Worley Limited · ASX:WOR
Worley — WorleyParsons — Investor Day (October 2012)
146 slides from Worley's investor day presentation, Oct 23, 2012
Slide 1: Investor Day 2012
For personal use only Investor Day 2012 Welcome, Stuart Bradie
Slide 2: Venue evacuation
Venue evacuation For personal use only In the event of a fire alarm activating the following process will commence: • An alert tone will sound – Beep, Beep, Beep • Followed by the evacuation tones – Whoop, Whoop, Whoop • The head warden will make an announcement over the loud speakers • Immediately
Slide 3: Road safety
For personal use only Road safety Marian McLean
Slide 4: The OneWay framework
The OneWay™ framework For personal use only through our people…. 1. Leadership and Governance 2. Risk Management ...achieving our 3. Caring for our People & the vision. Environment 4. Selection and Competency 5. Working with Customers 6. Engineering 7. Working with Vendors and Contractors 8. Field E
Slide 5: Road safety realities
Road safety realities For personal use only ► 1.3 million people are killed on the world’s roads each year ► Road crashes kill more people than Malaria ► 50 million people are injured, many disabled as a result ► 90% of these casualties occur in developing countries ► Annual deaths are forecast to r
Slide 6: Joining the United Nations
Joining the United Nations For personal use only United Nations Decade of Action for Road Safety ► WorleyParsons has signed the United Nations Global Road Safety Commitment Program ► By signing the commitment we have pledged to work towards zero deaths and severe injuries as a result of our operatio
Slide 7: What are we doing?
What are we doing? For personal use only 1. Revising our driving standard and relevant guidelines 2. Developing local programs 3. Developing a marketing and awareness campaign 4. Initiating data collection and analysis
Slide 8: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity EcoNomics
Slide 9: Introduction
For personal use only Introduction Andrew Wood, Chief Executive Officer
Slide 10: Key senior appointments
Key senior appointments For personal use only Randy Karren Group Managing Director – Improve Simon Holt Chief Financial Officer 2
Slide 11: Group outlook update
Group outlook update For personal use only “Subject to the markets for our services remaining strong, we expect to achieve good growth in FY2013 compared to FY2012 underlying earnings. “Since this guidance was given, volatility in our markets has increased and there is greater uncertainty about them
Slide 12: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity EcoNomics
Slide 13: Strategy update
For personal use only Strategy update Iain Ross
Slide 14: Agenda
Agenda For personal use only ► Local / global delivery ► Emerging trends ► Overarching corporate initiatives ► Customers perspective ► Focus Areas • Hydrocarbons • Minerals, Metals & Chemicals • Power • Infrastructure & Environment 2
Slide 15: Local delivery, global support
Local delivery, global support For personal use only 4.9 million workshare hours (FY2011: 3.4 million) 40,800 people 163 offices 41 countries 3
Slide 16: Local / global model
Local / global model For personal use only MM&C MM&C
Slide 17: Building full delivery capability
Building full delivery capability For personal use only
Slide 18: Emerging trends
Emerging trends For personal use only ► Game changing developments in unconventional gas • LNG/CNG for transport • US renaissance ► Asian fabrication yards playing an increasing role ► Large remote projects remain very dependent on front-end enabling ► Hydrocarbons and Minerals, Metals & Chemicals m
Slide 19: Overarching corporate initiatives
Overarching corporate initiatives For personal use only ► Year of Improve ► Tier 1 companies deserve intense focus ► Participate in US renaissance ► China ► India – high value engineering ► Execution led delivery
Slide 20: Hydrocarbons focus areas
Hydrocarbons focus areas For personal use only ► Integrated Improve ► Harness emergent LNG market ► Lead full field development in unconventional oil and gas ► Monetisation of low cost gas ► Houston Select capability ► Customer relationship management ► Latin American hubs
Slide 21: Minerals, Metals & Chemicals focus areas
Minerals, Metals & Chemicals focus areas For personal use only ► Globalise Minerals, Metals & Chemicals ► Pit to port ► Chemicals rapid growth ► Latin America focus via Chile and Brazil ► Alumina refinery support package ► Extension of global customer relationship management ► Focus on Improve offer
Slide 22: Power focus areas
Power focus areas For personal use only ► Fossil Improve ► Nuclear new-build and Improve ► Coal power execution centre ► Middle East and Sub-Saharan Africa ► Resource power ► Networks
Slide 23: Infrastructure & Environment focus areas
Infrastructure & Environment focus areas For personal use only ► Pit to port ► Develop enabling capabilities to support • Minerals, Metals & Chemicals • Hydrocarbons • Unconventional oil and gas • LNG bunkering and gas for transportation • Power ► Restoration
Slide 24: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity 12 EcoNomics
Slide 25: Delivery Support Group
For personal use only Delivery Support Group Dave Steele
Slide 26: Agenda
Agenda For personal use only ► Historical approach to project delivery services ► Our Delivery vision ► Current initiatives ► Supporting project teams 2
Slide 27: Historic approach
For personal use only 3 Historic approach
Slide 28: EPCM execution
EPCM execution use EXECUTION only Ready for Start Up personal PLANNING Engineering Construction ForSTRATEGIC Procurement • TIC +/- 10% Estimate • EPCM Schedule • Mechanically complete • Key Execution Management Plans • Handover records • Modularization Strategy • Plant Ready for Start-Up • Contracti
Slide 29: Support networks
Support networks For personal use only People management Processes, Recovery systems and tools Services Mobilization Review and and report Initiation 5
Slide 30: Standard EPCM tools
For personal use only 6 Standard EPCM tools
Slide 31: Direct project support
Direct project support For personal use only People management “Red” Projects Processes, Recovery systems and tools Services New NBaU Projects Review and Mobilization report and Initiation 7
Slide 32: Enhanced processes
Enhanced processes For personal use only People management Processes, Recovery systems and tools Services Review and Mobilization report and Initiation 8
Slide 33: EPCM execution
EPCM execution use EXECUTION only Ready for Start Up personal PLANNING Engineering Construction ForSTRATEGIC Procurement • TIC +/- 10% Estimate • EPCM Schedule • Mechanically complete • Key Execution Management Plans • Handover records • Modularization Strategy • Plant Ready for Start-Up • Contracti
Slide 34: Supporting project teams
Supporting project teams For personal use only Shondoni project, South Africa Khazzan Makkarem project, Oman QGC project, Australia MAK project, Mongolia 10
Slide 35: The key to success
For personal use only 11 The key to success
Slide 36: Unconventional oil and gas
For personal use only Unconventional oil and gas Brian Evans
Slide 37: Agenda
Agenda For personal use only ► Global unconventional reserves, production and trends • China • Australia • North America ► WorleyParsons’ unconventional offering ► WorleyParsons’ unconventional projects update 2
Slide 38: Global view to 2040
Global view to 2040 ► Globally, unconventional gas For personal use only production is forecast to comprise 30% of total production by 2040 ► But…in North America, 50% of capital is already spent on unconventional resources
Slide 39: Global view to 2015
Global view to 2015 For personal use only Production Reserves 4
Slide 40: Unconventional liquids view to 2040
Unconventional liquids view to 2040 For personal use only 5
Slide 41: Unconventional liquids view to 2040
Unconventional liquids view to 2040 For personal use only 6
Slide 42: North American production
North American production For personal use only North American Creation of significant unconventional gas pricing disparity production $3.31 / mmbtu $21.20 / mmbtu Oct 19 2012) $111/barrel Oct 19 Brent price) 7
Slide 43: Chinese shale gas plays
Chinese shale gas plays For personal use only Five “less promising” shale basins for exploration/production 46% proven shale gas reserves Exploration PetroChina Chevron Shell ConocoPhillips 54% proven EOG Shale gas reserves EIA, April 2011 8
Slide 44: Australian shale gas plays
Australian shale gas plays For personal use only Four “less promising” shale basins for exploration/production 6% proven 58% proven shale gas reserves shale gas reserves 21% proven shale gas reserves 15% proven shale gas reserves 9
Slide 45: North America shale gas plays
North America shale gas plays For personal use only 15% proven shale oil reserves 58% proven 64% proven shale gas reserves shale oil reserves 6% proven 36% proven shale gas reserves shale gas reserves 14% proven shale oil reserves 10
Slide 46: Full field development leading to value creation
Full field development leading to value creation For personal use only Lean eM Delivery model VALUE CREATION 11
Slide 47: Full phase delivery services
Full phase delivery services For personal use only CONCEPT / SELECT PROJECT DELIVERY ASSET IMPROVE • Environmental • Planning / Logistics • Operational efficiency • Stakeholder Management • Maintain / optimize Management • Design standardization • Pre FEED • Total Water Management • Early Works • Su
Slide 48: International experience
International experience For personal use only CANADA EUROPE USA Montey France Shale 2X Eagle Ford Horn River Spain Shale Kansas Tight Oil Farrell Creek Morocco Shale West Texas Duvernay Colorado Shale Oil Onshore Gas Marcellus Bakken Shale Oil MIDDLE EAST Tight Gas AUSTRALIA CBM Project 1 CBM Proje
Slide 49: South Texas shale programs
South Texas shale programs For personal use only Eagle Ford Project #1 106,000 Acre – Contiguous Block ►Approximate 900 well program ►Gas Processing – 600MM SCFD ►Stabilized Condensate – 60-90 kbpd ►Gas processing, gathering & pipelines ►Frac water recovery / prod. water treat. ►Instrumentation & el
Slide 50: Oman tight gas program
Oman tight gas program For personal use only ► Full field project scope ~500km of gas gathering pipeline system ~330 gas wells, 8 -10 drilling rig program Gas processing plant of capacity 1.2 billion scf/d ~150km export pipelines for gas and condensate products into Oman markets Construction manpowe
Slide 51: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity 16 EcoNomics
Slide 52: Improve
For personal use only Improve Graeme Henderson
Slide 53: Agenda
Agenda For personal use only ► Background ► Progress Update ► Significant trends in Improve market ► Extending existing services ► Leveraging know how ► Entering new geographic markets 2
Slide 54: Improve background
Improve background For personal use only ► WorleyParsons’ Improve teams work with our customers in long-term partnerships to optimise the performance of their ongoing operations ► We integrate our success with the owner/partner by linking our performance to compensation ► We tailor our offering to m
Slide 55: Improve global reach
Improve global reach For personal use only 260+ long term contracts 4
Slide 56: Recent success
Recent success For personal use only New Minerals, Metals & New Power long 7 Chemicals long term 12 term contracts contracts New Infrastructure & New Hydrocarbons 4 Environment long 14 long term contracts term contracts 5
Slide 57: Improve multi-site wins
Improve multi-site wins For personal use only ► Selection criteria for multi- site agreements is often based upon: ● Recognition of our leadership position in long term contracts ● Proven safety performance ● Global footprint ● Global systems and processes 6
Slide 58: Key new contract wins
Key new contract wins For personal use only USA INDONESIA USA AUSTRALIA Bruce Power Chevron Pacific LyondellBasell BHPB Iron Ore Sustaining Projects Engineering and Small Projects Sustaining Capital Construction Alliance Delivery Management Annual renewal 5 years 3years 3 years 7
Slide 59: Significant market trends
Significant market trends For personal use only ► Globalization • Collaboration and consistency ► Concentration on buyer and supply side ► Increased focus on operational effectiveness ► Major re-calibration in mining customers ► Profitable sustainability ► Increasing asset base ► Asset integrity 8
Slide 60: BP relationships
BP relationships For personal use only Source: bp.com Three global project agreements – Onshore, Offshore, Subsea
Slide 61: Shell relationships
Shell relationships For personal use only Source: shell.com
Slide 62: Proven long term partners
Proven long term partners For personal use only CUSTOMERS YEARS CUSTOMER YEARS Eastman Chemicals, USA 42 Refining New Zealand, NZ 15 Brunei Shell Petroleum, Brunei 22 BP Chemicals, Malaysia 15 Syncrude, Canada 21 Qenos Plastics, Australia 14 TVA Power, USA 21 Brunei LNG, Brunei 14 Imperial Oil, Cana
Slide 63: Extending services
For personal use only 12 Extending services
Slide 64: Leveraging know how
Leveraging know how For personal use only ► INPEX Ichthys project ► 8.4 Mt of LNG p.a ► 1.6 Mt of liquefied petroleum gases (LPGs) p.a ► Complete integrity and maintenance build for all facilities ► Applying the Local/global model, ► Perth will provide overall project management ► INTECSEA Houston ►
Slide 65: New geographies, stronger hubs
New geographies stronger hubs For personal use only Kazakhstan Gulf of Mexico MENAI Chile Angola WA QLD Brazil SSA 14
Slide 66: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity 1S EcoNomics
Slide 67: Power Update
For personal use only Power Update Chris Ashton
Slide 68: Agenda
Agenda For personal use only ► What our customers need ► Building long term relationships • Fossil Improve • New build generation ► Nuclear power ► Renewable energy ► Resource power • Halul Case Study
Slide 69: What our customers need
What our customers need ► In developed markets utilities For personal use only continue to face challenges • Aging fleets • Transmission and Distribution Upgrades • Stringent environmental regulation. • Fuel selection - coal to gas • Demand reduction – a structural shift ► In developing markets it’s
Slide 70: What our customers need
What our customers need For personal use only ► Anticipated privatisation of power assets in selected countries resulting in clients needing to outsource operations ► Resource, energy and industrial customers are demanding off grid power solutions ► More diverse customer base given the structural ch
Slide 71: What our customers need
What our customers need For personal use only ► Global expansion a priority for Developers and EPC contractors leading to the need for local support in more places ► Asset management ► Outage management ► Integrated Fleet/Asset services
Slide 72: Building long term relationships - Fossil Improve
Building long term relationships - Fossil Improve For personal use only ► Developed world • Supporting our customers in managing existing facilities − AEP (US) ► Long term service agreements • USA, Australia and Canada ► Retirement of old coal and transition to gas fired power generation in the USA
Slide 73: Building long term relationships - Fossil new build
Building long term relationships - Fossil new build For personal use only ► Developing World – demand growth and greater need for security of supply • South Africa – Eskom Panels • Saudi Arabia – SEC JV ► Strong outlook for gas turbine technology • Increased natural gas supply in many regions • Sust
Slide 74: Nuclear Power
Nuclear Power For personal use only ► The International Atomic Energy Agency and OECD state the East Asia region will more than double its nuclear capacity in the next two decades ► New build almost entirely moving into the developing world – Vietnam, Malaysia, Egypt ► US and UK continue with new bu
Slide 75: Nuclear Power
Nuclear Power For personal use only ► New build support contracts • Saudi Arabia • Turkey • Egypt ► Strong position in Nuclear Improve market • USA • Canada ► Seeing a broader range of services for Fukushima related solutions • USA • Eastern Europe – Bulgaria and Slovenia
Slide 76: Resource power
Resource power For personal use only ► Significant long-term potential in this area particularly in Hydrocarbons and MM&C sectors ► Expanding opportunities in power for resource projects in a number of regions in both new build and Improve • Qatar Petroleum’s Halul sub-sea cable • Co-generation proj
Slide 77: Halul subsea cable, Qatar
Halul subsea cable, Qatar For personal use only ► Qatar Petroleum • FEED & DE for Power Supply upgrade to Halul Island from local utility KAHRAMAA’s grid in Ras Laffan ► 2 x 100km, 132kV, HVAC, 100MW subsea cable ► Execution offices • Doha Office • Singapore • Melbourne • India
Slide 78: Halul subsea cable
Halul subsea cable For personal use only ► The cable would reach from Sydney to Newcastle ► It takes more than one NEED A PHOTOGRAPH OF A month working 24 hrs/day Cable to load the cables onto the CABLE WeightDRUM – ON A BARGE – 90 SOMETHING kg/metre LIKE THE transport barge drum ONE THAT IS IN THE
Slide 79: Building long term relationships: Saudi Electricity Company
Building long term relationships For personal use only ► Saudi Electricity Company • Undergoing a major restructuring − 4 major generation companies − 1 transmission company − 1 distribution company • Major power generation & transmission expansion program − Approx. 45GW of new capacity additions −
Slide 80: Building long term relationships
Building long term relationships For personal use only ► Creation of a new Joint Venture between SEC and a selected engineer ► Scope of Work • Engineering & Design − Facility Planning/Conceptual Engineering − Pre-FEED/FEED − Detailed Design − Material and Equipment Procurement • Project Management −
Slide 81: Building long term relationships
Building long term relationships For personal use only ► Characteristics of desired contractor • Localization, standardization of design and project implementation • Enhancing economic competitiveness of KSA by encouraging localization of manufacturing • Build capability within SEC and in- kingdom f
Slide 82: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity 16 EcoNomics
Slide 83: Creative Solutions
For personal use only Creative Solutions Gordon Cowe
Slide 84: Agenda
Agenda For personal use only ► Consulting Services overview ► Core tools • EcoNomics™ Delta • WaterRIDE ► New tools • Blast risk mapping • Storage tank explosion • Coal dust modelling • Project portfolio management ► Diverless solutions • Plumes, sedimentation, coral, acoustic and pest monitoring 2
Slide 85: Supporting consulting services
Supporting consulting services For personal use only 3
Slide 86: Advanced Analysis Group (AAG)
Advanced Analysis Group (AAG) For personal use only ► AAG Consulting Practice provides specialist capability and general numerical analysis tools to all CSGs and acts as a key differentiator across a broad range of industries ► The services provided fall into two broad categories: 1. The delivery of
Slide 87: The standard AAG questions
The standard AAG questions For personal use only Can it be built? Is it durable? Will it fail? Is it safe? Can I test it? Will it perform? Why did it fail? Can you create a funky Annual Report cover? 5
Slide 88: Core tools
Core tools For personal use only Computational Fluid Finite Element Dynamic Simulation Dynamics (CFD) Analysis (FEA) ► Dynamic simulation ► CFD uses numerical ► Dynamic and Non- enables the modelling methods to model fluid Linear versions of logistics and flows. production processes ► Dynamic FEA is
Slide 89: Two pivotal tools
Two pivotal tools For personal use only EcoNomics™ Delta Tool WaterRIDE™ Tool ► Created in 2008 ► Created in 2004 ► Proven critical to customers ► Exceptional track record of required stronger definition around providing powerful analysis to flood profitable sustainability experts through to the gen
Slide 90: Refinery tank rupture analysis
Refinery tank rupture analysis For personal use only 8
Slide 91: Project portfolio optimisation
Project portfolio optimisation For personal use only ► Project Portfolio Optimisation system assists our customers to manage large numbers of capital projects by identifying their sequence of timing fulfilling customer’s objectives whilst minimising cost. 9
Slide 92: Project portfolio optimisation
Project portfolio optimisation For personal use only ► Demand trajectory analysis fulfilling client time dependent needs whilst minimising cash flow ► Modelling engineering requirements across a five year project portfolio to optimise cash flow for a major mining company
Slide 93: Marine monitoring
Marine monitoring For personal use only ► Historically lagging indicators becoming powerful operational inputs • Plumes • Sedimentation • Coral − Coral Transector − Real time data analysis versus monthly reporting • Acoustic monitoring • Pest inspectors 11
Slide 94: Value to WorleyParsons
Value to WorleyParsons For personal use only ► Revolutionary • Industry game changer ► Front-end entry • Positions us for pull-though ► Aligned with ZeroHarm • Eliminates HSE risk ► Delivers tangible value • Reducing cost and schedule ► True differentiator • Unique tools unparalelled by any other co
Slide 95: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity 18 EcoNomics
Slide 96: Corporate Responsibility (CR)
For personal use only Corporate Responsibility (CR) Greg Clinnick
Slide 97: Corporate responsibility
Corporate responsibility For personal use only ► We recently set ourselves the challenge to be recognised as being in the top quartile of our peer group in the area of Corporate Responsibility (CR) ► In response to this challenge we have appointed a small corporate team to manage and co-ordinate CR
Slide 98: Why a shift in focus?
Why a shift in focus? For personal use only ► Corporate Responsibility has long been a part of our business ► Strongly supported by the Board and Management – it’s good for business at many levels. ► Increasingly important to: • Our people • Our customers • Our shareholders • Our market analysts • O
Slide 99: Activity highlights
Activity highlights For personal use only ► Participate directly in over 340 community and environmental based projects across 16 countries ► Over $4.6m of funding contributed by the company and by its people. ► 23,700 volunteered hours by our people ► Educational sponsorships across 10 locations ►
Slide 100: Indigenous Australian summer school - Australia
Indigenous Australian summer school - Australia For personal use only
Slide 101: Localization and scholarship - Nigeria
Localization and scholarship - Nigeria For personal use only
Slide 102: Anti-child abuse publication - Trinidad
Anti-child abuse publication - Trinidad For personal use only
Slide 103: The Kenya project - Canada
The Kenya project - Canada For personal use only
Slide 104: Work Safely Centres - Global
Work Safely Centres - Global For personal use only
Slide 105: Health fundraising activities - United States
Health fundraising activities - United States For personal use only
Slide 106: Malaria and Cholera prevention program - Nigeria
Malaria and Cholera prevention program - Nigeria For personal use only
Slide 107: Next steps
Next steps ► Commence external Corporate For personal use only Responsibility reporting using the internationally recognized Global Reporting Initiative (GRI) framework ► Update Corporate Responsibility indicators and set target baselines ► Implementation and execution of local Corporate Responsibil
Slide 108: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity 18 EcoNomics
Slide 109: US Gas Renaissance
For personal use only US Gas Renaissance Chris Parker
Slide 110: Agenda
Agenda For personal use only ► Background on USAC operations ► US renaissance drivers and enablers ► Impact of low cost energy ► Where are the risks? 2
Slide 111: US office locations
US office locations For personal use only 22 offices 6,400 personnel 3
Slide 112: Current major projects
Current major projects For personal use only Hebron Field Development SAMREF Clean Fuels Project, American Electric Power Offshore New Foundland, Air Quality Projects, Canada Saudi Arabia USA FEED / EPC options FEED, EPCM Detailed engineering and procurement services 4
Slide 113: US market drivers and enablers
US market drivers and enablers For personal use only ► Unconventional gas driving the very rapid production increases in the US lower 48 states ► Directional drilling and hydraulic fracturing are key advances in production technology ► Further efficiencies are accelerating the pace unconventional de
Slide 114: Monetising the gas boom
Monetising the gas boom For personal use only Capture the downstream opportunities resulting from the advent of cheap gas With conventional oil prices remaining high + Readily available and abundant unconventional gas is coming online Downstream opportunities will develop to monetise the gas Liquids
Slide 115: US Hydrocarbons
US Hydrocarbons For personal use only ► Strong relationships with tier 1 and 2 customers ► Global oil supply is approaching production capacity, causing tight oil markets. ► Cheaper shale gas driving petrochemical manufacturers to look at ethane over naphtha ► WorleyParsons is actively seeking downs
Slide 116: US Minerals, Metals & Chemicals
US Minerals, Metals & Chemicals For personal use only ► Unprecedented number of opportunities in the chemicals 2011 2012 market Petrochemicals 25% Petrochemicals 47% Plastics/Resins 18% Plastics/Resins 21% ► Construction starts for 2012 Specialty Chemicals 15% Specialty Chemicals 11% capital project
Slide 117: Low cost energy impact
Low cost energy impact For personal use only ► The low cost energy advantage creates and opportunity for industrial and manufacturing industries to return to the US • Specialty chemicals • Tire manufacturing • Pharmaceuticals • Metals processing ► Industrial planning around the energy sources: • Ene
Slide 118: US market drivers and enablers
US market drivers and enablers For personal use only ► Natural gas prices have seen downward pressure • Prices expected to increase through 2020, but will stay in the $5-6 range ► The advantage of lower feedstock and energy costs could amount to $11.6 B in annual savings to domestic manufacturers ►
Slide 119: US Infrastructure & Environment
US Infrastructure & Environment For personal use only ► Shifts in pipeline flows will require new infrastructure investment ► The decrease in coal usage by the power sector is causing the export of coal to Asia and an expansion of major ports on the West and East coasts ► Natural gas price different
Slide 120: Active watch
Active watch For personal use only ► Increased natural gas export NGV Fueling Stations capability may reduce the gas price advantages and benefits ► Increased demand from the power sector is well forecasted • Demand from natural gas vehicles and other transport is uncertain ► EPA regulations have be
Slide 121: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity 18 EcoNomics
Slide 122: Minerals, Metals & Chemicals
For personal use only Minerals, Metals & Chemicals Mark Southey
Slide 123: Agenda
Agenda For personal use only Customer and market outlook Growth geographies • Sub Saharan Africa • Latin America • Eastern Canada Increasing industry diversity • Uranium • Chemicals 2
Slide 124: Customer and market outlook
Customer and market outlook For personal use only ► Some market softening in bulks (iron ore and coal), prices showing signs of recovery ► Copper and gold remain resilient ► Chemicals outlook strong ► Customers reviewing capital programs • Focus on cost efficiencies • Review major project developmen
Slide 125: Growth geographies: Sub Saharan Africa
Growth geographies Sub Saharan Africa For personal use only ► Increasing levels of global investment ► All our global customers are targeting this region ► Leverage experience and capability in South Africa ► Build execution platform for access to developing world region ► Growth focus areas 4
Slide 126: Growth geographies: Latin America - Chile
Growth geographies Latin America - Chile For personal use only ► Increased ownership of ARA WorleyParsons from 50% to 94% ► Strongly aligned with Minerals, Metals and Chemicals strategy ► High growth region ► Strong interest in copper, gold, iron ore and coal ► Building Santiago as the execution hub
Slide 127: Growth geographies – Canada
Growth geographies – Canada Cegertec WorleyParsons JV For personal use only ► Cegertec WorleyParsons joint venture is based in Quebec and was formed in April 2012 ► Provides Eastern Canada capability and footprint ► Leverage capability and relationships globally ► Early successes 6
Slide 128: Growth commodity - Uranium
Growth commodity - Uranium For personal use only ► Established Saskatoon office 2 years ago to increase access to Potash and Uranium markets ► Seeing results through local and international project awards ► Strong and growing relationships ► Tier 1 customers producing around 50% of global supply 7
Slide 129: Commodity focus - Chemicals
Commodity focus - Chemicals For personal use only Continue high levels of customer investment Significant amount of opportunities ► WorleyParsons has a strong track record in Chemicals • More than 600 projects in over 30 countries 8 22-Oct-12
Slide 130: Chemicals: industry outlook
Chemicals: industry outlook For personal use only ► China and India will continue to drive demand ► Some potential market tightening due to Eurozone uncertainty ► US Renaissance providing unprecedented opportunities ► Shift to high value products in Middle East 9
Slide 131: Chemicals Strategy
Chemicals Strategy For personal use only ► Focus geographies: • USA • Middle East/Europe • China/Asia ► Leverage legacy Chinese expertise into new global development ► Intensify customer focus in US to align with new investment opportunities 10
Slide 132: Chemicals strategic relationships
Chemicals strategic relationships For personal use only ► Continue to build strategic relationship with some of the worlds leading Chemicals companies ► Capitalise on the trend towards global supplier relationships ► Our capability and reference projects with major players continues to grow 11
Slide 133: Key projects
Key projects For personal use only ACAI/NASA Project Customer: BASF-YPC Company Ltd Location: Brazil and China ► Two identical Super Absorbent Polymer (SAP) sites, one in Nanjing, China the other in Camacari Brazil ► EPCM awarded for Brazil; EP and Construction support awarded for China ► Production
Slide 134: Other project examples
Other project examples For personal use only Palm Tree Phase 2 Expansion Customer: Xinan-Momentive Location: China BOC Dissolved Acetylene Project Customer: BOC Location: United Kingdom Phosphate based Fertilizer project Customer: Undisclosed Location: Middle East 13
Slide 135: Conclusion
Conclusion For personal use only ► Our strategy is robust and remains on track ► Our geographic expansion and industry diversification provides good headroom for growth ► Many opportunities to create value across the industry in the changing market environments 14
Slide 136: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork — unity 1S EcoNomics
Slide 137: Execution Led Delivery
For personal use only Execution Led Delivery Randy Karren
Slide 138: Agenda
Agenda For personal use only ► Background on WorleyParsons Cord ► EPC project delivery • Aurora tailings dam • Sunrise well pads ► Delivery model ► Further enhancements 2
Slide 139: WorleyParsonsCord background
WorleyParsonsCord background For personal use only 3
Slide 140: EPC project delivery: Imperial Oil Aurora Tailings Management
EPC project delivery Imperial Oil Aurora Tailings Management For personal use only ► Project scope • Composite tails building with hydro-cyclones (CT) • Slurry pumping and pipelines • Mature fine tails barge (MFT) • Ancillary systems including gypsum plant for tailings treatment
Slide 141: Aurora Tailings Management
For personal use only ► Aurora Tailings Management • Jobsite is north of Fort McMurray • Engineering / design • Number of modules – 33 • Fabrication and construction
Slide 142: EPC project delivery: Husky Sunrise Well Pads
EPC project delivery Husky Sunrise Well Pads For personal use only ► Project scope • Field facilities for a 60,000 bpd SAGD plant • 8 well pads virtually identical in design • Associated above ground gathering systems • Associated underground pipelines for make-up and disposal water
Slide 143: Sunrise Well Pads
For personal use only ► Sunrise Well Pads • Jobsite is north of Fort McMurray • Engineering / design • Number of modules – 130 • Fabrication and construction
Slide 144: EPC project delivery: key features of delivery model
EPC project delivery Key features of delivery model For personal use only ► Graduated lump-sum conversion approach ► Using our systems and tools for engineering, procurement and construction project delivery • Bringing the Local / global model to bear on full project delivery ► Module fabrication as
Slide 145: EPC project delivery: future enhancements
EPC project delivery Future enhancements For personal use only ► High value project delivery • Working with WorleyParsonsCord and bringing offshore fabrication and procurement into the delivery cycle ► Delivering the WorleyParsonsCord model into other geographic regions ► Improve relationships with
Slide 146: WorleyParsons values collage
WorleyParsons resources & energy innovation fyture competitive _ partnershipconsistency cooperation empowerment global collaboration SUCCESS |ocalrelationships knowledge performance collective delivery Customer shared common leadership transparency agilityteamwork —_ unity 10 EcoNomics