Our business approach Technip PMC

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1 Our business approach Technip PMC Project Management Consultancy Services: Ensuring Safe and Successful Execution of Your Projects

2 Technip at a glance Technip is a world leader in project management, engineering and construction for the oil and gas industry. With a global footprint, our talents constantly offer the most innovative technologies and best solutions to our clients to optimize their investments and meet the world s energy challenges. Our mission is to deliver safe, sustainable and quality projects across the world. We operate in three main businesses: Subsea In subsea hydrocarbon field development, Technip s activities include the design, manufacture and installation of rigid and flexible subsea pipelines and umbilicals. Thanks to our portfolio of technologies, industrial and operational assets on all continents and a state-of-the art fleet, we offer a unique vertically integrated model in the industry. Offshore In the Offshore business, our activities include engineering, procurement, construction (EPC) and installation of fixed and floating platforms. We use a complete range of technological solutions to answer the challenges faced by our clients. We are leveraging our expertise in full-range of offshore facilities, as well as our strong know-how with added-value process skills and proprietary platform design. Onshore In the Onshore business, we deliver to our clients all the experience we have acquired for almost 60 years, combined with a large technology solutions portfolio. We are working on onshore facilities that the energy sector needs, in particular for oil and gas industry players. Technip is one of the global leaders for the refining business and petrochemical units. We also reinforced our position on project management consultancy (PMC) activities, by leveraging our expertise in the management of complex projects. 2

3 About Technip PMC Technip PMC is an organization with a management team entirely dedicated and focused on the provision of PMC services to deliver projects worldwide. Technip PMC sponsors, supports and honors the contract execution throughout its life-cycle, as single point of contact. The management team of Technip PMC has an extensive experience in managing large oil and gas contracts, with a strong cost consciousness to help Clients control the cost of their investments. At Technip, we understand that managing large-scale projects takes more than just having exceptional project execution capabilities and advanced monitoring tools. It requires people with the right experience and the understanding of how to deliver a successful project. The EPC contractor with the best-in-class approach to project management Technip PMC helps Clients to achieve their investment objectives and deliver their future projects, by offering Project Management Consultancy (PMC) services from the definition to the operational phases. Technip is a project management specialist, having carried out some of the world s most challenging EPC projects. From the technology and licensor selection phase to the management of multinational consortia in the execution and successful delivery of world-scale, lump-sum turnkey projects, Technip has not only developed efficient processes, procedures and tools, but also operational and effective project management skills at all levels. QHSE: an absolute commitment Technip is committed to providing its Clients with the best project management practices, while ensuring a safe environment for each stakeholder (Clients, partners, EPC contractors, sub-contractors). At Technip, the health and safety of our people is a core value and an absolute commitment. Technip PMC implements the Pulse program on its projects, a true differentiator. Pulse: Technip s unique global HSE climate change program Pulse is a value driven program focusing on leadership and communication to change behaviours and embed health, safety and environment culture across the Company. The implementation of Pulse includes training modules for all levels of staff from senior management, engineers, managers and supervisors to site construction workforce. Technip PMC 3

4 Project Management Consultancy for all types of projects Technip is a major player in large size EPC project implementation and has developed a comprehensive competency in project management. This expertise is part of the value-added PMC services provided to our Clients, for onshore, offshore and subsea projects. What Technip PMC provides The success of a project with respect to cost effectiveness, schedule compliance, safety, operability and maintainability is dependent upon the project management team and how it integrates with both the EPC contractor s project team, and the Client s own representatives: Project management Technip PMC manages and integrates the activities of the engineering, procurement, and construction phases of the project. Clients with large, complicated capital projects, sometimes in challenging locations, often appoint Technip PMC as their overall program manager to ensure their expectations are met. Acting as the Client s single point of contact, Technip PMC consolidates under one seamless execution all contractors and subcontractors, often from diverse cultures and backgrounds, to deliver a successful project. Resourcing strategy Identification of key personnel with relevant experience; maximisation of personnel with local experience and use of local/regional staff. Project controls A detailed understanding of managing the project costs and schedule is critical. Technip PMC draws from the Group EPC experience to enhance its project management and control capabilities. Engineering and Procurement Attention is given to detail in defining the requirements, aligning the stakeholder teams and ensuring a disciplined approach to implementation will result in a successful project. Construction Technip focuses on safety, schedule, costs, staffing, quality and methods to ensure the success of construction. Our experience in executing EPC projects allows us to develop a construction plan which manages and mitigates risk. Commissioning Led by the PMC team the commissioning phase focuses on safety, cleanliness, on time and on specifications completion. Our experience of directly commissioning grassroots and brownfield facilities ensures a smooth commissioning phase, with easy access to advice on all aspects of the plant. Pro-actively managing the risk elements of a project through: Meeting QHSE expectations, including flow-down through the prime, sub and sub-subcontractors Delivering to schedule and budget targets Obtaining experienced, qualified personnel Managing contractors, especially during the EPC phase Delivering fit for purpose facilities Achieving national content targets Using proven software tools 4 Technip PMC

5 An integrated approach Technip PMC offers a wide range of services, managing all phases of a project starting from feasibility studies, basic design and FEED, detailed engineering and procurement, through to construction, commissioning and start-up of the facilities. The PMC team may combine Client and Technip personnel with no duplication of roles. Timely mobilization and global sourcing Technip PMC understands the challenges Clients face in awarding contracts as planned. Consequently, following an award, the immediate mobilization of a qualified PMC team is the focus. The PMC staffing process coordinates global sourcing, identification of skilled personnel and submittal of qualified candidates to our Client, to ensure a smooth transition into PMC implementation. As a global company, Technip has a diversified workforce, with personnel and consultants from various backgrounds, locations and cultures, making PMC teams creative and dynamic. Our global presence and local footprint enable us to mobilize people with the right experience in the right place, at the right time. Technip PMC 5

6 Leveraging experience for the benefit of our Clients projects Companies face challenges on their projects that can impact value: where to focus their possibly scarce resources, how to optimize their existing assets and how to deliver successfully. Technip PMC leverages its capabilities to enable its Clients to maximize their opportunities for success. Experienced personnel Technip PMC works with a team located in the area where the project is to be carried out. Depending on the technology involved, different centers of excellence will assign personnel to support the specific requirements of the project. HR procedures facilitate and promote local employment to further the group s expertise and diversity. The PMC business model is structured so that Technip staff are supplemented by qualified personnel hired from the markets where experienced engineering and project resources are available. EFFECTIVELY STAFFING A PMC TEAM REQUIRES A COMPLEX PROCESS: Identify candidates in the existing staff, and ultimately through external sources Process CVs Obtaining Client approval Initial interview by HR and technical departments Face-to-face interview The number of applications received can be enormous, overwhelming the HR and technical resources and resulting in significant delays in mobilizing the team. Technip PMC manages the entire process effectively and relieves the Client from the detailed challenges identified. This allows the Client to focus on their most important project management issues. 6 Technip PMC

7 Technology experience With a broad range of process technologies, Technip has tremendous capabilities and experience that can be complementary to the PMC role and used to design solutions tailored to achieving the best performance. This ensures Clients project objectives can be achieved thanks to: Access to process optimization expertise, when needed Access to current market benchmarking information Broad experience as a FEED and EPC contractor Closer Client relations and better communications Designs and execution plans that are practical, cost effective and fit for purpose Contracting experience and management Technip s QHSE commitment to being the reference company within its industry results in our PMC project teams producing outstanding results during all phases of a project. The EPC contracting experience gives Technip PMC teams unique insights and expertise in managing each project phase. Each PMC team is able to optimize designs and recommend realistic execution plans. The PMC proven software tools allow detailed analysis, optimization and forecasting of future performance, to effectively manage the project schedule and cost. Technip PMC 7

8 Technip PMC tools Key software tools have been developed within Technip to support the management of the various disciplines and then proven through the delivery of successful projects. PMC services software tools Technip s proven tools have been adapted for use on PMC projects. The ability to provide the required level of visibility in a timely manner is critical to the management of project risks and opportunities. These tools provide perspective, visibility and encourage collaboration. They can also be used to identify options and simulate potential outcomes, not only for the project team, but also for executive management. These tools, along with the PMC team, help align project teams, including partners, contractors and Clients, in a common understanding of the goals and strategy. A controlled approach Technip PMC systems and tools are designed to increase our Clients control and to identify opportunities. Our focus on effective project management and proactive risk management creates a clear differentiating advantage. Interface management On large projects, managing interfaces is a key challenge, notably the identification of where contractors scopes overlap or of any unassigned scope. The successful management of interfaces impacts each stakeholder of a project, including Clients, partners and suppliers. The ability to create project teams that work together, with experienced people bringing best practices and practical experience, is critical for a successful project. 8 Technip PMC

9 Dedicated tools Technip has a number of proprietary and vendor-developed software tools used by PMC teams to manage collaboration, visibility, decision making and follow-up: Primavera P6 xdb Document Management System IMT Interface Management Tool Acumen Suite of schedule benchmarking, risk analysis and simulation capabilities CMS Construction Management System CDB Change Management Tool BWise Risk Management Tool Technip PMC 9

10 Our Experience Technip has been chosen by many organizations as Project Management Consultant. We have the necessary depth of experience to integrate the activities of the Engineering, Procurement and Construction (EPC) functions to execute this role for world scale projects, consistently delivering to Client expectations. 10 Technip PMC

11 A selection of our key PMC references Construction and upgrading of oil and gas infrastructure facilities Client: Kuwait Oil Company (KOC) Location: Kuwait Project description: Multiple projects frame agreement contract with a minimum duration of 5 years. The scope would include: project management, feasibility studies, front-end design, project controls, planning, engineering, procurement, construction management and training of KOC s project staff. Scope of Work: FS, FEED, EPCm, PMC Western Libya Gas project Client: ENI Gas BV Location: Libya Project description: 3 separate gas processing facilities (Wafa desert plant, Coastal plant, Mellitah plant), gas and condensate pipelines, Subsea wells and pre-treatment on the Sabaratha offshore platform and export to Italy via pipeline. Scope of Work: PMC of EPC Dung Quat Grassroots Refinery and Propylene plant* Client: PetroVietnam (Vietnam Oil & Gas Corporation) Location: Vietnam Project description: First refinery in Vietnam (6.5 million tonnes crude per annum). The products are: LPG, polymer grade propylene, gasoline, kerosene, jet fuel, diesel and fuel oil. PetroVietnam also built a polypropylene plant designed to produce 150,000 tonnes per annum of polypropylene from feed stock exported from the adjoining refinery and from marine imports. Scope of Work: PMC of EPC * Project executed prior to completion of the acquisition of Stone & Webster process technologies and associated oil and gas engineering capabilities by Technip on August 31, Technip executed the EPC of this project. Umm Shaif Offshore Gas Injection facility Client: Abu Dhabi Marine Operating Company (ADMA-OPCO) Location: UAE Project description: Development of facilities to dehydrate and inject 600 million cubic feet a day of sour gas into the Arab C and D reservoirs to improve oil reservoir pressure. The project enhanced oil production from the Umm Shaif field by an average of 50,000 bbl/d. It consisted of associated separation and effluent water facilities that were consistent with the Client s long-term field development plan with an ultimate injection rate of 3 bscf/d. Scope of Work: PMC of EPC Group III Base Oil Production Facility Client: Abu Dhabi Oil Refining Company (TAKREER) Location: UAE Project description: Modification of existing hydrocracker to provide unconverted oil feedstock to new build units for the production of 500,000 t/year of Group III Base Oils and 120,000 t/year of Group II Base Oils. It included new intermediate and product storage tankage into existing refinery interconnecting pipe network and as the modification of existing jetty facilities for the export of base oil products. Scope of Work: PMC of EPC Technip PMC 11

12 Key benefits that Technip brings to its Clients: Outstanding environmental, health and safety performance Global presence and expertise in project execution across the oil & gas, petrochemicals and refining energy sectors Project execution excellence with focus on critical path items to meet or beat Clients budget and schedule Extensive FEED, EPC and PMC experience Established PMC execution philosophy through technical, project management, and HSE systems and procedures Understanding of risks in executing onshore/offshore projects, fabrication facilities and employing engineering subcontractors by EPC contractors Cost consciousness at all levels in project teams, coming from our well proven LSTK experience HEADQUARTERS Technip 89 avenue de la Grande Armée Paris Cedex 16 France Phone: +33 (0) CONTACT Technip PMC Michele FRAGOMENI Phone: Follow us on This document is the property of Technip and is not intended to be a binding contractual document. Any information contained herein shall not result in any binding obligation on the part of Technip, or any of its affiliates, and is provided for information purposes only. Technip - Group Communications - May Photo credits: Technip - page 9, 11: Harry Gruyaert /Magnum photos