Introduction to DUCO June 2005

DUCO Umbilicals

27th June 2006

Subsea North East Launch

Alasdair MacDonald

Introduction to DUCO July 2006

2Overview

Duco manufactures Control Umbilicals for Subsea Production Systems

Electrical and hydraulic power transferred from host facility to subsea wells Fluids to assist well productivity tranferred from host facility to subsea wells Control signals between wells and host facility to monitor production.

Worldwide market

Broad client base Majors and Independant Oil Companies State Oil Producers EPIC contractors Wellhead equipment manufacturers

International business with a local North East focus

Introduction to DUCO July 2006

3Make Up of an Umbilical?

Electric Cable

Electric Cable

Fibre Optic Cable

TubeTube

FillersFillers

Outer SheathOuter Sheath

Armour LayersArmour Layers

Inner SheathInner Sheath

Introduction to DUCO July 2006

4UMBILICAL ASSEMBLY

Typical Umbilical Lay-up

Introduction to DUCO July 2006

5A Sense of Proportion - LENGTH

Introduction to DUCO July 2006

6

1978Dunlop enters

umbilical business Southampton facility

1983Joint Venture

formed between

Dunlop & Pirelli

1990 - £7mDUCO moves to

Walker Plant

1989 - £5mNew joint venture between Dunlop &

CoflexipDUCO

1998 - £33mDUCO LTD

first umbilical manufacturer to be awarded API 17E

licence

1994 - £14mCoflexip Merge

with Stena Offshore

1996 - £25mDUCO Inc

Channelview, HoustonOpens

2001- £37mTechnip &

Coflexip merge

2004 - £61mAngoflex Ltda factory opens

2006 - £100mReviewing options for further international and local expansion

*Newcastle Revenue only

Introduction to DUCO July 2006

7LOCATIONS

DUCO Inc.USA Houston

AngoflexAngola

DUCO Ltd.Newcastle HQ

Introduction to DUCO July 2006

8DUCO Ltd – Newcastle, UK

• Capacity 300km per annum

•Workforce : 350 approximately

•Facility located 30m (100ft) from 800m (2625ft) long quayside

Introduction to DUCO July 2006

9SIGNIFICANT MANUFACTURING ACHIEVEMENTS

Largest Single Length Thermoplastic Umbilical Produced by Newcastle Facility Exxon Mobil Arthur : 31km ; 983 tonnes ; 146mm diameter

Supplier of the GOMEX longest umbilical (DUCO Inc.) SHELL, MENSA DEVELOPMENT, 106 km

Supplier of the world’s heaviest and largest umbilical (DUCO Ltd.) PETROCANADA, TERRA NOVA @ 170kg/m, 320mm diameter

Supplier of the world’s largest number of components (DUCO Ltd.) TALISMAN, BUCHAN ALPHA, 98 HOSES

Currently manufacturing world’s heaviest umbilical BP SECU 305mm diameter @ 190kg/m

Safety Performance In excess of 1400 days incident free

Introduction to DUCO July 2006

10

Number of Subsea Production Wells

0

20

40

60

80

100

120

140

160

180

WHY IS MARKET SO ATTRACTIVE?

High oil price here to stay

Next 5 years:-

40% increase in subsea production

Doubling FPSO’s

Planned delays to decommissioning

Enhanced recovery to existing subsea production systems

By 2013 oil demand predicted to exceed supply