CAPABILITY STATEMENT

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1 CAPABILITY STATEMENT MACAW Engineering Ltd Quorum Business Park Benton Lane Newcastle upon Tyne United Kingdom NE12 8BS Tel: +44 (0) MACAW Engineering Ltd 2014

2 CONTENTS WHO ARE MACAW?... 3 HISTORY OF MACAW... 4 MACAW SERVICES... 5 Corrosion Management... 5 Plant & Pipeline Integrity Management... 5 Materials & Welding... 6 Engineering Services... 6 PROJECT EXPERIENCE... 7 EXAMPLE PROJECTS... 8 SAMPLE CLIENT LIST MACAW ORGANISATION QUALITY ASSURANCE & COMPETENCY SYSTEMS REGISTRATION & ACCREDITATIONS CONTACT DETAILS... 14

3 WHO ARE MACAW? MACAW Engineering are a leading independent engineering consultancy working closely with global operators of oil & gas production facilities, pipelines and utility systems to reduce risk, maintain integrity and extend the service life of client assets. Based in Newcastle upon Tyne, MACAW currently employs over 80 people, the majority of whom have a graduate level qualification in a relevant technical discipline. Over 50% of staff have post graduate qualifications or Professional Engineering status, with many of our principal consultants able to draw on more than 25 years industry experience. We provide integrity management strategies for the oil and gas industry, covering both onshore and offshore plant and pipelines. These strategies are often employed in maintaining the integrity of ageing assets and extending their service life. Where new developments are proposed by operators (frequently those involving existing infrastructure), we identify and analyse technical issues that may impact on the future integrity of a project in order to specify an optimised plan. MACAW has extensive knowledge and experience of: Integrity Management Corrosion Mechanisms Materials (carbon steels, CRA materials and polymers) Coatings Systems Inspection Methods Welding Procedures Failure Investigation Our Integrity Group has unrivalled experience in interpreting in line inspection (ILI) data, providing fitness-for-purpose assessments and corrosion growth analyses leading to optimised on-going Integrity Management through scheduled repairs and inspection intervals. Our client list reflects the fact that the energy industry operates in a global market we have provided services to major oil and gas operators in over 40 countries around the world, ensuring that we are responsive and our services are customised to client needs We offer a range of support services, including a risk based inspection scheme for plant and pipelines, on-site condition assessment of assets, failure investigations, pipe mill audits and experimental testing facilities. MACAW published the popular MACAW s Pipeline Defects book and helped initiate a successful MSc in High Pressure Pipeline Engineering at Newcastle University.

4 HISTORY OF MACAW The company was formed in 1996 by four senior engineers from the former British Gas Engineering Research Station in Killingworth, Northern England. From the early days it was clear that there was a high demand for the services MACAW offered and in early 2000 we successfully established a long term service agreement with a major North Sea Operator, which has continued to this day. By 2006 we had grown to a company of 25 people and it was decided to form a Pipeline Integrity Group to service an emerging need from our customers. Following equity investment in 2007 we moved to a larger office in Gosforth Business Park and grew the Pipeline Integrity Services Group substantially. Following this move, in 2008, the Corrosion Management, Engineering Services and Materials and Welding groups were established as separate entities. On our 15 th anniversary of being in business, the Duke of Northumberland officially opened the new global headquarters of MACAW Engineering Ltd, on the prestigious Quorum Business Park in This move supported the rise in staff in our head office to over 80 engineers and the overseeing of overseas expansion as well as accommodation for the next phase of growth of the Company MACAW founded by four Senior Engineers from the former British Gas Engineering Research Station Pipeline Integrity Group formed. MACAW grows to 25 staff MACAW gains an equity investement and moves to larger offices following significant company growth Corrosion Management, Engineering Services and Materials & Welding Groups established as separate entities th anniversary. MACAW moves to our current larger premesis with over 60 staff. Mexico City Office Opened. Head Office, Quorum Business Park 2014 MACAW plans to extend the current offices to accommodate over 80 staff and expand overseas.

5 MACAW SERVICES Corrosion Management Corrosion Management Strategies Corrosion Control Mitigation & Prevention Strategies Corrosion Risk Assessment Corrosion Mechanism Analysis, Modelling & Growth Assessment Stress Corrosion Cracking Susceptibility Analysis Risk Based Inspection of Pipeline Systems & Topside Facilities Life extension studies for Brownfield and Greenfield developments Review & Implementation of Cathodic Protection Systems Company Placements contributing to AIMS & PIMS Plant & Pipeline Integrity Management Risk Assessment PIMS Review, Recommendations & Implementation Inspection Planning / Prioritisation In-Line Inspection Data Review, Diagnosis & Comparison Fitness-for-Service Assessment Fracture Mechanics based Assessment (Crack Arrest, Fracture Control Plans, Leak before Break Analysis) Stress Corrosion Cracking (SCC) Assessment SCC Growth Evaluation Fatigue Analysis Corrosion Control & Management Strategies Pipeline Rehabilitation Planning Failure Investigations Client Training

6 Materials & Welding Qualified Metallurgical & Welding Engineering Project Support Weld Procedure Specification & Qualification; Preparation / Review / Witness / Advice Pipe & Fittings Material Specifications Preparation Supplier Capability Assessment and Audit Construction & Inspection Requirements Weldability & Hot Tap Welding Expertise Pipeline Construction Audits Technical Concession / Deviation Requests Codes, Standards & Gas Industry Specification Interpretation Trouble Shooting & Failure Investigations Training Engineering Services On-Site Surveys Materials Identification (including live pipelines and plant equipment) Failure Investigation Inspection of Pipelines, Tanks and Vessels Soil Resistivity and Corrosion Assessment Cathodic Protection Monitoring (land based or near shore) Paint and Coating Inspection Laboratory Based Testing Corrosion Testing Metallurgical Examination Material and Environmental Studies Bespoke Test Rig Design & Operation

7 PROJECT EXPERIENCE Project Experience by MACAW Personnel over the past 5 years Area of Expertise Number of Projects Completed Overview of Typical Projects Asset Integrity Management System (AIMS) Pipeline Integrity Management System (PIMS) Risk based inspection (RBI) > 15 Company Placements contributing to AIMS and PIMS:- PIMS Review Engineer Senior Corrosion Engineer overseeing integrity monitoring and inspection Senior Integrity Engineers for CRA, Integrity and RBI studies Development and implementation of RBI systems for planning future maintenance, corrosion control and inspection requirements:- RBI system for 2,000km of pipelines RBI for 14 offshore topsides facilities Development and implementation of RBI and IMR planning systems and application software Development of a 6-year integrity management programme for an offshore pipeline system in the Middle East Inspection & Corrosion Management Systems Pipeline Integrity Monitoring & Mitigation FFS assessment based on intelligent pigging results > 500 > 600 Corrosion Risk Assessments for oil, gas, crude and water pipelines Corrosion and Integrity Management review of a high pressure wet sour gas offshore pipeline Diagnosis of corrosion mechanisms, corrosion modelling & growth assessment Development of Corrosion Mitigation & Prevention strategies Inspection of offshore facilities Implementation of a CP system for an onshore oil terminal FFS, corrosion growth analysis & diagnosis and safe remaining life assessments following in-line pig inspection for offshore and onshore pipelines worldwide, either direct to client or as subcontractor to major inspection companies (UK North Sea, Europe, Malaysia, China, Indonesia, South America, Kuwait, Qatar, Kenya, and Abu Dhabi) Related Oil & Gas industry (offshore & onshore) > 250 years combined oil & gas experience More than 100 Technical Papers at international conferences Training programmes: UK, Germany, Canada, Saudi Arabia, Brunei, Thailand, Korea, Iran Company placements MACAW S Atlas of Pipeline Defects, published in 2004 Contribution to Pipeline Engineering MSc. at Newcastle University Member of the Pipeline Pigging & Services Association (PPSA)

8 EXAMPLE PROJECTS Corrosion Control & Management Setting Key Performance Indicators (KPI) as part of Corrosion Control Strategies for 14 offshore platforms, ensuring continued effective and safe operations. Pipeline Integrity Fitness for purpose assessment on subsea oil and gas pipelines in the Far East, using high resolution MFL and calliper data to diagnose corrosion and recommend enhanced integrity management strategy, leading to demonstrable remaining life improvements. Engineering Critical Assessment Fitness for purpose (FFP) assessment of planar defects in a filter to BS7910 and API579, to determine current fitness for service and predicted future life under fatigue loading. Welding Qualified welding engineering support provided to several engineering fabrication companies to satisfy the Responsible Welding Co-Ordinator accreditation requirement of the ISO 3834 standard. Materials Material assessment for chloride pitting potential in water cooling system on a North Sea platform.

9 Risk Based Inspection Development of a bespoke RBI process, implemented on 14 offshore platforms in the North Sea in order to optimise inspection activities and maximise safety. Standards of Work Involvement on various CEN & BSI standards committees, e.g. WEE 21/7 BS 4515 Welding of steel pipelines on land and offshore, and also on company specification working groups. Site Surveys COMAH audit of over 20 gas storage sites and development of Safety Case documents. Research 3 year research project into remaining asset life of ageing PE gas distribution systems for UK gas industry, including development of inspection and assessment techniques. Failure Investigations Investigation and reporting of forged end seal weld cracking incident during an 85 bar uprating project on a gas transmission pipeline. Experimental Engineering Corrosion testing of pipeline material for CO2 sequestration project at UK power station.

10 SAMPLE CLIENT LIST Services are provided directly to pipeline operators or through intermediaries, such as pipeline inspection companies. Our client list includes: Bord Gais, Ireland BP Bulgargaz Chevron Texaco C4 Gas Group, Brussels ENTEC (UK) Ministry of Defence (UK) Murphy Pipelines National Grid Northern Gas Networks (NGN) Northumbrian Water plc Petroleos Mexicanos (PEMEX) Petronas Carigali Sdn. Bhd. Rosen Group SABIC Scotia Gas Networks Talisman Sinopec Energy (UK) TOTAL Transpetro (Brazil) Wellstream International Whessoe International SKANSKA Ltd. Yorkshire Water plc Zadco Our client list reflects the fact that the energy industry operates in a global market we have provided services to major oil and gas operators in over 40 countries around the world, ensuring that we are responsive and our services are customised to client needs.

11 MACAW ORGANISATION MACAW has over 80 permanent employees, the majority of whom have a graduate qualification (degree or equivalent) in a relevant engineering or scientific discipline. In addition, over 50% of our staff have post graduate qualifications (MSc or PhD and/or Professional Engineering status (Chartered Engineers CEng)). This, combined with the experience of its Principal Consultants and Associates, provides a unique combination of skills and experience, covering all the major disciplines involved in the process of pipeline and plant integrity management, including Materials, Corrosion, Welding and Engineering Critical Assessment. MACAW Organagram Directors General Manager MANAGEMENT TEAM Setting Strategic Direction & Policy Finance Manager IT & Infrastructure Product Development Business Development & Sales Succession Planning & HR Resource Planning EHS Compliance Quality Assurance BUSINESS AREAS Plant & Pipeline Integrity Materials & Welding Corrosion Management Engineering Services Onshore Gas Networks

12 QUALITY ASSURANCE & COMPETENCY SYSTEMS MACAW Engineering operates a documented competency system as part of our Lloyds Register QA Ltd. Certified ISO 9001 Quality System. This is used to set minimum standards for both recruitment and promotion within the business and complies with the process of continuous improvement and HS&E. The following information is extracted from this document, showing the basic criteria used for the selection of engineering staff who would perform work should a contract be awarded. Note that all staff at Engineer Grades (below) have at least a First Degree (or equivalent), and many have Masters, Doctorates and Professional Qualifications (Chartered Engineers). In addition, we require relevant experience appropriate to the grade, before appointing staff at each level. Examples of the relationship between grades and Internal Job Titles: Grade 4 Engineer 1 Grade 5 Engineer 2 Grade 6 Senior Engineer 1 Grade 7 Senior Engineer 2 Grade 8 Principal Engineer Grades: Qualifications & Experience: Graduate or equivalent, normally with < 2 years relevant experience Graduate or equivalent, normally with minimum of 2 years relevant experience Graduate or equivalent, normally with minimum of 5 years relevant experience Graduate or equivalent, normally with minimum of 7 years relevant experience Graduate or equivalent, normally with minimum of 10 years relevant experience

13 REGISTRATION & ACCREDITATIONS Quality Management System (ISO 9001:2008) The Quality Management System of MACAW Engineering has been approved by Lloyds Register Quality Assurance to the Quality Management System Standard of ISO9001:2008, applicable to:- The provision of engineering consultancy services associated with the management, operation and integrity of pipeline systems and process plant First Point Assessment (FPAL) First Point Assessment (FPAL) operates a supplier management service on behalf of major Oil & Gas organisations. Registering with this service gives access to an industry-wide scheme which allows supplier company information to be searchable by all Oil & Gas purchasers that subscribe to the system. MACAW Engineering are registered as a supplier with First Point Assessment (FPAL) under supplier registration number Utilities Vendor Database (UVDB) Established in 1996, UVDB is now recognised as the standard for supplier pre-qualification within the Utilities Sector. This registration and pre-qualification system is now used by all major UK Utilities to source suppliers and contractors. MACAW Engineering are registered as a supplier on the Utilities Vendor Database under supplier registration number

14 CONTACT DETAILS Head Office México Office Q5 Quorum Business Park Leibnitz # 20 Int. 01/10 Benton Lane Nueva Anzures Newcastle Upon Tyne Ciudad de México NE12 8BS United Kingdom México, D.F. Tel: +44 (0) info@macawengineering.com Website: General Manager: Roland Palmer-Jones Pipeline Integrity: Andrew Wilde Corrosion Management: John Wilkinson Materials & Welding: Peter Boothby Engineering Services: Paul Casson Onshore Gas Networks: Dave Smart Technical Sales Manager: Pat Stokes

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