Mississippi & TexasMississippi & TexasOperationsOperations

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3rd / 4th QTR. 2009

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Facilities – Six Locations

• Mississippi - (Two Sites)

• East Texas - (Two Sites)

SIGNAL INTERNATIONAL SIGNAL INTERNATIONAL (Overview)(Overview)

World Class Offshore Fabrication Capabilities

Business Focus

• Marine Construction

• Ship Modules / Barges

• TLP’s / SPARS

• Semi-Submersibles

• Jackups

• Accommodation Units

• Conversions / Upgrades

• Surveys / Repairs

• Dry-docking

• Ideal Facilities for Modular Process Plant

Company Dynamics

• Safety #1 Focus

• Experienced Prof. Organization

• Exceptional Project Mgt. Systems

• Continuous Flow Manufacturing Proc.

• Strategic GOM Locations

• Unobstructed Access to Open Water

• Competitive Pricing

• Quality Workmanship / Non-Union

• ISO – 9001 Certified

• MIL-SPEC: 1689(SH), 1689A(SH),

248C or D, S9074-AQ-GIB-010/248 Labor Resources• 500 – 4,000 (depending on workload)

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Organizational Highlights Organizational Highlights

Safety is #1 Priority

• Effective company wide safety program Focused management led effort to eliminate safety incidents Comprehensive permit to work / job risk assessment (JRA) Incentive program initiated in April 2003

• Safety performance is best in the shipbuilding industry 2007 OSHA TRIR (8,638,289 mhrs) 0.60 2008 OSHA TRIR (8,687,639 mhrs) 0.67 2009 OSHA TRIR (1,050,843 mhrs) 0.49

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Organizational HighlightsOrganizational Highlights

Focused Project Management

• Experienced management, staff and personnel

• Fully aligned and integrated Project Management System Detailed work breakdown structure Aligned labor and material budgets Detailed progress measurement templates updated weekly to

accurately measure earned value, labor efficiency and schedule progress against budget and plan

Detailed shop floor schedules / routing Production Map / Performance Evaluation Review Technique

(PERT) with Action Plans

• Formal gate signoff process to: Provide management visibility & oversight Ensure pre-requisites are met Enhance ability to achieve schedule on-time on-budget

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Organizational HighlightsOrganizational HighlightsIndustrial Engineering

• World Class Manufacturing Focus

• Continuous Improvement Culture

• Lean Manufacturing Initiatives “War on Waste” Program

Process / Value Stream Mapping

Continuous Flow Manufacturing – CFM

• Visual ManagementTrade Color System

Zone Mapping

5S Process

• Visual Factory – Performance Metric Tools

MLR/Action Plans

TPP – Trend /Pareto/Paynter

Work Sampling / Performance U ptim e

• Shop Floor Management Tools

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Organizational HighlightsOrganizational Highlights

QA / QC

• Registered ISO 9001: 2000 in November 2003

• Quality System designed to assure high quality obtained in all Signal Processes

• Qualified Structural, Pipe and Tubular Welding Procedures:

* ASME * DNV

* AWS * Lloyd’s Register

* ABS * API

• Less than ½% Weld Reject Rate for each year in business

Production Support / Planning and Scheduling

• Fully Integrated System

Formal Budgets, Work Breakdown Structure

Detail Planning & Scheduling – Primavera Project MGT. 6.0

Project Performance Reports

Data Management Reports – Operational & Financial

Flexible systems that incorporate Customers Information to Progression

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Mississippi Facilities - (Two Locations):

(East & West Bank) - Site and Access:

Signal International’s Corporate Office is located in Pascagoula, Mississippi, on the grounds of our East Bank and approximately 11 miles from our West Bank Facility. Situated on the Gulf of Mexico, the Port of Pascagoula includes two harbors, the West, or Pascagoula River Harbor, and the East, or Bayou Casotte Harbor. Air Transport

• Gulfport/ Biloxi Regional Airport, 30 miles• Mobile AL Regional Airport, 40 miles • New Orleans International Airport, 100 miles

Rail Transport AvailableHighway Transit – Easy Access to I-10

West Bank • 350’ wide, 38’ maintained depth • Direct access channel to Gulf of Mexico East Bank• Unobstructed access to Gulf of Mexico• 300’ wide, 38’ maintained depth

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Mississippi - East Bank – Corporate Office

• 94 Acres Total Area• 30,000 ton Drydock• 35 ft. Maximum Water Depth

• 100,000 sq. ft. Fabrication Area• 2,000 ft. Water Frontage• 600’ x 600 Concrete Platen

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Mississippi - East /West Bank – EquipmentMajor Equipment:

Dry-dock ( Dual Carrier) - 30,000 ton (368’ x 203’)

Cranes/Cherry Pickers/Forklifts

• 3 EA 150 Ton Mobile Manitowoc 4000• 1 EA 600 Ton Manitowoc 4600 Ringer (West Bank)• 2 EA 300 Ton Mobile Manitowoc M250• 2 EA 125 Ton Washington Gantry Crane (Quay

Side)• 2 EA 300 Ton Floating Manitowoc 4100 Ringer• 8 EA 15 - 50 Ton Cherry Pickers• 6 EA 2.5 - 12 Ton Forklifts• 14 EA 15 - 40 Ton Overhead Bridge Cranes

Major Shop (Fabrication) Equipment

• 1 EA Wheel-A-Brator, BCP Auto Blast Machine• 1 EA Wheel-A-Brator, BCP Auto Paint Machine• 2 EA Piranha Iron Worker• 1 EA N/C Plasma Burning Table• 1 EA N/C Flame Burner• 1 EA One-Sided Butt Welder• 1 EA Angle Stiffner Fitter• 1 EA Siffner Welder• 310 Ft Panel Line

Machine Shop Equipment (15,000 Sqr Ft. Covered) • Acu-Rite Digital Read Out• 1 EA Schiess Boring Mill – 11’ Vertical Travel, 55’ Horizontal Travel• 1 EA Gray Boring Mill – 7’ Vertical, 25’ Horizontal• 1 EA Cincinnati Floor Mill – 6’ Vertical, 4’ Horizontal• 3 EA Small Mills• 1 EA 17” Turn-nado Southbend Lathe• 1 EA Monarch Lathe, 10’ Bed, 96” Center• 1 EA Kingston 21”-27” Gap Bed Lathe• 3 EA Drill Presses

Detail Engineering / Shop drawing available in house

ISO 9001 – 2000 Registered ABS, Lloyds, DNV and Mil Spec 1689A approved

125 ton Gantry Crane

(quayside)

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Mississippi - East Bank – Continued

Signal’s East Bank

– Custom – Built for Offshore Manufacturing.

• Modern Facility – Constructed 1998

•Automated Construction Equipment

• Panel Lines

• Floating and Dockside Cranes

• 2,000’ Reinforced Bulkhead

• 600’ x 600’ Concrete Platen

•Dual Carrier – Mobile Floating Dry-Dock

• 462,000 sq. ft. of fabrication area

• Capable of processing more than 20,000 tons of steel per year

• (2) Gantry crane (125 ton) with a reach capacity of 286’; 1700’ of rail

• Lift capacity of cranes exceeds 600 tons

• Computerized production cuts cost of steel fabrication and increases

efficiencies

• Extended water frontage area

• Panel line with one-sided seam welding, automatic stiffener fitting, and

automatic stiffener welding

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Mississippi - West Bank

• 13 Acres Total Area

• 38 ft. Maximum Water Depth

• 47,550 sq. ft. Fabrication Area

• 1100 ft. Water Frontage

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Mississippi - West Bank - Continued

The 13-acre West facility is located on the Pascagoula River with a 350’ wide, direct access channel (with a water depth of 38’) to the Gulf of Mexico. Facilities consist of the main berthing dock at the north end of the Port where the main fabrication and pipe shops are located together with module fabrication platens and the blasting and paint yard. The Yard boasts 86,550 sq. ft. of fabrication space and 1100’ of water frontage.

Projects are serviced by 150 and 200-ton crawler cranes as well as a 300-ton barge-mounted ringer and a 600-ton land-based ringer Manitowoc crane.

The Production office is 2,500 square feet and accommodates project management, and support service offices. In addition, the West Yard has on site 1,000 square feet of portable office space which accommodates controls, QC and construction superintendents.

Another 3,000 square feet in portable offices are on site which accommodate various customer and customer-subcontract personnel.

Equipment testing and instrument calibration is performed at this 1,100 sq. ft. climate controlled facility along with training of employees on specialized equipment. All testing and calibration equipment is stored at this location.

Jack-Up Leg

Refurbishment

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Texas Facilities (Four Sites):Orange Facility and North Yard FacilityLocations and Access:

Signal International’s Texas Operations Office is located in Orange, Texas, (Exit 878); 28 miles from our North Yard. Both facilities have direct access to the Gulf of Mexico, and are situated on or near the Sabine River bordering Louisiana.

Air Transport – mi to Signal Orange Facility• Southeast Regional Airport Beaumont, TX 26 miles• Houston Bush International Airport, 127 miles • New Orleans International Airport, 244 miles• Dallas FW International Airport, 369 miles

Highway Transit – Easy Access to I-10

Minimum Water Depth to Facility

18’ 22’

Distance to Open Water

38 mi 17 mi

Obstructions to Open Water

136’ Bridge

None

Orange Facility

North Facility

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Texas - Orange Yard • 77 acres• 450,000 ft of covered shop• 88,000 ft covered warehouse • 450-ton gantry crane in shop

(extends over water)

• Inside blast & paint shop (2) 26,000 Sq ft ea. w/ 78’ x 44’ tall doors• Detail Engineering/Shop Drawing available in house• ABS, Lloyds & DNV approved

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Texas - Orange Yard – Shop Model

Continuous Flow (Under Roof) Bay 3 Bay 2 Bay 1

Bay 4

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Texas FacilitiesOrange, North, South and Dock - Equipment

O = Orange Yard; N = North Yard

S = South Yard;

Major Equipment:

• (1) 150-ton crawler crane – (O)• (1) 100-ton crawler crane – (O)• (2) 35-ton cherry pickers – (O)• (1) 15-ton cherry picker – (O)• (1) 400-ton stiff leg derrick barge – (O)• (1) 100-ton revolving derrick barge – (O)• Multiple assorted forklifts from 1-ton to 15-ton - (O)• (1) 35-ton gantry crane (dry-dock wingwall) - (D)• (1) 30-ton cherry picker – (D)• (1) 15-ton forklift – (D)• (1) 4-ton forklift – (D)

Cranes/Cherry Pickers/Forklifts

Major Shop (Fabrication) Equipment

Machine Shop Equipment (450,000 Sqr Ft. Covered)

• Multiple Shop Gantry cranes from 35-ton to - 450-ton capacity – (O)• Assorted iron worker stations - (boring presses, band saws, plate shear) – (O)

• Wheel-a-Brator Automated Blast & Prime Machine – (O)• Panel Line Fabrication consisting of:- (O) Series-arc welding machine with 45-foot magnet bed 4-head stiffener fitter/positioner 6-head stiffener welder• 40-foot, 40-ton break press – (O)

• 300-ton capacity• 220-foot main hook height

“Big Bessie”“Pelican”

• 100-ton capacity • 200-foot main hook height

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Texas - Orange Yard – Details - Equipment

Wheel-a-Brator• Automated blast & prime

machine• Process both sides in single pass• 12-foot panel width• Plates and rolled shapes

Panel Line Fabrication Equipment• NC plasma tables (three) • NC flame planer• Semi-automatic LT-7 Welding Machine (Mult.

Units)• Semi-automatic “Bug-O” Weld Machine (Mult.

Units)• Semi-automated stiffener fitter (4- head)• Automated stiffener welder (6-head)

Inside Shop Transport

Shop Transport

s

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Texas - Orange Yard - Details Continued

Sample Fabrication / Outfitting

New Column Fabrication

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Texas - Orange Yard – Details Continued

Sample Fabrication – Pontoons• 290’ (L) X 50’ (W) X 27’ (T)• Bilge/Ballast pumps & piping installed• Pump & Thruster rooms outfitted on each end• 1700 tons• Loaded onto barge using hydraulic

transporters• Final paint applied prior to loadoutRowan Tarzan IV

Jackup –Prior to Loadout

LPD 17 Navy Class Ship

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Texas - Orange Yard – Details Continued

300’ x 100’ x 20’– Heavy Duty Deck Barge

Transverse Beams Assy.

Mid-Body Assy.

BowMid – Body Assy.

Prior to Blast / Paint

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Texas - North Yard • 17 acres• 3,200 ft2 inside fabrication area• 17,500 ft2 outside fabrication area• 30-foot water depth at bulkhead

• 1,590 feet water frontage • 8,000 ft2 warehouse• 30-foot water depth at bulkhead• 40-foot channel depth

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Signal International Engineering Department - SUMMARYOur Engineering capabilities include:• Project engineering• Structural scantling design using engineering software• Development of lifting and turning arrangements• Piping system development (P&ID’s)• HVAC and ventilation system development• Electrical system one line diagram development, including electrical load

analysis, short circuit studies, circuit breaker co-ordination, cable sizing, lighting calculations, instrumentation, etc.

• Intact and damage stability analysis

Our Detail Design capabilities include:• Structural arrangement development complete with cut sheets and nesting• Piping arrangement development complete with spool sheets• HVAC and ventilation arrangement and details• Electrical cable tray layout and cable routing

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Our Field Engineering capabilities include:• Performing physical vessel surveys and dimensional checks as

required.• In process monitoring plans, dimension specifications and

tolerances tailored to individual customer and engineering requirements.

• Provide customer reports to show final process performance, standards and any variations from design.

Our Software User capabilities include:• AutoCAD 2-D and 3-D• Cad works 3-D• Ship’s Constructor• Staad Pro 2006 engineering design software• Pro Nest 8 lofting software• Rhino 4.0 • GHS (General Hydrostatics)• Aft Fathom 6.0 piping system design software

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The Signal International Engineering Department is comprised of between 80 and 100 dedicated, experienced engineers, designers and support personnel. The size of the organization is workload driven. The group undertakes a broad spectrum of engineering activities in support of all facets of production.

While the primary focus of the group is production support, the department is experienced at conceptual design activities, including feasibility studies and contract guidance drawing development as well as facility upgrade and maintenance design.

Staff engineers develop and assess specifications, guidance drawings, piping diagrams, and main scantling drawings in support of detail design activities. The Design Group is comprised of three main elements: Structural, Mechanical and Electrical Design. These three groups work together to develop the detail design packages for all construction activities.

Signal International Engineering Department

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The Structural Design Group develops structural module drawings and prepares the lofting and Numeric Code (NC) tapes for plate cutting. Starting with the main scantling plans, each construction module is detailed to support the lofting, fabrication and erection phases. The structural group also performs the structural outfitting detail design. For each zone or compartment a detailed equipment arrangement is developed. From this, the foundations, gratings, ladders, etc. are detailed.

The Mechanical Design Group is capable of developing piping & Instrumentation diagram’s to support customer requirements. Through the development of the P&ID’s the mechanical group will prepare technical specifications for the equipment, including pump selections, material requirements and required certificates, and documentation. Each mechanical system will be reviewed to confirm the required sizes for all piping and equipment. From the P&ID stage the group will prepare detailed pipe arrangement drawings. Depending on the location and complexity of the compartment, the group will prepare standard two dimension orthographic drawings or 3D composites. The Mechanical Design Group also contains a sub-group specializing in HVAC design.

The Electrical Design Group is capable of developing all phases of electrical design requirements from the initial one-line power diagrams through detailed cable tray and transit details; as well as final termination detail. The group is capable of developing the load analysis, short circuit analysis, as well as fault current analysis, and other calculations such as voltage drop and lighting requirements as required. Additionally, the electrical group has extensive experience with automation and instrumentation systems.

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The Field Engineering Group provides for continuity between the design office, the customer and production. Dedicated, experience field engineers are assigned to a project to facilitate production, work with the customers on construction issues and provide feedback to the design office. Dimensional Control provides accurate measuring processes using proven techniques and calibrated measuring tools and instruments.

The Document Control Department provides an efficient and accurate resource necessary to receive, reproduce, distribute and manage controlled and uncontrolled documents and drawings to ensure proprietary information is maintained and controlled per individual customer contracts and requirements.  The Document Control Department fully supports all project teams to ensure timely support for production schedules and deadlines.  The Document Control Department has the ability and the personnel dedicated to assist its Customers by maintaining the latest software and equipment to support projects of any size and duration.

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Signal International Engineering Unit Rates

Engineering Services can be performed on a lump sum or unit rate basis. Our unit rates are listed below:

Title or Position

Project Engineer

Senior Engineer

Engineer or Sr. Designer

DesignerDraftsman/Cad Operator/

Field Engineer/Dimensional Control Specialist

Up To 50 Hrs per Week

$120.00 per hour

$ 90.00 per hour

$ 80.00 per hour

$ 65.00 per hour

$ 60.00 per hour

Over 50 Hrs per Week

$180.00 per hour

$135.00 per hour

$120.00 per hour

$ 97.50 per hour

$ 90.00 per hour

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Signal International, LLC

Engineering Organizational Chart

Kirk GuyoteEngineering Manager

Texas Operations

Total Staff - 23

Hunter MaplesEngineer

Maureen EdmistonSr. Elect. Engineer

Jason RiceWeight Control Engineer

Alfonso SotresNaval Architect

Gene RiceEngineering Manager

Mike StoddardDetail Design Manager

Mike MelvinSr. Lead Engineer

5 Electrical Designers

2 Structural Designers

3 Outfitting Designers

2 NC Loftsmen

2 Piping Designers

Paul ConsavageProject Engineer

Olin ZollingerWelding Engineer

3 Field Engineers

2 Document ControlsTechnicians

Cathy WallAdmin AssistantJim Davis

Project Eng. Lead

Perry ForbesProject Eng. Lead

Barry WhalenProject Eng. Lead

David CanterburyProject Eng. Lead

Karen DerosierAdmin Assistant

15 Piping Designers

Charles ByersStructural Design Lead

13 Structural Engineers

Kraig KillingsworthElectrical Design Lead

Johnnie PagePiping Design Lead

9 Electrical DesignersMark Jones

Project Eng. Lead

2 Document ControlsTechnicians

4 Dim Controls Techs5 Field Engineers

Steve McCallField Engr/Dim Cont Lead

Lisa VendeiroDoc Control Supervisor

Mississippi Operations

Total Staff - 65

29Blister Installation Offshore

Offshore Services – Capabilities

Offshore Services - Continued

Overall Services Provider• Engineering – Offshore Design Work• Full Mix of Production Crafts• Facilities & Equipment

– Storage Space for Trucking Parts– Welding & Burning Equipment– Scaffolding Materials;– Painting Equipment– 24 Hr / Day – 7 Day / Week Availability

Heavy Tool Shed

Conference RM Divider

Offshore Work Experience • Installation of Heavy Weldments• (Blisters, Deck Extensions)• Leg Ups• Quarters Modifications (3rd Party Assistance)• Platforms• Resumé's Of Key Offshore Crew available• Fully Supported Project Management Approach• Letters of Recommendation From Customer Base• Overall Safety Program

• Outstanding Safety Stats • Quality Program & Welding Statistics• ISO 9002 Registration• Welding Stats• Costing & Rate Information

Offshore Services - Continued

Resources • Committed Resources focused on providing quality services offshore • Resources pulled from an experienced workforce comprised of the “elite” craftsmen in their respective disciplines

• Mobilization from either Mississippi or Texas in short order to respond to the customer’s needs