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Project Overview, Status & Kazakhstani Content Strategy

TCO Future Growth Project Wellhead Pressure Management Project

Paul Benoit 10 April 2014 Astana, Kazakhstan

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Tengiz expansion consists of two projects executed together: Future Growth Project (FGP): Expands production by 12 MMTY Wellhead Pressure Management Project (WPMP): Keeps existing plants full

FGP-WPMP

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Plant Sites

3GP (3rd Generation Plant) 3GI (3rd Generation Injection Plant)

Project Scope

Oil & Gas Processing Sour Gas Injection Pressure Boost Facility increases well deliverability benefits both FGP and

existing facilities New wells keep existing plants (KTL,

SGI/SGP) full fill new (FGP) facilities

Design Basis

Expanded Oil Capacity: 12 MMTY (~ 260 MBOPD) Expanded Gas Capacity: 960 MMSCFD (150% of Solution GOR) Drilling: 193 (125 wells for

FGP+WPMP) new wells Execution: Modular Strategy (1800t by Road, 300t by Rail)

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Project Scope

300 MW of Compression for Oil & Gas Processing

140 MW of Compression for Sour Gas Injection

470 MW of Power Generation

~200,000 tonnes of modules

157,000 tonnes freight

30,000 tonnes Piles

~8 MM tonnes of aggregate

~ 12 MM tonnes of sand

19,000 tonnes of cement

~800 km new pipelines

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Focus Areas

Maximizing fabrication in Kazakhstan and developing fabrication

capability and capacity in Kazakhstan for FGP and for the future.

Required to form a JV with a Kazakhstan fabricator and implement a

development and investment plan including training personnel, skills

transfer and upgrade of existing yard facilities in Kazakhstan.

Three existing coastal yards in Mangistau region offer sustainable

development opportunity to support both offshore and onshore

development in Kazakhstan and export markets in Caspian.

Mangistau yards offer opportunity for significant upgrade to add capacity

and capability in suitable timeframe for FGP.

Module Fabrication

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Size Comparison Standard Module

Khan Shatyr Entertainment Centre - Astana W x L x H dims = 195 x 200 x 150 (top of mast)

Train 1 PBF Compression Module (M006) W x L x H dims = 16 x 69 x 33.75

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Main Project Facilities

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Tengiz Area

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FGP-WPMP New Camp at Tengiz

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Important milestones achieved in late 2013:

Tengiz Field Development Plan (Technological Scheme), including

FGP, approved by RoK

Memorandum of Understanding (MOU) signed between TCO and

RoK

TCO Partners approved funding for Early Works (infrastructure)

construction and long-lead equipment procurement

Project’s safety focus continues:

5.5 million man-hours worked since last recordable incident

Zero incidents or injuries to date in 2014

Front End Engineering & Design (FEED) 97% complete

Early Works (infrastructure) construction at Tengiz has started

Current Status

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Current Status Awarded critical path contracts and purchase orders (PO)

New Camp and TCOV contracts

Aggregate PO

Frame 9 gas turbine generators PO

3GI compressor PO

Module Fabrication Contract Contract bid evaluation ongoing, with award planned in Q2 2014

Prorva Port Contract with TenizService under final review

Detail design, TPD, and EIA for marine channel and dock structure started

Project offices opened in Kazakhstan Almaty August 2013

Aktau March 2014

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KC across Goods/Work/Services

Technology transfer to develop

capabilities

Jobs at all levels

Training at craft, supervision &

management level

Nationalisation to allow development of

workforce

Increase capacity and capability of

Suppliers and Fabricators

Legacy

KC Strategy

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Project has a dedicated KC Group to help project manage KC activities

The KC Group

Identifies KC opportunities

Provides support in the realisation of KC opportunities

Provides consistent and accurate centralised KC reporting

KC Strategy: The KC Group’s Role

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KC Strategy: KC Team Integration

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Qualification Review and Evaluate KC

Sections

Supplier Engagement

Site Visits Supplier Visits

Meetings

Bidding Process Request for Quotes Tender Evaluation

Award (Review of KC

Content and Plans)

Execution. Monitor, report &

advise on KC Optimisation

(supplier & overall Project

Performance)

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TCO forecasts spending approximately $7.8 billion on Kazakhstani

goods and services

Project will produce about 20,000 jobs and a legacy of a trained

workforce

Joint ventures established with world class companies with targets

to improve capacity, capability and technology transfer

Framework agreements to deliver fabrication capacity at

unprecedented levels in terms of module tonnage and complexity

Developing training program to support vocational and

educational qualifications

Developing sustainable capability and capacity for Kazakhstani

suppliers

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Exceptional Benefits for Kazakhstan

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