amec oil sands breakfast briefing - · pdf fileamec’s people qa/qc 3% mining 1% ... amec...

AMEC Oil Sands Breakfast BriefingPeter Madden, President Oil Sands1 October 2010

Important information

Certain statements in this presentation are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward looking statements contained in this presentation regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future.

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representation that such trends or activities will continue in the future. You should not place undue reliance on forward looking statements, which apply only as of the date of this presentation.

This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares of the Company.

Past performance cannot be relied upon as a guide to future performance.

Agenda

� AMEC capability

� Market trends and developments

� Future Technology and Improvements

3AMEC capability Market trends Improvements

AMEC’s people

QA/QC 3%

Mining 1%

Safety 3%

Supply chain management 8% Engineering 43%

Others 8%

2009

4

Our Oil Sands business employs some 2,000 people

Construction management

16%

Project management

18%

2009 headcount

AMEC capability Market trends Improvements

��

AMEC’s safety performance is a differentiator

5.05

3.22

3

4

5

6

TRIR

5

� �� Board 2008, LTI & RWI only** OGP 2008 Survey

AMEC is striving for beyond zero performance levels


0.350.2

0

0

1

2

TRIR

Alberta*Construction

Industry

Oil Sands* AM EC Oil Sands Oil & Gas**Producers

ConstructionAverage

Oil & Gas**Producers

ConstructionPacesetter

Health, safety, security and environment (HSSE) is fundamental at AMEC

Beyond Zero

Management systems Protecting our work force

Our vision of what we need to do to achieve sustainable, world-class HSSE performance throughout our global operations


AMEC strengths in the oil sands

Study servicesFrom mine planning and design through DBM and EDS (FEED) packages

Engineering & procurement servicesProcess, ore prep and utilities are designed using state of the art systems supported by a worldwide procurement network

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Design, delivery & specialist consultancy across extraction and production spectrum

Project & construction managementConstruction planning from contract strategy, constructability through work packages, estimating progress and quality management at site all with an emphasis on HSSE

Asset managementPlan start-up and commissioning, operator training and in-plant engineering services

Environmental ServicesEnvironmental permitting, geotechnical design, waste water treatment, reclamation and tailings


AMEC has both mineable and in-situ capability

� Conventional (mineable)

� Involved in world’s first commercial oil sands mine in 1967

� Helped build biggest oil sands mine (Mildred Lake)

� Worked on virtually every major mineable oil sands development since 1991

� Non-conventional (in-situ)

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Leading market positions

�

� AMEC BDR 30+ years oil sands processing experience

� Particularly in-situ technologies and deep reserve extraction– steam assisted gravitational drain (SAGD)– cyclic steam stimulation (CSS) thermal

recovery


AMEC expertise built up over time

20101991

9

Involved in virtually all major projects since 1991

20101991


Major resources in comparatively small and remote area


The oil sands market is expected to grow

11Source: CAPP – Crude Oil Forecast, Markets & Pipeline Expansions, June 2010


Production forecast to increase to 2.9m bbl/day by 2020

Workshare reduces pressure on local resources

Involves 3 divisions

Major AMEC Project

Imperial Oil: Kearl ProjectScope: EPCM services for Phase 1, which is designed to deliver 100,000bpd (production 2012)3 Phases to project – facility could ultimately produce 300,000 bpd

� Natural Resources� Power & Process� Earth & Environmental

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Leveraging AMEC - common tools and processes

divisions

Leveraging our resources

� Earth & Environmental

Calgary: overall project management / controls / systems

Vancouver� Ore prep� Slurry prep� Hydrotransport� Mine Maintenance� Basal H2O System

Calgary� Extraction� Froth Treatment� Tailings� Civil Works� Buildings

Houston� Product pipelines� River water

pipelines� Associated

pipelines

Oakville� Steam plant� Water treatment

facilities� Power


Cold Flow

� Low capital investment

�Only works well where the oil (bitumen) is fluid enough

�Recovery is only 5-10%

Shift to in-situ recovery - improving technology

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80% of the oil sands resource is more than 200 feet deep


LP

Cyclic Steam Stimulation (CSS)

�Recovery rate: 20-25%

Steam-assisted Gravity Drainage (SAGD)

�Recovery rate: up to 60%

Shift to in-situ recovery - improving technology

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HP

� � ��


Toe to Heel Air Injection (THAI)

� Lower capital costs

�Minimal usage of natural gas and water

� Potential to be utilized in deep heavy oil resources

� 80% recovery expected

Future in-situ recovery – improving technology


Vapor Extraction Process (VAPEX)

� Solvent injected into oil sands resulting in significant viscosity reduction

� Expensive injection fluid (propane)

� Lower energy costs

� Potential for in situ upgrading and application to thin reservoirs

� Limited field-testing

Improving Technology - tailings management

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Improving technology – Earth & Environmental


Improving Technology– energy usage

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Improving technology


AMEC Oil Sands Breakfast BriefingAppendix

Biography

Peter Madden is President, Oil Sands for AMEC, leading a 2,000 person Engineering and Project Management business based in Calgary, Alberta. Peter has over 34 years experience in Oil and Gas, eighteen years in senior management positions, and held many senior roles in project and corporate organisation structures with legal and fiscal responsibility for the delivery of project and business targets.

As a Fellow of the Institution of Structural Engineers, his background skills

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As a Fellow of the Institution of Structural Engineers, his background skills were developed through structural design and analysis work in the North Sea, Middle East and Borneo working for both Contractors and Operators.

Mineable oil sands

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20 per cent of the oil sands resource is less than 200 feet deep

Life cycle environmental services

� AMEC Earth & Environmental provides complete concept-to-closure services from initial assessment of baseline conditions, through design and permitting, operation, reclamation and closure

� Industry leaders in waste management technologies

� Geotechnical engineering

� Tailing management

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�

� Human environmental services

� Environmental permitting assistance and management

� Regulatory support

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