

This contract has been providing engineering, maintenance, inspection, testing and

monitoring for the Forties Pipeline System since 1995

Successful delivery recognised through a further contract extension awarded in 2009

coupled with scope extension to include the Unity platform

• OneGas (Shell/Nam) Integrated Support Contract

This contract has been providing management, maintenance, modifications, logistical

and engineering support for 53 Shell and Nam Southern North Sea offshore assets

including two onshore gas processing plants since 2003

Successful delivery recognised through a further contract extension awarded in 2009

24

Maintenance Support Capability

• Criticality review/assessments of systems & equipment

• Maintenance philosophies & strategies

• Improvement plans

• CMMS Development, Construction & Population

• Maintainability Reviews

• Maintenance Planning, Programming and Optimisation

• Problem Solving & Troubleshooting

• Supervision & Labour Provision

• Vendor & Resource Management

25

Asset Improvement Programmes

BG Armada FLE Project

• 2009 / 10

• Extensive facilities upgrade

• Large offshore campaign

• Flotel

• Peak Manning offshore

• 220 trades

• 45 supervision & Admin

• Continuous Programme

Upgrade Projects

• Scale

• Multi Asset

• Multi Discipline

• Integrated Asset Plan

• Barge Management

Dunlin Improvement Programme

• Safety Case thorough review

• Service Water

• Drilling package Rejuvenation

• Shutdowns

• Systems Review

• Competence Development

PD

Performance Management

27

Production & Maintenance Management

• Production maintained when Operation below minimum turndown

• Highest WI rate , 211k BPD, for 6 years

• Production Downtime – planned and unplanned 8.8 % for 2012

• Maintenance Performance – study reduced SC tags from 17,000 to circa 5000

• SC backlog has reached lowest levels in 5 years for maintenance, the

inspection scope is currently under going a major review.

• Customer feedback has shown year on year improvement – strong relationship

with FEL

• Engineering: Picked up a lot of non-AMEC scopes e.g. GT3 £10 mm

• Worked within opex budgets over last 3 years

• Efficiency programme has realized £1.7mm year on year savings in 2012

• HSE - year on year reduction on DO’s, and HCR only one significant over a 3

year period.

• LTI’s 2010 – 3, 2011 – 1, 2012 – 0

• Dunlin current run of 490 days since last LTI

• Implemented offshore safety coaching program

28

Commercial Alignment

Common Approach To :-

• Terms & Conditions

• Risk Management

• Business Objectives

• Reporting

• Governance

• Performance

LEVEL 1 - Project (Overall Project)

LEVEL 2 - Filter (Individual Project)

LEVEL 2a - Sub-filter (Unit Grouping)

LEVEL 3 - Unit (Individual Units)

29

KPI

30

Identification Transition

Enablers

Risk Assessed

Validation

Actions

Schedule

Responsibilities

Accountabilities

White Paper

Execution Senior Mgmt

Visibility

Co

st

Red

uc

tio

n

Op

po

rtu

nit

ies

(C

RO

)

Wh

ite P

ap

ers

(W

P)

als

o in

clu

de

s r

isk

as

se

ssm

en

t

Action

Tracking

Tool

Define Baseline &

Measurement

Target

Cost

Saving

(£)

Future Budget

Controls

Verification

- AUDITABLE

Implementation

Su

sta

inab

ilit

y

22-Oct-08

Actions Savings £ Savings % Month

1 UP Support Services Brian Gilmour Mike Rodgers COMPLETED £525,286.07 100.0% Sep-08

2 Doc Management Group Iain Watt - COMPLETED £173,835.00 100.0% Sep-08

3 Cost & Planning Organisation Iain Watt Steve Cox ON TRACK £294,392.00 107.7% Sep-08

4 HR / ITKaren Hailes

(IW)- COMPLETED £87,777.00 100.0% Sep-08

5 Commercial Organisation Iain WattSusan

McDougallCOMPLETED £77,009.00 97.4% Sep-08

Saving below plan because the headcount reduction

was for an individual with a slightly lower rate than

original estimate.

6 Procurement & Warehouse Organisation Iain WattJon

ChristiansenCOMPLETED £229,926.00 116.5% Sep-08

7 PE / CE Rationalisation Andy McKay Jimmy Russell COMPLETED £1,501,420.00 103.6% Sep-08

8 CP Screening Muir Bruce Jimmy Russell COMPLETED £1,885,842.00 571.5% Sep-08

9 Norm Reduction Muir Bruce Steve Cox COMPLETED

10 Project Deliverables Muir Bruce Jimmy Russell COMPLETED

11 As Build & Close-out Muir Bruce Jimmy Russell COMPLETED £93,501.00 144.0% Sep-08

12 Management Fee HSEQIain

MacDonald

Susan

McDougallCOMPLETED £315,938.00 123.6% Sep-08

13 Management Fee Karen HailesSusan

McDougallCOMPLETED £519,453.00 97.7% Sep-08

Saving below plan because one demobiliastion

planned for July has been delayed.

14 Control of P&E Iain WattSteve

McHattieON TRACK -£292,306.83 -23.2% Sep-08

Recovery Plan in place and being progressed. There has been an

increase in P&E in July in August because of mobilisation for

shutdowns but this situation is being carefully monitored and

managed on all assets. Manage mobilisation of P&E and ensure

prompt return. Plan is on track

15 Standby / Downmanning Brian Gilmour Mike Rodgers ON TRACK £1,352,583.36 156.4% Sep-08

Recovery Plan in place and successfully being progressed. Every

time we STOP or DELAY someone mobilising it costs. Plan is

on track

16 Maintenance Organisation Alan Russell Chris Paul COMPLETED £584,108.00 107.3% Sep-08

17 Travel & Training Iain WattSusan

McDougallON TRACK -£1,263,730.00 -467.5% Sep-08

Recovery Plan in place and being progressed. Spending now being

managed but not expected to come back on track by year end.

Additional savings identified to compensate for overrun. Ask the

question ‘is non mandatory training really necessary’?

18 SORT4Paul

Abernethy

Jack

StephensonON TRACK £477,458.00 102.8% Sep-08

19 Overhead FeeAlan

McPherson

Susan

McDougallCOMPLETED £420,000.28 100.0% Sep-08

20 Reward Mechanism & GovernanceAlan

McPherson

Orietta

RuggierCOMPLETED

21 Estimating Steve Cox Steve Cox ON TRACK

22 Additional Savings Iain Watt

Steve

Cox/Susan

McDougall

ON TRACK £1,237,030.82 Sep-08

New CRO added to tracker for July 2008 report. Savings areas are

: S3/ICP Implementation budget underspend and cost normalisation

to 2007 prices.

CommentsShell Sponsor

171.7%£1,267,964.00 Sep-08

Measure

OwnerWhite Papers

Your intervention when actions are not being closed out on time is crucial to the success of this work and is appreciated.

Report Date

This is a weekly status report on the Sigma 3 Step Change Project, as part of the Integrated Cost Project (ICP).

IDStatus

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How it works..

31

It works..! Multi-asset examples

Supply Chain

– Delivered ahead of high White Paper target

– Introduced additional savings above

original target

Planned saving: £ 2.4m

Actual Saving: £ 3.5m

Organisational Ratinalisation - Efficiency

– Efficiency based organisational changes

Actual Saving: £ 5.7m

Planned FTE reduction 104

Actual FTE reduction 130

Commercial

– Delivered ahead of targets

– Reduced Overheads

– Reduced travel costs and systemic

overtime

Planned saving: £ 2.5m

Actual Saving: £ 6.9m

Organisational Ratinalisation - Demand

– Increased focus on demand management

Actual Saving: £ 5.2m

Planned FTE reduction 126

Actual FTE reduction 126

32

It works..! Single asset examples

Supply Chain & Logistics

– Improved planning of ad-hoc charters

– Flights/ supply boats optimised

Planned saving: £ 900k

Actual Saving: £ 1100k

People/ Organisational Efficiency

– Efficiency based organisational changes

– Resource sharing, FTE reduction

Planned saving: £ 350k

Actual Saving: £ 350k

Modifications

– Change to minimum deliverables

appraoch

Planned saving: £ 200k

Actual Saving: £ 150k

(Scope reduction, less savings available)

Subcontractor Performanace Management

– Increased focus on S/C performance

management

Actual Saving: £ 100k