This document and all information herein are confidential, and may not be used,

reproduced or distributed without prior authorization of TechnipFMC.

TechnipFMC – How we have adjusted to fit a new landscape

09.08.2017

Håkon Andresen

Sales & Business Development Manager | Subsea Projects Norway

This document and all information herein are confidential, and may not be used,

reproduced or distributed without prior authorization of TechnipFMC.

TechnipFMC – Changing the landscape of the Oil & Gas Industry

09.08.2017

Håkon Andresen

Sales & Business Development Manager | Subsea Projects Norway

Innovative subsea solutions | 3

Driving Sustainable improvement

A call for change

Now more than ever, the industry needs significant

and sustainable cost improvements in the way

hydrocarbons are produced and transformed.

We are driving this change by bringing together a

new generation of technologies and solutions to

deliver smarter designs and improved results.

We aren’t just imagining a better way to transform

our clients’ project economics, we are making it

happen.

4

Table of Content

1. TechnipFMC at a glance

2. The new industry challenge

3. Working differently with our Clients

4. Integration, Innovation & Simplification

5. Summary

CONFIDENTIAL

5

TechnipFMC at a glance

Following the January 2017 merger

CONFIDENTIAL

ONSHORE/OFFSHORE

SURFACE

Broadest portfolio of solutions for the production and transformation of oil and gas

Subsea

Subsea products

‣ Trees, manifolds, control, templates,

flowline systems, umbilicals & flexibles

‣ Subsea processing

‣ ROVs and manipulator systems

Subsea projects

‣ Field architecture, integrated design

‣ Engineering, procurement

Subsea services

‣ Drilling systems

SUBSEA

7

Significant global scale

CONFIDENTIAL

Source: Company Filings; EUR/USD average exchange rate of 1.1066 for the twelve months ended Dec 31, 2016

Largest oilfield service and equipment companies by 2016 revenue ($B)

Footnote: (1) Revenue for full year 2016; Source: Form 8-K filed with the SEC on Feb 24, 2017

(1)

27,8

15,9

13,812,9

11,09,8

7,35,8

8

TechnipFMC operates in 48 countries around the world

Houston, TXOperational

headquarters

LondonOperational

headquarters

ParisOperational

headquarters

Africa

Algeria

Angola

Cameroon

Congo

Egypt

Gabon

Ghana

Mozambique

Nigeria

Tunisia

Asia, Australasia

and Middle East

Azerbaijan

Australia

China

India

Indonesia

Iraq

Kazakhstan

Kuwait

Malaysia

New Caledonia

Oman

Pakistan

Qatar

Russian

Federation

Saudi Arabia

Singapore

Thailand

United Arab

Emirates

Vietnam

Europe

Bulgaria

Finland

France

Germany

Greece

Italy

Netherlands

Norway

Poland

Portugal

Spain

United Kingdom

North America

Canada

United States

South America

Argentina

Brazil

Colombia

Mexico

Venezuela

Unique worldwide footprint

9

The new industry challenge

And how to tackle it

CONFIDENTIAL

Tackling the industry challenges…

“OLDER” “NEWER”

Deeper

Resource shortage

Unfriendly environment

Complex reservoir/

HT/HP

Cost inflation

Cost squeeze

Distressed supply chain

Lack of projects

Cash shortage

Inefficiencies

…through innovative solutions in many domains

New Business models

Seamless Integration

Standardization/ Modularization

New Technologies

Digital TransformationCustomer

Engagement

Driving value for clients

Accelerate and integrate

technology innovations

Unlock possibilities to

transform project economics

Develop better integrated

offerings across all operations

13

Working differently with our Clients

Early engagement & new contract models

CONFIDENTIAL

Capturing the iEPCI value

Early engagement and SURF + SPS integration is catchnig momentum!

Concept Pre-FEED FEED

SPS

SURF

First

oil

Concept Pre-FEED FEEDFirst

oil

Integrated

SPS and

SURF

Tender

Tender Tender / Negotiated

Traditional SPS

and SURF

approach

Integrated EPCI

approach

Competition Award

Accelerated

First Oil

Situation snapshot: Norway August 2017

2iEPCI™ project awarded

to TechnipFMC

3FEED design

competitions

2Pre-FEED design

competition

5Bids where the Operators

are expecting iEPCI™

offers

5SURF + SPS Integrated

studies

15Studies under preparation

in total

Challenge

- Remote

- Deep water

- Short installation season

Solution

- 8 well template in one lift using

monohull vessel

- Optimizing location of FPSO

gave redused pipe and umbilical

lengths

- Redused lenght opened up for

altarnative flexible pipes

- Savings on logistics and

spoolbase

Example – Early involvment of supplier in planning

- Early engagement -«Everything can be challenged»

- Integrated approach Customer/Supplier

• Flow assurance

• Field architecture

• Pipeline design

• Vessel capabilities

• Installation friendly equipment

From 3 to 1 installation seasons

Two scenarios • UWP with deviated drilling• Subsea solution with 3 well centers

Assumptions:• 4 well template • Infield URF cost included • OPEX not considred

Base case - UWP

Alternative case - subsea

Potential of early involvmentPrecise cost and delievry times may impact concept

~6

WHP

# wells

Faci

lity/

Sub

sea

and

dri

ll co

st

Subsea

Uncertainty in subsea estimates

8-102-4

Uncertainty in cost estimates may lead to sub-optimalt concept selection

18

A new Client relationship

Challenging existing truths

Trust based

Shared objectives

Unlocking new opportunities

Maintaining competition

New risk/upside sharing models

Better visibility – optimised planning

CONFIDENTIAL

19

Integration, innovation and simplification

CONFIDENTIAL

Conventional 8-Well Development

Flowline loops

Numerous connections

Numerous interfaces / contractors

Numerous schedule constraints

Redesigning subsea through an integrated approach…

TODAY: PRODUCTS

to redefine subsea project economics

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Bullet

Bullet

Bullet

Redesigning subsea through an integrated approach…

Integration as a Cost Driver – SPS +

SURF Integrated subsea system

Improved flow assurance

Simplified field layout

Reduced equipment costs

Fewer interfaces

Reduced n° of flowlines and risers

Intelligent & active systems to increase

production

TOMORROW: SYSTEMS

Redesigning subsea through an integrated approach…

Integrated flexible pipe termination heads

Optimiszation of hardware

Integrated

termination head

Traditional

termination head

iEPCI Satellite System for Marginal Fields

Value Proposition

• Lower break-even cost on marginal subsea fields

• A single partner: drill the well and we assist with the rest

• Accelerated production through faster delivery

• Reduced risk through iEPCI™

• Reduced delivery time

• Easier installation

• Optimized design across SPS and SURF

• Delivered on the seabed

• Integrated technologies

System building blocks

• Conventional wellhead system

• 5” VXT 10k psi –configurable

• Electro-hydraulic subsea control module (SCM KS200e)• Structure for overtrawlability

• UCON H8 connector• Cobra head

• Flexible 6” Flowline (incl. weak link)

• Max Temperature 90 °C

• Umbilical – steel tubes (incl. weak link)

• UCON H8 connector• Cobra head

Benefits

• Optimized system solution for

efficient installation

• Streamlined execution by early

identification of critical interfaces

and LLIs

• One project team from HW

delivery to installation at seabed

• Optimized offshore logistics and

mobilization including tooling

• Scope moved from rig to vessel

installation

• Potential to de-couple rig and

vessel schedule

Integrated offshore campaign

OPTIONAL

NCS Case study iEPCI Satellite system reduces single well tie-back 36%* compared to traditional solution

*project dependent

0 %

20 %

40 %

60 %

80 %

100 %

120 %

Traditional Satellite Scope simplification Optimized installation Execution synergies iEPCI Satellite system

Other customer benefits;• Early engagement

• Mitigated and reduced contract

risks

• Reduced overall schedule

risk

• «Make Good» liability

during installation

• No SPS-SURF interface

risks (VO)

• Warranty starts at delivery

point at seabed

• Simplfied follow-up by customer

~36%

• XT installation and well opening from

vessel

• Pre-comm/comm (partially) from vessel

• Protection structure installed from vessel

• Minimum POB, one offshore team

• Pre-engineered “building blocks” = reduced FEED

• Less work with interfaces due to integrated SPS &

SURF

• Accelerated execution through iEPCI project

model

• Optimized subsea architecture

• Umbilical and Flowline design optimizations

• XT optimization and spec reduction

• Protection Structure, smaller footprint

Simplification

Tomorrow: Fully optimized solutions

Next Generation XT

Compact

Manifold

Next Generation Controls

Goal is to deliver dramatic reduction in

hardware and total installed costs

28

Summary

CONFIDENTIAL

Key points – What do we do differently?

Getting closer to our clients

Unlock opportunities and lift the right project through to

execution

New contract models – Design competitions and target

price

Integration

Optimising field architecture and execution

Reduce interface cost and risk

Innovation

Use existing technology and products in new ways

Simplification

Smaller

Lighter

Fewer parts

One vision. One purpose.

Vision

To enhance the performance of the world’s energy industry

Purpose

Bringing together the scope, know-how and determination to transform our clients’ project economics

Thank You!