IR- 18/09/2013

OVERVIEW PRESENTATION

PAENAL FABRICATION FACILITY Porto Amboim, Angola

SBM Executive Visit – 13th October 2013 PAENAL

PORTO AMBOIM ESTALEIROS NAVAIS

IR- 18/09/2013

• In 2007 the Sonangol and the SBM Offshore Group committed to

develop a new fabrication yard in Porto Amboim, Kwanza Sul Region

in order to expand “Angolan Content” and enhance the capacity of

the Angolan fabrication industry.

• PAENAL Lda (Porto Amboim Estaleiros Navais Lda) was formed

initially as a Joint Venture between Sonangol and SBM. At the end of

2010 the JV was joined by DSME from South Korea.

Today the composition of PAENAL Lda is:

SONANGOL (40%)

SBM (30%)

DSME (30%)

• The first phase of PAENAL Yard was completed in 2008 and the full

phase of yard development was completed in Q3-2013, with the

commissioning of the 2,500-ton capacity Heavy Lift Crane (HLC) in

August 2013.

• At full operating capacity the PAENAL yard provides approximately

two (2) million man hours of work per year.

INTRODUCTION

IR- 18/09/2013

The yard is located three kilometres south of the City of Porto Amboim and is a forty

five minute drive from Sumbe, the capital city of Kwanza Sul Province.

Porto Amboim - Main Town

LOCATION

IR- 18/09/2013

2500t Heavy Lift Crane

Pipe Shops SONANGOL Marine Oil

Terminal

Fabrication

Shops

Main Offices,

Client Offices,

Canteen

Site Offices &

Clinic

Warehouse

Maintenance

Shop

4MW Power

Plant

PAENAL YARD TODAY

IR- 18/09/2013

Client Project Total Weight Delivery Date

SBM/

CABGOC

Construction of 2 Shallow Water Calm Buoys for

the MTOE Project.

500 metric tons Q2 2009

HMC/BP . Fabrication of 26 Mudmats

. Integration of FTAs

. Fabrication of Ballast Blocks

1.700 tons

2.900 metric

tons

Q4 2010

Technip/BP Fabrication of Initiation Pile (75t) and 10”, 6” Gas

Injection Spools (16t)

91 metric tons Q1 2011

OPS,

Angola

Fabrication of FPSO Boarding Ladder 75 metric tons Q2 2011

DSME/Total Protectors, Water Treatment Module (M122) and

17 Suction Anchor Piles

7,700 metric

tons

Q4 2013

SBM/ENI 9 Suction Anchors Piles, Sulfate Reduction

Package Module (M08) and Hot Oil Pump

Module (M18)

1,359 metric

tons

Q4 2013

CABGOC Fabrication, load out and sea-fastening of 2

WHP Topsides

6,400 metric

tons

Q4 2014

PROJECT WORK

IR- 18/09/2013

TRAINING SCHOOL • The PAENAL Training School was established in April 2007, first training session launched in May 2007

• The Training School re-opened in November 2010 with 70 new Trainees per quarter

• Successfully trained 421 Porto Amboim young personnel for welding and fabrication works

• Training will re-start in 2 QTR 2014 (35 welders and 35 fabricators)

TOTAL NUMBER OF PAENAL PERSONNEL (DIRECT + INDIRECT)

2009 2010 2011 2012 2013

Expats 77 87 152 144 180

Nationals 282 333 675 820 990

% National 79% 79% 82% 85% 85%

TOTAL NUMBER 359 420 827 964 1170

DIRECT PERSONNEL: WELDERS, FABRICATORS, RIGGERS, SCAFFOLDERS, QA/QC, ENGINEERING

2009 2010 2011 2012 2013

Expats 64 46 58 99 119

Nationals 170 192 319 590 750

% National 73% 81% 85% 86% 86%

TOTAL NUMBER 234 238 377 689 869

OBJECTIVES:

• Angolanization

• Career Development

• Transfer of know how

IMPLEMENTATION:

• Continuous Training at all levels

• Strong Performance Appraisal Process

• Employee Couching

• Clear measurable objectives

MAPOWER AND TRAINING

IR- 18/09/2013

RISKS AND CHALLENGES

RISKS

• Reduction of Scope of Work of ongoing projects, having a

negative impact on revenue and profit forecast

• Slow “know how” transfer, lack of proposals for high end

integration equipment such as Power Generation and Gas

Compression

• High Operating Costs, high labor costs

• Lack of proper infrastructure in the area to attract young

professionals from other Provinces

CHALLENGES

• Convert Paenal in a true EPC Company, providing

management for Detailed Engineering, Procurement,

Construction and Commissioning.

• Prepare PAENAL for future growth to achieve 2 million man-h

of fabrication capacity.

GAS COMPRESSION MODULE

- NEXT STEP IN PAENAL DEVELOPMENT -

POWER GENERATION MODULE - NEXT

STEP IN PAENAL DEVELOPMENT -

IR- 18/09/2013

SOCIAL RESPONSIBILITY

PAENAL has become a Major contributor to the Social

Responsibility in the Kwanza Sul Region:

Main Targets & Actions:

• Mitigate high unemployment by training and offering job

opportunities to the local people from kwanza Sul and

surrounding areas.

• Encourage the creation of small private companies, to support

the needs of the yard.

• Encourage International Contractors, Service Providers to

establish a presence/base in Porto Amboim creating additional

training and job opportunities.

• Encourage and Participate in the development of Social

Activities (Karting, Football, Beach Volley…)

• Identify & encourage the development of infrastructure

required to improve the quality of life of the local people;

assistance to hospital/clinics, schools.

• Supporting local charities.

• Sponsor Education programs such as revamping of

elementary schools

IR- 18/09/2013

9

Checklist

495m of Quay

1.200 employees

85% Angolan Content

2.500T HLC

Pipe Shops & Mechanical Shops

Others…

CLOV a Series of “1st”

1st FPSO to Berth at a quay in Angola

1st Module Fabrication and Integration in an Angolan Yard

1St FPSO Naming Ceremony in Angola (combined with 60 Year anniversary of TOTAL in Angola).

PAENAL Completed CLOV &

Ready for N’GOMA…

IR- 18/09/2013

10

PAENAL on the NEWS….

“Africa's largest crane built in Angola The USD50 million crane has been named Jamba and is able to lift cargoes weighing up to 2,500 tonnes” Source: Heavylift International Sept 13

“Africa’s Strongest Crane Gets to Grips With Angola Oil Projects” Source: Bloomberg Aug 13

The 2500T HEAVY LIFT CRANE has been named “JAMBA” by the Governor of the Kwanza Sul Province; Eusébio de Brito Teixeira at the occasion of the naming Ceremony on the 14th August 13. Source: Macauhub Aug 13

“JAMBA” is the meaning for “ELEPHANT”

IR- 18/09/2013

PAENAL on the NEWS….

IR- 18/09/2013

CLOV NAMING CEREMONY

PAENAL on the NEWS….

IR- 18/09/2013

CLOV NAMING CEREMONY

PAENAL on the NEWS….

IR- 18/09/2013

• Proven capacity to SAFELY execute large scale projects

• High focus on Safety Leadership, behaviour and workforce

Engagement

• Paenal brings a controlled step change in terms of Angolan

Content by expanding the Capabilities of an Angolan

Fabrication yard in terms of fabrication Complexity, EPC

competencies and Exposure to Oil Majors.

OUR COMMITMENT

• Establish a High quality Project Team for every Project

• To promote and develop the topsides fabrication, integration

and project management know-how in Country

• Delivery of projects safely, on time and with high quality at the

Satisfaction of Company and its Stakeholders.

Every Person SAFE every day

• Strong Management Team with international expertise and

experience in delivering projects to the highest standards of

safety and quality, on time and on budget

Robust Construction and Commissioning

Long Term Commitment to

ANGOLA

PAENAL a trusted partner