Edition 17. August 2013

FLUORAUSTRALIANEWSfan

Edition 17. August 2013

David Phillips Executive Director – Operations, Energy & Chemicals

As the year has progressed there has been increasing debate about the so called end

of the “mining boom”. This debate has intensified over the last few weeks, fuelled by the political positioning surrounding the current election campaign. But the first common mistake the media often makes is classifying all resource development activity as “mining”. As those of us in the business know, iron ore, metals and oil and gas are quite separate components of Australia’s natural resources and are quite often counter cyclical in their pace of development.

There is no doubt that the price of iron ore fell massively late last year and that expenditure on many significant developments was scaled back. There is reasonable confidence that this represents a pause in development, not a long term trend. The energy market is somewhat different. Gas demand is growing year-on-year, supporting the current investment in Australian LNG projects. Bullish forecasts suggest 75 percent growth in the global gas market by 2025. Taking China as an example, the current supply/demand gap is of the order of about 5,000 cubic feet per day. This is expected to grow to 20,000 cubic feet per day by 2025.

The challenge for Australia is that we have to compete with huge discoveries in new potential export regions such as The United States, Canada, Russia and East Africa. Projects in Australia are expensive by world standards for a variety of reasons, including the complexity of the upstream developments and the remoteness of the onshore LNG facilities. Labour costs and productivity are also contributory factors.

Since 2009, construction has begun on seven new LNG projects worth $180 billion, potentially propelling Australia on a path to become the world’s largest LNG supplier. This huge investment creates massive opportunities for long term operations and maintenance services as well as providing a platform for cost-effective future expansion. These expansions are not just minor brownfield modifications to LNG plants, but large scale incremental expansions to both onshore and offshore upstream facilities. Given the demand scenario and the need to maximise the value of the massive investment to date, it is reasonable to be confident that we are entering a period of long term sustainable activity associated with LNG production in Australia. The challenge for Fluor is to maximise the value we bring to this market.

Observation: LNG

Australian natural gas resources. Source: RBA

Gas Coal Uranium Oil

Australian energy trade projections. Source: BREE

FAN Edition 27. August 2014

The Kearl Oil Sands Project involves the construction of an oil sand processing facility and infrastructure for Imperial Oil and ExxonMobil. I have been

on assignment in Canada for nearly two years as the site Piping/Mechanical superintendent.

I was initially unaware as to what a bitumen plant consisted of – as far as I knew bitumen is what we put on the roads. Needless to say I was surprised at the size of the plant site and mining area and to find out that the finished product was oil.

To produce oil, the sand is mined after clearing the overburden, trees and muskeg. The muskeg is then stockpiled and used for future reclamation. The sand is placed into Heavy Haulers (big trucks) and brought to the crusher where its journey to be turned into oil begins. It is mixed with water and turned to slurry and transported and conditioned in a pipeline which is called Hydrotransport. From there it goes to Extraction, where the bitumen is separated as Froth, a mixture of bitumen, water and solids. It is further treated in the Froth treatment plant and is then ready for sale. The expected production based on development scenario could be around 300,000 barrels per day.

The project has camp accommodation and there can be up to 5,000 people here at peak construction, so meal times can be a bit hectic.

The day starts early at 4:00am – shower, breakfast, then to the “bag up room” to get your meals for the day. Then out to “Brass Alley” to catch the bus to site, which can be very cold in the winter months. The buses leave for site at 5:00am…time for a quick snooze during the 40 minute ride in.

The Canadian workers are really easy to get along with. The winters here are long and cold. I have been witness to two of the worst winters here in Alberta, which last for about six months. The summer average is about 25° C, which isn’t much compared to our Australian summer but for the Canadians it is HOT.

When summer arrives, so does the wild life: Black bears, coyotes, foxes and wolves. This is a little disturbing during night shift when you are working in remote area of the plant. You can get bear pepper spray which is supposed to deter the animal, but I’d rather not test this first hand to see whether it actually works. The last comment on the bear alert bulletin says “If the bear makes contact, fight back with everything you have”. I prefer the local advice, which is “make sure you can run faster than the person next to you”.

Site is remotely located in northern Alberta, 70 kilometres north of Fort McMurray, the nearest “town”. I am on site for eight weeks then travel back to Perth to see my family. It is quite a trek home, beginning with a 90 minute bus ride (if the roads are in good condition) to the local airport and an overnight in Calgary. I then fly to Las Angles to Melbourne and finally Melbourne to Perth. Total travel time roughly converts to two days.

Postcard From Canada

Stephen Ducie – Pip

ing/Mech

Superintendent.

Kearl Oil Sands Pro

ject

fanFLUORAUSTRALIANEWS

WHO TOOK MY CHEESE? HAS THE BOOM GONE BANG?

Graham Popplewell Technical Director – Diamond Processing, Senior Fellow

We are now at the halfway stage of 2014. The FAN 2013 wrap-up edition offered brave optimism for a tough, but successful, 2014 for Fluor in Australia.

However cold winds from a region well to the north have certainly made sustaining that optimism a challenge. Project opportunities in our mining sector have shrunk dramatically. Earlier projects have moved through engineering and construction phases and into production, without being replaced by new projects. Symptomatic of an overall global trend, Chinese demand for iron ore has particularly abated, leading to fears of an over-supply, with prices falling and some major producers starting to offer discounts to maintain volume. Not only has this made funding of new capacity more difficult, stalling companies for whom Fluor had been engaged, even the big producers have reacted by turning inwards with a view of streamlining operations to reduce costs, rather than embarking on the kind of expansion that up until recently we had come to take for granted. The focus is on “production for today” rather than “production for tomorrow”. And that is just in Australia. More challenging commercial environments in parts of Africa demand an additional risk premium to get projects over the line, which is proving elusive to secure.

Not surprisingly, the reduced project opportunities have intensified competition in our industry, which means both bidding smarter and also looking for ways to pre-empt formal bidding by engaging proactively with potential clients. It is in these circumstances that our sales teams face their “finest hour” – after all it is easy to win work for a company with Fluor’s global reputation for successful and safe project execution, especially when times are booming and clients will pay a premium for good people.

With opportunities diminishing, overheads climbing and the workforce shrinking, we must chase even small, complex scopes that

we would perhaps have declined to bid in sunnier times. Nuanced execution strategies to catch the owner’s eye (lean-execution is one currently ticking the referee’s scorecard) and innovative commercial models are more important than ever. A big strength we have in coping is the collaborative structure Fluor uses to address business development. Sales is not just “those over there who lunch” but a core and very small group who set the standards, manage the marketing databases, drive the deadlines, coordinate the proposal creation (i.e. run the “system”), with a specific proposal team assembled from “volunteers” (Genghis Khan style) amongst the general engineering functions. It is truly a great learning opportunity, against the clock! It also means a small sales group can handle multiple simultaneous proposals. And still lunch.

So, back to the question, has the boom gone bang, and if so, what now? Well, not so long ago, there was a somewhat similar situation. But also different. Fluor’s Mining & Metals project backlog was truly impressive, while E&C was not doing too well. Now it is their turn, with shale oil and gas projects in the USA showing huge potential and funding lavish Texas cookouts whilst we in M&M appreciate a more Dickensian diet for a while. Economic cycles are just that – times will change and Oliver will eventually get some more. The diversity of the Fluor organization and the markets it serves gives us great resilience as cycles of project activity very rarely synchronise across such a wide canvas. Bragging rights will drift around as circumstance anoints different industry segments over time, and the fleet has still to be managed but, overall, the One Fluor armada will sail on.

So, whilst our Fluor Duyfken limps along at the rear of the fleet, waiting for a favourable breeze, as Fluor employees we can prepare. Embracing flexibility is one way. Being prepared to reach out of our comfort zone gives us a more responsive organization. When our core competence is not so much in demand, make it known that you will volunteer for something that is. Although I am Fluor Senior Fellow for Diamond Processing, I spent half of last year managing a feasibility study for an iron ore mine in Guinea. Quite different. Nobody asked me for a free sample. Then of course there is self-directed on-line training. Training provides the ability to use knowledge effectively. Using knowledge effectively is often the difference between success and failure.

FAN

Joint venture in Mongolia supports Fluor’s desire to establish a long-term and sustainable presence in this emerging market

Ian Davies Director – Business Development, Industrial Services International

Industrial Services has partnered with a local Mongolian company, MCS International (MCS-I), to form a new company called Mongolian National Facility Services LLC (MNFS LLC) to support Fluor’s desire to establish a long-term and sustainable presence in this emerging market.

Bordered to the north by russia and to the south, east and west by China, Mongolia is the most sparsely populated independent country in the world. To give some sense of proportion, it is approximately the same size as Alaska, or two-thirds the size of western Australia. with a population of about 2.75 million people, approximately 45 percent of the population lives in the capital of ulaanbaatar, and 30 percent of the population is nomadic or semi-nomadic.

Economic activity in Mongolia has traditionally been based on herding and agriculture, although the very recent development of extensive mineral deposits of copper, coal, molybdenum, tin, tungsten, and gold have emerged as a driver of industrial production. In 2009, the Mongolian Government, rio Tinto

and Ivanhoe Mines agreed to develop the oyu Tolgoi copper and gold deposit, the biggest foreign-investment project in Mongolia. The facility is expected to account for one-third of Mongolia's gross domestic product by 2020, radically changing the country’s economic prospects. Fluor’s Mining & Metals business line has been providing EPCM services for oyu Tolgoi for more than seven years.

Fluor’s partner, MCS-I, is a wholly owned subsidiary of Mongolia’s MCS Group. Established in 1993 as an energy sector consultant, MCS is one of the largest companies in Mongolia with more than 20 subsidiaries operating across multiple business sectors such as mining, property development and management.

“The establishment of MNFS as a local company dedicated to servicing the local market closely follows the model that has been successfully implemented in other parts of the world such as SNGS on Sakhalin Island, QNFS in Qatar, KNGS in Kazakhstan and NPS in Indonesia. we believe this new joint venture will provide more local resources, increased technical expertise, and greater access to established markets in Mongolia,” said wilbert Boon, vice president, Industrial Services International.

MNFS is committed to providing the local market with a local asset management solution underpinned by international best practices that is needed to maintain the critical infrastructure necessary to support Mongolia’s long-term growth plans.

Industrial Services establishes MNFS LLC

Above: Ian Davies, regional Director, Business Development; Gavin Gaul, General Manager, MNFS; David Eppinger, Vice President of Sales, Industrial & Infrastructure; wilbert Boon, Vice President, Industrial Services International; and Phil Pyle, regional director, operations, pose with distinguished guests from MCS at the recent MNFS signing ceremony in ulaanbaatar, Mongolia.

Edition 12. March 2013

As we come to the end of quarter one, 2013, it’s a good time to reflect on what have we achieved and how the remaining months will look as they unfold.

The beginning of the year saw the award of the Jack Hills Expansion Project. The contract was signed in early January with working beginning in early May 2013. The project has just completed a week of peer reviews intended to agree a single go-forward case for the feasibility study.

Argyle has produced its first ore during the last few weeks. The Crusher 1 system is designed to take feed from beneath the underground block cave (via semi automated LHDs), crush the ore and deliver it to the surface. The new system comprises of two crushers and is intended to replace the open cut mine as a new ore streams to the processing plant.

The Simandou team in Perth is in the final stages of demobilisation. The team achieved its objective of defining and pricing the plant that was required to meet Simandou's process needs.

Our First Quantum team has continued on its path of engineering design production for Kansanshi, Kevitsa and Sentinel mine sites. The group has seen the change in leadership from Roger Kernan (six years on FQML projects) to Aaron Fields. Our intention is to roll the team between a series of FQML projects having had various discussions with FQML regarding their expanding pipeline of project work.

To date, we have retained a small process engineering presence on the Boddington site. We look forward to any progress that Newmont may make towards further expansion of this site.

FLuORAuSTRALiANEWSfan

During February, we were approached by Bellzone for assistance with their study to produce iron ore from their Kahlia deposit in Guinea in West Africa. Graham Popplewell and a small team are now heavily engaged in bringing this short-term study to fruition. The scope includes the overall study and estimate production along with some development work at the port site.

2013 Outlook

While we have had some setbacks coming into the year, there remains some key strengths and opportunities for the balance of 2013.

• Magnetite ore handling plants are an expanding requirement within the iron ore industry. More companies are growing in their requirement for engineering skills within this area to deal with increasingly complex ore bodies. Fluor’s process specialisation within this area has started to produce results, and we certainly hope to grow our skills and resume within magnetite.

• Our relationship with FQML continues to go very well and FQML continues to demonstrate its entrepreneurial drive within the world copper market. We look forward to continue building on our capability to deliver for FQML.

• Despite the uncertainty within the local market, we are still faced with a large proposal workload and some significant opportunities to sell our services.

• Our range of specialised skills in iron ore, materials handling, HV distribution systems and process engineering continues to position us well for other opportunities.

Please continue to ensure that the work you produce is your best, to take responsibility for yourself, your work and your colleagues as we take on the rest of 2013.

Edition 12. March 2013

Alan Pollard – General Manager, Perth

FAN

Dave Phillips, Executive Director-Operations, Energy & Chemicals, recently attended and presented at

the Asia Offshore 2013 Conference in Kuala Lumpur from 6 – 8 March 2013 along with Tony Findlay, Romel Bhullar and Neil Prescott. Dave’s presentation was based on a technical paper; "A value driven FEED study for the browse central processing topsides facility".

Written by Aditya Hariharan, Allison Brown, Eric Thorwaldson and Barry Peng of Fluor Offshore SolutionsSM, the paper presents the execution results of the FEED performed for the Woodside operated browse central processing facility, proposed to be installed 350 km off of Australia’s North-West coast as part of the proposed browse LNG development.

The FEED was performed by a partnership between Fluor and McDermott. Fluor was responsible for the design of the topsides and McDermott was responsible for the Jacket. The project was a success due to alignment on the right items with the client from the start.

The project was aligned on three guiding principles:

• We are value driven: Achieved by implementing a value awareness program that resulted in potential to realise significant cost savings as well as an inherently safer design.

Late 2012 saw the start of content migration from fdnet.Australia to the OneFluorSM intranet. The first step of this process asked that local Fluor content managers review the fdnet.Australia intranet site; highlighting content to be

ported across to the new OneFluor intranet. Once content was mapped, a team in Fluor’s Manila office completed the data port and populated both the Locations and Career & Life tab with local content.

Please take a moment to visit these pages and familiarise yourself with the layout. All HR forms now sit under the Career & Life tab, while departmental and office information falls under the Locations tab.

OneFluor intranet – Australian Content Now Live

Asia Offshore Conference: Front End Engineering Design (FEED) Study

• We make it happen: Achieved by developing significant layout improvements using OptimEyes, a very detailed PDMS model and high quality P&iDs and meeting the delivery schedule within the man-hour and cost budgets.

• We’re in it together: Achieved through trust and transparency, cultural sharing and teamwork.

A value based FEED design for the browse central processing facility resulted in significant value creation for the clients. The browse central processing facility FEED is a classic example of the value that Fluor’s offshore solutions can bring to our clients.

David was presented with the award for best presentation in the show for this technical presentation about the Woodside browse project and Fluor Offshore Solution's work on the project.

L to R: Tony Findlay – Fluor Offshore SolutionsSM, Singapore; Romel Bhullar – Fluor, Manila; David Phillips – Fluor, Perth; Neal Prescott – Fluor Offshore SolutionsSM, Houston.

This month marks the first anniversary of the FAN newsletter. Since the newsletter was released in March of 2012, the FAN has delivered over 200 articles, totalling close to 45,000 words. it has been downloaded approximately 12,000 times and sits in hardcopy format in several sites across Australia.

The FAN has grown up too, starting its life as a two page digital newsletter. The FAN is now an eight page digital and hardcopy publication. if you would like to submit an article, please email australia.communications@fluor.com

The FAN Turns One

A day in the life of a Fluor HSE Advisors (Andrea Blaine & John Holt) working in Woodside Energy Ltd Karratha Gas Plant. Written by Hugh Fenwick , Fluor HSE Coordinator, WA.

Where The Karratha Gas Plant (KGP) is located at Withnell Bay on the Burrup Peninsula, north of Karratha town in Western Australia.

What KGP collects and processes the hydrocarbon inventory from Woodside North West Shelf offshore oil and gas fields including fixed hydrocarbon production platforms, and hydrocarbon producing Floating Production Storage and Offloading (FPSO) vessels. This infrastructure of production and process facilities has for a considerable period of time supplied most of Western Australia’s natural gas and export markets throughout Asia.

This process journey begins from far below the waters of the North West Shelf to a Perth stove. The ever-present roar of the high-pressure gas makes its journey through countless miles of process pipe work and vessels – a long but worthy process supporting the vast WA domestic energy requirements.

If you’re eating a hot meal or drinking a hot coffee in WA, you can thank the workers at KGP and the offshore facilities for their endeavours to deliver a reliable energy supply each and every day of the year; a stable energy provider supporting the WA economy.

Why Fluor supports a number of significant projects within the Woodside Karratha Gas Plant facility. As Fluor HSE Advisors, we are proud to support the project and all the people that make the above happen.

Working in KGP Extended periods of intense heat and humidity are some of the most hazardous working conditions in this geographical location. Summer is hot and humid, with little respite through the winter months; a period which most would gladly accept as a fine summers day (we’ll talk about cyclone season in another edition of the FAN!). The high humidity combined with extreme summer temperatures can be potentially fatal without proper care and education. Most of those who work in KGP have adapted to this environment and accept the summer climate as one of the consequences of working in the North West. The regular and local workforce is aware of the significant problems of dehydration and heat stress. Thankfully there are strong HSE policies and practices in place to ensure that no individual is exposed to the power of the sun without understanding the hazard, proper protection and access to plenty of fluids. Having said all of this, it is a continual awareness as there is a steady turnaround of people in the ever transient world of an Australian and International construction workforce. For HSE advisors, this forms a key function of their position to deliver such policies, practices and awareness.

Let’s get some work done guys Now we have addressed the climate issues, a HSE Advisor's standard delivery of work is much the same as you would expect in any well managed oil and gas facility. They support a client state-of-the-art safe system of work, delivering an electronic permit to work system that controls all related activity in the KGP facility. This ensures safety becomes an integral part of the day-to-day procedures when performing any given task. Delivery of this system is compliant with HSE standards as set out in Woodside and Fluor Safety Management Systems.

Andrea and John start the day with an HSE pre-start brief. The primary deliverable of this briefing is that everyone gains an understanding of the group’s activities on that given day, and to address any topical safety aspects both positive and negative. This briefing is lead by the Fluor Superintendant supported by Andrea and John.

Following this is “Smart Start”, where participants perform a series of warm up exercises to start their working day (Karratha is at its best during sunrise) with the whole team taking turns in leading the sessions. Everyone is encouraged to carry this healthy practice through the day to help combat strains and sprains that are often a hazard of physical work.

This is followed by the issue of the permits and the subsequent worksite tool box talk prior the sign on of the permit by the work party. This only happens when all members of the work party agree with the permit conditions along with the client area authority. Andrea and John support these talks along with the discipline supervisors and client area operators. Finally the team assesses the task by carrying out a Woodside 5x5 risk assessment – a similar tool as the Fluor Safety Task Assessment format. This provides a final check to ensure everyone is clear in all aspects of the task. And there’s more, just to ensure nothing has changed the work party will review this assessment several times through the day. That’s how Andrea and John and our people at KGP start their day.

My summary: A pre-start leads to a smart start, which sets you up for a safe start, leading to a safe day, continuing to a safe week, following onto a safe month, building to a safe year and establishing a safe culture for the wellbeing of all.

Thank you Andrea and John for your energy and enthusiasm in supporting a safe working environment for the KGP site.

FAN

HSE – where, what and why is Karratha Gas Plant important to Fluor?

Aerial picture of Karratha Gas Plant

FAN Edition 8. October 2012

What differentiates Fluor in the market?

Fluor, when compared to its peers, is one of the most successful EPCM services companies in the world. Fluor has outstanding ratings in many areas of execution but it further distinguishes itself from this list of excellent

companies and competitors in the area of knowledge sharing. This achievement is in no small part due to Fluor’s embedded culture of Knowledge Management (KM), both at the most basic level; the information sharing between colleagues working together, or at a regional office or corporate level through Knowledge Online (KOL). When speaking with clients, I am continuously receiving feedback that reflects favourably as they look into Fluor’s KM system. It really sets us apart in the market. A comprehensive KM system and process is not in itself a formula for success, the system needs a foundation to thrive and expand. The foundation for success is in the approach – a “One Fluor” mentality. Rather then being a compilation of isolated experience hubs or skill centres, Fluor’s KM system allows us to effectively combine all of our intellectual capital into cohesive knowledge communities.

So what are the benefits?

KM gives us a competitive advantage when bidding for new projects. We can promote an office or region’s capability beyond the experience that is present locally, but rather the capability of the local office as well as the knowledge community.

Additionally, this provides a consistency between different design offices or teams, inspiring confidence in a market that is

Edition 9. November 2012

FLUORAUSTRALIANEWSfan

increasingly looking at work-share models and global project teams as a requirement. A quick search through some of our KM success stories will yield another important benefit; a positive impact to Fluor’s bottom line. Examples include innovations sourced from KOL that have shaved significant amounts off a project’s total installed cost, resulting in high client satisfaction and consequently new awards.

How do you contribute?

Share. It’s as simple as that. You may have great and innovative ideas, unique experiences or even expertise on a particular topic, but without actively sharing this knowledge, our community becomes stagnant. Use the tools at your disposal to their full potential and encourage your colleagues to do the same.

Learn. Look towards your colleagues and KOL every chance you have. You will be amazed at how much you can learn from your colleagues sitting next to you, let alone the collective knowledge of more than 43,000 Fluor employees – some of which are not only experts within Fluor, but within the industry as a whole.

Grow. Become actively engaged in what is an exciting and immensely valuable resource. Our Knowledge Management culture is there to benefit the company and its employees. With each piece of knowledge shared the value of our community increases substantially.

I would like to thank all employees who use and actively participate in our knowledge system. Your efforts are recognised and appreciated.

Keep up the drive to be “One Fluor” and continue sharing knowledge.

See you all during ‘Knowvember’!

A Message from Joe McAneny – Senior VP Operations – Australia

FAN

Phyllis Edwards President – Australia GROW Chapter

Fluor Australia is pleased to announce the roll out of our local Growing representation

and opportunity for women (Grow) chapter; an important business initiative to maximise our organisational capabilities.

Sponsored by Glenn Gilkey, Senior Vice President of Human resources and Administration, and the Leadership Development Forum, Fluor’s Grow initiative commenced in Southern California in 2010 and has since grown with 19 offices globally participating in the Grow program.

In Australia, our client base is becoming increasingly diverse; to combat this we need an increasingly diverse team to enhance client relationships and deliver excellent results. Therefore this initiative aims to leverage the complimentary skill sets from both genders, working together at all levels of the business to drive innovation, engagement and excellence in execution.

our local Grow Australian chapter aims to make a difference with men and women working together to cultivate opportunities to attract, retain, and develop women, ensuring Fluor’s long-term business success. At this stage of our journey, the Australia Leadership Team members are committed to implement this initiative for Australia and broaden our strategies towards supporting the Grow program as a business imperative.

our Australia Grow Advisory and Steering Committee members have been nominated to develop this initiative within this region. Long-term success in our rapidly changing

business environment requires us to ensure we have a qualified and diverse workforce at all levels, reflective of the markets from which we recruit.

The Grow Australia Steering Committee's combined roles are to serve the Fluor workforce and nurture a Grow culture that captures the diversity advantage as a business solution. our Grow ‘key result areas’ (KrAs) are focused to increase awareness of these main aspects:

• Men and women working together – Further focus on the recruitment plan to ensure we take advantage of increasing female populations in technical and leadership roles, and undertake annual Grow surveys to drive consistency across the region.

• Attract and retain women – Cultivate our female leadership pipeline and develop leadership support structures for both men and women.

• Develop and support diversity and inclusion opportunities – Increase proportion of females in stretch roles and establish mentoring structures for our new generation of leaders within Fluor.

we recognise there are many aspects of Grow to harness talent; however, we firstly need to aspire towards a cultural shift in our workforce awareness and leadership development to support Fluor Australia operations. Against this backdrop, there is an opportunity to get involved in the Australian Grow initiatives across Fluor’s Perth, Melbourne and Brisbane offices. It is through your participation and connections to the Grow community that will allow further growth of tomorrow's workforce.

To learn more about Fluor’s Grow initiative, please see the below Knowledge onLineSM links:

• Glenn Gilkey Grow video message• oneFluor Connections – Grow Community /Corporate

Grow Governance Community• oneFluor Connections – Global Diversity & Inclusion

CommunityGrow updates in next month’s FAN newsletter include:

• Meet the Grow Steering Committee team members • Connect to Australia’s Grow Connections communitywe look forward to sharing Australia’s Grow updates. In the meantime please contact Phyllis Edwards, President of Australia Grow Chapter, for all Grow enquiries.

Fluor Australia Grow program

Alcoa five star statusDup du Plessis HSE Manager Fluor Engineering Office – Alcoa

on the 31 December 2012, Fluor achieved 250,000 work hours without an incident on the three Alcoa sites; Pinjarra, Kwinana and Huntly. From 19 March 2010 to 31 December 2012, the recordable incidence rate was: 0.0

Thank you and congratulations to every employee working on the project.

fanFLUORAUSTRALIANEWS

CORPORATE STRATEGY / LEADER TOOLKIT

Fluor is a global company, spread over many different geographies. The articulation of Fluor strategy is quite difficult to achieve; employees

speak in a number of different languages, are located in main offices, project sites or in some cases in our clients offices – so there are many barriers to sharing information. To aid strategy communications, Fluor has developed Leader Toolkits that are to be used by leadership and delivered to Fluor employees globally. I would like to share with you a recent release focussing on Fluor’s growth strategy.

Fluor’s growth strategy

As you know, there has been a recent drive to sharpen Fluor’s global business model. We’ve reached a plateau and it is time to expand this model to better meet Client demands and to become more competitive. To do so, Fluor is shifting from focussing on providing services, to being an “Integrated Solutions Delivery Company”. This strategy builds on our strengths. It will support continued growth while delivering greater integrated solutions to Clients. This is a deliberate way of thinking differently, and it has already shown progress.

So what is an “Integrated Solutions Delivery Company”?

The delivery of solutions, not just services. Our Clients require strategic partners – addressing their business needs, helping them increase capital efficiency and providing cost and schedule certainty through innovative solutions. David Seaton recently said “It is no longer enough to only deliver projects on time, within budget and in a safe manner. To be more competitive, we must also get inside our Clients’ strategy, anticipate their growth goals and provide our total package of services to create complete solutions.”

How will we achieve our strategic goals?

By applying a One Fluor mindset to work across the enterprise, selling all of Fluor’s capabilities across business lines, holding ourselves accountable for creating cost-effective and innovative solutions to meet our Clients’ needs – and to grow Fluor’s profits.

We will advance our operations while reducing costs by:

• Performing more of the construction work on our projects rather than contracting that work out.

• Expanding our fabrication and modularisation capability to help us build more project components in controlled locations thereby reducing the cost and improving our safety performance.

• Apply our vast global knowledge and competitive pricing relationships to purchase materials and resources at a savings that we can pocket, share with Clients and beat out the competition for new work.

• Minimise the costs associated with running the company and our projects.

In Australia we already work across multiple Business Lines: Energy & Chemicals, Mining and Metals, Industrial Services and Infrastructure while we are supported by AMECO, Fluor’s equipment provider, and TRS, Fluor’s contract and staff provider. Recently we have built a significant construction workforce who have performed packages of construction on the Santos Coal Seam Gas Project in Queensland. We have also used innovative modularisation solutions to design and build modules for BHP Iron ore Rapid Growth Projects. Fluor Australia is well advanced to becoming an Integrated Solutions Delivery Company.

Looking ahead we are aggressively pursuing a significant share of new capital projects coming to market in the next 18 months. We will win new work by cross-selling the full range of our offerings to help potential Clients see the value Fluor can bring over our competition.

Profits can be increased by applying all of the resources Fluor offers to create cost-effective solutions, including: self-performing the construction work; using our fabrication yards and modularisation capacity to control construction costs; securing the most competitive pricing on project materials and resources; and decreasing our own costs associated with running the company and our projects.

In conclusion, our growth strategy represents who we want Fluor to be for our Clients, our shareholders and ourselves. We will operate as one company, delivering on our strategic priorities, win new work, and serve satisfied Clients which in return increases profitable growth, shareholder return and company wide opportunities for our employees.

Fluor Australia – One Integrated Services Company. A good path forward.

Peter Fromont Australia Regional Controller