6th German-African Energy Forum 2012

Samir Abbas, VP Sales Upstream

Rolf Hilker, Treasury Management

Development and Financing of African Pipeline Projects

Technip TodayWorldwide presence with 30,000 people in 48 countries

Industrial assets on all continents, a fleet of 33 vessels

2011 revenue: €6.8 billion

Energy is at the core of TechnipTechnip Presentation2

Technip Presentation3

Engineering and fabrication of fixed platforms for shallow waters

Engineering and fabrication of floating platforms for deep waters (Spar, semi-submersible platforms, FPSO)

Floating Liquefied Natural Gas (FLNG)

Design, manufacture and supply of deepwater flexible and rigid pipelines

Subsea construction / pipeline installation

Fleet strategically deployed in the world's major offshore markets

Business Segments

Gas treatment and liquefaction (LNG), Gas-to-Liquids (GTL)

Oil refining

Onshore pipelines

Petrochemicals

Biofuel and renewable energies (including offshore wind)

Metals & mining

Subsea Offshore Onshore

The best solutions across the value chain

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LosAngeles

Houston

Rio de JaneiroRio de Janeiro

Caracas

Bogota

Vitoria

Lobito

Barcelona

Abu Dhabi

Kuala Lumpur

Shanghaï

Perth

Bangkok

Jakarta

Le TraitParis Lyon / Vaux en

VelinRome

Oslo/StavangerPori

Delhi

Chennai

Channel View

Aberdeen

LondonThe Hague

Newcastle

St. John’sSeoulDusseldorf

RegionalProcurement

Manager

GlobalProcurement

Officer

Commodity Family

Managers

LocalProcurement

Manager

Global Procurement Network Regional and Local Procurement Office Managers

Regional Procurement OfficeLocal Procurement Office or representative

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Technip Germany Product Portfolio

Field developmentUnderground gas storageOil and gas processing and terminal unitsSlug catchersOnshore & shallow pipelinesCompressor and pumping stations

RefineryDe-sulphurizationIsomerizationLube oilsLifetime Monitoring System

PetrochemicalChemicalPetroleum coke calciningSolid material handlingSteel plantsLifetime Monitoring System

Upstream Downstream Industries Renewables

PolysiliconGeothermalCAES

Pipeline Systems Know-how Background

In 1999 Technip acquired assets of the former Mannesmann Group which included the Pipeline Business

Mannesmann had started the pipeline business in 1936 and over the years became one of the largest and most experienced onshore pipeline contractors from Europe

Mannesmann was Europe’s leading line pipe manufacturer giving its pipeline business an exceptional access to innovative applications in the industry

Technip Germany today combines in a unique manner Mannesmann’s material and construction know-how with Technip’s vast experience and competence in the design and implementation of the most demanding projects for the oil and gas industry.

Technip Germany Scope of Services

Process optimisation and conceptual engineeringEconomic and financial viability analysisCost - benefit analysisCost estimation and assets evaluationRehabilitation and rationalisation programs

Value engineeringProcess simulationSystem design and hydraulic simulationsCost estimating calculationOperation and maintenance philosophies

Project managementFEED verification / endorsementDetail designHSE responsibilityProcurement of all materials and equipmentConstruction managementand Supervision

including :Coordination of vendor representativesLoop checksTraining HSE responsibilityAs-build documentationHand over

Studies and Conceptual Design

EPC Implementation Commissioning & Start-up

Basic & Detail Design

EPC Experience

Pipeline SystemsOil

Total Length > 6,000 km

Diameter / Material 10” - 56’’ / X60-X70

WaterTotal Length > 2,800 km

Diameter / Material 32” - 64” / X42-X70

GasTotal Length > 17,000 km

Diameter / Material 10” - 56’’ / X60-X80

Station Duty for Oil and Gas SystemsPump and Compression 8,400 MW

Electrical Generation for Oil and GasPower Generation 2,600 MW

TECHNIP’s Role in Financial Engineering

Sharing its wide experience in Financial Engineering with clients

Identification and negotiating of tailor-made competitive financing schemes, incl.

multi sourcing export credit financingstructured financing and project financing

Providing access toFirst-class international commercial banksExport Credit Agencies such as

COFACE, SACE, O.N.D., US EXIM, JBIC, ECGD, HERMES, CESCE, ATRADIUS, KOREAN EXIM…

Multilateral financing institutions such asEuropean Investment Bank, World Bank, ADB, IFC, EBRD …

> 30 in-house Financing Experts are available to serve our clients

TECHNIP’s Worlwide Presence

Aberdeen

ParisSt. John’s

Luanda

Rio de Janeiro

Houston

Mumbai

Kuala Lumpur

Perth

Lagos

Vitória

Los Angeles

Caracas

Dande

Lobito

Port Harcourt

Barcelona

LyonRome

Athens

The HagueDüsseldorf

St. PetersburgEvanton

LondonNewcastle

Abu DhabiDoha

Chennai Bangkok

Singapore

JakartaBalikpapan

Shanghai

Pori

Le Trait

Bogota

New Delhi

Regional Headquarters / Operating centers

Spoolbases

Manufacturing plants (flexible pipelines)

Manufacturing plants (umbilicals)

Construction yard

Tanjung Langsat

Calgary

Monterrey

OsloOrkanger

Stavanger

Services base

Angra Porto

CairoBaghdad

Al Khobar

Warsaw

Accra

Financing Experts in

France – Paris

Italy - Rome

Netherlands - The Hague

UK – Aberdeen

USA – Houston

Brazil – Rio de Janeiro

Norway – Oslo

Malaysia – Kuala Lumpur

Australia – Perth

UAE – Abu Dhabi

Project Financing

Definition of Project FinancingSpecial structure of financing, where normally the Buyer/Borrower is a Special Purpose Company (SPC) and where the securities, on which the loan agreement is based, are the revenues of the plant when in operation, i.e. the investment pays its own debt service

As the revenues of a pipeline are generated from the Throughput Fee, long term Throughput Agreements need to be signed between the Owner of the pipeline and the Owner of the medium transported, normally on “deliver or pay” basis

The Throughput Fee is split into a Capacity Charge, to cover the fixed cost including the debt service and an Operation Charge to cover the variable cost. The Capacity Charge is the reference price basis for the “deliver or pay” provision

Sources of Financing

Multisource Export Credits

Equity

Subordinated Loans

Local Financing

SponsorsEquity Investors

International Banks

Multinational Institutions

Export Credit Agencies

Private Insurance

Cos

Local Banks

Governments

Commercial Loans INSU

RA

NC

E

Project FinancingFinancing Requirements

CollateralLong Term Throughput AgreementsCompletion Guarantee by SponsorsSovereign Guarantee may be requiredContract shall be performed by a reputable and reliable Contractor

Project Financing under OECD regulationsRepayment Period up to 14 years with instalments according to an agreed profile

Equity Contribution(may be provided in form of subordinated loans) to fund the preparation cost, non financiable parts (e.g. advance payment) and the working capital, volume between 20 % and 35 % of the overall investment cost

ECA covered Loans(multi-sourcing)

SPC

CLIENT BORROWER

SPONSORS

TECHNIP COUNTRY A

EquityContribution

LoanAgreement

Contract

TECHNIP COUNTRY - X

TECHNIP COUNTRY - Y

ECA - X

ECA - Y

ECA - A

LENDER

Re-insurance

Re-insurance

Cover

Subcontracts

Completion Guarantee / Securitization

Applicationfor Cover

Letter of Commitment

Commercial Loans +Multinational Institutions

Commercial LoansFor the advance payment required under the ECA covered financingas well as for financing of parts not being eligible for ECA covered financing and for the major part of the local portion, commercial loans may be raised by the SPC with local and/or international commercial banks

Multinational InstitutionsFor projects in Africa, we propose to contact e.g. African Development Bank for contribution to the equity of the SPC and/or to the loans

To improve trade with and investment in Africa, the German Export Credit Agency Euler Hermes has signed agreements in 2011 with

African Trade Insurance Agency (ATI)African Export and Import bank (AFREXIM)

www.technip.com

Thank you

Contact:

Samir Abbas – VP Sales Upstream

Tel : 0049 172 202 7973