Tecnimont Company Profile May 2014 Group Overview Tecnimont: Engineering & Construction (E&C) E&C: Oil, Gas & Petrochemicals E&C: Fertilizers E&C: Focus on Megaprojects E&C: Other Activities 2 GROUP OVERVIEW: Facts & Figures Focus on Technology & Licensing Engineering & Construction (E&C) Energy & Ventures Ø 0.02* Oil&Gas Petrochemicals Fertilizers Flexible Business Model offering advanced skills in Licensing, Engineering Services, EP (Engineering & Procurement), EPC (Engineering, Procurement & Construction) Zero Incident Target Safety Culture US$ 4.7bn** Total Recordable Incident Rate vs 0.38 industry benchmark *referred to Tecnimont Group **overall value of the Habshan 5 project, MT share is 50% The largest gas treatment plant under completion in Abu Dhabi (UAE) on a Lump Sum Turn Key (LSTK) basis 3 GROUP OVERVIEW: Global & Technological Leadership Over 1000 #9 Individual Patents 30% 54% Top International Design Firms List* 34% Market share in polyolefins** (#1 worldwide as per capacity installed in the last 6 ys), including a 40% in LDPE (Low Density PolyEthylene) Market share in licensing urea plants technology (#1 worldwide)** Market share in licensing urea granulation technology (#2 worldwide)** in Licensing hydrogen technology (with single train capacity up to Well 180,000 Nm3/h) and in licensing recognized Sulphur Recovery and Tail Gas position Treatment Technology (with design capacity of single train up to 1,500 t/d) Since 1924 the Group completed: 95 68 Ammonia plants Urea plants *2013 ENR Sourcebook, Petroleum section “Refineries and Petrochemical Plants” – December 2013 **management estimate 4 GROUP OVERVIEW: Key Milestones (1/2) 1899 FIAT GROUP 1958 Incorporation of ICB Pvt Ltd as consulting firm in the plant sector in Mumbai 1977 Creation of the first JV between ICB and Tecnimont 1972 Incorporation of FIAT ENGINEERING 2002 Acquisition of FIAT Avio’s Electric Design & Construction Business 2004 Acquisition of Fiat Engineering (later MAIRE ENGINEERING) Oct 2005 Incorporation of MAIRE TECNIMONT 2005 Maire Group acquires Tecnimont 1973 Incorporation of TECNIMONT 1966 Incorporation of MONTEDISON 1963 Giulio Natta Nobel Prize for chemistry 1884 EDISON Power Supply 1888 MONTECATINI Mines and Chemicals then focused on Fertilizers (G.Fauser) Polypropylene (G.Natta) 1990s Tecnimont acquires 50% of the Indian company renamed as Tecnimont ICB Pvt Ltd (TICB) Dec 2007 Nov 2007 Listing on the Italian Stock Exchange Acquisition of 100% of TICB India, now fully owned and integrated in the Group Tecnimont ICB: Over 5 decades of excellence Among the largest E&C companies in India Centre of Excellence for the Group engineering centre/EPC contractor for selected projects Benchmark quality & cost efficiency Highly skilled personnel Electrical & Instrumentation (E&I) installation excellence 5 GROUP OVERVIEW: Key Milestones (2/2) Reorganization of Italian HQs 1971 Kinetic Technology Int. - KTI More than 40 years of experience in process engineering 1988 Mannesmann acquired KTI 1999 Technip Italy acquired KTI Oct 2009 Jun 2010 Acquisition of Stamicarbon Acquisition of Technip KTI 1947 Incorporation of STAMICARBON Chemical and Fertilizer licensing New Milan Offices: 2 Towers +1 Service Building (tot 69,000 sqm) About 2,000 employees when fully operational Effective competences integration and cross fertilization among BUs 2011 - 2012 From 2013 on LAUNCH OF THE NEW BUSINESS STRATEGY (later KT) 1937 Dutch State Mines – DSM research centre for services work to coal mines 6 EXTENSIVE INTERNATIONAL PRESENCE: Our Employees About 4,300 employees, half of whom are employed outside Italy Presence in about 30 countries with 45 operating companies EMPLOYEES BY COUNTRY Italy Milan 1,370 Rome 438 Others 95 Rest of Europe 386 The Netherlands 102 Germany Others 240 1,978 India 1,568 Milan Rome 410 South America Mumbai 26 Africa Total Sittard 44 Asia Rest of Asia Salzgitter 1,903 2 4,295 Average age: ~ 41 years Approximately 54% graduates Headquarters Figures as of 31 December 2013 Main Offices Subsidiaries, branches and representative offices 7 COMMITMENT FOR HEALTH AND SAFETY Maire Tecnimont safety performances: zero incident targets Maire Tecnimont Group Safety 2013 (based on approx. 57.9 million hours worked on-site) International Reference Benchmarks KPI* Maire Tecnimont Oil&Gas Producers 2012 Contractor data (1) Construction Industries Institute - CII (2) LTIF (OSHA – Lost Time Injury Frequency) 0.003 0.10 0.06 TRIR (OSHA - Total Recordable Injury Rate) 0.02 0.38 0.45 Environment, Health and commitment Safety Management System as core value and personal Integrated HSE Management System constantly reinforced, diffused, checked and with results considerably higher than international standards 8 (*) (1) (2) upgraded KPI - Key Performance Indicator Source: International Association of Oil & Gas Producers - Report No 2012s June 2013 - Safety Performance indicators - 2012 data - Contractor aggregated data Source: CII – Benchmarking & Metrics Program – 2011 Safety Report – Aggregated data Contractors 2010 (BMM 2011 02 October 2012) 8 ENGINEERING & CONSTRUCTION: Oil, Gas & Petrochemicals The Group offers a wide range of competences from feasibility studies to FEED, technology selection and project implementation on a lump-sum turnkey basis: • gas production and treatment, LNG liquefaction and regasification, underground gas storage, transmission and compression, distribution and pumping stations, aromatics complexes, refinery units, propane dehydrogenation (PDH) • historical leadership in chemicals & petrochemicals, in particular: polymers (PE and PP), ethylene oxide and ethylene glycol, PTA, ammonia and fertilizers • complete solutions for fertilizer business including technology licensing, EPC projects and O&M 9 E&C: Main Petrochemicals Projects POLYETHYLENE/NAO PLANTS – Q-CHEM II DERIVATIVES COMPLEX – MESAIEED (QATAR) • Capacity:350 KTY HDPE; 350 KTY Normal alpha-olefins • Client: QATAR CHEMICAL COMPANY II • Contract type: EPC • Value: ~ US$830mn (MT share US$440m – consortium Daewoo) • Contractor: Tecnimont COMPLETED PROJECTS UNDER REALISATION PROJECTS LDPE PLANT BRATISLAVA (SLOVAK REPUBLIC) • Capacity: 220 KTY Low Density Polyethylene • Client: Slovnaft Petrochemicals s.r.o. (MOL Group) • Contract type: EPC LSTK • Value: ~ €204mn • Contractor: Tecnimont POLYOLEFIN PLANTS FOR PP AND PE DAHEJ (INDIA, GUJARAT) • Capacity:340 KTY PP; 2 x 360 KTY HD/LLD Swing PE • Client: OPaL (jv ONGC, GSPC, GAIL) • Contract type: LSTK • Value: ~ €320 mn • Contractor: Tecnimont LDPE PLANT VERACRUZ • 300 KTY Low Density Polyethylene • Client: Etileno XXI Services BV • Contract type: EP • Value: ~ €147mn • Contractor: Tecnimont BOROUGE 3 – Expansion RUWAIS (UAE) • Cpacity: 480 KTY PP; 428 KTY PP; 2X540 KTY PE; 350 KTY LDPE • Client: BOROUGE (jv ADNOC – Borealis) • Contract type: LSTK • Value: US$1.86bn (jv Samsung – MT 55%) • Contractor: Tecnimont LDPE PLANT SADARA (SAUDI ARABIA) • Client: Sadara Chemical Company • Contract type: EP • Value: ~ US$210mn • Contractor: Tecnimont PDH/POLYPROPYLENE PLANT AL JUBAIL (SAUDI ARABIA) • Capacity: 467 KTY Propane dehydrogenated; 450 KTY PP • Client: Al Waha (jv Sahara, LyondellBasell) • Contract type: EPC • Value: ~ €580mn (MT share €358mn – consortium Daelim) Contractor: Tecnimont > 1000 €m 500 to 1000 €m PDH PLANT TOBOLSK (WESTERN SIBERIA) • Capacity: 510 KTY Propane Dehydrogenation (PDH) • Client: Tobolsk Polymer LLC (JSC Sibur Holding) • Value: ~ €660mn • Contractor: Tecnimont 200 to 500 €m POLYOLEFINS COMPLEX RABIGH (SAUDI ARABIA) • Capacity:2 x 350 KTY PP; 250 KTY EPPE; 350 KTY LLDPE; 300 KTY HDPE; 50 KTY Butene-1 • Client: Petro Rabigh (jv Aramco - Sumitomo) • Contract type: EPC – Contractor: Tecnimont • Value: US$1,200mn (MT share US$768 mn) (consortium Sumitomo Chemical Eng.Co) POLYOLEFINS COMPLEX - BOROUGE 2 RUWAIS (UAE) • Capacity: 400 KTY PP; 400 KTY PP; 540 KTY PE • Client: BOROUGE (jv ADNOC - Borealis) • Contract type: EPC • Value: US$1.8bn • Contractor: Tecnimont < 200 €m 10 E&C: Main Oil & Gas Projects COMPLETED PROJECTS UNDER REALISATION PROJECTS OIL AND GAS TREATMENT "TEMPA ROSSA“ CORLETO PERTICARA (ITALY) • Client: Total E&P Italia S.p.A.(Total Group) • Contract type: EPSCC • Value: ~ €567mn • Contractor: Tecnimont and KT UNDERGROUND STORAGE STATION WIERZCHOWICE (POLAND) • Capacity:Exp. To 1.2 billion STDm3 • Client: PGNiG • Contract type: EPC • Value: ~€383mn (MT share €99.2m consortium PBC) • Contractor: Tecnimont NAGRP/AGRP REVAMPING PROJECT KUWAIT CITY (KUWAIT) • Capacity: Acid Gas Removal Plant (230 MSCFD – 78,000 BPD) • Client: KNPC • Contract type: LSTK • Value ~ €320mn • Contractor: Tecnimont LNG TERMINAL CHENTOUJIA, GUANGDONG (CHINA) • • • • AROMATICS COMPLEX SHUAIBA (KUWAIT) • Capacity:768 KTY PX; 325 KTY BZ • Client: KUWAIT PARAXYLENE PRODUCTION COMPANY (KPPC) • Contract type: EPC • Value: US$1,228mn (MT share US$730mn - consortium SKEC) • Contractor: Tecnimont > 1000 €m 500 to 1000 €m 200 to 500 €m Client: GUANGDONG LNG JEO Contract type: EPC Value: ~ €280mn (MT share 45% - jv Saipem) Contractor: Tecnimont INTEGRATED GAS DEVELOPMENT – HABSHAN 5 (ABU DHABI – UAE) Capacity: Gas Treatment 2,150 MM scf/day; Sulphur Product 5,200 ton/day (4 trains of 1,300 ton/day each) •Client: GASCO •Contract type: LSTK •Value ~ US$4.7bn (MT share 50% - jv JGC) •Contractor: Tecnimont < 200 €m 11 ENGINEERING & CONSTRUCTION: Fertilizers The Group provides a wide and integrated range of services, from feasibility studies to basic engineering, from selecting the technology to developing lump-sum turnkey projects. Thanks also to the acquisition of Stamicarbon in 2009, the Group is a benchmark player for the development of ammonia-urea E&C projects, ensuring the client the best technologies available in the market. Since 1924, the Group has completed 95 ammonia plants and 68 urea plants (mainly in India, the Middle East, Russia, China, and South America). 12 E&C: Main Fertilizers Projects COMPLETED PROJECTS UNDER REALISATION PROJECTS AMMONIA PLANT KINGISEPP (RUSSIAN FEDERATION) •Capacity : 2.7K MTPD (KBR Technology); Utilities and Offsites •Client: EuroChem Mineral and Chemical Company •Contract type: Engineering Works •Value: ~€15mn •Contractor: Tecnimont IOWA (USA) • Capacity 2,200 t/d • Client: Orascom Construction Industries • Contract type: EP • Value: ~ US$250mn • Contractor: Tecnimont (Ammonia Plant) • Licensor: Stamicarbon (Urea Plant) AMMONIA PROJECT URUMQI XINJIANG (CHINA) • Capacity: 1,000 T/d • Client: SINOPEC for Urumqi General Petrochemical Works • Contract type: Licence, Engineering, Procurement, Technical Assistance • Value: US$87mn • Contractor: Tecnimont FERTILIZERS COMPLEX ASWAN (EGYPT) • Capacity: Ammonia Unit 1,200 T/d; Urea Production Unit 1,575 T/d; Urea Granulation Unit 1,575 T/d; Utilities & Off-site facilities • Client: KIMA • Contract type: EPCC LSTK, currently on hold • Value: US$530mn • Contractor: Tecnimont (Ammonia Plant) • Licesor: Stamicarbon (Urea Plant) UREA DEBOTTLENECKING & GRANULATION PLANT SHUAIBA (KUWAIT) • Capacity: 1,750 T/d urea melt; 2 x 1,750 T/d urea granulation • Client: P.I.C. • Contract type: EPC • Value: US$100mn • Contractor: Tecnimont > 1000 €ml 500 to 1000 €ml 200 to 500 €ml AMMONIA/UREA PLANTNEVINNOMYSSK (RUSSIAN FEDERATION) •Capacity : Ammonia :2.7K MTPD (KBR Technology); Granular Urea: 3.5K MTPD (Stamicarbon technology); Utilities and Offsites •Client: EuroChem Mineral and Chemical Company •Contract type: Engineering Works •Value: ~€15mn •Contractor: Tecnimont AMMONIA PROJECT Hejiang SICHUAN (CHINA) • Capacity: 1,000 T/d • Client: CNTIC for Sichuan Natural Gas Chemical Plant • Contract type: Licence, Engineering, Procurement, Technical Assistance • Value: US$80mn • Contractor: Tecnimont FERTILIZER COMPLEX PROJECT AL-JUBAIL (KINGDOM OF SAUDI ARABIA) • • • • • < 200 €ml Capacity: 1.5K t/d ammonia; 1.8K t/d urea Client: SAFCO Contract ype: LSTK Value: US$350mn Contractor: Tecnimont AMMONIA PLANT NANGAL PUNJAB (INDIA) • Capacity: 950 T/y • Client: National Fertilizers Ltd. • Contype: EPCC LSTK • Value: US$262mn (Consortium with TICB) • Contractor: Tecnimont 13 E&C Focus on Key Mega Projects: Habshan 5 Habshan 5 is one of the largest gas treatment plants under realization worldwide and has been developed to accommodate additional Offshore Gas production and additional associated gases that will become available as a result of the expansion of ADCO’s onshore oil production Client: GASCO (ADNOC Group), the operating company responsible for the processing of natural and associated gas onshore oil operation in UAE, is one of the largest gas processing companies in the world Contract Value: US$4.7 billion 50/50 jv JGC-Tecnimont Area: Habshan area, 150 km S-W Abu Dhabi INVOLVED OPERATING CENTRES Tecnimont Milan Operating Centre Plant Capacity: Gas Treatment 60 MM m3 /day; Sulphur Product 5,200 ton/day KT Rome Tecnimont scope of work: EPC, Pre Commissioning and Testing plus 2 Years Operation Spare Parts JGC Yokohama Operating Centre Total manpower on site: 30,000 (10,000 Tecnimont) JGC Philippines Inc. Manila PLANT OPERATION - CRITICAL POINTS Selection of Project Managers: A- Team Coordination of procurement and logistics GASCO PJ Site Office JGC Descon Lahore Selection of Sub-Contractors Constant Control of project advancement with monthly meetings with clients: resolution of bottlenecks Tecnimont, ICB Mumbai Construction execution plan Commissioning/start up execution plan 14 E&C Focus on Key Mega Projects: Tobolsk The Tobolsk plant will be among the largest dehydrogenation plants worldwide in terms of production capacity Client: Tobolsk Polymer LLC, a company owned by JSC Sibur Holding, the most important petrochemical producer in Russia Contract Value: approximately €675 mn Area: Tobolsk (Western Siberia) – Russian Federation. The project will be realized in the existing industrial complex of Tobolsk, using UOP’s innovative Oleflex TM technology to transform propane into propylene through dehydrogenation. Plant Capacity: 510,000 t/y PDH Tecnimont scope of work: Engineering and Procurement Special equipment: Use of rare self lifting vessel (reserved almost one year before) to lift and transport reactors of 1000 tons. from Korea to Siberia (Arkangelsk Port) via Pacific. Climate harshness (-40°C): Availability of short period to transport the equipments along the Kara Strait and Ob River, iced all year long except for two months. Long geographical distance: About 75 days to transport the reactors from Korea to Tobolsk. 15 E&C Focus on Key Mega Projects: Borouge 3 Borouge 3 is a mega project of five polymers process plant which have required the involvement of numerous suppliers and operating units on an international scale Client: BOROUGE, a joint venture formed by Abu Dhabi National Oil Company and Austria based Borealis. The name Borouge in Arabic means “Towers”, as those 70-metres high that support the loop reactors of the plant. Contract Value: US$1.65bn (jv Samsung – Tecnimont 55%). Plant Location: Ruwais, 240 km W of Abu Dhabi City, UAE. Plant Capacity: 2 polypropylene plants of 480,000 tons/year each; 2 polyethylene plants of 540,000 tons each; 1 low-density polyethylene plant of 350,000 tons/year. Tecnimont scope of work: Engineering, Procurement & Construction. MAIN PECULIARITIES OF THE PROJECT Operating units and plant site located in different areas of the globe: Milan, Malta, Seoul, Mumbai, Salzgitter, Abu Dhabi and Ruwais. Construction site sandy environment (the first time in the world for an LDPE plant). Specific attention to cleanliness of materials, requiring a total absence of impurities. High-pressure technology: the process liquids reach pressure levels of 3,000 atmospheres, demanding the highest standards of quality and safety. 16 ENGINEERING & CONSTRUCTION: Other Activities - Power The Group has developed excellent capabilities in Italy and abroad in EPC projects for power plants: • simple-cycle and combined-cycle gas-fired power plants • coal-fired power plants • hydro, biomass and waste-to-energy plants • cogeneration • re-powering • electrical and energy distribution systems for civil and industrial use • district heating systems 17 E&C: Main Power Projects COMPLETED PROJECTS UNDER REALISATION PROJECTS PUNTA CATALINA PROJECT (DOMINICAN REPUBLIC) •Client: CDEEE •Contract type: EP •Value: US$926mn •Contractor: Tecnimont COMBINED CYCLE 840 MW TURBIGO (ITALY) •Client: EDIPOWER •Contract type: EPC •Value: €224mn (MT share: 35%) •Contractor: Tecnimont COMBINED CYCLE 840 MW PIACENZA (ITALY) •Client: EDIPOWER •Contract type: EPC •Value: €230mn (MT share: 35%) •Contractor: Tecnimont COAL POWER PLANT 720 MW CEARÀ (BRAZIL) •Client: MPX Pecem Geraçao de Energia S.A. (MPX and EDP) •Contract type: EPC •Value: ~ €760mn (MT share 74%) THIRD LINE “PECEM 2” •Value: €390mn (MT share 74%) •Contractor: Tecnimont COMBINED CYCLE 100 MW VALONA (ALBANIA) •Client: ALBANIAN ELECTRO- ENERGY GOVERNMENT AUTHORITY (KESH) •Contract type: EPC •Value: €115mn •Contractor: Tecnimont COAL POWER PLANT 360 MW MARANHAO (BRAZIL) •Client: Diferencial Energia Empreendimentos e Participaçoes Ltda. (MPX) •Contract type: EPC •Value: ~ €410mn (MT share 74%) •Contractor: Tecnimont > 1000 €ml 500 to 1000 €ml 200 to 500 €ml < 200 €ml BOCAMINA COAL POWER PLANT 370 MW CORONEL (CHILE) COAL POWER PLANT 370 MW CORONEL (CHILE) •Client: ENDESA Chile •Contract type: EPC •Value: US$558mn (MT share 75%) •Contractor: Tecnimont •Client: COLBUN ELECTRICITY COMPANY •Contract type: EPC •Value: US$523mn (MT share 75%) •Contractor: Tecnimont 18 Tecnimont Via Gaetano De Castillia 6 A 20124 Milan Tel. +39 02 6313.1 Fax +39 02 6313.9052 info@mairetecnimont.it – www.mairetecnimont.com