Oil and Gas Industry Report

May 2013 Briefing

Disclaimer
The author, Amir H. Azadehnia, does hereby certify that, to the best of his knowledge, the views and opinions in this research report reflect his personal views about the companies named. He has not nor will not receive direct or indirect compensation in return for expressing specific viewpoints in this report.

Copyright 2013, Amir H. Azadehnia. All rights reserved.

This presentation is based on information which the author believes is reliable, but the author does not represent or warrant its accuracy. The opinions and estimates expressed here represent the views of the author as of the date of this report. These opinions and estimates may be subject to change without notice. The author will not be responsible for any consequences associated with reliance on any statement or opinion contained here.

Oil & Gas Industry Sounds Upbeat

Barrier
Impaired Business Confidence
Rising Costs

Underlying Facts
Slow Economic Growth Limited Access to Capital
Difficult to Access Resources Large and Complex Projects Skills Shortage Poor Infrastructure in Some Resource Rich Regions, e.g. West Africa e.g. SEMS I & II, Local Content, Higher Tax, etc.

Driver
Demand Growth in Emerging Markets Supply Security

Underlying Facts
Population Growth GDP Growth Supply Diversification from Middle East, Africa and Russia Little Spare Production Capacity Crude Oil > $100/bbl EU and Asia Natural Gas Prices > $12/mBtu Access to Unconventional Resources Increased Regulation

Environmental Concerns
Safety and Reliability

Over Hydraulic Fracturing, Offshore, etc.

e.g. Deep Water Production

High Prices

Technology

 And Its Mostly About E&P

Capital Expenditure Projection
2014-2016 E
2013 E 2012 2011 2010 2009 0 400 800 1200 US$ in billion Pipeline 1600 2000 2400

Growth Features by 2020

Upstream capacity increase by 5 - 7% p.a. and led by offshore developments Natural gas demand growth at 2% p.a. driven by power generation and industry Gas supply growth in the US, Middle East, FSU, Africa and probably, China Crude oil demand growth at 0.8% p.a. driven by transport Crude oil supply growth in North America and Middle East Midstream supply and demand growth in emerging markets and Middle East

7% Middle East* 27% 50% US Nigeria UK Brazil 9% 3% 4% Other 7% 2% 6% 5%

15%

4%

E&P
Subsea FLNG LNG 58% Gas processing Refinery Petrochem

CAPEX Country Breakdown 2014 2016 E

CAPEX Value Chain Breakdown 2013 E

Unclassified

 To Be Exact, Offshore E&P and Gas

Opportunities In Greatest Difficulty

Oil & Gas Industry Structure

Upstream National Companies Super Majors National Oil Companies Independents
Top 10 E&P Spenders
1. ExxonMobil 2. Petrochina 6. Pemex 7. Total 8. Petronas 9. BP 10. Statoil

Operators

Midstream

Integrated

Independents

3. Chevron 4. Shell 5. Petrobras

Downstream

Independents

CONTRACT FLOW Service Contractors

Well Services

Seismic
Diversified Drilling

Top 10 Contractors
1. Bechtel

Engineering Consultancy / EPC

6. Aker Solutions 7. Weatherford 8. Chiyoda 9. SNC-Lavalin 10. McDermott

2. Saipem 3. Baker Hughes

Supply Vessels

Floating Production

Subsea & Offshore

Decommissioning

4. Fluor 5. Technip