Technip Brazil: Solid Local Foundations for Profitable Growth

Paulo Veronesi, Subsea Commercial Director, BrazilInvestor Day in Brazil, October 4, 2011

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Key Aspects of Brazil�’s Economy

One of the world�’s largest economies193 million inhabitants over 8.5 million km²

2010 nominal GDP: US$2.1 trillion (Ranked 8th globally)

World’s seventh-largest oil consumer(1)

Driven by natural resources

~40% of stock market capitalization (IBOVESPA index)

2.1 mb/d oil production

US$74 billion of agricultural exports(2)

Forthcoming sports events trigger significant investments

Soccer World Cup in 2014 and Olympic Games in 2016

Source: Brazilian National Petroleum Agency (ANP), CIA World Factbook, IHS Global Insight, MDIC(1) Domestic oil demand of ~2 mb/d(2) From November 2009 to October 2010

Investor Day in Brazil, October 4, 2011

1 2681 716

2 137

4 900

1 000

2 000

3 000

4 000

5 000

2000 2005 2010 2020

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Focus on the Oil Industry

Source: BP Statistical Review of World Energy 2011, Bradesco Corretora, Petrobras, PFC Energy.

Brazil�’s oil production is estimated to double by 2020

CAGR:5.3%

CAGR:8.7%

Expected oil production(Thousand barrels per day) Diversified customer base

National company:

98.5% of Brazilian production

~14 billion boe of proved oil reserves

Other operators

�…

Investor Day in Brazil, October 4, 2011

Worldwide new discoveries 2005 - 2010(33,989 million bbl)

Brazil�’s Leadership in Deepwater

Investor Day in Brazil, October 4, 2011

Deepwater accounts for 50% of worldwide discoveries over the last 5 years

Development of these reserves will demand additional capacity from the supply chain

Deepwater discoveries(300 - 1,500 meters)

Deepwater discoveries in Brazil represent 1/3 of worldwide discoveries in the last 5 years

Source: Petrobras, PFC Energy

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5

Development of Conventional & Pre-salt Fields

Progressive development (since 1974)Reserves: ~16bn boe proved reserves2011e production : ~2,058 kboe/d

2015 objective: maintain production2011 - 2015 investments: US$64bn

Conventional environmentShallow to deepwaterInstalled flexible pipes: ~5,000km Field depletion

Fast track develomentReserves: ~13 to 15bn boe(1)

2011e production: ~42 kboe/day(2)

2015 objective: rapid production ramp-up

2011 - 2015 investments: US$53bn

Challenging environmentDeep to ultra deepwaterRemote areaCorrosive fluidOil with associated gas

Source: Petrobras 2011-2015 Business Plan(1) Lula, Cernambi fileds, Iara, Guara and Parque das Baleias blocks; including 5bn boe transfer right(2) Pre-Salt and transfer of rights

Investor Day in Brazil, October 4, 2011

Conventional field (Campos) Pre-salt development (Santos)

6

6

Risers

Export lines

(1) Integrated Production Bundle

Flexible riser & jumper

Rigid riser/flowline/exportIPB flexible pipeFlexible flowline

IPB(1)

Infield flowlines

Jumpers

Field Development Solutions in Brazil

Investor Day in Brazil, October 4, 2011

Visibility on FPSO Delivery Schedule

4

7

98

2012 2013 2014 2015

Guara Pilot 2 - Cidade de Sao Paulo

Lula NE - Cidade de Paraty

Guara Norte Franco 1 - CessaoOnerosa

Baleia Azul - Cidade de Anchieta

Parque das Baleias - P-58 Cernambi Sul BMS-9 or 11 - P-67 (Replicante 2)

... Roncador Module 4 - P-62 Baleia Azul - Post-salt BMS-9 or 11 - P-66 (Replicante 1)

… OSX-4 to 7 OSX-8 to OSX-10

Peregrino II …

…

FPSO Delivery Schedule (Petrobras, OGX, Statoil)

28 FPSO�’s to be delivered by 2015

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Tendering Activity Driven by FPSO Deliveries

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Flexible Supply Long Term Charters EPIC Rigids Logistics Bases

Baleia Azul / Espardate Normand Progress Deep Capixaba Vitória Logistics Base

P-58 FPSO Baleia Azul Field Skandi Vitória BC-10 Phase 2Fluid Logistics Base Contract with Brazil

Supply

P-62 FPSO Roncador Field Sunrise 2000 Shallow Capixaba Additional LogisticsContract

Guara/Lula NE Flowlines, Jumpers & Gas Export Lines Skandi Niteroi Guara/Lula North East Export

Pipelines …

… Deep Constructor Lula NE/Cernambi - 18" Rigid Gas Export

6 Flex-lay Vessels Guara Norte/Cernambi/ Lula

Central/Lula AltoInfield & Export System

… Cabinas 24’’Gas Export

…

Technip Wins

Bids in Progress

Awarded Projects

Brazilian Business Environment is Complex

Regulatory framework

States and federal systems with different jurisdictions

Management of resources and logistics

Decision processes

Tax system

Environmental requirements

Understanding local specificities is key to success

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Technip in Brazil: 35 Years of Operations

2011Garoupa Platform

1st flexible pipe installed100m water depth

Roncador Subsea Field Development & P-52 Platform

1,800m water depth

1977

2007

P-58/P-62 Brazilian FPSOsAngra Porto logistics base

2009

1st IPB in Brazil (Papa-Terra)1st Brazilian PLSV: Skandi Vitória

2010

1st Flexible manufacturing plant: Flexibras1986

2001Acquisition of

UTC Engineering

1995

1st LTC with PetrobrasSunrise

Tupi Gas Export2nd Brazilian PLSVSkandi Niteroi

Unique experience to understand local specificities

~20 people

~3,200 people

~2,000 people

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Technip in Brazil Today

Market leader across the full value chain

~3,200 people

All business segmentsSubsea

Onshore/Offshore

Full range of services Engineering to operations

Conceptual studies to LSTK EPC contracts

P-56 - 1st Semi-sub built in Brazil

PLSV Skandi Niteroi

Repar Hydrogenation unit

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Continuous Investment In Local Capabilities

People

Assets

Critical Logistics

On-Site R&D

Largest integrated O&G services capabilityNumber of local employees from ~1,500 in 2003 to ~3,200 in 201197% of total workforce is Brazilian

Port of Angra, located next to pre-salt fields78,000 square meters350 meters berthChannel access

Only flexlay vessels with Brazilian flag: Skandi Vitória & Skandi NiteroiState-of-the-art flexible manufacturing facilityHigh-end flexible manufacturing plant under construction

Brazilian R&D center for pre-salt & ultra deepwaterClose collaboration with key clients

Product qualificationProprietary internal test centerWorld class equipment

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0

0,5

1

1,5

2

2,519

99

2001

2003

2005

2007

2009

2011

TRCF Goal

Strong Commitment to Health, Safety and Environment (HSE)

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PULSE programMore than 200 managers and supervisors trained in Brazil (end 2010)Specific sessions organized on projects with clients

FOCOS program �– Vitóriamanufacturing plant

Development of safe behaviourBased on observation by co-workersMore than 5,500 observations to date

Project CONSERVARWaste management Reduction of energy and water consumptionManagement of CO2 footprint

Total Recordable Case FrequencyPer 200,000 hours worked

Investor Day in Brazil, October 4, 2011

Sustainable and Responsible Presence in Brazil

Increasing project local contentEnergizing Brazilian economy through long-term presence and extensive local supplier network

Promoting local employment: 97% of employees are Brazilian

Fostering cross-center collaboration and skills transfer

Supporting local communities“Projeto Brilhante”: large-scale training program launched in 2007 to help underprivileged find employment at Technip

Participation in the construction of local buildings and infrastructures, charity events, donations for health causes…

Reducing Technip�’s impact on the environmentWorldwide health, safety and environment program

“Projeto Conservar”: waste management, reduction of energy and water consumption and CO2 footprint

Social Activities team on Technip office rooftop

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EPCI

Flexibles LTCEPCI

Detailed EngineeringFPSOs P-58 / P-62

EPC Diesel HDTRPBC - Refinery

Subsea Offshore Onshore

Basic & Detailed EngineeringWHP 1&2

Engineering Frame Agreement

Engineering Frame AgreementOlefines Plant Revamp

Basic Engineering LNG plant

FEEDAmmonia Plant

Close Collaboration with Diversified Client Base

Engineering Frame Agreement

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BC-10 Ph II EPCI

Subsea Track Record & Ongoing Projects

Track recordReel-Lay: PIP for Canapu with Deep BlueS-Lay: Tupi gas exportJ-Lay: PDET hybrid riserFlex-Lay: manufacturing & installationP-52 Subsea full field development

P-52 Development

Ongoing projectsIntegrated Production Bundle (IPB) Papa TerraTUPI Pilot: 1st flexible pipes for Pre-SaltSeveral flexible supply contractsLong-term chartersAngra logistics base TUPI

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Track recordAnitápolis fertilizer plantColombo projectP-51/52/56 Semi-submersible production platform FLNG FEED

Ongoing projectsCubatao refineryOlefin plants revamping and expansionP-58 & P-62 1st Brazilian FPSOs: flagship engineering service contract with over 90% local content

Onshore/Offshore Track Record & Ongoing Projects

P-58 & P-62 FPSOs

RPBC

P-56 Semi-sub Production Platform

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Enhanced flexible capabilities & capacity to serve a fast growing high-end subsea market

Construction and acquisition of best located assets

35 years experience working in Brazil

Pro-actively developing local resources, from people to production capabilities

Technip: An Experienced Local Company

Regulatory challenges

Resources bottlenecks

Access / logistic constraints

Technology for the pre-salt development

Expertise in project management, planning and interfaces management

Project execution

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Today�’s Resource and Asset Base

Engineering and Project Management E, P, C, Commissioning and Installation servicesCorporate services

Rio de Janeiro

Flexible pipe & umbilical manufacturingLogistics baseR&D test center

Vitória

Marine assets

LogisticsPort of Angra

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Marine assets support baseMacae

5 flexible pipelay vessels, including Deep Constructor & Skandi Niteroi

Fleet of ROVs

Marine assets

Possible Resource and Asset Base in 2015 to Meet Pre-Salt Market

Engineering and Project Management E, P, C, Commissioning and Installation servicesCorporate services

Rio de Janeiro

Flexible pipe & umbilical manufacturingLogistics baseR&D test center

Vitória

High-end flexible manufacturingplant

New Plant

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Marine assets support baseMacae

LogisticsPort of Angra

5 flexible pipelay vessels, depending on Petrobras tenderFleet of ROVs

Marine assets

…

Vertically Integrated Model Built in Brazil on Unmatched Local Content

Global IndustriesTechnip in Brazil*FEED: Front End Engineering Design

Rigid Reel-Lay

Rigid J-Lay

Rigid S-Lay

Concept

Project Engineering & Procurement

Upstream Engineering

Pre-FEED* and FEED

Offshore fielddevelopmentstudies

Innovativetechnologysolutions for platform and subsea challenges

R&D, Proprietary Software & Hardware

Execution

Manufacturing

Rigid S-Lay

PROJECT

MANAGEMENT

Flexible risers and flowlines

Rigid pipeline welding/spooling

Umbilicals

InstallationFlexible-Lay

Umbilical-Lay

Associatedconstruction

Heavy lift for Subseainfrastructure

Offshore topsideinstallation

Support, Diving & Logistics

Group Support21 Investor Day in Brazil, October 4, 2011

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