How Technip offers a broad range of flexible pipe systemswith the most advanced integrated solutions for deepwaterand ultra deepwater field developments

Flexible pipe

Engineering and technologies

2

Technip profile

Confirmed leadership and proprietary technologies in 3 business activities:

Offshore

In the Offshore business segmentTechnip performs engineering,procurement, construction,installation, commissioning and therefurbishment/upgrading of offshorefacilities for the oil & gas industry.

Technip provides these services forfixed platforms in shallow water withconventional sub-structures and selfinstalling platforms such as the TPG500 and for deepwater facilitiesincluding Spar, semi-submersible, TLP,FPSO and FLNG units. Technip is aworld leader in floatover installationof topsides and its R&D effort isfocused on technology transfer forlocal content and new frontier areassuch as ultra-deepwater and the Arctic.

Onshore

Technip covers the full range ofonshore facilities for the oil and gaschain, petrochemicals and otherenergy industries (nuclear,renewables including biofuels andoffshore wind). It holds manyproprietary cutting-edgetechnologies and is the leader in thedesign and construction of LNG andgas treatment plants as well asethylene, hydrogen and syngas units.

Technip is also one of the key actorsin refining and petrochemical units,and has developed a leadership inthe fertilizer industry. Moreover, theGroup is very active in non-energyactivities such as mining and metals,life sciences, buildings andinfrastructures.

Subsea

In subsea hydrocarbon fielddevelopment, Technip’s activitiesinclude the design, manufacture andinstallation of rigid and flexible subseapipelines and umbilicals. Thanks to itsportfolio of technologies and industrialand operational assets, Technip offers aunique vertically integrated model inthe industry.

The Group has 3 flexible pipemanufacturing plants, 4 umbilicalproduction units, 9 logistics andpipeline assembly bases, and 1construction yard. Technip’s worldwideleadership is supported by a modernfleet of vessels for subsea construction,pipelay development (rigid and flexiblepipes using S-Lay, J-Lay or Reeledtechnology) and heavy lift applications.

A world leader in engineering, project management and technologies,serving the energy industry for more than 50 years

A workforce of 36,500

3Flexible pipe

Technip offers a broad range of services in engineering,manufacturing, installation and retrieval of flexible pipesystems with the most advanced integrated solutions fordeepwater and ultra deepwater field developments.

Technip is the most experiencedprovider of integrated solutions forsubsea field developments, based ona broad range of field-proven productsand services. In the early 1970’s,Technip pioneered flexible pipetechnology and used it to provide itsclients with ever-higher levels ofreliability and quality, even in theworld's harshest and deepest offshoreenvironments.

For now 40 years, our high pressureflexible products have providedoffshore operators with reliable andefficient subsea solutions worldwide.To-date, more than 10,000km ofTechnip high-pressure flexible pipe hasbeen installed throughout the world.

Our products are versatile, corrosion-resistant and compliant, and they areeasy and quick to install, retrieve andre-use for marginal or evolutive fieldarchitectures, thus environmentallyfriendly.

They have carved out their place notonly for floating facilities but even inthe shallow and medium water marketsthat were once the exclusive domainof rigid steel flowlines. With internaldiameters ranging from 2" to 20",flexible pipes are the product of choicefor infield lines.

At the same time, the flexible pipe'sversatility and ability to evolve withthe industry will continue to ensure itsplace within the deepwater and ultradeepwater markets that characterizenew offshore field developments.

Standard Technip flexible structure

IPB* (Integrated Production Bundle)

* Proprietary technology

Flexible pipe

What is flexible pipe?

4 Flexible pipe

A fit-for-purpose structure

A flexible pipe is made up of severaldifferent layers. The main componentsare leakproof thermoplastic barriersand corrosion-resistant steel wires. The helically wound steel wires givethe structure its high-pressure resis-tance and excellent bending characte-ristics, thus providing flexibility andsuperior dynamic behaviour. Thismodular construction, where the layersare independent but designed tointeract with one another, means thateach layer can be made fit-for-purposeand independently adjusted to bestmeet a specific field developmentrequirement.

Main characteristics

FLEXIBILITYFlexibility is the distinctive property ofa flexible pipe. A typical 8'' internaldiameter (ID) flexible pipe can safelybe bent to a radius of 2m or less. Thisis the reason why flexible dynamicrisers have been the enabling techno-logy for floating production systems.

This flexibility is also important forflowlines laid on uneven seabed condi-tions. Flexibility makes it possible tospool the pipe on a reel or in a carouselfor efficient and quick transportationand installation.

INSTALLABILITYBecause the flexible pipe comes in acontinuous length, laying speedcommonly averages 500m per hour.Separate sections are connected ondeck during installation, eliminating the

need for any intermediate riser basestructure or subsea connections. Thiselimination of interfaces reduces riskin operation.

In November 1971, the first Technipflexible pipe was installed in Congo. Ittook 1.5 hour to lay the 650m flowline,including connections.

MODULARITYThe independent layers of a flexiblestructure enable it to be tailored tothe precise needs of a specific deve-lopment. Simple flexible pipes formedium pressure water transportcomprise only four layers. The mostcomplex flexible pipes may have up to19 layers.

Beyond the basic fluid barriers andstress-resistant wires, additional layerscan be included to prevent wearbetween steel layers (in dynamic appli-cations) or to provide improvedthermal insulation ("standard" flexiblepipe already has a much better insula-tion coefficient than that of steel pipe).

Besides including new thermoplasticor steel layers within the product, it isalso possible to assemble plastic hoses,electrical cables or optical fibersaround a flexible pipe to produce anIntegrated Service Umbilical (ISU®), orinclude active heating for flow assu-rance in deepwater to produce anIntegrated Production Bundle* (IPB).

In 2001/2002, Technip participated inthe DEMO 2000 JIP, demonstrating itsability to supply heat traced flexible,

including gas lift tubes and tempera-ture monitoring optical fibers withinthe same line (Integrated ProductionBundle). Heat tracing and monitoringallow temperatures to be perfectlytuned within the core productionflexible in order to meet flowing orcool down requirements. This type offlexible pipe provides an "all-in-one"solution for deepwater applications. Ithas been used several times in Westof Africa deepwater fields and will soonbe installed offshore Brazil.

Corrosion resistance

Since the steel wires are not in directcontact with the conveyed fluid, theydo not require the same corrosionresistance as steel pipe. This means thatour design experience and knowledgeof gas diffusion through thermoplasticmaterials enable us to use carbon steelwhere the equivalent rigid pipe appli-cation would require much moreexpensive corrosion-resistant alloys.

* Proprietary technology

5Flexible pipe

High pressure resistance

Flexible pipes resist all fluid pressures currently encountered in the most severe

subsea applications. Again, the modularity of the flexible pipe manufacturing

process enables us to adjust thickness, shape and number of steel wire layers to

meet the specific requirements of our clients.

Modularity enables flexible technology to cover very different applications:

production flexible products already installed in waters down to 2,140m

kill & choke line for drilling (up to 20,000 psi)

drain pipes and foam lines for onshore refinery applications

Even more important, it means that the flexible pipe structure is constantly evolving

to meet stringent field specifications:

higher pressures (up to 10,000 psi for a 7.5" ID, up to 7,350 psi for a 9" ID and up

to 6,700 psi for a 10" ID) on dynamic riser applications

higher temperatures (up to 170°C)

enhanced insulation through thick foam fillers laid on SZ machine

enhanced flow assurance: active heating, gas lift and temperature monitoring

ultra deepwater and up to 3,000 mwd

Versatility and re-usability

Moreover, flexible pipe is the only product, environmentally friendly, which can

be recovered and reinstalled several times to be used successively for several

marginal or evolutive fields as regularly done for years in Brazilian waters.

Flexible pipe: a cost-effective solution

Flexible pipe: re-usability for anenvironmentallyfriendly product

The combination offlexibility, installability,modularity, corrosion andhigh pressure resistance, re-usability and versatilityexplains why flexible pipeis an overall cost-effective solution.

6 Flexible pipe

The worldwide reference

In the early 1970's, Technip pioneered

flexible pipe design, manufacture and

installation, and has now accumulated

40 years of field-related in-depth expe-

rience worldwide (see map on page 8).

Our aim and strategy is to base our

leadership on technological differen-

tiation and, in that respect, the flexible

pipe product is our historical reference.

We are committed to researching

new solutions to better serve our

clients’ needs. We introduced Coflon®,

Crossflex®, Gamma-Flex®, various types

of Cofoam® insulation materials, both

Zeta, Teta and Psi vault profiles, the

Vertical Laying System*, Steep Wave

and Pliant Wave riser configurations,

midwater arch configurations and

buoyancy modules, Integrated Service

Umbilicals (ISU®) and multibore risers.

Technip has also pioneered the deve-lopment of most of the analyticaland numerical tools used to designflexible flowlines and riser systems.

Today, this drives us to find the most

reliable and client-focused solutions

for the deep and ultra deepwater

challenges that lie ahead.

The widest range of services

Technip is the only offshore contractorthat seamlessly integrates design,engineering, manufacturing andinstallation services to its clients'benefit. The staff of our regional busi-ness units regularly interfaces with ourclients worldwide. Technip's ProductEngineering Division (PED) coordinatesthe flexible pipe-related engineeringwithin our regional business units.

FLEXIBLE PIPE PLANTSTechnip currently operates three flexiblepipe plants:

Flexi France (Le Trait, France) Flexibras (Vitória, Brazil)Asiaflex Products (Tanjung Langsat,Malaysia) was inaugured late 2010 toservice the Asia Pacific and MiddleEast subsea markets.

A fourth plant is under constructionin Açu, Brazil. It will be dedicated tohigh-tech flexible pipes.Based on a normalized 8" ID pipe, thecurrent capacity of Technip plantsreached a total of 1,060 km of productin 2010.

PIPELAY

We own and operate a large fleet of

dynamically positioned vessels, four of

which are dedicated to flexible pipelay.

The Deep Blue, the flagship of the

Technip fleet, is the only vessel of her

class to lay both flexible and rigid pipes

(reel-lay and J-lay) down to 3,000m

water depth. In addition, Technip is

also the leading supplier of reeled rigid

pipe solutions worldwide. All these

assets and capabilities are integrated

by our unique Project Management

organisation. It enables us to compare

and optimize the solutions we offer

to our clients and provide the

optimum flowline and riser systems,

rigid or flexible for any offshore

development.

Coflon®, Crossflex® and Gamma-Flex® areregistered trademarks of Technip* Patented technology

Providing the bestsuited solutions forour clients’ fielddevelopments

7Flexible pipe

Excellence

In addition to manufacturing and supply activities, Technip offerssolutions tailored to clients’ needs. With our long offshore fieldexperience and our intimate knowledge of the technical challengesfaced by flexible pipes, we can and do deliver the highest qualityflexible products available anywhere in the world.

All Technip activities are placed within an integrated Quality Systemwhich ensures that our organisation, manufacturing process, productsolutions and services are reliable and efficient. The Group is certifiedISO 9001 and its flexible pipe plants have received the API 17Jcertification for the design and manufacture of unbonded flexiblepipe. The Group is applying permanent improvement processesthroughout its organisation.

Field experience and milestones

Since 1972, the yearly OTC award for companies hasbeen honouring the one company (amongstoperators and contractors), that has significantlycontributed to the offshore oil and gas industry. Inthat respect, we obtained the 1995 OTC award forthe design, manufacture and installation of flexiblesteel pipe used in floating production systems,deepwater developments and high pressure pipesfor drilling and well servicing.

1971 First flexible pipe installed in Congo for ElfEmeraude

1974 First flexible flowline in the North Sea on MobilBeryl

1976 First dynamic flexible riser in Brazil on PetrobrasGaroupa

1978 First flexible riser with heat tracing in Indonesiaon Conoco Udang

1982 First flexible riser with thermal insulation1986 First dynamic flexible riser system installed in

the North Sea on Balmoral Sun OilFirst flexible pipe with a Coflon® pressure sheathin the North Sea and Spain

1987 Largest diameter of flexible riser (19" ID) on StatoilStatfjord C

1988 New depth record for flexible riser (567m) in theGulf of Mexico on Conoco Jolliet

1989 First flexible pipe with a Crossflex® pressuresheath

1992 First installation using the VLS (Vertical LayingSystem)* on Saga Snorre

1994 First flowline (16" ID, 3.5 km) manufactured incarouselFirst ISU® (Integrated Service Umbilical) on NorskHydro Troll

1997 New world depth records for flowline (1,709m)and riser (1,390m) in Brazil on Petrobras MarlimSul

1998 First flexible riser with a Teta pressure armouron Norsk Hydro Visund and Enterprise Oil Pierce

2000 New depth record for flowline (1,877m) onPetrobras Roncador

2001 Implementation of the first Product IntegrityManagement System (PIM) on the Åsgard field,Norway

2002 Installation of the deepest flowline (1,886m) onPetrobras Roncador

2003 First Oil Offloading Lines (OOL) 2 x 2,240m longinstalled on Shell Bonga

2004 First qualification for 2,100mwd (DIP test offs-hore Brazil, 7” and 9” ID flowlines)

2005 Installation of the deepest riser (7.5" ID - 10,000 psifor water injection) in 1,890m for BP ThunderHorse in the Gulf of MexicoExtension of BV certification to 15,000 psi

2006 First supply and installation of 8 x 11” IntegratedProduction Bundle (IPB)* dynamic risers in1,400mwd for Total Dalia, offshore Angola

2007 Supply and installation of the world's first smoothbore 14” ID dynamic riser for gas export on StatoilÅsgard, Norway

2007 Installation of the deepest single section riserfor an 8" HP/HT sour service production appli-cation in 1,500mwd for Chevron Agbami inNigeria

2010 Supply and installation of 6” and 10” flowlines in2,100mwd, offshore West Africa

2010 Supply and installation of 2 x 10" IPB* risers in800 mwd for Total Pazflor, offshore Angola

2010 Deep Immersion Test and qualification for3,000 mwd

2011 Supply and installation of 6” and 9.13” risers in2,140mwd on Petrobras Lula pre-salt field

2012 Qualification of 9” carbon fiber armours for pre-salt ultra deepwater applications

* Proprietary technology.

8 Flexible pipe

To-date, more than 10,000km of Technipflexible pipe have been manufactured andinstalled worldwide

A worldwide presence and experience

9Flexible pipe

A client-focused organisation

Dynamic test rig

Performance

Largest internal diameter: 19” ID exportriser on Statfjord C (Norway) and BongaOffloading lines (Nigeria)

Deepest risers in Brazil: 6" and 9" ID -2,140 m, Lula

Deepest and highest value of diametertimes pressure: 7.5” ID 10,000 psi, waterinjection risers and flowlines, ThunderHorse (Gulf of Mexico) in 1,890mwd

Innovative proprietary technology:flexible Integrated Production Bundle(IPB)*, 1,400 m Dalia, Angola and 800 mwdPazflor, Angola and soon offshore Brazil

World's first 14" ID smooth bore gasexport dynamic riser, Åsgard, Norway.Successfully tested to a max. flow of48 MSm3/d

Highest pressure ever reached (4"; 20,000 psi) in service for the offshorewell stimulation industry

Deep Immersion Performance test inthe Gulf of Mexico: 9" at 3,000 mwd

Development of carbon fiber armourwires (corrosion free, ultra deepwaterand oil offloading applications)

Anti-H2S sheath for an H2S free flexiblepipe annulus

High temperature (170°C) with thermalscreen

Research & Development

Technip spends yearly about EUR 25 million on flexible pipe in its research centers.The Product Engineering Division has full responsibility for Technip's flexible pipeR&D program and is equipped with a full range of test facilities, including astate-of-the-art laboratory for advanced material testing and analysis, making itpossible to simulate realistic service conditions on actual pipe samples. The R&D activity is oriented towards extending the current product range by introducingnew products and materials. Cost reduction and manufacturing quality is a permanentand parallel objective of these efforts. When a given development has come to fruition,its qualification testing is frequently carried out under the auspices of a JIP (Joint IndustryProgram). This enables key operators to participate in the transition between thedevelopment phase of an application and the "real" marketable and industrial phase.Complex development projects are carried out within dedicated task forces. This was the case for Technip's integrated Ultra Deep Water development program.This task force developed a new generation of flexible pipes primarily for deep andultra deepwater.

A client-oriented companydedicated to cost-effectivenessand technology

* Proprietary technology

10 Flexible pipe

Vertical Laying System (VLS)*

* Patented technology

Research and Development

Engineering

The Group engineering organisation, ledby Technip Innovation & TechnologyCenter, located in Paris area, respondsto and meets two main challenges:being close to our clients in order toanswer their needs while at the sametime ensuring a sustained level of engi-neering excellence is available in all partsof the Group. This is achieved througha combination of:

local engineering departments ineach business unit, able to performmost engineering tasks related to aproject, within the project teams.a centre of excellence located in LeTrait (France), sharing the same siteas the main flexible pipe manufac-turing facility, sharing of the same design rules byall engineering and manufacturingcenters

The Product Engineering Division (PED)ensures support to the business units,consolidates the experience acquiredthroughout the Group and developsnew products and materials via a robustand innovative R&D program.Information exchange between thebusiness units is routed via PED whichconsolidates the knowledge and ensuresa reliable and efficient engineeringservice across the Group. A dedicatedflexible R&D center (RDD) has also beenestablished in Rio de Janeiro to supportthe Brasilian market. RDD works in closecollaboration with PED.

Integrity Management

Within the Technip Asset IntegrityManagement (AIM) department, inno-vative integrity management technolo-gies and services have been developed.Our philosophy relies on four corners-tones:

Risk management, critical failuremodes identification and associatedsurveillance program: annulus condi-tions, corrosion, fatigue, etc.Monitoring products using, amongstothers, acoustic emission detection,optical fibre, microelectronic or ultra-sonic technologies (integratedsystems, or external systems that maybe retrofitted)Data management & Interpretation(based on our flexible pipe expertise)Offshore services (inspection inclu-ding annulus testing, maintenance,and repairs)

AIM settled several collaborations withexperts and leading partners to createsynergies with Technip expertise (engi-neering, manufacturing and installationof flexible pipe) and deliver fit for purposeIntegrity Management (IM) solutions.Should you need integrated monitoringsolutions to mitigate risks of industry newchallenges or support for your existingassets, AIM could provide you with a dedi-cated solution.

Manufacturing

Manufacturing is organized under aglobal factory policy whereby the threeflexible pipe factories of Le Trait(France), Vitória (Brazil) and TanjungLangsat (Malaysia) are managed in anapproved and similar manner, byapplying common quality and safetyGroup standards. Our Malaysian plantalso operates following our worldwideQHSE standards.As the manufacturing centre of excel-lence, Flexi France (Le Trait, France) hasthe facilities and capability to producethe widest range of flexible pipes. It iswhere all our innovative pipe designsare first manufactured and tested.

Flexibrás (Vitória, Brazil), has primarilybeen established to supply the localmarket but can also supply flexible pipeinternationally.Asiaflex Products (near Johor Bahru,Malaysia) started up at the end of 2010.It serves the Asian and Middle Eastmarkets.

Installation

Because of our integrated approach toflexible pipe technology, we havealways considered installation as a partof our core business activity and wehave always ensured that our vesselsand equipment are designed to installthe flexible products we have deve-loped and manufactured. As far as equipment is concerned, wehave developed and patented severallaying systems (VLS*- Vertical LayingSystem, PPS*- Portable Pipelay Systemand flexible pipe laying towers).These laying systems allow for the effi-cient installation of flexible flowlinesand risers in deepwater and harsh envi-ronments. Their utilisation makes it saferto lay flexible lines especially whenequipped with intermediate connec-tions, buoyancy modules or other ancil-laries, for a 550-tonne capacity.

11Flexible pipe

Ultra deepwater extends from 1,000 to 3,000m and beyond. Deep Immersion Performance full scale tests (DIP) were performed in the Gulf of Mexico in 2010 (7” and 9” ID tested in3,000m of water depth).Technip extended its operational experience with the installation:

in 2010: 6” and 10” for sour service in 2,100m water depth in 2011: 6" insulated production risers (high temperature: 130°C) and 9.13” export risers for sour service in 2,140m waterdepth on Petrobras Lula field

Full use is being made of the modularity of flexible pipes and the Group's capacity to efficiently and effectively evolve them.In the case of the ultra deepwater developments, it is the steel layers that are most affected and each improvement answersa specific client-led challenge:

internal carcass for collapse resistancepressure vault for collapse and weight reductiontensile armours for weight reduction

Another significant area is active heating and this is being addressed by adapting the field-proven ISU® concept to thecirculation of hot water around the central core of the pipe. Other more peripheral lines can be used for gas lift. Thus, theISU® lines with multi-functions are gathered in a single line and become the Integrated Production Bundle* (IPB) to guaranteeflow assurance even for the deepest fields.

* Proprietary technology

In deep and shallow waters, the Technip flexible pipe

technology will continue to be a core component supporting the evolution of the

subsea oil industry and we will therefore be in a position to offer our clients high

quality and cost-effective solutions tailored to their very needs.

Ultra deepwater flexible pipe:current and future capabilities

Towards ultra deepwater

HEADQUARTERSTechnip89 avenue de la Grande Armée75773 Paris Cedex 16 France Phone: +33 (0)1 47 78 24 00

CONTACTSFLEXIBLE PIPE BUSINESSDEVELOPMENT

Flexi FranceRue Jean Huré - BP 776580 Le Trait, FrancePhone: +33 (0)2 35 05 50 00Fax: +33 (0)2 35 37 49 60email: contact-flexibles@technip.com

FlexibrásJurema Barroso Street, 35Ilha do Príncipe - Vitória - ES29020-430 BrazilPhone: +55 27 21 23 9444Fax: +55 27 21 23 9799

Asiaflex ProductsPLO 98 Jalan IpilTanjung Langsat Industrial Complex81700 Pasir GudangJohor Darul Takzim, MalaysiaPhone: +607 254 8000Fax: +607 254 8005

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, orany of its affiliates, and is provided for information purposes only. Technip - Group Communications - April 2013 - Photo credits: Technip - Page 2: Harry Gruyaert & Jean Gaumy / Magnum Photos.

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