Aibel - Mission to Myanmar 2014

About Aibel 100+ year Old Company

■ 7,000 Professionals■ Turnover (2013) approximately 2 Billion USD

Aibel’s Core Business Segments ■ Field Development■ Maintenance & Modification■ Renewables

Our Customers■ International, Independent and National Oil

Companies■ International Shipowners

Photo; Statoil

Aibel in Singapore and Thailand

■ Established in Singapore in 2007 and in Thailand in 1999

■ Initial focus to serve Norwegian Continental Shelf, MMO/MOD and Field Development

projects

■ Now executing projects throughout the world with emphasis to further developing SEA

region

■ Growth to presently 400 engineers and fabrication capacity of 15.000 tonnes annually

Scope of Services

Aibel value chain in oil services■ Concept Studies■ Front End Engineering & Design (FEED)■ System and area (detail) engineering ■ Procurement■ Fabrication■ System Completion (MC & Commissioning)

FEED MMOConstructionEngineeringFeasibility/ Concept studies

Hydrocarbon discovery

Decommis-

sioning

Development of New Yards in SE Asia

Initial strategy 1999 – 2004

■ Supply competitive high quality fabrication of modules for the shipowner EPC market

■ Serve own company group, Gas-Tech, Vetco Gray with competitive fabrication work

■ Capacity 3-5000 tons/yr

Strategy 2005– 2010+

■ Expand business to also include Engineering and Procurement services

■ Target local offshore operators and shipowners for FC projects

■ Supply cost efficient fabrication also to high spec North Sea Developments

■ Increase capacity to 15000+ tons/yr

Establish in SEA – Aibel strategy

StatoilHydro

Woodside/BW Offshore

South East Asia - Why Thailand?■ ABB had a division for Oil & Gas onshore construction projects in Thailand,

established in the early 80s. - The support functions to support a new unit already in place.

■ Thailand is a country with competitive cost■ Proximity to Singapore ■ Access to skilled workforce, qualified sub-contractors in the area ■ An established mind-set to quality and HSE■ Available deep-water ports with sufficient jetty foundations ■ The climate■ The very friendly people, the food and beaches might have also been considered

Laem Chabang

Sattahip

Mat Ta Phut

1999-2001 The port of Sattahip■ Started up with 4 employees, increased to 30 in two years■ A Thai navy port with frequent naval exercises.■ Limitations on the jetty for load out of modules - Aibel

moved in 2001.

2001-2005 The Port of Map Ta Phut■ Yard capacity 5000 tons/yr, 20,000m2 area■ Aibel required further expansion - Aibel moved in 2005

2005 - The Port of Laem Chabang■ Yard capacity approx. 15,000 tons/yr, 100.000m2 area■ Permanent staff 300 people■ Man-hours per year: up to 7Million■ EPC ISO Certified, ASME & PD 5500, PED

Aibel Assembly Yards in Thailand

2000- 2006 Gain experience and expand

The beginning - Small topsides and skids■ Topsides; 500-1500 tons■ BW Offshore FPSOs, Sendje Ceiba, Berge

Helene, Chinguetti■ Manifolds, separation, compression, utilities

and water injection modules

The next step – Integrated decks

■ Volve (Mærsk/Statoil) - Topsides 4700 tons■ Fully integrated NORSOK topside,

Compression, separation, WI, utilities, LER/LIR/CCR

2007 – Continued development

Moving into mega projects■ 2007 Mærsk/Woodside

■ FPSO Vincent - 7300 tons

■ 2009-2010 Modec/Petrobras■ Major FPSOs Tupi Pilot and Guara

total -18 000 tons

■ 2011-2013■ Statoil Gudrun WHP and Troll

Compression: total - 11.000 tons

FPSO Cidade De Sao MateusProsafe

Smart 1 FPSOAker Floating Production

Vincent FPSOMærsk

Thai Government industry regulationsBOI – Board of Investment

■ When investing in new business in Thailand, BOI may grant ■ A “tax holiday” for up to 10 years, No tax on profits, import or export■ Allow for 100% foreign ownership

Bonded Warehouse

■ Government may grant a “Bonded Warehouse” for fabrication yards■ No import tax on equipment or materials to be exported ■ Must be documented thoroughly

Taxation

■ Tax initiatives for “keeping cash” to facilitate organic growth locally■ 7% VAT

Ownership

■ If not under a BOI, local business must be owned minimum 51% by Thai investors.

■ FBL or Foreign Business License also allows for 100% foreign ownership but subject to the limitation of the issued business permit.

HSE

■ Thai government are strict on environmental protection and emissions■ Frequent governmental surveys and inspections

Aibel Thailand – 15 years of operation

Strategy achieved

Aibel and Myanmar

■ Aibel is interested to take part in the Development of

the Myanmar energy sector

■ Our vision is to develop a sustainable and safe long

term business for Aibel and

our Clients.

©

2008