Subsea Market

and Strategy

Christophe Armengol
Vice President, Subsea Strategy and Market Analysis
March 30, 2010
 Subsea market: Overview

Significant slowdown in 2009, but Technip maintained its

leading and resilient position

Subsea market activity should pick up going forward

Key driver of activity will be complex and deepwater projects

2
 Market shares today

Technip ahead during the growth and still the leader in 2009
period

2004 - 2009 Market share* average 2009 Market share*

21%
27% 31%
41%

38%
42%

Technip Subsea 7, Acergy, Saipem Technip Subsea 7, Acergy, Saipem

Others Others

*: Technip estimates based on project awards excluding shallow water and trunkline markets in Africa, Gulf of Mexico, Middle-East, Asia-Pacific
and variation orders

3
 Technip today: focused on profitability

Subsea Operating Margin*

20%

15% Technip
Subsea
10%

Saipem
5% Offshore

0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Subsea 7
-5%

-10%
Acergy

-15%

(*) Not restated, figures as published by contractors

4
 Looking ahead: Major oil companies announced
an increase in Final Investment Decisions

Leading indicators show a positive trend:

Positive signs for FPS* awards Subsea tree awards picking up

88 awards
40 1,200
59 awards
30 1,000

800
20
600
10
400
0 200
2006 2007 2008 2009 2010F 2011F 2012F
Floater solution still to be defined 0
2000 2002 2004 2006 2008 2010 2012 2014
OTHER FLOATERS (FPU/Spar/TLP, Semi, FLNG)
FPSO (new built & converted)
Source: Technip Source: Quest Offshore

(*) Floating Production System

5
 Different expectations across regions

North Sea
Market slowdown in 2009
Significant recovery in tendering
activity

Gulf of Mexico
Currently steady, fueled by
high demand for tie-backs
New wave of FPS
Africa
developments Awards in 2009 were delayed
Angola and Nigeria showing signs of
movement
Egypt still moving
Deepwater opportunities in new areas
(Ghana, Equatorial Guinea, etc...)

Asia Pacific
Brazil Emerging deepwater market in
Growing market Malaysia, Australia, Indonesia and
Significant non pre-salt China
Step-change in Pre-salt Large increase in gas-related projects
market size to materialize Healthy shallow/medium depth
from 2014/2015 market requiring flexible pipe
solutions:
FPSOs
Tie-backs
Replacement of corroded pipes
6
 Future growth areas: Subsea market growth drivers
Asia Pacific & India
Emerging area for ultra deepwater projects

Pipeline (Flexible & Rigid) installed in water deeper than 1,000 meters*

Pipeline installed (in km)

Breakdown 2008 - 2015
16,000

12,000 +60%

Gulf of Mexico

8,000 21%
Africa 40%
14%
Sources: Technip, Infield

Asia Pacific
4,000 India
25%

0
2000 - 2007 2008 - 2015 Brazil

*Excluding Pre-Salt effect

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Deepwater flexible market* expected to represent 60%
of the market over 2010 - 2012

Brazil is leading growth in deep and ultra deepwater

Worldwide Flexible Market Water Depth >1,000 meters

100% 2010 - 2012

80% <1,000m
16%
60%

Rest of World
40% Brazil
>1,000m
84%
20%

0%
2010 - 2012
Water Depth in meters: <150 150 - <500 500 - <1,000 1,000 - <1,500 >1,500
*Excluding Pre-Salt effect

Sources: Technip

8
 Technip: Unmatched capability to design and
execute successful projects

High tech global assets

Vertically integrated business

Worldwide organisation for seamless project execution

Strategic position in faster growing emerging markets

Leadership in subsea technologies

9
Combination of high-tech assets and global footprint matched
to market needs
High Technological
Assets
Saipem
Subsea 7
Acergy
Cecon Mermaid Allseas
Bibby Hereema
AKS
Veolia DOF
Ezra Helix
Oceanteam
DeepOcean Wellstream
Clough
TS Marine
Marine Subsea
COEEC Hallin
JRM Global
Seatruck

Swiber
NPCC
Valentine HHI
Low Technological
Assets
Larsen&Toubro

Regional Worldwide
Operations Operations

Sources: Technip

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 Unmatched vertically integrated business to optimize
design & execution
1 R&D Design & Project Management 2
Strategic locations
World-class New prototypes Optimized
R&D facilities Paris
solutions
Proprietary Aberdeen
Le Trait (France) technology A la carte
Oslo
engineering
Aberdeen (UK) R&D Centers Houston
close to Kuala Lumpur Dedicated teams
Newcastle (UK)
production sites around the world
Rio & Vitoria (Brazil) Perth
Rio de Janeiro

4 Install & Monitor Manufacture & Fabricate 3

Le Trait (France), Vitoria (Brazil),
AsiaFlex (Malaysia)
Vessels designed Spoolbases: Evanton (UK), Flexibles pipes
to install our Orkanger (Norway), Umbilicals
pipes Mobile (USA), Dande (Angola)
Manufacturing
Vertical Laying Logistic bases: Vitoria, plants on all
system Angra Porto (Brazil) continents
Monitoring
Umbilicals: Newcastle (UK),
Houston (USA), Lobito (Angola)

11
Worldwide organization for seamless project execution
Example: Cascade & Chinook

Pori
Aberdeen
Coordinated
Engineering
Le Trait
St Johns teams from Paris
Offshore &
Subsea
Cascade divisions
& Chinook Houston
9 World
record depth Fabrication of
for Hybrid the flexible
Free Standing pipes at Le Trait
Riser in
2,500m - Multi vessel
2,640m of installation
water (Incl. Deep Blue
/ Deep Pioneer)
9 Installation
ongoing - on
schedule

Rio de Janeiro

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Strategic position in faster growing emerging markets

Technip Subsea revenues (in m)

2,866

48%
Northern
Hemisphere
1,257

67% 52%
Southern
Hemisphere 33%

2002 2009

Sources: Technip

13
 Strategic position in faster growing emerging markets

Strategic Capital Expenditure (2007 - 2011) Development Strategy

Generic - Northern Investments

Non Hemisphere
Attributable
29% 26% Manufacturing plants

Human resources
45%
Marine Assets
Southern
Hemisphere Spoolbases and Logistic
Bases

Sources: Technip

14
 Growing R&D investments expand leadership
in subsea technologies
Ultra deepwater:
Weight of pipelines (flexible, rigid, umbilicals)
Alternative installation methods
Hybrid System Riser

More challenging reservoirs

Flow assurance
High Pressure/High Temperature
Corrosive Fluids

Operational and Riser Integrity Management

15
 Subsea market: Conclusion

Significant slowdown in 2009, but Technip maintained its leading

and resilient position

Subsea market activity should pick up going forward

Key driver of activity will be complex and deepwater projects

16
Thank you

Christophe Armengol
Vice President, Subsea Strategy and Market Analysis
March 30, 2010