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U.S.-Saudi Business Opportunities Forum U.S.-Saudi Business Opportunities Forum

Jeffrey S. Merrifield

Senior Vice President, Shaw’s Power Group

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Corporate ProfileCorporate Profile

• Name: The Shaw Group Inc.

• Headquarters: Baton Rouge, Louisiana

• Public corporation: NYSE Symbol: SHAW

• FY 2009 Revenue: $7.3 Billion

• Backlog: $21.2 Billion*

• Number of employees: 28,000

• Web site www.shawgrp.com

Founded in 1987, The Shaw Group Inc.® provides premier engineering, design, construction, maintenance, fabrication and manufacturing services to private-sector and government clients in the energy, chemicals, power, nuclear, environmental, infrastructure and emergency response markets.

* As of 2/28/10

Shaw Worldwide LocationsShaw Worldwide Locations

131 U.S. Locations

19 International Locations

Corporate Headquarters: Baton Rouge, LA

Power Group Operations Centers:

• Charlotte, NC

• Denver, CO

• Baton Rouge, LA

• Boston, MA

• Moorestown, NJ

• London (UK)

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The Shaw Group CapabilitiesThe Shaw Group Capabilities

Power

Piping

Process

Steel Modularization

Construction

Environmental & Infrastructure

Maintenance

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Shaw’s Power GroupShaw’s Power Group

• Four divisions comprise Shaw’s Power Group:– Fossil & Renewables Division– Nuclear Division– Maintenance Division– Construction Division

• Ranked No. 1 Power Design Firm according to ENR’s list of Top 500 Design Firms (2008 and 2009)

• Approximately 5,000 professional employees• Largest constructor of nuclear power plants in

the United States

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Westinghouse/ToshibaWestinghouse/Toshiba

• Relationship with Westinghouse since construction of Shippingport in 1950s

• Shaw acquired 20% share of Westinghouse in 2006 – 70% owned by Toshiba

• Consortium partners on expanding portfolio of new AP1000™ projects

– Four units in China• Sanmen, two units• Haiyang, two units

– Six units in U.S.• Vogtle, two units• V.C. Summer, two units• Levy County, two units

• Other domestic and international opportunities with both Westinghouse and Toshiba (ABWR)

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• Clients: SNPTC, SMNPC & SDNPC

• Four units at two sites in China’s Zhejiang & Shandong provinces

• Contract signed and work began in 2007

• First concrete poured at three of four units in 2009

• Major construction milestones:

– CA20, CA01, CA04, CA05, 10+ other modules– Containment Vessel (CV) Bottom Head– CV 1st Ring

• Projected completion: 2013 – 2015

China AP1000: Sanmen & HaiyangChina AP1000: Sanmen & Haiyang

CVBH placement

People’s Republic of China

Sanmen (2 units)

CV 1st Ring placement Photos used courtesy of SMNPC

Haiyang (2 units)

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• Client: Southern Company

• Location: Waynesboro, GA

• EPC contract signed April 2008

• Projected commercial operation dates: 2016 (Unit 3) – 2017 (Unit 4)

• Site certification and full notice to proceed awarded March 2009

• Early Site Permit & Limited Work Authorization awarded August 2009

• To date, more than 6.5 million cubic yards of earth moved; approximately 1.5 million man-hours worked

• Combined Construction & Operating License (COL) approval anticipated July 2011

U.S. AP1000: Vogtle Units 3 & 4U.S. AP1000: Vogtle Units 3 & 4

Photo courtesy of Southern Company

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• Client: SCE&G / SCANA

• Location: Jenkinsville, SC

• EPC contract signed May 2008

• Projected commercial operation dates: 2016 (Unit 2) – 2019 (Unit 3)

• Project approval awarded by public service commission February 2009

• To date, more than 6.9 million cubic yards of earth moved; approximately 1.3 million man-hours worked

• At peak of construction, 3,000 – 3,500 employees expected to be hired

• COL approval anticipated July 2011

U.S. AP1000: VC Summer Units 2 & 3U.S. AP1000: VC Summer Units 2 & 3

Shaw’s Work in Saudi ArabiaShaw’s Work in Saudi Arabia

• Saudi Electricity Company– April 2010: Shaw awarded contract to assess

and recommend operational improvements at 52 sites throughout Saudi Arabia

• Eastern Petrochemical Company (SHARQ)

– April 2010: Shaw completed 1,300 KTA grassroots ethylene plant in Al-Jubail, which had workforce of 12,000 at its peak

• Saudi Basic Industries Corporation (SABIC)

– Grassroots High Density Polyethylene (HDPE) plant completed in 2008

• Shaw has completed more than 70 projects in Saudi Arabia over the last 20 years

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SHARQ grassroots ethylene plant

Energy and Water Needs in Saudi Arabia

Energy and Water Needs in Saudi Arabia

• Estimated that Saudi Arabia will need close to 66,000 MW of power by 2024 – more than double the current capacity of 32,603 MW

• Long-term investment in power generation valued at $91 billion through 2020

• Water demand expected to increase by 6% annually – $60 billion investment needed to meet consumption needs

• Saudi Arabia is the world’s largest producer of desalinated water

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Why Nuclear Power Makes SenseWhy Nuclear Power Makes Sense

• Deployment of nuclear power technologies for energy production allows oil resources to be dedicated to more valuable export purposes

• Nuclear power has high capacity factor

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– U.S. = 90% vs. 70-80% for fossil units

• Nuclear power stations provide significant electricity and heat properties perfectly matched to desalination needs

• Nuclear power provides the largest source of clean, carbon-free technology in the world

Ability to Deploy Nuclear Technologies

Ability to Deploy Nuclear Technologies

• April 17, 2010: King Abdullah ordered establishment of the King Abdullah City of Nuclear and Renewable Energy to serve as a scientific center for civilian nuclear and renewable energy

• Over the last 20 years, Saudi Arabia has demonstrated that it stands second to no

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country in the ability to deploy highly technical construction and infrastructure improvements

• Nuclear power deployment in Saudi Arabia is consistent with the Kingdom’s efforts to achieve sustainable economic development

• Nuclear power will provide a significant source of highly skilled jobs for thousands of Saudi residents

Keys to Successful Nuclear Deployment

Keys to Successful Nuclear Deployment

• Existence of a utility that has the financial and technical capability to undertake nuclear power generation

• Selection of a technology that will “succeed” in the geographic location, matched with an EPC contractor that can successfully engineer and construct the technology

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• Successful conclusion of a Section 123 Agreement with the United States Government

• Commitment to engagement with the International Atomic Energy Agency and willingness to create a credible regulatory body to oversee deployment