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TECHNIP IN THE MIDDLE EAST
G. Christopher WeltonVice President, Investor Relations
UBS GLOBAL OIL & GAS CONFERENCERome, Italy
20 SEPTEMBER 2005
UBS OIL & GAS CONFERENCE 2
I. TECHNIP TODAY
II. FOCUS ON THE MIDDLE EAST
UBS OIL & GAS CONFERENCE 3
I. TECHNIP TODAY1. Technip Overview2. Global Network of Engineering Centres3. Market Positioning: Business Lines4. Backlog
UBS OIL & GAS CONFERENCE 4
1. Technip Overview
Europe’s leading oil services E&C company
Order intake and improving outlook driven by positioning in fastest growing market segments: LNG, Deep Offshore, Ethylene, Heavy Oils
The lump-sum turn-key (LSTK) contract specialist
Disciplined in its project bidding and execution
Sound balance sheet a key success factor in winning large projects
Listed on Eurolist by EuronextTM and NYSE
OFFSHORE:
• Engineering
• Subsea Construction
• Facilities
ONSHORE:
• Gas, LNG, GTL
• Petrochemicals
• Refining / Hydrogen
• OnshorePipelines
INDUSTRIES:
• Chemicals• Metal & Mining
• Power &Infrastructures
51%51% 44%44%
5%5%
Share Half Year 2005 Consolidated Revenues
UBS OIL & GAS CONFERENCE 5
2. Global Network Of Engineering Centres, Yards & Plants
Technip in the world: 20,000 people
UBS OIL & GAS CONFERENCE 6
3. Market Positioning: Business Lines
LNGGTL
Gas Plants
ASSETS
Drilling RigsPlantsSeismic Vessels
SKILLS
ProcessEngineeringProject ManagementProcurement
Positioning
Other Markets
High
Very Low (except SURF)
Exploration / Drilling BudgetsU.S. Gas PriceRig Count
Economic & Demographic Growth (Downstream)Cleaner fuel Requirements (Downstream + Gas)Development Budgets (Upstream)
Well Services
Drilling
Seismic
ONSHORE
OFFSHORE
Dow
nstr
eam
Expl
orat
ion
& P
rodu
ctio
n
Production Facilities
Offshore Facilities
SURF
Petrochemicals
Refining
Key Success Factors
CapitalIntensity
Main MarketDriversDistribution / Marketing
UBS OIL & GAS CONFERENCE 7
4. Backlog: Regional Split
12%13%
22%
33%
20%
EuropeCentral Asia
Africa
AsiaPacific
Americas
Middle East
€ 8,210 MAs of 30 June 2005:
29%26%
17%
19%9%
EuropeCentral Asia
AfricaMiddle East
AsiaPacific
Americas
€ 6,331 MAs of 30 June 2004:
Middle East represents one third of Technip’s backlog as of 30 June 2005.
UBS OIL & GAS CONFERENCE 8
II. FOCUS ON THE MIDDLE EAST1. Where The Action Is Taking Place2. Natural Gas Reserves3. LNG in Middle East4. Mega Steamcrackers5. Main On-Going Contracts6. Major Awards Expected
UBS OIL & GAS CONFERENCE 9
1. Where The Action Is Taking Place
Oil Frontier Areas:Siberia, Caspian
Sea
China:Refining and Petrochems
South-East Asia:Oil & Gas
Developments Refining
LNG
Middle East:Oil, Gas
Petrochems, LNG, GTL
Deep Offshore Triangle
GOM
Brazil
West Africa
ExtraHeavyOils
Orinoco
AthabascaN. Sea
In the Middle East: mainly onshore activities
UBS OIL & GAS CONFERENCE 10
2. Natural Gas Reserves
Proven reserves, as of January 2004: 6,076 TCF (≈ 172 TM3)Undiscovered reserves are estimated at 4-5,000 TCFMore than 30% of the world’s natural gas reserves are located inthe Middle East
Central & South
America250.1 (7.0)
Middle East2,509.7 (71.1)
Africa453.2 (12.8)
Asia-Pacific445.4 (12.6)
Source: Oil & Gas Journal, 2004
Western Europe
191.6 (5.4)
Eastern Europe and FSU
1,964.2 (55.6)
North America
255.8 (7.2)
TCF TM3
Top 3 Countries:Russia 27.6%Iran 15.5%Qatar 14.9%
UBS OIL & GAS CONFERENCE 11
3.1 Qatar: The Land of LNGThe Increasing Capacity of LNG TrainsTrain Capacity (MTA)
Egypt
Trinidad Train 4
Rasgas Trains 1 & 2
Rasgas Train 3
0
2
4
6
8
1964 1972 1978 1982 1989 1997 1999 2003 2005 2006
Qatargas II
2007 Beyond2007
QATAR
UBS OIL & GAS CONFERENCE 12
3.2 Qatar: Frontrunner for Gas Development ProjectsQATARGAS II - LNG
Biggest O&G EPC contract ever awardedLargest LNG Train capacity: 7.8 MT/YClient: Qatargas II (70% Qatar Petroleum, 30% ExxonMobil)Contract value: $ 4 billion (both trains)Execution: JV Technip / Chiyoda
ORYX – GAS-TO-LIQUIDS (GTL)
Biggest GTL plant, Technologically the most advanced34,000 b/dClient: JV Qatar Petroleum / SasolContract value: $ 675 millionExecution: Technip
UBS OIL & GAS CONFERENCE 13
3.3 Middle East: More LNG Projects to Come
YEMEN LNGJV Total leader2 trains of 3.6 MT/YAPCI Technology
RASGAS III (Ras Laffan – Qatar)JV QP & Exxon (70/30)2 trains of 7.8 MT/Y APCI Technology
QATARGAS III (Ras Laffan – Qatar)JV QP & ConocoPhillips (70/30)1 train of 7.8 MT/YAPCI Technology
QATARGAS IV (Ras Laffan – Qatar)JV QP & Shell (70/30)1 train of 7.8 MT/YAPCI Technology
Including Qatargas II, these projects represent capacity addition of 54 MT/Y (> 1/3 worldwide capacity) Accumulated estimated contract value: ~ $ 10 bn
Technip
Sept. 05Technip
Sept. 05
UBS OIL & GAS CONFERENCE 14
4. Middle East: Mega SteamcrackersYANBU - SAUDI ARABIA:
Status ContractClient: SABIC Capacity: 1.3m T/Y Ethylene
0.4m T/Y Propylene
RAS LAFFAN - QATAR:Status Letter of IntentClient: QP / CPC / Total Capacity: 1.3m T/Y EthyleneValue: > $ 800 M
DOW PIC - KUWAIT:Status Memorandum of
UnderstandingClient: JV DOW/PICCapacity: 850,000 T/Y Ethylene
Saudi Arabia
Qatar
Kuwait
N. America
0
40
35
2530
201510
5
Middle EastN.E. Asia
W. Europe
MT
2000 2002 2004 2006 2008 2010
UBS OIL & GAS CONFERENCE 15
5. Technip in the Middle East: Main On-Going Contracts
HDT Riyad
Dow Pic Ethylene (MOU)
Omifco
KhursaniyahQatifYanbu Ethylene
Saudi Arabia
First LNG PlantYemen
10th Ethylene ComplexLDPE 9th Complex
Iran
Oryx GTLQatargas IIRas Laffan Ethylene (LOI)
Qatar
Kuwait
OmanNEBTakreer
Abu Dhabi
9th Ethylene Complex
UBS OIL & GAS CONFERENCE 16
6. Major Awards Expected by Technip and Competition in Next 12 Months
L
LPolyethylene(Thailand)
XLSABIC Petrochem.(The Netherlands)
LATC Aromatics (Thailand)
PETRONAS Lube Oil(Malaysia)
LENOC Refinery (UAE)
LCAMAU Fertilizer (Vietnam)
XLINCITEC Fertilizer (Brunei)
QAFAC (Qatar)
ECOPETROL HDT(Colombia)
REF./PETROCHEM.
L
XLME
ME
XLYEMEN LNG
RASGAS III (Qatar)
XLHARWEEL (Oman)
XLCCO (Venezuela)
QATARGAS III & IV
LSABINE PASS LNGTerminal (USA)
XLKHARG NGL (Iran)
GAS/LNG
Technip
Sept. 05Technip
Sept. 05
XXLME
XXLME
TECHNIP POTENTIAL SHARE
> €1,000m€500m to €1,000m €200m to €500mXXLXLL
LRASGAS III Offshore (Qatar)
LPETRONAS (Turkmenistan)
LTERANG/SIRASUN 2(Indonesia)
LMOHO BILONDO (Congo)
XLEKOFISK (Decom.)(Norway)
UMM SHAIF (UAE)
TAHITI SPAR (GoM)
BOSI EPS (Nigeria)
OFFSHORE
L
L
L
ME
ME
ME
ME
ME
TECHNIP IN THE MIDDLE EAST
G. Christopher WeltonVice President, Investor Relations
UBS GLOBAL OIL & GAS CONFERENCERome, Italy
20 SEPTEMBER 2005
UBS OIL & GAS CONFERENCE 18
Trading Technip
ISINFR0000131708
UBS OIL & GAS CONFERENCE 19
Cautionary Note Regarding Forward-looking Statements
his presentation contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, or statements of future expectations; within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events and generally may be identified by the use of forward-looking words such as “believe”, “aim”, “expect”, anticipate”, “intend”, “foresee”, “likely”, “should”, “planned”, “may”, “estimates”, “potential” or other similar words. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: our ability to successfully continue to originate and execute large integrated services contracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry as well as other industries; currency fluctuations; interest rate fluctuations; raw material, especially steel, price fluctuations; the timing of development of energy resources; armed conflict or political instability in the Arabic-Persian Gulf, Africa or other regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored export financing; the timing and success of anticipated integration synergies; and the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements as from January 1, 2005.
Some of these risk factors are set forth and discussed in more detail in our Annual Report on Form 20-F as filed with the SEC on June 30, 2005, and as updated from time to time in our SEC filings. Should one of these known or unknown risks materialize, or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results to differ materially from those expressed in our forward-looking statements. These factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in this release are made only as of the date of this release. We cannot assure you that projected results or events will be achieved. We do not intend, and do not assume any obligation to update any industry information or forward looking information set forth in this release to reflect subsequent events or circumstances. Except as otherwise indicated, the financial information contained in this document has been prepared in accordance with IFRS, and certain elements would differ materially upon reconciliation to US GAAP.
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