“Doing things differently to deliver genuine efficiency.”

Removing complexity. Maximising efficiency

Industry challenges, and a rising cost base, has exerted significant pressure on oil and gas operations. What the industry needs is a new way of working, of delivering more work for less cost: More 4 Less.

40-60% less*

Implementing our More 4 Less methodology focuses on efficiency, challenging assumptions and driving new ways of thinking. As an industry we need to move quickly towards a new way of working with simple, cost efficient solutions.

Cut spend – spending less on non-value execution. Eliminate waste early and focus on high value scopes.

Assure efficient delivery – remove inefficiencies in planning and execution, leading to sustainable efficiency improvements.

Reduce headcount – review organisation (contractors and wider supply-chain) and culture.

Enhance operations – define areas to improve production opportunities.

Get more

Transforming to a new way of working

This is the new normal1

Do less

For less

With less

*Based on traditional modifications

2

34 cost reduction initiatives implemented.

Reduction in modification delivery duration from 20 weeks to 4 - 5 weeks.

40% reduction in hours to complete tasks

60% less onshore construction hours to produce work packs

20% reduction in hourly costs

Reduction in overall costs by 50%.

Increase in modification completion ration by over 40%

40% improvement in engineering to construction man hour ratio.

“It’s been three months since we awarded these contracts and we are projecting a 65% saving compared to our baseline in 2014.”

Delivers 40-60% savings, safely*

£30,000

£25,000

£20,000

£15,000

£10,000

£5,000

£0

£16,000

£14,000

£12,000

£10,000

£8,000

£6,000

£4,000

£2,000

£0

Initial Estimate

Customer Costs

Engineering & Design

Contract & Project

Management

Materials Fabrication Scopus Efficient Mod

Price

Efficiency Saving 58%

£25,656 £10,754

£30,000

£25,000

£20,000

£15,000

£10,000

£5,000

£0

£16,000

£14,000

£12,000

£10,000

£8,000

£6,000

£4,000

£2,000

£0

Initial Estimate

Customer Costs

Engineering & Design

Contract & Project

Management

Materials Fabrication Scopus Efficient Mod

Price

Efficiency Saving 53%

£13,800 £6,543

*30% - 60% cost saving for modifications with accelerated delivery

times of more than 50%.

*Based on traditional modifications

Efficient delivery is not about taking shortcuts. Ensuring that all work is safely executed is integral to our More 4 Less methodology.

A key success factor is to improve the integrity of the asset by reducing the probability of process related incidents. Our safety processes are scaled in line with the applicable risk profile.

A strong HSSE culture is key to our delivery model and our Beyond Zero programme is integral to that culture. Beyond Zero contains tools, techniques and standards that help us drive a refreshed HSSE agenda, one that will stand the test of time and deliver world class protection from harm; for our people, our assets, our environment and our customers.

No compromise on safety

3

‘More 4 Less’ is not about taking shortcuts.

Deliver efficiently = for lessAssure efficient delivery – remove inefficiencies in planning and execution, leading to sustainable efficiency improvements.

Scope work correctly = do lessCut spend – spending less on non-value execution. Eliminate waste early and focus on high value scopes.

= fewer deliverables

Execute high value jobs.

Eliminate low value jobs early in process.

Finish every job we start - one pass through.

= fewer hours needed to deliverIn our experience, applying the right level of challenge at this stage can deliver significant savings. We have executed a number of scopes recently where we have saved in excess of 50% by challenging assumptions, standards and specifications to deliver optimal solutions for our customers.

4

Minimise overheads = with less

Reduce headcount – review organisation (contractors and wider supply-chain) and culture.

Efficient organisation – standard delivery model

Efficient project management & services

Efficient procurement - Benefits of Utilising Strategic Fabrication Alliances:

Maximising “wrench time” offshore is vital to the success of efficient work execution. Work executed by the team relies on effective planning, preparation, scheduling of work scopes and the ability to minimise non-productive time.

Removing complexity.

Maximising efficiency.

One team ethos for construction activities is

key to success.

Efficient delivery

Optimised cost per hour

4

HVECAmec Foster Wheeler’s High Value Engineering Centres (HVEC) in India support our client based teams to deliver a proportion of engineering scopes. The delivery model is tried and tested - we have utilised our Chennai office to deliver engineering expertise for customers for over ten years.

Get moreEnhance operations – define areas to improve production opportunities.

5

Efficient FEED (Front End Engineering Design)

A focussed and flexible approach

“No more, no less than what is required”Our approach to efficient FEEDs (front end engineering designs) is to develop the essential technical definition to enable the next phases, applying a pragmatic approach, and highlighting potential areas of saving during the FEED tendering process.

We make sure the scope of work is developed to fit with our client’s requirements and preferences

We identify the best resource to execute each segment of work

We then use the best tools to execute and manage the work

FEED hub of expertise

Specialist Consultancy

Technical Authorities

HVEC

Our aim is to minimise the workscope that falls into the “extra technical development” and “de-risk detailed design” segments

6

Piping

Electrical

I nstru

ments

Tech Safety Mechanical

S

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tura

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P

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ss

Discipline scopes of work developed in segments:

Essential technical

definition

Extra technical

development

De-risk detailed

design i.e. additional

model development,

early procurement

7Our aim is to minimise the workscope that falls into the “extra technical development” and “de-risk detailed design” segments

Our approach to efficient projects is to do them differently. This includes:

► Do one, build many

► Copy designs

► Modularization

► Efficient information hand over

Efficient delivery covers a whole range of areas.

Leading-edge modularisation skills We are world-leaders in the design and execution of modularised construction, for example we have designed and delivered the only LNG plants to have been completed to date on a multiple module construction basis.

Leading optimisation skillsOne of our areas of particular expertise is in optimising the design facilities such as power generation or industrial plants. For example we are able to design systems to utilise waste heat from adjoining facilities.

Efficient projects

Clarity of Scope & Information

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Rel

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ip

Inte

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Ch

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M

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Leadership and Drive

Technology

Project Startup

Control and Predictability

Information & Data Flows

Management of No Change

Sequence of Activities

8

Dimensional controlDimensional control can be applied across greenfield and brownfield projects, from modular build construction or build verification through to individual repair orders. It ensures that all items will fit together first time, be this a single pipe spool change out, or an entire package fabricated off site.

Dimensional Control advances build schedules and dramatically reduces costs for topsides, module, PAU, PAR, pipework and new build projects. Dimensionally accurate to within 1mm, it is used for critical interfaces and tie-in points to ensure that newly fabricated pipework, equipment and structures always fit-first-time. The benefits are:

► Reduced schedules

► Budget control

► Mitigated risk

► Reduced project costs

► Direct and indirect savings

► Eliminated re-work

ExampleDimensional control in Abu Dhabi using state-of-the-art survey equipment, and our proprietary software and methods, to advance build schedules and dramatically reduce costs.

‘For the modular build, our job is to ensure that the components of the new infrastructure are fabricated in parallel across multiple locations, and are then brought to fit seamlessly together at site.’

Pre-assembled units (PAUs) are built around the world including Oman, Abu Dhabi, Italy, Dubai, China, South Korea and Singapore, and then shipped to site. Piping in the racks are then joined together using our single-weld philosophy, developed for the specific needs of this project, to provide a clash-free first-time-fit.

Efficient procurementHaving the right spares, their availability and then tracking them is vital.

Our knowledge and experience, including prior knowledge of equipment types/manufacturer, will deliver your mitigation strategy, sparing requirements stock holding and location.

Innovation: Track & Trace

We apply innovative technology to make sure you can track all your spares and equipment with accuracy, keeping down costs and improving efficiency.

“Creating & executing less”

9

Efficient operations and maintenance

Assure efficiency

Cut waste

► Maintenance review

► Redundant equipment (asset assessment guidelines)

► PM optimisation

► SC rationalisation

► Skills passports (remove training per asset)

► Spares holding

► Technology – avoid flights

► Flights optimisation

► Strategic fabric maintenance

Efficient Management

Reduce Unit Rates

Execute (Less)

Bring Efficiency

Example: Decomplexing Leman Echo

10

Assure efficiency

► Plant efficiency

► Optimisation

► Technology – permit control

► Wrenchtime – Open Up the Day

► Standard procedures - spares

► Planning discipline

► Paperless maintenance execution

Reduce headcount

► Multi skill

► Vendor rationalisation

► Campaign maintenance

► Litehouse / NUI (normally unmanned installation)

► Technology – move indirect management onshore

► Integrated services

Enlarge production (optimise)

► Production efficiency

► De-bottlenecking

► Strategic decommissioning

► Production loss elimination / optimisation

Revolution

Facility De-complexing

Remove plant and need for use/maintenance

Lighthouse Mode

Contractor Commercial Model

Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.

Employing around 40,000 people in more than 55 countries, the company operates across the oil and gas industry – from production through to refining, processing and distribution of derivative products – and in the mining, clean energy, power generation, pharma, environment and infrastructure markets.

Amec Foster Wheeler offers full life-cycle services to offshore and onshore oil and gas projects (conventional and unconventional, upstream, midstream and downstream) for greenfield, brownfield and asset support projects, plus leading refining technology.

Amec Foster Wheeler shares are publicly traded on the London Stock Exchange and its American Depositary Shares are traded on the New York Stock Exchange. Both trade under the ticker AMFW.

© Amec Foster Wheeler 2016