Challenges of a multinational corporation… resources of a SME

THE INTERNATIONAL ECONOMIC FORUM OF THE AMERICASCONFERENCE OF MONTREALJUNE 6th 2011

Presented by Jacques L. DrouinPresident and CEO

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is a technology-focused process solutions provider for the upstream oil and gas industry.

The Company designs, develops, manufactures and commercializes technologies to separate oil, gas and water generated by oil and gas production.

ProSep

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South Korea (Seoul)

Canada (Montreal)Head office

USA (Houston, TX)

Norway (Haugesund)

Malaysia (Kuala Lumpur)

+ 110 engineers and professionals worldwide+ 20 agents in key locations Fifty-five thousand sq. f. assembly shop

Global Operations

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Competing with the Majors

Source: company websites

Combining Conventional and Proprietary Solutions

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GAS Treatment

Occidental Petroleum: Elk Hills Gas Quality Project 150 MMSCFD 3% CO2 in Natural Gas to ≤ 1.5% $12 Million Contract

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OIL Treatment

Al-Rashed / Kuwait Oil Co.: Ratqa-Abdali Production Facility120,000 bpd$11 Million Contract

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WATER Treatment

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SKEC / Kuwait Oil Co.:Seven systems totaling 260,000 bpdOnshore (Burgan)$25 Million Contract

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WATER Treatment

BP Valhall PlatformNorwegian Continental ShelfCtour Produced Water Treatment SystemValued at $3.6 Million

• 60+ Patents• JIP with Statoil, Total, ConocoPhillips• Research lab relocating to Haugesund

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• Industry leading produced water offering

• Three OTC Spotlight on Technology Awards

Product Development

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“[ProSalt…] will enable the company to save about

450 million gallons of wash water a year, thus conserving one of Saudi Arabia’s natural resources.”

The Arabian SunSaudi Aramco publication

Vol. LXIV, No. 26, July 2009.

What the Industry Says…

IndustryFundamentals

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Beyond Easy Oil

Unconventional O&G

Offshore

Aging wells

Regulation

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Energy demandTo grow by 2035 (IEA)

Supply challenges

Gas: +44%Oil: +18%

• Aging fields• Challenging reserve replacements• Raising production capacity

Growth Drivers

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Growth Drivers

1 barrel

OIL3 barrels

WATER=

98% water at end of production life

Declining capacitySensitive environmentsLimited space offshoreIncreasing H

2O / H

2S

Heavier oilDemand for subseaseparation

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Technology : Key to Future Energy Supply

Figure: World Energy Outlook, IEA, 2010

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11% growth in 2011*

*Barclays Capital Original E&P Investment Survey, December 2010

Industry Capex

WTI

Objectives andStrategic Plan

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Becoming the next leading independent O&G process solutions provider

1.Integrate proprietary technologies in conventional processes Increase competitiveness and build references

2. Create maintenance and service offerings Leverage customer base, improve ProSep’s competitive advantage

and profitability

3. Develop local content In-line with National Oil Company’s strategies, improve procurement

and reduce transport costs

4. Move from decentralized structure to a matrix organization Leverage the Company’s best resources and ensure excellent, even

execution across al business units

20Accelerate growth, gain market share, increase revenues &

profitability.

Strategic Plan

• A 51/49 fully funded JV between ProSep and Kolon Group

• To promote ProSep’sprocess solutions in Korea and China

• Kolon Group: $7 Billion revenue South Korean diversified industrial group and Korea’s largest water treatment company

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ProSep Kolon

Success factors & related challenges

22We have the same challenges as multinational

conglomerates…without the resources!

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TogetherCreatingPure OIL,GAS andWATER