og overview 2015-04

©2015 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.

DI SPUTES & I NVEST I G ATI ONS • ECONO MI CS • F I NANCI AL ADVI SORY • MANAGEMENT CONSULT I NG

Global Energy Practice -

Overview of Services to the Global Oil & Gas Industry

2©2015 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy.

We focus on creating value for our clients by defining, implementing, and maintaining sustainable excellence.

Navigant Consulting (3,500+ Employees)

• Four business areas: management consulting, economics, financial advisory, and disputes & investigations

• Publicly traded since 1996 (NYSE: NCI)

• 2014 revenues - $860 million

• 35 offices in North America, Europe, Middle East, and Asia

Energy Practice

• Our clients: 50 largest electric and gas utilities, 20 largest independent power generators, 20 largest gas distribution and pipeline companies, Leading oil and gas companies, and numerous new energy market entrants and investors

• 400+ professionals in offices throughout North America bring deep industry expertise and experience. Our team has an average of 15 years of experience, 45% have a masters and 50% have an engineering degree

• Our consultants combine market insights and business strategy with exceptional energy operational experience to deliver technically and financially viable solutions.

• Focused on high value, high quality projects. Navigant named "Best Advisory – Renewable Energy" in the

9th and 10th Annual Environmental Finance and Carbon Finance Market Surveys

GLOBAL ENERGY PRACTICE

Introduction to Navigant’s Energy Practice



Advising Leading Energy Companies

Navigant has played an essential role in the development of business, operational, and marketing strategies that are transforming and re-positioning energy companies.

L E A D I N G E N T E R P R I S E S …


» We have more than 400 professionals who bring deep industry expertise to the development and implementation of innovative strategies.

» Our professionals combine market insights and business strategy knowledge with exceptional energy operational experience to deliver technically and financially viable solutions.

» We are focused on high quality, high expertise engagements.


Our Team

Our professionals have an average of 14 years of experience

Over 60% of our professionals have advanced degrees (Masters, MBA, PhD, or JD).

Over 51% of our professionals have an engineering degreeMany of our senior Oil & Gas professionals spent much of their careers as industry insiders

E X P E R I E N C E D T E A M


» We have established and continue to expand in locations where our key clients operate


Geographic Coverage



Our Solution Offerings and Capabilities

• Business Case Development

• Risk Management• Regulatory

Compliance• Federal and State

Regulatory Support• Policy Development

and Code & Standards

• Innovation and R&D Management

• Business Strategy and Implementation

• Organizational Design• Change Management• Technology Advisory• Merger & Acquisitions

• Market Strategy and Pricing

• Customer Management• Emerging Technologies

(renewables, distributed generation, storage, etc.)

• Energy Efficiency• Demand Response• Customer Analytics

• Operational Excellence• Asset Management • Capital Programs and

Project Management• Grid Operations • Distributed Resource

Management• Restoration and Outage

Management• Manufacturing Impact

Analysis

Market Intelligence• Research• Market Modeling• Benchmarking• Data Services


GLOBAL OIL & GAS

Our Industry focused O&G solutions

ProductionDevelop-

ment

Upstream/OFS

TerminalsPipelines

Midstream

Petro-chemicals

Refining

DownstreamDistributio

n &Marketing

Asset Management & Optimization

Energy Sourcing

Capital Programs/ Projects

Integrated Trading

Gas Markets/LNG

Mobility/ Alternative Fuels

Production Optimization

Supply Chain

Operational Excellence

Business Strategy & Implementation

Corporate functions

R&D Management

Cyber/Physical Security


Asset Management & Optimization

Production Optimization Supply Chain Excellence

Navigant’s Asset Optimization team is dedicated to helping oil and gas clients capture value by improving their asset management capabilities.

» Asset strategy and planning: identify long-term strategic requirements of physical assets, creating essential investment and maintenance plans for desired outcome.

» Asset management decision-making: coordinate all the elements of the asset life cycle to optimize the true whole-life value.

» Lifecycle delivery activities: insight on routine/reoccurring work management and turnaround/shutdown/outage optimization to help drive significant cost improvement.

» Asset knowledge enablers: Understand that asset data, information, knowledge and wisdom for strategic asset management activities and operational excellence.

» Organization and people enablers: Focus on contractors to improve project duration and overall labor cost.

» Risk and review: understand risk tolerances in terms of safety, environmental, financial, reputational, and performance.

As shareholders seek greater returns on investment, and state owned organizations vie to become more competitive in a global market place, oil and gas producers must also look to optimize their cost of production in order to generate a greater rate of return.

» Operating Strategy: framework to understand current performance and identify where efforts are best focused in order to optimize production.

» Production Optimization: understand the key value drivers and risk levers across upstream production. Apply ongoing improvement and scenario based methodologies to achieve optimum success.

» Process Redesign and Implementation: identify, redesign and implement processes that help to bring about measurable improvements in operating expenditures.

» Operational Culture: create a continuous improvement culture through organizational structure and required behaviors.

» Alignment to Technical Solutions: better leverage technical solutions and systems to enable ongoing improvement.

A holistic view of the hydrocarbon and MRO supply chains: procurement and contracting processes, work-scope bundling, market analysis, operator’s capabilities, flows of information, funds and logistics.» Performance Review: performance

review to understand current supply chain performance and identify opportunities.

» Supply Chain optimization: understand the key value drivers and risk levers across supply chain to achieve optimum success.

» Process redesign and implementation: identify, redesign and implement processes that help to bring about measurable improvements in the supply chain.

» Operating Culture: create a continuous improvement culture through organizational structure and required behaviors.

» Alignment to Technical Solutions: better leverage technical solutions and systems to enable ongoing improvement.

» Program and change management: orchestrate and manage the many aspects of multi-faceted transformation activities.

GLOBAL OIL & GAS

Asset Management, Production Optimization & Supply Chain Excellence


Capital Programs/ Projects

Navigant Capital Project Services helps clients deliver greater value from their projects as well as improved capital efficiency of the entire project portfolio by enabling better control, reducing time to market, minimizing budget variances, and improving asset performance. » Portfolio & risk management solutions -

Methods and tools for portfolio and risk management to deliver increased capital efficiency and greater resistance against strategic, operational and market risks. Commercial deal shaping to support client teams.

» Project management & assurance services - Design and execution services to establish a Capital Project Services Office that brings strong governance, methodology, transparency and collaboration across the project ecosystem. Also includes Operational Readiness services to ensure maximum asset utilisation.

» Engineering & project data solutions - Methods and services that support industrial quality delivery and management of engineering, project and asset maintenance data, including data handover and migration services from new construction and brownfield projects.

» Project support services - Advisory and delivery services in procurement, supply chain, IT infrastructure, finance, HR, claim analysis and mitigation strategies, dispute resolution and expert witness testimony to support start up and scaling of capital programs.

Operational Excellence

The Navigant Operational Excellence model enables our clients to utilize their assets most efficiently and economically, ensuring a safe and reliable operations in compliance with regulatory requirements.

Operational Excellence is built on four foundational pillars; simplicity, speed, focus and discipline. It helps client to…

» Deliver increasing operational efficiency to address supply / demand imbalances and periods of low capacity utilization.

» Enhance manufacturing agility to deal with high volatility in demand and pricing fluctuations.

» Comply with stricter HSE regulations.

» Operate safely with lower manpower.

» Raise maturity of process control and automation technology utilization.

» Increase reliability of aging equipment.

» Manage loss of operating knowledge associated with workforce fluctuations and turnovers.

» Utilize a customer focused approach to deliver value

GLOBAL OIL & GAS

Capital Projects and Operational Excellence


Natural Gas Markets LNG Energy Sourcing

Navigant has provided oil, natural gas, coal, and renewable fuels market consulting services to clients for more than 20 years.

» Forecasts and market assessments for asset sales and purchases (generation, pipeline, storage)

» Litigation, regulatory, rate case and due diligence support

» Fuel management (process, strategy, risk management and hedging)

» Fuel resource portfolio optimization and procurement

» Contracting and operational support

» Planning support (fuel plans, integrated resource plans)

» Supply, transportation and market services

» Resource management (structured diversity of supply resources)

» Storage development support

» Basis values and strategic positioning

» LNG terminal development support, including global modeling and netback analysis

Supported by world-class in-house research and benchmarking capabilities, as well as a proprietary integrated natural gas/electricity infrastructure and price forecasting model, Navigant brings deep insight to LNG clients.

Oil & Gas team provides a full suite of management consulting and expert services including:

» Market intelligence

» Strategic insight

» Strategy development

» Strategy implementation, including target operating model

» Due diligence and M&A integration support

» Capital program management, including feasibility studies, PMO activities and operational readiness

» Operational Excellence, including asset management and performance improvement

» Expert witness and disputes support

» Support and preparation of regulatory filings

Our energy sourcing services, powered by World Energy’s Industry-Leading Auction Platform, produce rapid results. Our clients typically save 7% to 9% compared with paper-based RFP results. Web-based, real-time auction events create a hyper-competitive environment among a network of suppliers and drives efficiencies in bidding, price discovery, contracting and auditing:

» Market intelligence: including the optimal time and right approach to achieve your needs and objectives

» Products: online tools for buying electricity, natural gas, renewable power, and environmental commodities.

» Choice: the lowest bidder doesn’t always win, you review the results and pick the winning suppliers.

» Liquidity: World Energy Exchange® pricing events build liquidity by creating an energy market for your business

» Price transparency: suppliers see competitive bids in real-time, driving prices downward

» Lower Prices: pricing delivery on average 7-9% better than competing approaches to procuring energy

GLOBAL OIL & GAS

Natural Gas, LNG and Energy Sourcing


Integrated Trading

Navigant’s Energy Trading and Risk Management practice serves clients exposed to energy and commodity price risks across the Oil & Gas sector. We define and implement strategies around six key cornerstones.

» Energy sourcing: accelerate procurement processes and streamline vendor selection, providing up to 100% green initiatives.

» Research and insight: industry analysis, end-user primary research and deep examination of geopolitical and industry trends to provide thought leadership on current issues.

» Risk management and reporting: application of state-of-the-art models considering liquidity, correlation, credit exposure and funding.

» Valuation optimization: understand the key value drivers and risk levers for deals and transactions, applying ongoing improvement and scenario-based methodologies, to gain optimum success along the entire value chain.

» Program and change management: manage the many elements of trading transformation activities to manage and implement changes effectively and sustainably.

» Trading process excellence: define and implement operating models supporting trading activities, designing improvements around operational trading processes.

Mobility Solutions/Alternative Fuels

» Responding to challenging market conditions that require review and refinement of a client’s end-to-end value chain strategy in order to ensure full value chain optimization

» Understanding the implications and opportunities presented by current and emerging government regulation, and developing and delivering insightful internal and external response plans

» Responding to changing market conditions beyond the refinery gate to ensure a client’s business strategy for fuels or lubricants is both purposeful and future-proof

» Achieving and sustaining operational excellence in the retail and commercial fuels and lubricants markets, from the refinery gate to the customer

» Developing new business solutions as the result of new and emerging mobility technologies

» Responding to the complex and rapidly evolving developments in technology, data and analytics in order to understand and develop a roadmap for the digitalization of downstream oil and gas

Mobility -- the art of moving people and goods from point A to point B – is a fundamental building block of economic prosperity across the world. Navigant combines deep sector and subject matter expertise with mobility-focused insight.

GLOBAL OIL & GAS

Integrated Trading and Mobility Solutions


Technology R&D Management

The Oil & Gas industry has developed significant capability through research and development of new technologies – both physical and information based. A broad range of companies are investing in total more than $10 billion annually.

Navigant can help in these 6 areas:

» Responding to external challenges and opportunities, ensuring the R&D Strategy aligns with corporate strategy

» Optimizing the project portfolio in terms of strategic fit, size, potential value-add and probability of success. This may also include valuation of the portfolio

» Encouraging and generating innovative new ideas through ideation events in the right environment and with suitable participants

» Advising on the implementation of R&D output in the organization – including partnering, commercialization and change management

» Implementing or reviewing the R&D project process to ensure effectiveness and efficiency – decision points, metrics and accountabilities along the innovation lifecycle

» Ensuring that the R&D organization includes appropriate leadership, technical, commercial and creative skills and capability, and is correctly sized

GLOBAL OIL & GAS

Cyber/Physical Security and R&D Management

Risk Management, Compliance and Security (Cyber and Physical)

Critical Infrastructure is experiencing increasing threats and exposed vulnerabilities in both the cyber and physical domains. Consequently, regulators are pursuing expanding security standards and industry is increasing many of its security measures.

Navigant’s Risk Management, Compliance and Security Team can help in these areas:

» Developing compliant organizations through compliance assessments, audit readiness, and internal compliance control development

» Assisting clients with developing mitigation plans and minimizing penalties

» Evaluating current cyber system vulnerabilities

» Determining if cyber systems have been breached

» Evaluating organization’s culture of cyber security

» Identifying critical facilities

» Conducting threat and vulnerability assessments

» Analyzing security plans

» Developing security plans

KeyC O N T A C T S


KeyC O N T A C T S


KeyC O N T A C T S


KeyC O N T A C T S


13

Lee Laviolette – Global O&G LeadManaging Director, EnergyHouston, TX(713) 409-3634 [email protected]

Terry Manning – N.A. Upstream LeadDirector, EnergyHouston, TX(281) [email protected]

Gordon Pickering – N.A. Gas/LNG LeadDirector, EnergyFolsom, CA(916) [email protected]

Walter Pesenti – N.A. Downstream LeadManaging Director, EnergyLos Angeles, CA(310) 871-5345 [email protected]

Katherine Chance – Canadian O&G LeadDirector, EnergyCalgary & Vancouver(604) [email protected]

Mike Dyson – EMEA Upstream LeadDirector, EnergyLondon, UK44 (0) 7810 630453 [email protected]

Richard Bass – EMEA Gas/LNG LeadDirector, EnergyLondon, UK44 (0) 2070 [email protected]

Nick Allen – EMEA Downstream LeadManaging Director, EnergyLondon, UK44 (0) 7980 319641 [email protected]

Gajan Sritharan – EMEA CTRM LeadDirector, EnergyLondon, UK44 (0) 7980 840023 [email protected]

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og overview 2015-04

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