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AMEC plc – Unconventional oil & gas: Canada UBS oil sands investor trip

AMEC plc – Unconventional oil & gas: Canada UBS oil sands investor trip. Peter Madden 15 June 2011. Agenda. Canadian oil sands – the market AMEC’s position AMEC’s strategy for growth. Oil sands market. Introduction. AMEC’s position. Appendix.

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AMEC plc – Unconventional oil & gas: Canada UBS oil sands investor trip

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  1. AMEC plc – Unconventional oil & gas: CanadaUBS oil sands investor trip Peter Madden 15 June 2011

  2. Agenda • Canadian oil sands – the market • AMEC’s position • AMEC’s strategy for growth Oil sands market Introduction AMEC’s position Appendix

  3. Canadian oil sands – the marketDrivers and trends • Massive reserve base • Security of supply • Sustainable oil price • Oil sands production forecast to increase to 2.9m bbl/day by 2020 • Peak demand shifted to right post economic turmoil • Estimated growth rate (2010-2015) for unconventional oil & gas market is 8-10%* • Recognising it is a ‘project’ business with normal peaks and troughs Oil sands capital expenditure forecast (pre and post economic turmoil)** Market continues to grow - while timing of projects causes peaks and troughs *AMEC estimates of market growth potential in our accessible market (CAGR 20100 – 2015), based on mid-cycle assumptions **Source: The Oil Sands Developers Group, oil sands: growth continues, Sept 2010 Oil sands market Introduction AMEC’s position Appendix

  4. Canadian oil sands – the marketKey producers Oil sands main producers 2009/15E** • IOCs dominate (long term investment horizons) • Independents impacted by funding issues • Market attracting NOCs and international investment • China • Korea • France • Norway • Thailand • Japan IOCs dominate – due to long term investment horizons **Source: Oil Sands Developers Group, Jan 2011 Oil sands market Introduction AMEC’s position Appendix

  5. Canadian oil sands – the marketDrivers and trends • Pipeline of oil sands projects is strong • Shift from mining to in situ technology • 80% of future production * Oil sands project list, May 2011 Future oil sand projects 5 30 19 4 4 8 7 3 Total number of projects Total number of projects AMEC is positioned for the developing portfolio *Source: The Oil Sands Developers Group Jan 2011 Oil sands market Introduction AMEC’s position Appendix

  6. AMEC’s positionCanadian oil sands • Leader in mineable oil sands extraction • One of a number of companies with in situ expertise • Complemented by environmental and power services Market position Profile Revenue Approx £600m* (2010) Segment Extraction: mineable and in situ Services Study services, engineering and procurement, project and construction management, asset management, environmental services Clients Imperial Oil, Exxon Mobil, Shell, Syncrude, Suncor, CNRL • Strong mineable position - worked on all major projects since 1991 • Primarily CAPEX services AMEC’s differentiator is track record and engineering expertise *AMEC’s unconventional oil and gas sector generated 20% of group revenue in 2010, and includes Canadian oil sands activity Oil sands market Introduction AMEC’s position Appendix

  7. AMEC’s position Competitive capabilities Strong position Capability Limited capability No involvement/capability • Leadership position built on track record and technical skills • Leading position in mineable • In situ technology AMEC BDR • Complementary services a competitive advantage • Current customers include: • Imperial Oil/Exxon Mobil, Syncrude, Teck, Suncor, Connacher AMEC AMEC is well positioned beyond Kearl project Source: websites This analysis is indicative and not intended to represent the entirety of the market and AMEC's competitive position Oil sands market Introduction AMEC’s position Appendix

  8. AMEC’s positionKearl oil sands project Client: Imperial Oil Resources Ventures Limited Location: Northern Alberta, Canada Dates: 2007 – Ongoing Capital cost: Cdn$8 billion Commodity: Bitumen Scope of services • Pre-feasibility studies, FEED package and currently detailed design (EPCM phase) for Kearl Initial Development (KID) • Project is scheduled to produce first oil in Q4 2012, nominally producing 110,000 bpd of partially deasphalted bitumen • During peak production, Kearl could ultimately produce 345,000 bpd, and the Kearl Expansion Project (KEP) is the next stage of development to realize this goal • AMEC has begun detailed design (engineering and procurement) on this expansion, scheduled to produce first oil in Q1 2015 Oil sands market Introduction AMEC’s position Appendix

  9. AMEC’s positionStrategy for growth Future position • Maintain leadership position in mineable oil sands • Continue to develop in situ position • Develop in situ portfolio to c. 30,000 bbl/day facility offering • Develop EPC capability (through strategic partnership with constructor) • Reinforce PM and CM Strategy Oil sands market Introduction AMEC’s position Appendix

  10. AMEC plc – Unconventional oil & gas: CanadaUBS oil sands investor trip Appendix

  11. Appendix Biography – Peter Madden Peter Madden Peter Madden is President, Oil Sands for AMEC, leading a 2,000 person Engineering and Project Management business based in Calgary, Alberta. Peter has over 34 years experience in Oil and Gas, eighteen years in senior management positions, and held many senior roles in project and corporate organisation structures with legal and fiscal responsibility for the delivery of project and business targets. As a Fellow of the Institution of Structural Engineers, his background skills were developed through structural design and analysis work in the North Sea, Middle East and Borneo working for both Contractors and Operators. Oil sands market Introduction AMEC’s position Appendix

  12. AppendixAMEC expertise 1991-2011 Involved in virtually all major projects since 1991 Syncrude Consolidated Tailings Connacher Great Divide SAGD Syncrude North Mine Feasibility Study Syncrude Production Improvements 1998 2006 - 2007 2005 - Present Suncor Extraction Expansion Total/Deer Creek Joslyn SAGD Imperial Oil Kearl FEED/EPCM Imperial Oil Kearl PDM 2003 - 2004 1997 2006 - Present Shell Jackpine Mine Suncor Steepbank Feasibility Study 2005 - 2006 1991 2002 1995 2011 1991 2005 - Present 1997- 2005 2004 - Present Syncrude Aurora I/II & South West Quadrant Shell Albian Sands Expansion EPCM Total/Deer Creek Joslyn 2003 1993 TrueNorth Energy Fort Hills 2005 - 2006 Suncor Millennium Relocation Study 2005 - Present Shell Muskeg River Production Improvement 1998 Imperial Oil WCMP Sustaining Capital Shell Muskeg River Mine 1996 2003 - 2008 Suncor Consolidated Tailings Canadian Natural Resources Horizon Oil sands market Introduction AMEC’s position Appendix

  13. AppendixAMEC - mineable and in situ capability Leading market positions • Conventional (mineable) • Involved in world’s first commercial oil sands mine in 1967 • Helped build biggest oil sands mine (Mildred Lake) • Worked on virtually every major mineable oil sands development since 1991 • Non-conventional (in-situ) • AMEC BDR 30+ years oil sands processing experience • Particularly in-situ technologies and deep reserve extraction • steam assisted gravitational drain (SAGD) • cyclic steam stimulation (CSS) thermal recovery Oil sands market Introduction AMEC’s position Appendix

  14. AppendixAMEC scope of services Design, delivery & specialist consultancy across extraction and production spectrum • Engineering & procurement services • Process, ore prep and utilities are designed using state of the art systems supported by a worldwide procurement network • Study services • From mine planning and design through DBM and EDS (FEED) packages Environmental Services Environmental permitting, geotechnical design, waste water treatment, reclamation and tailings • Project & construction management • Construction planning from contract strategy, constructability through work packages, estimating progress and quality management at site all with an emphasis on HSSE Asset management Plan start-up and commissioning, operator training and in-plant engineering services Oil sands market Introduction AMEC’s position Appendix

  15. Leveraging AMEC - common tools and processes AppendixKearl – workshare Imperial Oil: Kearl Project Scope: EPCM services for Phase 1, which is designed to deliver 100,000bpd (production 2012) 3 Phases to project – facility could ultimately produce 300,000 bpd Major AMEC Project • Natural Resources • Power & Process • Earth & Environmental Involves 3 divisions Calgary: overall project management / controls / systems Leveraging our resources Houston • Product pipelines • River water pipelines • Associated pipelines Vancouver • Ore prep • Slurry prep • Hydrotransport • Mine Maintenance • Basal H2O System Calgary • Extraction • Froth Treatment • Tailings • Civil Works • Buildings Oakville • Steam plant • Water treatment facilities • Power Oil sands market Introduction AMEC’s position Appendix

  16. AppendixFurther information • Find out more about AMEC’s oil sands position on our website: • Oil Sands Breakfast - Calgary (Oct 2010) • Note: links only active in ‘slideshow’ mode • For further info see: amec.com/investors/events • Useful sources of information on oil sands industry: • Alberta Oil Sands: http://www.oilsands.alberta.ca • Alberta Energy: http://www.energy.alberta.ca See links for more details on AMEC’s oil sands business Oil Sands market Introduction AMEC’s position Appendix

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