Saipem in Canada

Daslav Brkic

Senior Vice President Business and Technology Development

e-mail: daslav.brkic@saipem.com

Saipem in Canada

Maximum emphasis on Healthcare, Safety, Environmental and Quality values and culture

Strong Project Management

Saipem’s Business Model

Supply of complex solutions for even the largest and most challenging projects

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Saipem in Canada

Local Content Policy Implementation

� Develop local project execution centres

� Project Management

� Engineering

� Prefabrication Yards

� Invest in local hiring, cooperation with local universities

� Develop local partnerships

� Know-how transfer, know-how acquisition

� Risk reduction, learning curve

Local employees:

� >70% of total workforce

� From 125 nationalities

� In more than 60 countries

29 engineering and project execution centres worldwide

11 local prefabrication

yards in 5 continents

Clients, authorities … Suppliers, subcontractors, local businesses…

Invest in local resources, invest in local economies, learn from local experiences

� Wide range of initiatives with local communities

� Development of Leadership in Safety program

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Latest major Saipem investments in Brazil to support design and execution of primarily offshore projects

Saipem in Canada

� From a local office for the first oil sands project, now a full service EPC project execution center with international reach

� Upstream� Pipelines� Refining� Oil Sands processing� Shale Gas

� Developed dedicated construction company for prefabricationand field construction

� Mastered local project execution requirements

� Modularization� Climate impact, etc.

� From 5 employees in 2007 to >1600 currently (of which ~ 500 engineers)

� New business model based on EPC

and pioneered new entry mechanisms for foreign labor

� Innovative contractual and risk management schemes, new for the Canadian market� Development of supply chain aligned with Saipem’s business model

Saipem in Canada

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Saipem in Canada

Saipem Canada Full EPC project capabilities

� ~500 Project Management and Engineering resources.

Saipem Resources in Canada

Saipem Construction Canada Construction Management, Fabrication & Construction Direct Hiring

� ~400 resources in two fabrication yards strategically located in the Edmonton area

� ~700 direct hire construction resources at two construction sites

Headquarters for North American Region

� Onshore and offshore

� Execution centers in Houston and Mexico City

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Saipem in Canada

A local construction company, established in May 2010, affiliated with CLAC, 100% owned by Saipem Canada

Edmonton Module Fabrication Yard

� 50 acres in northeast area of Edmonton

� Started operations March 2013

� Full production in Dec 2013

� Module production capacity� 12,000 tons/year (140 modules)

Nisku Piping Fabrication Shop

� In operation for piping spool fabrication andwarehouse

� Spools fabrication capacity� 400 tons/month Carbon Steel

� 30 tons/month Stainless Steel

� 25 tons/month piping support

Saipem Construction Canada

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(Modules produced earlier elsewhere in Alberta)

Inaugurated

Nov. 19, 2013

Saipem in Canada

Fabrication YardFor Modules Aurum Park Edmonton

CombinationSkills,experience,

supportfrom global

Saipemknow-how

and resource base

Piping YardIn Nisku- Edmonton

Full EPC projects

Innovativecontractual engagements

‘Win win’ solutions resulting in higher profitability for both parties

CapabilitiesEngineneering

&Construction

Risk sharing with Clients

Assets

Saipem Business Model in Canada: People and Assets

The only real local EPC contractor in Alberta, with full control of the entire work sequence and risk assumption

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Saipem in Canada

Saipem in Canada: Growth in Capabilities and Reach

GROWTH IN BUSINESS LINES GROWTH IN BUSINESS OFFERING

Leverage on the integration of Engineering, Procurement, Fabrication and Construction Capabilities

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S

SS

Saipem in Canada

Horizon

Canaport

CNRL HorizonSecondary Upgrader, Phase 12005-2009 EPC LUMP SUM (Joint Venture)~400 M C$

North West

Sturgeon County Upgrader 2011-Q2 2012 EDS & EARLY ENGINEERING ~30 M C$

North West Redwater

Saipem Experience in Canada: Completed Projects

Liquefied natural gas (LNG) receiving terminal 2005-2009 EPC LUMP SUM (Joint Venture)~900 M C$

Canaport LNGLP

Hydrotransport Tranche 22009-2011 EPC LUMP SUM~100 M C$

CNRL Horizon

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Saipem in Canada

Husky SunriseCentral Process Facilities for SAGD Complex

CNRL Horizon

2010-Q1 2014 EPCEPC LUMP SUM (CONVERTED)Value: >1 B C$

Hydrotreaters Phase 2

2011-2015 EPC LUMP SUM

Value: ~500 M C$

Statoil Corner SAGDPre-Construction Service Agreement andConvertible Lump Sum EPCValue at Conversion: ~1 B C$

Saipem Experience in Canada: Current Projects

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CNRL, Horizon, Phase 1

Husky Sunrise

Sulfur Recovery UnitQ2 2011-Q2 2014 EPCEPC, CONVERTIBLE to LUMP SUM Value: ~60 M C$ (recently converted)