Subsea Marketand Strategy
Christophe ArmengolVice President, Subsea Strategy and Market AnalysisMarch 30, 2010
2
Subsea market: Overview
►Significant slowdown in 2009, but Technip maintained its leading and resilient position
►Subsea market activity should pick up going forward
►Key driver of activity will be complex and deepwater projects
3
31%27%
42%
2009 Market share*
Market shares today
*: Technip estimates based on project awards excluding shallow water and trunkline markets in Africa, Gulf of Mexico, Middle-East, Asia-Pacific and variation orders
2004 - 2009 Market share* average
► Technip ahead during the growth period…
► … and still the leader in 2009
Technip Subsea 7, Acergy, Saipem
Others
41%
21%
38%
Technip Subsea 7, Acergy, Saipem
Others
4
TechnipSubsea
Acergy
Subsea 7
SaipemOffshore
Subsea Operating Margin*
Technip today: focused on profitability
(*) Not restated, figures as published by contractors
-15%
-10%
-5%
0%
5%
10%
15%
20%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
5
Subsea tree awards picking upPositive signs for FPS* awards
Source: Technip
Looking ahead: Major oil companies announced an increase in Final Investment Decisions
Source: Quest Offshore
Floater solution still to be definedOTHER FLOATERS (FPU/Spar/TLP, Semi, FLNG)FPSO (new built & converted)
(*) Floating Production System
0
200
400
600
800
1,000
1,200
2000 2002 2004 2006 2008 2010 2012 2014
59 awards
88 awards
0
10
20
30
40
2006 2007 2008 2009 2010F 2011F 2012F
► Leading indicators show a positive trend:
6
• Growing market• Significant non pre-salt• Step-change in Pre-salt
market size to materialize from 2014/2015
Brazil
• Currently steady, fueled by high demand for tie-backs
• New wave of FPS developments
Gulf of Mexico
• Market slowdown in 2009• Significant recovery in tendering
activity
North Sea
• Awards in 2009 were delayed• Angola and Nigeria showing signs of
movement• Egypt still moving• Deepwater opportunities in new areas
(Ghana, Equatorial Guinea, etc...)
Africa
• Emerging deepwater market in Malaysia, Australia, Indonesia and China
• Large increase in gas-related projects• Healthy shallow/medium depth
market requiring flexible pipe solutions:
• FPSOs• Tie-backs• Replacement of corroded pipes
Asia Pacific
Different expectations across regions
7
Pipeline (Flexible & Rigid) installed in water deeper than 1,000 meters*
Breakdown 2008 - 2015
Future growth areas: Subsea market growth drivers►Asia Pacific & India
► Emerging area for ultra deepwater projects
Pipeline installed (in km)
+60%
Sou
rces
: Tec
hnip
, Inf
ield
Gulf of Mexico
Asia Pacific India
Brazil
Africa
0
4,000
8,000
12,000
16,000
2000 - 2007 2008 - 2015
14%
21%
25%
40%
*Excluding Pre-Salt effect
88
Brazil is leading growth in deep and ultra deepwater
Water Depth >1,000 meters
*Excluding Pre-Salt effect
Deepwater flexible market* expected to represent 60%of the market over 2010 - 2012
Sources: Technip
2010 - 2012
16%
84%
Rest of WorldBrazil
0%
20%
40%
60%
80%
100%
2010 - 2012<150 150 - <500 500 - <1,000 1,000 - <1,500 >1,500Water Depth in meters:
<1,000m
>1,000m
Worldwide Flexible Market
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►High tech global assets
►Vertically integrated business
►Worldwide organisation for seamless project execution
►Strategic position in faster growing emerging markets
►Leadership in subsea technologies
Technip: Unmatched capability to design and execute successful projects
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Marine Subsea
AcergySubsea 7
Bibby
Clough
Helix
DeepOcean
JRM Global
NPCC
COEEC
HHI
Seatruck
AllseasHereema
Worldwide Operations
Regional Operations
Oceanteam
TS Marine
Cecon Mermaid
Ezra
Hallin
AKSDOF
Wellstream
Larsen&Toubro
Swiber
Veolia
Valentine
High Technological Assets
Low Technological Assets
Combination of high-tech assets and global footprint matched to market needs
Saipem
Sources: Technip
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Manufacture & Fabricate
• Flexibles pipes Umbilicals
• Manufacturing plants on all continents
Le Trait (France), Vitoria (Brazil), AsiaFlex (Malaysia)
Spoolbases: Evanton (UK), Orkanger (Norway), Mobile (USA), Dande (Angola)
Logistic bases: Vitoria, Angra Porto (Brazil)
Umbilicals: Newcastle (UK), Houston (USA), Lobito (Angola)
Install & Monitor
• Vessels designed to install our pipes
• Vertical Laying system
• Monitoring
Unmatched vertically integrated business to optimize design & execution
R&D
• New prototypes
• Proprietary technology
• R&D Centers close to production sites
World-class R&D facilities
Le Trait (France)
Aberdeen (UK)
Newcastle (UK)
Rio & Vitoria (Brazil)
Design & Project Management
• Optimized solutions
• ”A la carte”engineering
• Dedicated teams around the world
Strategic locationsParisAberdeenOsloHoustonKuala LumpurPerthRio de Janeiro
1 2
34
12
Example: Cascade & Chinook
12
Houston
St John’s Paris
Rio de Janeiro
Cascade & Chinook
AberdeenPori
Le Trait
Multi vessel installation (Incl. Deep Blue / Deep Pioneer)
Fabrication of the flexible pipes at Le Trait
Worldwide organization for seamless project execution
World record depth for Hybrid Free Standing Riser in 2,500m -2,640m of water
Installation ongoing - on schedule
Coordinated Engineering teams from Offshore & Subsea divisions
13
Southern Hemisphere
Technip Subsea revenues (in €m)
Northern Hemisphere
Strategic position in faster growing emerging markets
Sources: Technip
1,257
33%
52%
48%
67%
2,866
2002 2009
14
26%29%
45%
Strategic Capital Expenditure (2007 - 2011) Development Strategy
Generic -Non
Attributable
• Manufacturing plants
• Human resources
• Marine Assets
• Spoolbases and Logistic Bases
Strategic position in faster growing emerging markets
Investments
Southern Hemisphere
Northern Hemisphere
Sources: Technip
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►Ultra deepwater:• Weight of pipelines (flexible, rigid, umbilicals)• Alternative installation methods• Hybrid System Riser
►More challenging reservoirs• Flow assurance• High Pressure/High Temperature• Corrosive Fluids
►Operational and Riser Integrity Management
Growing R&D investments expand leadershipin subsea technologies
16
Subsea market: Conclusion
►Significant slowdown in 2009, but Technip maintained its leading and resilient position
►Subsea market activity should pick up going forward
►Key driver of activity will be complex and deepwater projects
Thank you
Christophe ArmengolVice President, Subsea Strategy and Market AnalysisMarch 30, 2010