11/1/2011

Lamprell plc

1 November 2011

Analyst presentation – site visit 2011

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Agenda

Topic

HSES Gary Scott

Introduction and welcome Nigel McCue

Facilities & operations overview Chris Hand

Hamriyah and Sharjah facilitiesoverview

Kevin Isles

Hamriyah project summary Sikke Jan Wynia

Sharjah project summary Peter Williams

Jebel Ali project summary Neil Millar

Group strategy Ryan Jervis

Q&A

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Facilities & OperationsChris Hand – Chief Operating Officer

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• Order book – $1.3 bn– Includes NDC options $333.3 mn– Nexen Petroleum new contracts $200 mn– RigMetals NDC land rig order $15 mn

• Bid pipeline– $4.2b as on 31 October 2011

Photo of an E&C project (e.g. RAKGas)

Order book and bid pipeline

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Enlarged group capacity

Allocation of resources and capital• Personnel

– Administration & management 2,000

– Production 12,000Permanent 7,000Contract & labour supply 5,000

• Major equipment

• Engineering

• Capital investment

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• Project execution – Commercial process overview– Facility management structure– Project control and execution

• Quality– Lamprell Group Management System

(LGMS)– Project quality control

• Health and safety– Lamprell 2011 LTI frequency 0.12 (end

September)– UK construction industry 2.83– Up to end of September, the group has

worked over 15.5 million manhourswithout a lost time incident.

Photo of NDC S116E

Operational strategy

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• Value streams and organisation restructured

• LGMS reviewed and updated

• Enlarged Sharjah facility reorganised

• Personnel moved

• Synergies under review

Acquisition integration update

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Hamriyah and Sharjah overviewKevin Isles – Executive Vice President, Hamriyah & Sharjah

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Hamriyah facility overview

HamriyahArea 335,000m²Yard storage 30,000m²

Eastern Free ZoneQuayside 1.4kmWater depth 9mConstruction Start August 2008

Completion Dec 2011Ongoing projects 7 new build ($1.1b in progress)

4 refurbishment

Other highlights API workshopMain administration HQ

Employees 5500 yard, 650 admin

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Sharjah facility overview

SharjahArea 210,000m²

Quayside 760m

Water depth 8m

Pressure vesselsfabrication

3 sets of plate rollers170mm capacity

Ongoing projects 2 new build6 refurbishment

Employees 2,700 yard, 460 admin

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Hamriyah project summarySikke Jan Wynia – Hamriyah General Manager

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Seajacks Zaratan– GustoMSC 5500C Wind Farm Installation Vessel– 85 meter leg length– 800 ton leg encircling crane– Contract effective date: 17th June 2010– Delivery: 17th May 2012– Progress: 67%– Load-out scheduled for 31st January 2012

NDC 1 Makhasib– LeTourneau Super 116E Drilling Rig– 311’ leg length– Contract effective date: 1st August 2010– Delivery: 30th April 2012– Progress: 89%– Loaded out 28th October 2011

Hamriyah project summary | Newbuild

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NDC 2 Muhayimat– LeTourneau Super 116E Drilling Rig– 311’ leg length– Contract Effective Date: 1st August 2010– Delivery: 30th September 2012– Progress: 69%– Load out scheduled for 14th January 2012

Eurasia Drilling– LeTourneau Super 116E Drilling Rig– 377’ leg length– Contract Effective Date: 15th November 2010– Delivery: 28th March 2013– Progress: 47%– Start shipping of the modules to Russia:

1st March 2012

Hamriyah project summary | Newbuild

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Greatdrill Chaaya– LeTourneau Super 116E Drilling Rig– 477’ leg length– Contract Effective Date: 21st February 2011– Delivery: 28th December 2012– Progress: 24%– Load out scheduled for 30th June 2012

NDC 3 & 4– LeTourneau Super 116E Drilling Rig– 311’ leg length– Contract Effective Date: 17th October 2011– Delivery NDC 3: 17th February 2014– Delivery NDC 4: 17th May 2014– Materials being ordered

Hamriyah project summary | Newbuild

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Hamriyah project summary | Refurbishment

Rig Type Completion Value $mn

Noble Gene House Mitsui MODEC 300C-38

November 2011 10

Nabors 655 Pool 140 Series November 2011 19

Nabors 657 Mitsui F-550 February 2012 10

WDI Rig 40 1500hp Double Mast Land Rig

November 2011 5

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Sharjah project summaryPeter Williams – Sharjah General Manager

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• Newbuild– 108 SuperM2 jackup. Delivery Q2 2012– 106 SuperM2 jackup. Delivered 27 October– Legs for Hochtief “Innovation”

• Refurbishment– NDC Al Bzoom RIAP project accepted for

delivery October 2011– Al Burj conversion of jackup to

accommodation rig – Repairs & modifications for Rowan rigs

(Middletown, Arch & Charles)

• Fabrication– Manufacture of approximately 150 pressure

vessels, PAU’s plus 3,000 pipe spools

Operational Highlights (cont)

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Jebel Ali project summaryNeil Millar – Vice President, Jebel Ali facility

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Jebel Ali facility overview

Jebel Ali

Area 178,849 m²

Warehouse & storage

2,300m²

Distance from Quayside

250 m

Water depth 10.5 m

Ongoing projects To follow in next slides

Other highlights 15,000m² of covered workshop space

Employees 2,850 yard, 350 admin

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Fred Olsen Windcarrier Bold and Brave Tern– Multiple Windcarrier wind turbine installation

vessels by Fred. Olsen Windcarrier (FOWC). Self propelled, dynamically positioned, jackup vessels suitable for installation & maintenance of offshore wind turbines.

– Awarded Q1 2010– Delivery

• Brave Tern Q2 2012• Bold Tern Q3 2012

– Load-out weight 12,600 Te– Completed weight 14,800 Te– Progress

• Brave Tern 70%• Bold Tern 57%

Jebel Ali project summary

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Accommodation and utility platform – Awarded Q3 2010– Delivery Q2 2012 – Contract for the platform comprising an

accommodation module and a utility platform. – Scope includes fabrication, assembly and

testing of the utility platform and EPC works for an accommodation module

– Progress and completion• Utility deck 62%• LQ 40%

– Load-out weight – circa 4,700Te

Jebel Ali project summary

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Weatherford Drilling International 3000Hp Land Rigs (Rigs 870 and 871).

– Awarded Q1 2011– Delivery

• Rig 870 – Q1 2012• Rig 871 – Q2 2012

– Oilfield Engineering’s first EPC contract to design and build two new land rigs for Weatherford Drilling International (WDI)

– 3000HP AC / DC land rigs, with a static hook load capacity of 1,500,000 lbs.

– Progress • Rig 870 – 69%• Rig 871 – 66%

Jebel Ali project summary

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Group strategyRyan Jervis – Head of Corporate Transactions

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Lamprell plc – Group Strategy

Contents

Key strategic objectives page 25

Horizontal to Vertical page 26

Sector and Service matrix page 27

Key Strategic Initiatives - SectorE&C page 28Lamprell Wind page 29Other Core initiatives page 30

Key Strategic Initiatives - GeographyLamprell Saudi Arabia and Kuwait page 31Lamprell Kurdish Region of N.Iraq and Southern Iraq page 32

Our Strategic timeline page 33

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Our key strategic objectives 2012-2015

MIS Integration Successful completion of the integration and delivery of synergies

Growth and market share Lamprell as a leading Oil and Gas E&C and Services company by 2015

EPC turnkey provider Vertical structure aligned to clients needs through the complete asset life cycle

Geographic expansion Significant expansion in target growth markets - Saudi Arabia, Iraq, Kuwait

Sector expansion Development into new sectors where core skills are complimentary

Wind energy Leading position in the wind energy installation and transformer market

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Horizontal to Vertical

Conceptual Design

FEED

Detailed Engineering

Procurement

Construction

Testing and Commissioning

Opex and Maintenance

Refurb and Upgrade

WHY?

Increased margins through the value chainLonger term partnership arrangements with clientIncreased ability to influence decision making at an early stageGate-keeper to the projects ensures quality and controlLamprell seen by clients as project managers rather than ‘Builder’Increased cross-selling potentialImproved margins and earnings visibility

HOW?

Structure E&C to deliver through the project life cycleStrategic partnerships with major technology companiesSenior project management oversight throughout the project life cycleReposition the size and significance of our engineering capability with the market post-MIS transaction

Lamprell project involvement from concept to O&M

End life

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Oil & Gas Renewables Strategic development

E&C

Oilfield Engineering

Services

O&M

Structure to deliver our strategy

Aligning to clients needs with turn key technical expertise

Extend existing strong position Harness major growth opportunities

New strategic opportunities

New Build

Service line

Client

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Strategic initiatives | Lamprell E&C

Key aspects of our strategy:

Restructured E&C division

Integration and investment in engineering division

Bid, estimation and procurement teams to be alignedfor EPC contract tenders and delivery

Drive for client and subcontract alliances to enableEPC delivery and provide wider geographic reach

Leverage new concept / product engineering to gainEPC lead role.

Strategy Development Group supporting the drive forlarger value projects and bespoke solutions

Vertical structure and innovative solutions

Aligning to asset life cycle

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Strategic initiatives | Lamprell Wind

Key aspects of our strategy:

Reviewing alternative vessel designs with clients

Establish a foot hold in the rapidly expanding offshoretransformer market

Forecast demand for 90 main step-up transformers and180 sub-stations in the next 6 years in the UK alone

Lamprell facilities represent an attractive cost option forthe major wind farm developers and utility companies

Exploring a partnership with technology and utilitycompanies – opportunity for Lamprell to take an EPC role

Exploit our market leading jackup capabilities to secureentrance as specialist in the build phase

Lamprell core strengths match lack of capacity in the market

EPC self erecting platforms

EPC lead with engineering alliance

Core strengths provide key to EPC model

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Strategic initiatives | other core strategic initiatives

New Build – Continue to build strong market position

Larger and more complex rigsF&G JU2000 focused on harsher environmentsLe Tourneau workhorsePricing being formulated with response this quarter

New vessel design gives rise to license opportunities

FPSO market to strengthen considerably in the next 24 months (Global capex $68bn 2012-2016) *

Abu Dhabi – Strong growth in key market

Upper Zakum

Satah Al-Razboot (SARB)

Umm Lulu

Sunbelt H2S – Continue to build strong market position

Business structure and strategy being reviewed

Expansion to lead entry to new markets for the wider group

Kazakhstan and regional market growth

Inspec – strong growth from multiple sources

Integration of MIS calibration capability and setup of mechanical testing

Strategic bolt on acquisitions to extend capability and geographic reach

*Source: Douglas Westwood – The World floating production market forecast report

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Strategic initiatives | Saudi Arabia and Kuwait

Lamprell Saudi Arabia - key aspects of our strategy:

Significant opportunity to expand downstream operations on the back of the successful MIS Arabia business

Currently piece meal fabrication misses the major portion of the value stream available from refinery life cycle

Harness and extend newly acquired Saudi relationships to ensure Lamprell grows as a O&G provider in KSA

Options being explored for expansion with the existing key relationships

Significant growth in KSA downstream position

Lamprell Kuwait - key aspects of our strategy:

Strengthen long standing relationship with existingsponsor and remove existing barriers to growth

Expand profitable machine shop operations on existingsite within the sponsors facility

Refocus fabrication and share Lamprell commercialexpertise to strengthen fabrication growth prospects

Excellent reputation and strong track recordLong standing and strong sponsor relationshipEstablished team and facility

Current position

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Strategic initiatives | Lamprell IraqKurdish Region of N. Iraq - key aspects of our strategy:

Detailed strategic study of the regional opportunities has been conducted by the team

Joint Venture with key local sponsor being considered

Early entry is an important competitive advantage, and phased entry limits potential risk

Rapidly growing base of potential customers who are approaching the production phase of their respective sites.

Supported by the high demand for early production facilities ( EPFs) across the market – natural hedge to delayed/ cancelled projects

Provides clear entry strategy for other Lamprell services

Phased entry to a key growth market

Northern Iraq team with a wealth of experienceClose relationships with preferred sponsorSunbelt has begun establishing a strong Lamprell reputation

Current position

Southern Iraq - key aspects of our strategy:

Early entrance to the Southern Iraqi market – initially vialeasing a small pre-fabricated and serviced facility

Entry via fabrication and oil field engineering, supportedout of a UAE facility until firmly established

Strong opportunities to expand other Lamprell Serviceson the back of this initial foot print

Strong demand already shown by existing clients andideal market positioning for the end goal of major EPCcontracts in the region

Essential for longer terms goals of securing contract winswith major O&G organisations and consortiums

Strong relations with SOCFocused on first major regional contract win

Current position

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Group strategy | Long Range Plan (LRP)

2011 2012 2013 2014 2015

LAMPRELL• Mid sized regional player

• 98% revenue generated within UAE

• 9000 headcount / 550k m² / 1.8 km quayside

• Limited full EPC contracts

LAMPRELL + MIS• Large regional player with broad Middle East footprint

• Increased revenue generated from outside the UAE

• 14,000 headcount / 925k m² / 2.2 km quayside

• Vertically integrated engineering team 1250 strong

LAMPRELL• Large regional player with increasing non-UAE market share

• Completion of shift to higher margin full EPC contracts

• Iraq business setup and operational

• Significant foothold in KSA downstream market

LAMPRELL• Organic and non-organic growth in new markets

• Leading ME EPC and Services contractor

• Contractor of choice for all jackup projects

• Key player in Iraq, Saudi Arabia and Kuwait

3 year Long Range Plan for the Group

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Q&A