Andrew Beaney

Oil & Gas in the Middle

East

Interserve Oil & Gas operations

in Qatar, UAE and Oman

Business Streams

Adyard

• YEAR OF ACQUISITION: 2013

• MANPOWER: 2,000

• YARDS: Mussafah, Liwa, Fujairah

• KEY PROJECTS ON HAND: 1. ADMA/HDEC - SARB 4 – Process Modules – c£28m

2. ZADCO - Installation of ESP’s - c£52m

3. ADMA - Replacement of Helidecks – c£18m

• 2014 REVENUE: c£60m

• ORDER BOOK: c£110m

TOCO

• YEAR OF ACQUISITION: 2013

• MANPOWER: 2,000

• 2014 REVENUE: c£60m

• ORDER BOOK: c£120m

• YARDS: Muscat, Mukhaizna, Sur, Fahud, Safah & WL

1. OXY Mukhaizna - Oilfield works – c£77m

2. Bahwan Exel/PDO - 4 PL Rig Moving Services – c£72m

3. OXY Safah WL - Oilfield Services – c£64m

• KEY PROJECTS ON HAND:

Madina Group

• YEAR OF ACQUISITION: 2007

• MANPOWER: 2,500

• 2014 REVENUE: c£80m

• ORDER BOOK: c£50m

• WORKSHOPS: Doha & Ras Laffan

1. Shell GTL – Shutdown works – c£10m

2. Maersk Oil – Maintenance Manpower Service – c£8m

3. Technip (Oryx GTL) – Fabrication works – c£10m

• KEY PROJECTS ON HAND:

Shared Services

Integration of the three

businesses

One functional head instead

of three

– BD and Estimating

– QHSE

– Commercial

– HR

– IT

– Finance

Shared Services

Order Book Growth

0

50

100

150

200

250

300

350

YE2012 YE2013 YE2014

£m

Work in Hand

SARB 4

(engineering, procurement

& construction)

Zadco ESP

(submersible pump installation)

MSPP

(construction of 227km pipeline)

BP Khazzan

(construction of 60km pipeline)

Shell Pearl

(maintenance services)

Oxy

(oil field services)

Forecast of GCC contract awards

Source: MEED

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2012 2013 2014 2015 2016

Actual Forecast

$bn

• Focus on operational

maintenance

• Focus on operational

capex

• Brownfield LNG/

Maintenance

• Target key prospects

outside Oil & Gas

• Operational efficiency

Maximise existing assets

• More competition and

margin pressures

• Little LNG investment in

ME

• Power & infrastructure

likely to grow

• 18% cut in global capex

spend (2014 to 2015)

• Reduced new project

awards & mega projects

• LNG projects delayed or

cancelled

• Low commodity prices

boost other sectors

Strategy Customer

response Market trend

Revenue and Workload Growth

0

50

100

150

200

250

300

350

YE2012 YE2013 YE2014

£m

Future workload Revenues

The GCC market

Total value of GCC Oil & Gas projects from

2015 – 2017 (3 years)

Combined stated value of oil & gas related spending by companies in the energy sectors in GCC

IEC Addressable

Market value of contracts where Interserve Engineering & Construction (IEC) could have

participation, including contracts where we may lack capacity, local presence or track-record

IEC Pipeline

IEC Strategic & Current Prospects

IEC Pipeline

Current Prospects

£85bn

£13bn

£2.8bn*

£0.8bn*

*Strategic Prospects: Target projects identified.

Current Prospects: Proposals submitted to

clients, proposals being bid and negotiated.

IEC Pipeline values are taken from IEC Pipeline

trackers system (some prospects are long term

framework agreements).

Total value of Middle East Oil and gas Projects

are based on MEED values from January 2015 –

December 2017.

Saudi Arabia and Kuwait

Saudi Arabia and Kuwait • Exploring opportunities over medium term • Entry through existing relationships

Summary

• We have seen good growth in our oil and gas

business since acquisition

• Oil price has had little impact

• We focus on operations and maintenance

• Target brownfield operational capex

• New markets being explored

• Still plenty of opportunity for growth