Technip technologies and products

Flexible pipe

2

P R O F I L E

Technip Profile

Listed on the Euronext Paris and New York Stock Exchange

Revenues: almost 7 billion euros in 2006

22,000 people worldwide

One of the five world leaders in oil and gas,and petrochemical engineeringtechnologies and construction services

4 business segments

OffshoreFacilities

Engineering andfabrication of fixedplatforms for shallowwaters and floatingplatforms for deepwaters

Gas treatment andliquefaction, Gas-To-Liquids (GTL)Oil refining (refining,hydrogen, and sulfurunits)Onshore pipelinesPetrochemicals (ethylene,aromatics, olefins,polymers)

Fertilizers, chemicals and pyrotechnicsLife sciencesMetals and mining BiofuelsBuilding andinfrastructure

Onshore-Downstream

IndustriesSURF (Subsea, Umbilicals, Risers & Flowlines)

Design, manufacturingand supply of deepwaterproducts (flexible andrigid pipelines, umbilicals,riser systems)Subsea construction andpipeline installationservices

3

Technip offers a

broad range of

services in

engineering,

manufacturing,

installation and

retrieval of flexible

pipe systems with

the most advanced

integrated solutions

for deepwater and

ultra deepwater

field developments.

Flexible pipe

Technip is the most experiencedprovider of integrated solutions forsubsea field developments, based ona broad range of field-proven productsand services. Early in the 70's, Technippioneered flexible pipe technology and

used it to provide its clients with ever-higher levels of reliability and quality,even in the world's harshest anddeepest offshore environments.

For over 30 years our high pressureflexible products have providedoffshore operators with reliable andefficient subsea solutions worldwide.To date, more than 9,000km of Techniphigh-pressure flexible pipe have beeninstalled throughout the world.

Our products are versatile, corrosion-resistant and compliant, and they areeasy and quick to install, retrieve andreuse 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 19", flexiblepipes are the product of choice forinfield 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

Sample of an IPB* (Integrated Production Bundle)

* Proprietary technology.

I N T R O D U C T I O N

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What is flexible pipe?

A fit-for-purposestructure

A flexible pipe is made up of severaldifferent layers. The main componentsare leakproof thermoplastic barriersand corrosion-resistant steel wires. The helically wound steel wires give thestructure its high-pressure resistanceand excellent bending characteristics,thus providing flexibility and superiordynamic behaviour. This modularconstruction, where the layers are inde-pendent but designed to interact withone another, means that each layer canbe made fit-for-purpose and indepen-dently adjusted to best meet a specificfield development requirement.

Main characteristics

FLEXIBILITYFlexibility is the distinctive property offlexible pipe. A typical 8'' internaldiameter (ID) flexible pipe can safely bebent to a radius of 2m or less. This is thereason why flexible dynamic risers havebeen the enabling technology forfloating production systems.This flexibility is also important forflowlines laid on uneven seabedconditions. Flexibility makes it possibleto spool the pipe on a reel or in acarousel for efficient and quicktransportation and installation.

INSTALLABILITYBecause the flexible pipe comes in acontinuous length, laying speedcommonly averages 500m per hour.Separate sections are connected ondeck during installation, eliminating theneed for any intermediate riser basestructure or subsea connections. Thiselimination of interfaces reduces risk inoperation.

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 upto 19 layers.

Beyond the basic fluid barriers andstress-resistant tendons, additionallayers can be included to prevent wearbetween steel layers (in dynamic appli-cations) or to provide improved ther-mal insulation ("standard" flexible pipealready has a much better insulationcoefficient than that of steel pipe).

Besides including new plastic or steellayers within the product, it is alsopossible to assemble plastic hoses,electrical cables or optical fibers arounda flexible pipe to produce an IntegratedService Umbilical (ISU®), or includeactive heating for flow assurance indeepwater to produce an IntegratedProduction Bundle* (IPB).

In 2001/2002, Technip participated inthe DEMO 2000 JIP, demonstrating itsability to supply heat traced flexible,including gas lift tubes and temperaturemonitoring optical fibers within thesame line. Heat tracing and monitoringallow temperatures to be perfectlytuned within the core productionflexible in order to meet flowing or cooldown requirements. This type offlexible pipe provides an "all-in-one"solution for deepwater applications.

C H A R A C T E R I S T I C S

* Proprietary technology

Flexible pipe:a cost-effectivesolutionThe combination offlexibility, installability,modularity, corrosionresistance and re-usability,pressure resistance andversatility explains whyflexible pipe is an overall cost-effective solution.

Flexible pipe: re-usability for anenvironmentallyfriendly product 5

Corrosion resistance

Since the steel tendons are not indirect contact with the conveyed fluid,they do 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 pipeapplication would require much moreexpensive corrosion-resistant alloys.

Pressure resistance

Flexible pipes resist all fluid pressurescurrently encountered in the mostsevere subsea applications. Again, themodularity of the flexible pipe manu-facturing process enables us to adjustthickness, shape and number of steelwire layers to meet the specificrequirements of our clients.

Versatility and re-usability

Modularity enables flexible technologyto cover very different applications:

flexible products already installed inwater depth down to 1,890mKill & Choke line for drilling (up to15,000 psi)drain pipe & foam lines for onshorerefinery applicationsRTP (Reinforced Thermoplastic Pipe)for land applications.

Even more important, it means that theflexible pipe structure is constantlyevolving to meet stringent field specifi-cations:

higher pressures (up to 7,200 psi fora 9” ID, up to 10,000 psi for a 7.5" ID)on dynamic riser applicationshigher temperatures (up to 130°C)

enhanced insulation through thickfoam fillers laid on SZ machineactive heatingdesigns available for ultra deepwater(down to 2,500m).

Moreover, flexible pipe is the onlyproduct, environmentally friendly,which can be recovered and reinstalledseveral times to be used successivelyfor several marginal or evolutive fieldarchitectures as regularly done foryears by Petrobras in Brazilian waters.

C H A R A C T E R I S T I C S

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The worldwide reference

In the early 70's, Technip pioneeredflexible pipe design, manufacture andinstallation, and has now accumulatedmore than 35 years of field-related in-depth experience. Our aim and strategyis to base our leadership on technolo-gical differentiation and, in that respect,the flexible pipe product is our historicalreference. We are committed to resear-ching new solutions to better serve ourclients’ needs. We introduced Coflon®,Crossflex®, Gammaflex®, various typesof Cofoam® insulation materials, bothZeta and Teta vault profiles, the VerticalLaying System*, Steep Wave® and PliantWave® riser configurations, midwaterarch configurations and buoyancymodules, Integrated Service Umbilicals®and multibore risers. Technip has alsodeveloped most of the analytical andnumerical tools used to design, test andmonitor flexible flowline and risersystems.Today, this drives us to find the mostreliable and client-focused solutions forthe deep and ultra deepwater challengesthat lie ahead.

The widest range of services

Technip is the only offshore contractorthat seamlessly integrates design, engi-neering, manufacturing and installationservices to its clients' benefit. It is thestaff of our local business units whoregularly interfaces with our clientsworldwide. Technip's ProductEngineering Division (PED) co-ordinatesflexible pipe-related engineering withinour regional business units.

FLEXIBLE PIPE PLANTSAmong other facilities that manufac-ture umbilicals, Technip currentlyoperates two flexible pipe plants:

Flexi France (Le Trait, France) Flexibras (Vitória, Brazil).

With investments made in 2006, produc-tion capacity now reaches 450km atFlexibras (mix of products for Brazilianmarket) and 250km at Flexi France (morecomplex and larger diameter productmix for international market).

PIPELAYWe own and operate a large fleet ofdynamically positioned vessels, four of

which are dedicated to flexible pipelay.The Deep Blue, the flagship of theTechnip fleet, is the only vessel of herclass to lay both flexible and rigid pipes(reel-lay and J-lay) up to 3,000m waterdepth. In addition, Technip is also theleading supplier of reeled rigid pipe solu-tions worldwide. All these assets andcapabilities are integrated by our uniqueProject Management organisation. Itenables us to compare and optimize thesolutions we offer to our clients andprovide the optimum flowline and risersystems, rigid or flexible for any offshoredevelopment (see map on page 8).

Providing the best suited solutions for ourclients’ field developments

R E F E R E N C E S

* Patented technology.

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Excellence

In addition to manufacturing and supply activities, Technip offers solutions tailoredto clients’ needs. With our long offshore field experience and our intimate knowledgeof the technical challenges faced by flexible pipes, we can and do deliver the highestquality flexible products available anywhere in the world.

All Technip activities are placed within an integrated Quality System which ensuresthat our organisation, manufacturing process, product solutions and services arereliable and efficient. The Group is certified ISO 9001 and its flexible pipe plantshave received the API 17J certification for the design and manufacture of unbondedflexible pipe. The Group is applying permanent improvement processes throughoutits organisation.

1973 First flexible pipe installed in Congo for ElfEmeraude

1974 First flexible flowline in the North Sea onMobil Beryl

1976 First dynamic flexible riser in Brazil onPetrobras Garoupa

1978 First flexible riser with heat tracing inIndonesia on Conoco Udang

1982 First flexible riser with thermal insulation

1986 First dynamic flexible riser system installedin the North Sea on Balmoral Sun Oil

First flexible pipe with a Coflon® pressuresheath in the North Sea and Spain

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

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

1989 First flexible pipe with a Crossflex® pres-sure sheath

1992 First installation using the VLS (VerticalLaying System) on Saga Snorre

1994 First flowline (16" ID, 3.5 km) manufacturedin carousel

First ISU® (Integrated Service Umbilical) onNorsk Hydro Troll

1997 New depth records for flowline (1,709m)and riser (1,390m) in Brazil on PetrobrasMarlim Sul

1998 First flexible riser with a Teta pressurearmour on Norsk Hydro Visund andEnterprise Oil Pierce

2000 New depth record for flowline (1,883m) onPetrobras Roncador

2002 Installation of the deepest flowline (1,890m)on Petrobras Roncador

2003 First project using 46mm thick insulationfillers - Agip Abo (550m) in West Africa

2004 First qualification for 2,100mwd (DIP testoffshore Brazil, 7” and 9” ID flowlines)

2005 Installation of the deepest riser (7.5" ID -10,000 psi for water injection) in 1,890m forBP Thunder Horse in the Gulf of Mexico

Extension of BV certification to 15,000 psi

2006 First supply and installation of 8 x 11”Integrated Production Bundle (IPB) dynamicrisers in 1,400mwd for Total Dalia, offshoreAngola

Field experience and milestones

Since 1972, the yearly OTC award for companies has been honouring theone company (amongst operators and contractors), that has significantlycontributed to the offshore oil and gas industry. In that respect, weobtained the 1995 OTC award for the design, manufacture and installationof flexible steel pipe used in floating production systems, deepwaterdevelopments and high pressure pipes for drilling and well servicing.

R E F E R E N C E S

60%

%

5%

1%

1%

15%

15%

3%

St-John’s

Industrial and Engineering/Research Facilities

(P) = Flexible pipe plant(S) = Rigid pipe spoolbase

(U) = Umbilical plant

Macaé

LondonNewcastle (U)

Evanton (S)Aberdeen

Rio de Janeiro

Vitória (P)Barra do Riacho (S)

Sales and Projects offices Geographical breakdown of flexible pipe volumes supplied by Technip since 2000

Houston (U)

Luanda

Perth

Mumbai

Kuala Lumpur

SingaporeLobito (U)

Dande (S)

ParisLe Trait (P)

Orkanger (S)Oslo

New Diving Support Vessel

New Deepwater Pipelay Vessel

Deep Blue

Sunrise 2000

Venturer

Constructor

Apache

Orelia

Wellservicer

Normand Pioneer (owned by Solstad - long term charter)

Seamec 1

Skandi Achiever

Seamec 2

Seamec 3

Geoholm (owned by Geo Rederie II, Norway - service contract)

Alliance

Deep Pioneer

Seamec Princess

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A worldwide presence and experience

To-date, more than 9,000km of Technip

flexible pipe have been manufactured

and installed worldwide.

A W O R L D W I D E P R E S E N C EA N D E X P E R I E N C E

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A client-focusedorganisation

PerformanceLargest internal diameter: 19” IDexport riser for the Statfjord Coffloading systemHighest value of diameter timespressure: 7,5” ID with 10,000 psi- Thunder Horse, Gulf ofMexicoLongest continuous line:17,000m for 2” IDDeepest dynamic riser: 1,890 m, Thunder Horse, Gulf of MexicoDeepest production flowline:1,890m, Roncador, BrazilInnovative proprietarytechnology: flexible IntegratedProduction Bundle (IPB), 1,400mDalia, Angola

Research & Development

Technip spends yearly about EUR15 million on flexible pipe in its researchcenters. The Product EngineeringDivision has full responsibility forTechnip's flexible pipe R&D program,and is equipped with a full range oftest facilities, including a state-of-the-art laboratory for advanced materialtesting and analysis, making it possibleto simulate realistic service conditionson actual pipe samples. The R&D activity is oriented towardsextending the current product range byintroducing new products and materials.Cost reduction and manufacturing

quality is a permanent and parallelobjective of these efforts. When a givendevelopment has come to fruition, itsqualification testing is frequently carriedout under the auspices of a JIP (JointIndustry Program). This enables keyoperators to participate in the transitionbetween the development phase of anapplication and the "real" marketableand industrial phase.Complex development projects are car-ried out within dedicated task forces.This was the case for Technip's integra-ted Ultra Deep Water developmentprogram. This task force developed anew generation of flexible pipes prima-rily for deep and ultra deepwater.

A client-oriented company dedicated to

cost-effectiveness and technology

Engineering and product testing

R E S E A R C H & D E V E L O P M E N T

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Engineering

The Group engineering organisationresponds to and meets two main chal-lenges: being close to our clients inorder to answer their needs while atthe same time ensuring a sustainedlevel of engineering excellence is avai-lable in all parts of the Group. This isachieved through a combination of:

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

This Product Engineering Division (PED)ensures support to the business units,consolidates the experience acquiredthroughout the Group and developsnew products and materials via arobust and innovative R&D program.Information exchange between thebusiness units is routed via PED whichconsolidates the knowledge andensures a reliable and efficient engi-neering service across the Group.

Pipe IntegrityManagement

The lifetime of offshore field deve-lopments can be as long as 20 to 30years. Operators must have continuousfocus on their assets throughout thefield’s life. Hence, monitoring of theoperational data is key in assessing inte-grity and ensuring safe and optimaloperation of the pipeline system. Incooperation with Force Technology,Technip has set up a Pipe Integrity

Management (PIM) system where rele-vant operational “data monitoring” andinspection results are gathered into adatabase, treated and analysed. A RiskBased Inspection program is also esta-blished and various support servicescan be included. A PIM system hasrecently been implemented for a majorfield development project in the NorthSea, Norwegian sector.

Manufacturing

Manufacturing is organised under aglobal factory policy whereby the twoflexible pipe factories of Le Trait(France) and Vitória (Brazil) are managedin an approved and similar manner, byapplying common quality and safetyGroup standards. As the manufacturing centre of excel-lence, Flexi France, the Le Trait plant,has the facilities and capability toproduce the widest range of flexiblepipes. It is where all our innovative pipedesigns are first manufactured andtested. Flexibras, our flexible pipemanufacturing plant located in Vitória(Brazil), has primarily been establishedto supply the local market but can alsosupply flexible pipe internationally.

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. The Sunrise2000, the Constructor, the Deep

Pioneer and our ultra deepwater vessel,the Deep Blue, are specialist installa-tion vessels, which in terms of decklayout and installation equipment,benefit from the Group's intimateknowledge of the flexible pipe productand which have therefore become keyto our ongoing success. The Deep Blue’sPLS (Pipe Lay System) can also installrigid pipe, either by reel lay or J-lay.As far as equipment is concerned, wehave developed and patented the VLS(Vertical Laying System). The systemallows for the efficient installation offlexible flowlines and risers in deep-water and harsh environments. Theutilisation of the VLS makes it safer tolay flexible lines especially whenequipped with intermediate connec-tions, buoyancy modules or otherancillaries. Technip’s installation innovations havenow extended to fabrication of a newPPS (Portable Pipelay System) designwhich has been used on several vessels,thereby adding another vessel to ourinstallation fleet for flexible pipe.

Vertical Laying System (VLS)*

R E S E A R C H & D E V E L O P M E N T

* Patented technology

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Towards ultra deepwaterUltra deepwater flexible pipe:Current and future capabilities

3,000 m

2,500 m

2,000 m

1,500 m

1,000 m

500 m

0 m

(assuming 425 tonnes max pipelay tension)

6” 8” 10”12” 14”

16”

Cu

rren

t

Fu

ture

UDW objective

Ultra deepwater extends from 1,000 to3,000m and beyond. Our 1997 worlddepth record in Brazil was achieved usingtraditional Technip structures and stan-dard materials.Technip further extended the opera-tional experience with the installationin 2002 of 6" insulated production flow-lines in 1,890m of water and with DeepImmersion Performance full scale tests(DIP) performed offshore Brazil in 2004(7” and 9” ID tested in 2,100m of waterdepth).Full use is being made of the modula-rity of flexible pipes and the Group'scapacity to efficiently and effectivelyevolve them. In the case of the ultradeepwater developments, it is the steellayers that are most affected and eachimprovement answers a specific client-led challenge:

internal carcass for collapse resis-tancepressure vault for collapse and weightreductiontensile armours for weight reduction.

Another significant area is active heatingand this is being addressed by adaptingthe field-proven ISU® concept to thecirculation of hot water around thecentral core of the pipe. Other moreperipheral lines can be used for gas lift.Thus, the ISU® lines with multi-func-tions are gathered in a single line andbecome the Integrated ProductionBundle* (IPB) to guarantee flow assu-rance even for the deepest fields.

In deep and shallow waters, the Technipflexible pipe technology will continueto be a core component supporting theevolution of the subsea oil industry andwe will therefore be in a position tooffer our clients high quality and cost-effective solutions tailored to their veryneeds.

U L T R A D E E P W A T E R

* Proprietary technology.

HeadquartersTechnipTour Technip6-8 allée de l’Arche92973 Paris La Défense Cedex France Phone: +33 (0)1 47 78 21 21Fax: +33 (0)1 47 78 33 40www.technip.com

ContactJean-Daniel OTCHOUMOUFlexible Pipe Business Development ManagerDirect line: +33 (0)2 35 05 51 80Direct fax: +33 (0)2 35 05 51 96jdotchoumou@technip.com

Flexi FranceRue Jean Huré - BP 776580 Le Trait, FrancePhone: +33 (0)2 35 05 50 00Fax: +33 (0)2 35 37 49 60

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

This document is the propertyof Technip and is not intendedto be a binding contractualdocument. Any information containedherein shall not result in anybinding obligation on the partof Technip, or any of itsaffiliates, and is provided forinformation purposes only.

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With a workforce of 22,000 people, Technip ranks among the top fivecorporations in the field of oil, gas and petrochemical engineering,construction and services. Headquartered in Paris, the Group is listed in NewYork and Paris. The Group's main operations and engineering centers andbusiness units are located in France, Italy, Germany, the UK, Norway, Finland,the Netherlands, the USA, Brazil, Abu-Dhabi, China, India, Malaysia andAustralia. In support of its activities, the Group manufactures flexible pipesand umbilicals, and builds offshore platforms in its manufacturing plants andfabrication yards in France, Brazil, the UK, the USA, Finland and Angola, and hasa fleet of specialized vessels for pipeline installation and subsea construction.