worleyparsons annual review 2008

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The heartland of our heritage is in the resources and energy industries. They remain central to us and to many of our customers, even though our business is materially diversified – we are leading players in infrastructure and the environment and minerals and metals, as well as the hydrocarbons and power sectors. Yet, we chose this expression to encapsulate a deeper philosophy that has always characterized our approach to all aspects of our business.

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Page 1: WorleyParsons Annual Review 2008
Page 2: WorleyParsons Annual Review 2008

Designed and Produced by walterwakefield.com.au

This report is printed on Monza Satin, an FSC certified mixed source paper.

Cert no. SCS-COC-00858

Our resources & energy approach delivers greater opportunity and satisfaction to our people, success to our customers and superior returns to our investors.The heartland of our heritage is in the resources and energy industries. They remain central to us and to many of our customers, even though our business is materially diversified – we are leading players in infrastructure and the environment and minerals and metals, as well as the hydrocarbons and power sectors. Yet, we chose this expression to encapsulate a deeper philosophy that has always characterized our approach to all aspects of our business.

Contents

01 resources & energy

02 Chief Executive Officer’s Committee

04 People

06 Our differentiators

07 Customized service

08 Select

10 Deliver

14 Improve

16 EcoNomics™

18 Community

20 Grill Award

22 Chairman’s Health, Safety & Environment Award

24 OneWay™ to zero harm

Page 3: WorleyParsons Annual Review 2008

WorleyParsons Annual Review 1

energy relates to our approach. Our people solve customer problems or optimize customer opportunities with care, dedication, agility and originality. We encourage innovation, delivered well. Our focus is on both the short burst energy of invention and the durable energy of sustainable solutions and long term partnerships.

resources refers to our people, systems and processes that have been proven to

deliver safe, superior, reliable, sustainable results to our customers, often above

expectations. We seek, attain and retain the best people in their fields

and our singular goal is to enable them to do their best work. We devise and continually improve our systems and

processes as our customers’ needs and their operating environments change.

“resources & energy are the pervasive, core elements that distinguish our business and a strong expression of our culture.”John GrillChief Executive Officer

Mahin RameshniOverall Grill Award Winner 2007 (see page 20)

Page 4: WorleyParsons Annual Review 2008

2 WorleyParsons Annual Review

The Chief Executive Officer’s Committee comprises the leaders of our regions, customer sector groups and key functional areas. Its core responsibilities include the development of cohesive strategies for the optimal use of our resources, the effective implementation of shared initiatives and the achievement of safety and performance targets, in line with our strategic objectives.

Chief Executive Officer’s Committee

David SteeleManaging Director

Middle East, China & South East Asia

Stuart BradieManaging Director Europe and Africa

Andrew WoodManaging Director ANZ

Doris GalvinManaging Director

Infrastructure & Environment

Craig ReevesManaging Director Corporate Services

Mark SoutheyManaging Director Minerals & Metals

Greg ClinnickManaging Director Risk

John GrillChief Executive Officer

People“One of the most important differences of WorleyParsons is the agility of our business and drive of our people in delivering projects to our customers. We are able to use the global resources of our business to really make a difference. I love the way we routinely work with people from all over the globe to tackle a problem and the enthusiasm that these teams have. Actually, it makes us one team, 30,000 people strong.”

Craig Reeves

resources & energy Chief Executive Officer’s Committee

Page 5: WorleyParsons Annual Review 2008

WorleyParsons Annual Review 3

Larry BenkeExecutive Director and Managing Director Canada

Brian EvansManaging Director Hydrocarbons

Bill HallExecutive Director and Managing Director Mega-Projects

Mark TruemanManaging Director Power

Iain RossManaging Director Customer Sector Groups, Mergers and Acquisitions, and Strategy

Peter MeursManaging Director,

EcoNomics™

David HousegoExecutive Director and Chief Financial Officer

Robert EdwardesManaging Director US and Latin America

Community“We have always worked hard to ensure that our engagement with the communities we touch is positive, through our policies and practice of localization and optimizing health, safety and environmental impact, as well as through the charity of our people and our company. Today, each of our 118 offices, as part of its local community, are working together on improving their growth and development. The exciting thing for me is that as our business has grown, so has our capacity to make a real difference.”

Peter Meurs

Customers“The way we work with customers means that our resources join seamlessly with theirs. The scale and quality of our teams mean that customers trust us with even their largest projects and most complex problems. Yet, I think it is the way that we work with them and the enthusiasm and innovation that we always bring, which enables better results. I know it is what they enjoy about working with us and it certainly is what keeps us excited about the challenges ahead.”

Iain Ross

Stakeholders“Our investors want sustainable returns. Our goal is for above average performance derived from our global capacity to create and deliver on opportunities, while managing real and potential risks. Market conditions are complex. Many industries are experiencing strong market conditions while facing permanent resource constraints and changing regulatory environments. Delivering returns consistently means all of the local teams delivering outstanding results for customers, every day.”

David Housego

Page 6: WorleyParsons Annual Review 2008

4 WorleyParsons Annual Review

“Teamwork means more at WorleyParsons and that makes it easier for everyone to do their job well and the work more satisfying. Of course, teamwork means pulling together to reach a goal better, faster and more enjoyably than you could on your own. It also means that whenever there is a need for staff we can turn to our extensive worldwide resources to find the best people for the job, wherever they are, and give them the opportunity to contribute using our established workshare systems. Only then do we turn to the market. Our workshare capabilities mean that our teams are developed to include the best people without regard to location.”

Craig ReevesManaging Director Corporate Services

Do the best work of your career . . .One of our key business challenges is succeeding in the competitive market for talented staff. WorleyParsons has developed six integrated ideas that are fundamental to our strategy in this competitive environment.

Talent and succession managementOur people benefit from established management systems, a competitive rewards philosophy and attraction and retention initiatives.

3.

WorkshareOur global approach to service delivery ensures the right team members are available, regardless of location.

2.

EmpowermentAs one of our key differentiators, empowerment is fundamental to our culture. We enable people to do the best work of their career through an environment that encourages innovation.

1.

resources & energy People

Page 7: WorleyParsons Annual Review 2008

WorleyParsons Annual Review 5

“Finding and retaining the best people to work with is among the hardest of skills to develop. I consider it a fundamental skill of a leader. Our leadership team has worked hard this year to materially advance their skills in this area. Throughout our business we recognize, respect and find opportunities in our differences – something that has been central in making our mergers work so well – and we take this approach throughout the business to enable our people to do their best work.”

John GrillChief Executive Officer

Systems and processesA focus on continuous improvement designed to encourage people and make them more effective.

6.

Strategic acquisitionsWe continue to add leading specialist players to augment our team in focused areas.

5.

Strong recruitment capabilitiesWe work as a team using an integrated global approach.

4.

Page 8: WorleyParsons Annual Review 2008

6 WorleyParsons Annual Review

WorleyParsons has seven differentiators which form the strategic focus that drives success in our business and that differentiate us in our markets. They characterize our approach to customer service and problem solving and enable exceptional outcomes for our customers and for WorleyParsons.

DIFFEREnTIATOR 3EcoNomics™ – Delivering profitable sustainability

DIFFEREnTIATOR 1Committed, empowered and technically capable people

DIFFEREnTIATOR 5Focus on long term contracts and asset-based services

DIFFEREnTIATOR 7Comprehensive geographic presence

DIFFEREnTIATOR 2Industry leadership in health, safety and environmental performance

DIFFEREnTIATOR 6Success in project delivery – large and small

DIFFEREnTIATOR 4Outstanding operational and corporate performance

Our differentiators

resources & energy Our differentiators

Page 9: WorleyParsons Annual Review 2008

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WorleyParsons’ experience covers all five phases of the asset lifecycle. In each one of these phases we understand the critical issues and tailor our services to enable customers to Select and Deliver their projects and Improve their assets for optimal long term performance. Our phased approach enables consistent project delivery worldwide.

Customized service

2 EVALUATE1 IDENTIFY 4 EXECUTE3 DEFINE 5 OPERATE

Pre-feasibility •screening studies

Business model •development

Feasibility studies•

Conceptual design•

Cost estimating•

Contract planning•

Preliminary •Engineering (FEED)

Cost estimating•

Execution planning•

Detailed •Engineering

EPCM•

PMC•

Brownfield projects•

Portfolio delivery•

Asset management•

Business improvement•

Operations and •maintenance support

1 Identify 2 Evaluate 3 Define 4 Execute 5 Operate

resources & energy Customized service

Page 10: WorleyParsons Annual Review 2008

8 WorleyParsons Annual Review

Select is a specialist division of WorleyParsons, focused on project viability assessment and selection. It is an integral part of WorleyParsons’ global project delivery capability.

“It is well recognized that the decisions made during the early stages of an investment have the greatest impact on the ultimate business outcome. Unfortunately, it is also the time when the least amount of information is available.

It is this juxtaposition of the criticality of making the correct decisions, and the absence of detailed information on which to base them, that creates the challenge Select has been designed to answer.”

Andy Cole

Optimizing business outcomes

2 EVALUATE1 IDENTIFY 4 EXECUTE3 DEFINE 5 OPERATE

Andy ColeGlobal Director

Select

resources & energy Select

Page 11: WorleyParsons Annual Review 2008

WorleyParsons Annual Review 9

Select advises asset owners, operators, investors, financial institutions and governments. We combine the niche specialist skills required within the front-end of projects with WorleyParsons’ extensive, practical experience in total project delivery and plant operation. Select utilizes a global database of major capital projects to enable customers to make strategic investment decisions with accurate and reliable planning data, significantly increasing their confidence that the critical planning decisions will support their ultimate business objectives.

Select specialists have a thorough understanding of the business value chain including market analysis, financial modeling, technology selection, greenfield site selection, approvals management, new plant configuration, existing plant optimizations and the development of the detailed project realization methodologies. The combination of strategic front-end planning skills integrated with extensive project execution capabilities, together with WorleyParsons’ technological and commercial neutrality, differentiates Select in the consulting market.

As we face a carbon-constrained future, with changing regulatory frameworks and an uncertain business landscape, Select is focused on working with customers to future-proof their businesses through our knowledge of technologies and our environmental and carbon management techniques.

Through its focus on the critical early phases of projects, Select:

Adds technical definition, •thus reducing technical riskOptimizes the opportunity and •maximizes the inherent valueCreates the business case and •assesses the probable costs Secures the necessary approvals •and prepares for the Deliver phase

Kavitha RaghavendraSelect Manager Singapore

Page 12: WorleyParsons Annual Review 2008

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10 WorleyParsons

Delivering from concept to completionDuring the Deliver phase, WorleyParsons converts the highest potential value options identified in the Select phase into fully defined, safe and successfully executed projects, realizing maximum value for our customers.

2 EVALUATE1 IDENTIFY 4 EXECUTE3 DEFINE 5 OPERATE

Hany FarahatManager of Projects

Qatar

Mike ReillyGlobal Director Project Delivery

resources & energy Deliver

Page 13: WorleyParsons Annual Review 2008

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WorleyParsons Annual Review 11

“WorleyParsons’ Deliver capability provides our customers with the confidence that the value identified by Select will be realized during the Define and Execute phases. We work closely with our customers and contractors to achieve our vision of zero harm, maximize alignment of project goals and ensure the efficient utilization of resources.

Our ability to deliver projects, ranging from small studies through to mega-projects, is a key differentiator. The WorleyParsons Project Management Process, part of our global Enterprise Management System, provides a scalable, risk-based framework for project execution, and ensures the quality, efficiency and consistency of our project delivery approach – regardless of size or location.”Mike Reilly

Tamuno TonyeManager of Projects

Lagos

Page 14: WorleyParsons Annual Review 2008

12 WorleyParsons Annual Review

Each year, WorleyParsons helps its customers to take thousands of projects from their formative Select phase through to successful handover and operation. Our ability to safely and consistently deliver projects large and small, across a range of industries and environments, in line with our customer expectations, is testament to our project delivery capability.

The teams that deliver projects have extensive and diversified experience, enabling them to:

Define the development•Execute the project safely, •post-sanction

Image courtesy of North West Shelf Venture

2 EVALUATE1 IDENTIFY 4 EXECUTE3 DEFINE 5 OPERATE

resources & energy Deliver

Page 15: WorleyParsons Annual Review 2008

WorleyParsons Annual Review 13

DefineDuring the Define phase, our teams optimize the technical scope, capital cost, schedule and execution plans for the selected developments. This includes appropriate front-end loading to maximize the value in the investment decision prior to project sanction. To ensure that the decision making process is robust, WorleyParsons utilizes:

Technical specialists to manage •the efficiency and technical integrity of the design

Practices such as process •simplification, value engineering and constructability reviews to maximize value

Experienced teams with a deep •practical knowledge within their respective industries to prepare best-fit contract execution strategies

Cost and schedule benchmarking •to provide probabilistic capital and operating cost estimates and implementation schedules

ExecuteFollowing project sanction, WorleyParsons mobilizes an Execute phase project team, with the full range of EPCM or PMC capabilities and experience. Our past performance demonstrates our comprehensive ability to deliver projects for customers facing a variety of challenges, including tight schedules, remote and logistically constrained sites and unique or innovative environmental or technological considerations.

Throughout the Execute phase, our teams provide our customers with support extending from detailed engineering through to full engineering, procurement and construction management (EPCM) and project management consultancy (PMC) services. Our experience enables us to:

Establish projects rapidly •and align our teams with our customers, contractors and other stakeholders

Develop appropriate health, •safety and environmental strategies tailored to suit the project requirements

Workshare effectively, drawing •on our global team to identify and allocate the most appropriate resources, regardless of location

Maintain comprehensive •project schedules and appropriately tiered progress reporting structures to ensure project status is transparent

Implement effective processes •for efficient change management

Ensure the timely integration of •engineering with our full range of global procurement construction and completions capabilities

Our Execute teams draw on a suite of proven tools, systems and procedures, tailored to each project, which are overseen by an excellent internal stewardship structure, augmented by the resources & energy of our 30,000 personnel worldwide.

Page 16: WorleyParsons Annual Review 2008

“WorleyParsons’ Improve delivers value, year on year, for our long term customers.

Successful Improve contracts are based on strong long term relationships. WorleyParsons’ culture is, and always has been, one of open communication, informal yet professional, with a company-wide focus on excellence and the efficient delivery of superior outcomes.

Our relationships are based on trust and teamwork. This enables everybody to focus on the critical issues that drive long term contract performance improvement, such as safety, optimal capital spend and the efficient and effective use of resources.”Graham Hill

14 WorleyParsons Annual Review

Continuous improvement for our customersWorleyParsons’ Improve delivers major projects, upgrades, de-bottlenecking and maintenance projects, project portfolio management and support services to sustain assets and improve business performance of brownfield operations.

2 EVALUATE1 IDENTIFY 4 EXECUTE3 DEFINE 5 OPERATE

Graham HillGlobal Director

Improve

resources & energy Improve

Page 17: WorleyParsons Annual Review 2008

WorleyParsons Annual Review 15

WorleyParsons’ Improve draws on the experience and capabilities of our global resources, and the knowledge accumulated from over 120 Improve alliances and long term contracts. With approximately 7,500 personnel, Improve executes more than 20,000 projects annually. With a combined capital value in excess of US$4 billion, these projects deliver an estimated value of US$6 billion per annum to our customers.

Our preferred approach is to establish integrated teams with our customers focused on safely achieving business objectives while reducing costs, adding value and improving their asset performance. Our success in long term relationships is based on accurate assessment, extensive relevant experience, an open and communicative culture and our commitment to flexibility and continuous improvement. This is all underpinned by the clear knowledge that alignment of objectives is the foundation of success.

Performance cultures, shared with our customers, are another hallmark of our approach. We constantly strive to meet and exceed our customer performance goals, using a structured change management process and unique suite of tools, systems and delivery methodologies incorporating industry best practice. Together, they enable us to both plan and react effectively within a dynamic plant operating environment to produce outstanding results for customers and their assets. Through alignment workshops, both initially and ongoing, we align our people to our alliance partners. We set clear performance expectations for all team members to ensure a common understanding and acceptance of the values and behaviors that will drive success in the alliance.

Whenever and wherever specialist skills are needed, Improve has the support of the full resources of WorleyParsons. Over 30,000 personnel worldwide can be accessed, through workshare and via our global centers of excellence.

Following a project’s transition from execution to operation, our customers constantly monitor, maintain and improve the performance of their assets to maximize their long term value. WorleyParsons’ Improve provides a comprehensive suite of services to assist with the achievement of operational and performance objectives within a brownfield operating environment.

Wang YZImprove Manager China

nik naserImprove Manager East Coast Malaysia

Page 18: WorleyParsons Annual Review 2008

16 WorleyParsons Annual Review

Economics™ is WorleyParsons’ range of services and technologies that profitably embed environmental, social and financial sustainability into project delivery, across the asset lifecycle.

Green ChallengesRising population•

Stress on the natural world•

Growing resource demands•

Changing climate•

Food and water security•

Greenhouse gas emissions•

Species extinctions•

Profitable sustainability

Black ChallengesIncreasing energy costs•

Increasing resource costs•

Water restrictions•

Changing legislation worldwide•

Changing community attitudes•

Increased costs and •obligations of environmental and social compliance

Volatility in markets and •politico-economic conditions in some regions

Rising cost of carbon•

Economics™

All businesses are facing challenges deriving from the impact of urgent, changing environmental and social imperatives on profitable operation. WorleyParsons is uniquely positioned to help customers profitably embrace these challenges through our global team of technical specialists, our proven success in innovation through partnering with customers and our ability to invent new ways of solving problems.

Launched in 2007 as a seamless extension of our established project delivery capability, EcoNomics™ is being integrated throughout our business, creating exciting new ways for us to work with customers and partners. Many customers are now utilizing our range of embedded EcoNomics™ services to improve the long term sustainability of their projects and, in turn, to achieve an optimal business outcome for their projects.

resources & energy EcoNomics™

Page 19: WorleyParsons Annual Review 2008

WorleyParsons Annual Review 17

2020

Helping government authorities and industrial companies to develop more sustainable water management solutions and provide greater economic benefit to all parties in a region.

Assisting power generators to understand how carbon capture can be applied to their existing power plants, while at the same time demonstrating the opportunities that exist in renewables such as solar, wind and biomass.

Applying our expertise in train operations, and power generation and storage techniques to develop innovative transportation solutions.

Delivering improved urban designs using improved lifecycle assessment, energy efficiency, water and waste management, transportation systems and environmental management.

Working with industry to reduce energy demand, improve process efficiency, recover waste heat, use alternate fuels, and to turn waste streams into sellable by-products.

Economics™ AssessmentTaking a broader view of project analysis, we collaborate with customers to find new, longer lasting solutions for enhanced sustainability. Through this we have developed our proprietary Delta© suite of tools, which evaluates and graphically demonstrates the impact on profitability and sustainability of variables in the evaluation phase. Developed by our EcoNomics™ specialists, bringing it to life was a team affair. Our IT specialists developed the software and our advanced analysis specialists developed the sophisticated algorithms on which it is based. EcoNomics™ assessment provides enhanced project decision making, helping customers to understand the economic implications of sustainable solutions.

Capabilities and PartnershipsEcoNomics™ is harnessing the experience, capabilities and ideas of the WorleyParsons business to support our specialist skills, recognizing that the solutions we seek involve our entire enterprise. Equally, we recognize that it is our capacity to work with customers and partners that distinguishes our approach and, in this, EcoNomics™ is no exception. We have developed partnerships and alliances with companies that are global leaders in their particular areas of expertise, and who form vital parts of the overall supply chain, including Schlumberger, Baker & McKenzie, Acclimatize and GE.

Future OpportunitiesThe sustainability challenge demands that we accept the need for a seismic shift in the way we do things. The EcoNomics™ team is actively identifying and commercializing opportunities for improvement in design, technologies, projects and markets. Our vision is to help shape a sustainable future in energy, water, communities, transport and industries. Our role is to conceptualize the solution and research the scope. Next, we work with customers and partners to realize the commercial outcome. One example is our work on adapting Advanced Solar-Thermal (AST), a technology that harnesses the sun’s energy for large-scale power generation developed for California, to the needs and climate of Australia.

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18 WorleyParsons Annual Review

Making a differenceOur engagement with our communities has two core, related aspects.

The first is the business side, where we are deeply committed to providing the best balance of local know-how and global best practice to our customers. In this we have sophisticated localization programs supported by training, technology, systems, controls, mentoring and leadership that can ensure our global standards are met. Our health, safety and environmental standards of operation also contribute to ensuring communities are positively impacted by our work.

The second is a broader social commitment to the growth and development of the communities where we work. Here we combine the energy and charity of our people and the resources of our company.

We are very pleased with the development of both aspects of our community program. The full details of what we are doing in our communities can be found at: www.worleyparsons.com

An unrivaled track record in localizationWorleyParsons recruits, trains and develops local professional personnel throughout our global operation – a philosophy central to our development of a successful, sustainable and comprehensive geographic presence.

The localization program is focused on recruiting, training, supporting and developing local professional staff throughout our global network. Currently with active programs in 15 countries, we are focused on the multiple benefits to the communities, the individuals and to our business. The programs focus on selective recruitment of the best local talent and formal training programs, exchanges, technology transfer and mentoring. Combined with our global approach to workshare, we find that the opportunities for our people are growing exponentially.

China – A local success storyIn China 99% of our 1,500 strong team are locals. The Beijing office is one of our global centers of excellence, especially in relation to intelligent design systems. An example of the integration between our localization and workshare endeavors is the engineers and designers in Beijing combining with their counterparts in Arcadia, California,to perform the detailed design for two sealift modules destined for BP’s Alaskan North Slope operation. Thirteen members of the Beijing team traveled to Arcadia during the Define phase of the project, acquiring specialized knowledge in relation to the unique features of the project’s modular design and Arctic conditions, enabling streamlined implementation in the Execute phase.

Beijing, China

Bangkok, Thailand

Al-Khobar, Saudi Arabia

Lagos, Nigeria

resources & energy Community

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Community development

Sichuan, China

Ewarton, Jamaica

Banda Aceh, Indonesia

Zanzibar, Tanzania

All of our communities are important to us, particularly in developing countries and in times of special need. Our contributions are substantial and are as diversified as our workforce – which design and implement the local programs with our corporate support.

While there are no limits on the areas in which commitments can be made, a deep and abiding dedication to education, as an asset for the community and its future generations, has emerged – from programs to deliver used computers to schools from Bangkok to Zanzibar; to contributions to funding of engineering and environmental schools at universities from London to Lagos. Scholarships we provide include those to 11 students from tsunami-affected Banda Aceh who are studying engineering at the University of Siyah Kuala in Indonesia and those for postgraduate education in Al Khobar, providing the opportunity to study in Australia.

Our commitment to health, safety and the environment also comes through in the projects our people choose for them and us to support. In Australia, the team at Port Hedland organized an inventive program to raise funds for the Royal Flying Doctor Service; in Nigeria the team created a safety culture in the

M&D Nursery & Primary School in Ogba, Lagos; in Houston we joined the 11th Annual Cystic Fibrosis Sports Challenge; in the United Kingdom the Brentford Team actively supported breast cancer research; and across the United States and Canada funds were raised in support of United Way – to name a few.

In May this year, the earthquake in Sichuan, China caused great sadness to us all but especially to our Chinese colleagues. Employees from all of our offices in China donated to those in need and, with the WorleyParsons RMB1 million donation to the Chinese Red Cross, were able to donate over RMB1.25 million. Donations also came from our offices in Malaysia, Abu Dhabi, Canada and Australia.

In addition, MaisonWorleyParsons joined the relief effort through the deployment of Mr Xu Yuning, an experienced construction manager, to support reconstruction work undertaken by Operation Blessing International (OBI), a US-based humanitarian organization. Mr Xu Yuning played a leading site management role in the villages in Yuejin County and Yongming County, assisting OBI to rebuild damaged water supply systems, latrines and shower facilities as well as clear extensive rubble and debris.

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Creating innovative solutions to complex customer problems has always been a valued hallmark of WorleyParsons’ people. Recognition of commitment, contribution and invention beyond the ordinary comes through the Grill Award, which identifies and rewards individuals and teams whose efforts most strongly reflect the values and business approach of the company’s founder, John Grill.

Exceptional outcomes for our customers

John Grill believes that individuals and teams, when given the opportunity and the right environment, display entrepreneurial flair and business focus that combine to produce exceptional outcomes for our customers and for WorleyParsons. Our goal is to establish such an environment and to encourage our people to seize the opportunity to create new and better solutions, especially as we and our customers face the challenges of changing business environments and imperatives worldwide. The Grill Award process identifies and rewards these outcomes and solutions.

Overall Winner and Winner for the United States and Latin America

Norilsk Nickel of Siberia, the world’s largest nickel producer, approached WorleyParsons to provide technology to convert SO2 from their metal smelters to elemental sulfur. Based in California, Mahin invented the technology to achieve this, developing and patenting an innovative SO2 reduction process that efficiently recovers sulfur from SO2 streams.

Mahin presented her technical solutions to Norilsk in Moscow, convincing them of the technical and commercial superiority of this new approach. It has been selected by their board for application at their copper and nickel production facilities.

We congratulate Mahin on winning the Grill Award and on her technical and commercial ingenuity. We recognize her determination and enthusiasm that turned a good idea into a business reality.

Mahin RameshniDirector of Sulfur Technology, Hydrocarbons

resources & energy Grill Award

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Australia & new Zealand

Asia, Middle East & Africa

As the Business Development Manager for the Hydrocarbons business in Lagos, Tunde has been instrumental in the growth of DeltaAfrik since its inception. This WorleyParsons’ Nigerian operation has grown from 65 employees in 2004 to 660 today. Last year the number of staff grew by 75%, in line with customers’ needs.

Responding to specific customer needs, Tunde identified the potential for a subsea pipelines service and drove its development.

Today, the business is the largest in-country subsea service in Nigeria and services numerous customers, including ExxonMobil, in their Nigerian pipelines’ needs.

Tunde ElesinBusiness Development Manager, Lagos Hydrocarbons

Jon is the Grill Award winner for Canada as a result of his exceptional work with client Suncor Energy and the Alberta Government to construct a risk-based groundwater response plan.

A leader in groundwater management and solutions, Jon has been instrumental in developing WorleyParsons’ oil sands business, helping operators with groundwater and source water management. He pioneered environmental forensics in this context and devised a breakthrough scientific method of distinguishing naturally occurring groundwater chemistry from that affected by the process operations.

His solution for Suncor and the Alberta Government utilized specialized geophysical methods and geochemical models to develop an approach that ensured the optimization of their environmental spend, directing it to those areas of greatest risk and so setting a new benchmark for oil sands operators.

Canada

Workshare is a crucial and growing competitive advantage for WorleyParsons, enabling us to bring optimal resources to customer projects regardless of where they are located. This produces better results for our customers and ensures our people are available for the most interesting work of which they are capable, not just that which is local.

In his role as Location Director for Victoria and Tasmania, Australia, Greg and his management team have established a center for workshare excellence in Melbourne.

Good communication is fundamental to the success of workshare and Greg led regular dialogue to establish this as well as clearly recognizing outstanding contributions in terms of workshare projects completed, delivery of safe solutions and delivering exceptional outcomes to customers.

Today, 40% of the volume of work of the Melbourne office is workshare sourced.

Greg McpheeLocation Director for Victoria and Tasmania, Australia

Jon FennellDirector, Water Resources Canada

Europe

In his role as regional EcoNomics™ Director for Europe, Alastair led the development of the non-financial risk management product which delivers a board level approach to managing environmental and social risks in projects. This is one of the principal tools of EcoNomics™ and forms part of the WorleyParsons’ Project Management Process (WPMP) risk management process. His commitment and enthusiasm to developing practical solutions to business sustainability issues extends to identifying potential alliance and acquisition opportunities, particularly in the area of climate change.

Alastair has also been involved in the development of WorleyParsons’ Corporate Responsibility Program and, in particular, leading an internal study to measure the carbon footprint associated with projects and offshore facilities.

Alastair BagleeEcoNomics™ Director, Europe

Page 24: WorleyParsons Annual Review 2008

22 WorleyParsons Annual Review

A safety first approach

Platinum Award Winners

The Chairman’s Health, Safety & Environment (HSE) Award is awarded to one or more individuals who have made an outstanding contribution toward improving the HSE performance within the WorleyParsons’ enterprise.

The Chairman’s HSE Award recognizes and rewards exceptional HSE performance improvement from our employees. It serves as a tangible reminder of the significance of HSE for WorleyParsons and provides a platform for employees to significantly contribute to the corporate vision of zero harm. The awards comprise two levels – Champion and Platinum.

A senior HSE specialist, Phil Roskelley moved to the Shell Martinez Refinery in California, USA, in 2006 and quickly had a strong positive impact on the facility, establishing a leadership role both by initiative and example.

In the first turnaround maintenance period soon after Phil arrived, there was a number of first aid cases and one recordable injury. Phil initiated a safety integrity program, challenging contractors to take personal responsibility for their safety at all times, not just when someone is watching, and to report near-miss incidents. He also worked with the construction management team on safety practices, expectations and understanding. In the second maintenance turnaround there was not a single first aid or recordable incident.

Phil not only improved safety but greatly enhanced customer relationships. He was recognized by Shell for his contribution, receiving their Outstanding Achievement Award for 2007, as he is by us, as a Platinum Award winner.

In Australia during 2007, our customers ExxonMobil and Transfield Services challenged WorleyParsons to accept a changing role in the Altona alliance and become more engaged in field execution, including in safety leadership. Using a collaborative, team-based approach, a range of initiatives emerged, including personal safety charters, the Mate Safe program of care for work partners’ safety, and greater dialogue and planning through weekly toolbox meetings, to name a few. One success of the program is the focus on safety at the earliest stages of design, construction, operations and maintenance.

Another area of equal or greater importance was our capacity to alter priorities in relation to safety, making it central to the alliance – from changes to the agenda of leadership and management meetings, to creating an open platform for ideas and suggestions at all levels of the organization – documenting the new systems, protocols and procedures as they are developed.

This was supported by an extensive commitment to training and development, including our involvement in ExxonMobil in-house courses. With added awareness, our people have added confidence to lead on safety.

An Engineering Manager in London, UK, Martin Brooks led a global team to develop our Safety in Design initiative, which reviewed, unified, documented and upgraded the standards and practices relating to our basic standards of safe design.

As our company has grown and diversified, a need has emerged to integrate these standards to take account of varied cultures, corporate histories and international standards, aligning them to our vision for leadership in safety. Martin formed and led a global multi-disciplinary team that identified current best practice and ideal solutions. They worked with the engineering leadership team to frame the Safe and Sustainable Engineering Solution model and then continued to work on the Safety in Design elements, developing and documenting the new model. The model was approved in November 2007, and the development of detailed content is in progress. The initiative distinguishes WorleyParsons in its markets, has won recognition from our customers and establishes an even more solid platform for future safety standards.

Phillip Roskelley Martin BrooksExxonMobil Altona CME Alliance Team

resources & energy Chairman’s Health, Safety & Environment Award

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WorleyParsons Annual Review 23

Champion Award Winners

The Parsons Iraq Joint Venture (PIJV), a joint venture between WorleyParsons and Parsons Corporation, was engaged by the United States Army Corp of Engineers (USACE) to perform reconstruction work in Iraq between 2004 and 2007. It was a critical part of the post-hostilities reconstruction program, having a focus on the restoration of Iraq’s oil and gas facilities.Throughout the performance of its work, PIJV took a disciplined, yet proactive, approach to ensure the safety and welfare of the team. Much of the work involved the completion of projects in remote parts of the north and south of Iraq, requiring frequent travel by road. In conjunction with the USACE, the team developed and implemented a comprehensive set of safety and emergency processes and procedures, particularly in relation to the movement of personnel by vehicles to and from the job sites. On the occasions when the requirements could not be met, the team proactively worked to minimize or eliminate movements until the correct transportation could be provided.

This disciplined yet proactive approach by the team, in an extremely challenging and hostile project environment, enabled them to safely complete a truly remarkable and valuable project for the people of Iraq.

Dick StilesProgram Manager

Ron JordanProgram Manager

Though the excellent safety performance was due to the entire project team, the award has been accepted by Dick Stiles and Ron Jordan on its behalf.

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Category Global Data YTD

Lost Workday Case Frequency Rate 0.02Total Recordable Case Frequency Rate 0.14Fatalities 0Environmental Incidents 0

notes:1. Frequency rates are in accordance with US OSHA per 200,000 work hours2. Calculations are based on WorleyParsons employee numbers

Behavior and culture

Although our safety performance compares very favourably with international best practices within our industry sectors, we are taking our commitment to safety to a new level. We are actively reinvigorating our management systems and engaging our people, contractors and suppliers in the expectations and programs that we have to achieve zero harm.

In addition, WorleyParsons is increasingly involved in the provision of project and construction management services in remote parts of the world and, in doing so, taking safety responsibility for contractors. Consequently, it is essential that we ensure that these contractors share our goal of zero harm – a challenge we are confident we can address this coming year. To support this effort we will continue to develop and establish our OneWay™ program throughout the Group.

Our Health, Safety and Environmental expectations are vital and integral elements of our business. They are embedded into our management systems and processes and influence everything that we do.

“The achievement of industry leadership in health, safety and environmental performance is one of our differentiators and an important ongoing goal for our organization.”Marian Mclean

Marian McleanGlobal Director

HSE

resources & energy OneWay™ to zero harm

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WorleyParsons Annual Review 25

OneWay™ sets our corporate expectations which, if met, will progress us towards our vision of zero harm to people, assets and the environment. The expectations are wide ranging, with all staff having a part to play in their achievement. The fundamental building blocks necessary for us to succeed are already in place, however OneWay™ will provide greater structure and clarity of purpose in many areas. New or improved standards, processes and procedures will help us to achieve safer and more environmentally friendly outcomes.

The implementation of OneWay™ has commenced, the framework and expectations are fully developed and the supporting policies, standards and processes for our daily operations are being finalized ready for application.

The OneWay™ framework will:

Provide a global leadership, •governance and reporting structure

Develop a culture and behaviors that •align with achievement of zero harm

Facilitate the identification and transfer •of best practice

Build on the existing business •processes within our Enterprise Management System

Provide a global mechanism •for assessment, feedback and continuous improvement

OneWay™ is WorleyParsons’ enterprise-wide integrity management framework.

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POWERMINERALS & METALS

HYDROCARBONSINFRASTRUCTURE & ENVIRONMENT

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Our Vision

WorleyParsons will be the preferred global provider of technical, project and operational support services to our customers, using the distinctive WorleyParsons’ culture to create value for them and prosperity for our people.

Leadership

and rewarded people

profitable sustainability

of business

Relationships

to business

Agility

world scale developments

with global leverage

customer preferences

customized to needs

Performance

Contents

1

2

4

8

12

16

20

24

28

32

36

40

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Minerals & Metals

Delivering comprehensive “mine to market” projects and solutions in base metals, alumina, aluminium, coal, iron ore, steel and chemicals across the world

WorleyParsons is a leading provider of professional services to the resources & energy sectors and complex process industries.

Our services cover the full asset spectrum both in size and life cycle – from the creation of new assets to services that sustain and enhance operating assets.

Across our comprehensive global network our four customer sector groups use their extensive expertise to deliver small studies through to mega-projects.

Infrastructure & Environment

Complete solutions for the transportation, coastal & marine, water & wastewater, resources & energy, municipal and urban infrastructure sectors

Hydrocarbons

Full-scope global project delivery in deepwater, floating, subsea & conventional structures, topsides, onshore oil & gas, pipelines, LNG, and refining & petrochemicals

Power

Renewable energy, clean coal, nuclear and natural gas generation, transmission networks and retrofit project solutions from pre-feasibility to asset operation and maintenance

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Fort McMurray

Edmonton

CalgaryVictoriaVancouver, BC

North Vancouver, BC

ArcadiaLong Beach

Reading

Chattanooga

Hampton

HoustonDeer Park

Trinidad & Tobago Port of Spain

Brazil Rio de Janeiro

Toronto

Chicago

Dallas

Tulsa

Richland

Denver

BillingsIdaho Falls

Bismarck Minneapolis

Sudbury

Vancouver, WAPortland

Canada

United States

LondonEngland

England Bristol

England Woking

England Leeds

Scotland Stirling

Spain Madrid

Netherlands Delft

Libya Tripoli

Nigeria Lagos

NanaimoSeattle

Cold Lake

SaskatoonLloydminster

Angola Luanda

Chile Santiago

SacramentoMartinezLos Altos

Monrovia

Sarnia

GrandePrairie

Kitimat

Fort St. JohnUnited States Anchorage

Jamaica Mandeville

Mexico Mexico City

Local Office

Global Hub

Our Global Operations

Revenue 2008

$4,900.7mThe result was earned on aggregated revenue of $4,900.7m, an increase of 38.6% on the $3,534.6m reported in 2007.

Net profit 2008

$343.9mA full-year result for 2008 of $343.9m, an increase of 53.0% over the $224.8m net profit reported in 2007.

Net profit margin 2008

7.0%After tax the Company earned a net margin on aggregated revenue of 7.0%, compared to the 2007 net margin of 6.4%.

EBIT 2008

$520.0mEBIT for the year was $520.0m, an increase of 63.0% from the $319.1m reported in 2007.

Basic EPS (cents per share)

142.5cBasic earnings per share was 142.5 cents per share, an increase of 40.0% above the 101.8 cents per share for 2007.

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Egypt Cairo

Saudi Arabia Yanbu

Bulgaria SofiaRomania Ploiesti

Ukraine KremenchukUkraine KomsomolskUkraine Kharkov

Kuwait Ahmadi

Saudi Arabia Al Khobar Bahrain Manama

Qatar Doha

UAE Abu DhabiOman Muscat

Russia Moscow

Kazakhstan Atyrau

China Beijing

China Shanghai

China Nanjing

Thailand Bangkok

India Mumbai

Thailand Sriracha

Vietnam Ho Chi Minh City

Malaysia Kerteh

Malaysia Kuala Lumpur

Singapore

Brunei Kuala BelaitMalaysia Miri

Malaysia Bintulu

Indonesia Jakarta

Australia

PerthKwinanaBunbury

Darwin

Adelaide

GeelongSpotswood

Melbourne

SydneyWollongong

NewcastleSingleton

BrisbaneBallina

Sunshine CoastGladstone

MackayTownsville

New Plymouth

Auckland

New Zealand

South Africa Pretoria

South Africa Secunda

Bell Bay

Philippines Manila

China Tianjin

China Lianyungang

Malaysia Kuantan

Hastings

Wellington

Christchurch

Kazakhstan Almaty

Kazakhstan AstanaKazakhstan Aksai

India Hyderabad

Geographic Presence and Capability – Committed to Growth

Our comprehensive geographic presence enables us to provide our customers with a unique combination of extensive global resources, world-recognized technical expertise and deep local knowledge. We remain committed to the ongoing growth of this global capability through both organic growth and acquisition.

During the year we completed a number of strategically important acquisitions to extend our capabilities in the key areas of deepwater and subsea developments, conventional and nuclear power, water resource management and mining, port and coastal infrastructure.

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“The successful delivery of complex mega-projects requires the effective management of numerous interrelated variables – often on a global scale. Our unique combination of experience and global presence, coupled with the proven WorleyParsons Project Management Process, ensure that we seek to safely and consistently deliver projects in line with our customers’ expectations, even in the most challenging project environments.”William HallGlobal Director Mega-Projects

Delivering Mega-ProjectsAcross the global resource and energy markets the scale and complexity of projects continue to increase as owners seek the benefits achieved through aggregating process, power and infrastructure elements of projects and realize overall cost savings.

Owners are acknowledging that economic viability can only be achieved at a project size that has not been previously attempted in the market. As a result, projects requiring an investment in excess of $1 billion – often referred to as mega-projects – increasingly require to be delivered for our customers.

The skills and processes required to plan and deliver these projects are held by very few companies. WorleyParsons possesses a rich history of mega-project delivery, dating back to the 1970s for oil and gas projects on the Alaskan North Slope. We remain committed to helping our customers deliver mega-projects in an increasingly challenging project delivery environment.

Bill Hall joined Parsons in 1979 as a Project Manager, and was involved in mega-projects until 1989, when he moved into line management and was responsible for all projects including mega-projects. Bill subsequently became Chairman and CEO of Parsons E&C and later the steward of the merger of Worley and Parsons E&C.

In recognition of the specialist execution strategies, management skills and personnel retention challenges associated with this strategically important element of our business, Bill was recently appointed as the Managing Director, Mega-Projects responsible for supporting all mega-projects throughout WorleyParsons.

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Development Background

Ma’aden Phosphate Company, a joint venture between two of Saudi Arabia’s largest firms – Ma’aden and Sabic, is the owner and operator of the most significant industrial developments in the Middle East since the petrochemicals expansion in the 1980s. The objective of the Saudi Arabian government is to make the minerals industry a third pillar of industry within the Kingdom after hydrocarbons and petrochemicals.

Ma’aden’s developments follow on from its successful gold mines in the west of the Kingdom; with new mega-projects valued in excess of US$15 billion for the commercialization of the bauxite, phosphate, magnesite and industrial minerals deposits. The development of these projects is supported by government-funded infrastructure also being concurrently developed, including a railway and deepwater port.

The objective of the program, managed by WorleyParsons, is to economically mine the Al Jalamid phosphate deposit in the north of the Kingdom. The phosphate deposit will be mined by open-cut mining and the ore processed in a beneficiation plant at Al Jalamid. The five million tonnes per annum of phosphate concentrate will then be railed approximately 1,400 kilometers from Al Jalamid to the fertilizer production facilities located at Ras Az Zawr. The fertilizer complex at Ras Az Zawr consists of three sulfuric acid plants, three phosphoric acid plants, one ammonia plant and four diammonium phosphate (DAP) plants and their related infrastructure.

The Most Significant Industrial Developments in the Middle East

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WorleyParsons’ Role and Facility OverviewWorleyParsons has two major contributions to this development; first through the management of the $4.5 billion (direct capital cost) Phosphate Project and second through the management of development of the minerals complex infrastructure including a bachelor housing village, common utilities such as cooling water, and oversight of the deepwater port being developed by the Saudi Seaport Authority.

The Phosphate Project being managed by WorleyParsons is focused on the economic development of the major phosphate rock resource located at Al Jalamid. The fertilizer complex at Ras Az Zawr, which is also being managed by WorleyParsons, will produce three million tonnes of DAP each year, which represents over 10% of the world production of DAP.

Magnitude of the Development

The full development project involves the design and construction of some of the largest facilities of their type ever built, particularly the three sulfuric acid plants and the three phosphoric acid plants. The upgraded plan for the ammonia plant will result in it too being the biggest in the world.

Global Talent Focused on Single Mega-ProjectWhile projects are increasing in size and complexity around the world, they are rarely executed from a single location. WorleyParsons’ approach to the Ma’aden development highlights the requirement of appropriate global expertise working in a synchronized manner to deliver a diverse and detailed range of EPC packages to the international contracting market. A central

team, stationed in Al Khobar, has worked closely with Ma’aden and the relevant Saudi Arabian authorities.

Melbourne provided the detailed design of the utilities and offsite (U&O) at Ras Az Zawr and FEED services for the beneficiation plant at Ras Az Zawr. Singapore completed the FEED for the balance of plant and master plan for the power component at the Al Jalamid site. Perth completed the master plan for the Ras Az Zawr site including the phosphate, alumina, aluminium facilities and civil infrastructure, and the detailed design for the seawater intake. Al Khobar and Bahrain provided procurement support for the U&O. Beijing provided design support for each of the offices. Collectively over 350 personnel, including 180 in Al Khobar, in five global offices, were devoted to successfully ensuring all the packages were released to the market and that control of the execution strategy was maintained.

The Saudi Arabian Mining Company (Ma’aden) Development

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Successful Engagement of World-Class ContractorsWorleyParsons’ Project Management Consultancy (PMC) role involves the creation and development of work packages to ensure comprehensive and timely development of the proposed facilities and then support services for the selection of the best international contractors to execute the packages. Major components of the development program are being executed in Seoul, Korea; Beijing, China; Gwiwang, China; Milan, Italy; Madrid, Spain; Frankfurt, Germany; Chicago, USA; and Melbourne, Australia. The challenge of ensuring exemplary quality performance by all the EPC contractors working in multiple languages and time zones has been embraced by the Al Khobar team.

Training and Development CommitmentSince WorleyParsons first commenced operations in Saudi Arabia in the 1970s, it has been committed to the “Saudisation” of the workforce, where Saudi nationals are trained and developed to undertake senior roles within the business. A number of Saudi nationals have been relocated to Pasadena, Frankfurt, Milan, Madrid, Gwiwang, Melbourne, Singapore and Seoul to further their international expertise.

SustainabilityAll project facilities have been engineered to meet or exceed global environmental standards. The facility at Ras Az Zawr will be self-sufficient for power and water.

HSE CommitmentAt its the peak the construction site at Ras Az Zawr will host over 12,500 workers from more than 15 contractors. A majority of the construction teams comprise workers from India, Pakistan, Sri Lanka, China and North Africa. The coordination of these teams to ensure safe performance is a constant focus for the WorleyParsons team and new standards are being set within the country for HSE management. Significant programs are in place to overcome communication and cultural barriers, job hazard analysis and risk analysis programs have been implemented and a reward program approved by the owners and chief contractors.

“The success of this world-leading project is directly due to teamwork. WorleyParsons’ role to support Ma’aden to maintain its schedule and create a multinational workforce focused on safety, quality, cost and schedule has been invaluable to us achieving our business objectives.”Abdulaziz Al HarbiPresident, Ma’aden Phosphate Company

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CanadaCanadian Oil Sands Profile

As the world’s conventional oil reserves continue to decline, and demand for oil continues to rise, an ever increasing proportion of new oil production is coming from Canada’s mineable and in-situ oil sands. With an estimated 1.7 trillion barrels of bitumen located in the Athabasca, Peace River and Cold Lake regions of Alberta, Canada, the reserve is second only in size to that of Saudi Arabia. Currently, over C$118 billion in investment is either underway or planned within the region.

WorleyParsons has provided professional services to the oil sands industry, both in Canada and worldwide for over 40 years. Our involvement includes the completion of over 3,000 oil sands upgrading and extraction projects, ranging from feasibility studies through to EPCM and construction services for mega-projects. This depth of experience uniquely positions WorleyParsons to assist its customers to deliver some of the most challenging and technically demanding projects in the oil sands industry. With over 2,000 oil sands specialists, our knowledge covers both surface mineable oil sands and in-situ production.

WorleyParsons has a well-earned reputation for the development of innovative solutions and the application of new technologies, to deliver oil sands operations that are both operationally efficient and sustainable. The concept of delivering profitable sustainability is central to WorleyParsons’ EcoNomics™ initiative. Our work on projects to replace natural gas as fuel for steam and power generation, and the application of existing and emerging water treatment technologies to manage cumulative effects on regional watersheds, and to minimize water consumption, are recognized as being industry leading in their approach.

CalgaryCold LakeEdmontonFort McMurrayFort St. JohnGrande PrairieKitimat

LloydminsterNanaimoNorth VancouverSarniaSaskatoonSudburyToronto

Vancouver, BCVictoria

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Business Overview

Canadian resources and energy sectors continue to experience strong levels of investment across all WorleyParsons’ customer sector groups.

In Alberta, we are delivering major projects in heavy oil production and mineable oil sands for Nexen, Devon, Suncor, Statoil and Meg Energy, Total and Shell. We are also currently working on the first three expansions of Shell’s Albian project, with construction completions scheduled from 2009 to 2017.

To carry the increased production to markets, Calgary and Edmonton offices are completing major pipeline projects for Enbridge, TransCanada Pipelines and Suncor. Calgary and Toronto offices are currently engaged in the delivery of the resulting downstream projects with Consumer Co-Op and Suncor.

Demand for Improve services continues to be strong, including longstanding relationships with Syncrude, PetroCanada, Shell, Suncor, Imperial Oil and Talisman; newer alliances with BP, OPG and TransCanada Pipelines; and emerging opportunities for new plants as they complete construction.

Our Power businesses in Edmonton, Calgary, Toronto and Vancouver continue to grow. Current projects include EPCM services for EPCOR and TransAlta; engineering services for OPG Nuclear Waste Management Division, Plutonic Power’s Run of River and Bruce Power; and a variety of projects using combined cycle steam technology and simple cycle gas turbines.

In Minerals & Metals, commodity demand continues to drive high levels of activity in our Toronto office and is helping diversification into Edmonton. Current projects include the Mopani Isaconvert Smelter upgrade, Inco Thompson Emissions Reduction project, and the Sherritt Corefco Project being executed in Edmonton.

The Infrastructure market remains strong, especially in support of resources projects. The addition of WorleyParsons Westmar to the Canadian region dramatically increases our capacity to pursue resources and public infrastructure projects domestically and overseas.

Environmental, remediation, monitoring and water resources services continue to be in strong demand across the region, allowing opportunities for geographic diversification.

Canada

East Toba and Montrose Creek Hydroelectric project

Customer: Toba Montrose General Partnership (TMGP)Location: Toba Inlet, British ColumbiaTimeframe: 2007 – 2010

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

BC Hydro, the provincial crown corporation in British Columbia responsible for the power needs of the province, has turned to the private sector to fill its shortfall in power generation capacity. This includes the use of environmentally sustainable power production such as wind, solar, geothermal or, as in the case of Toba Montrose run of river, hydroelectric generation.

Toba Montrose General Partnership (TMGP), a partnership between Plutonic and General Electric, is building the Toba Montrose power generation facility to fulfill the Electricity Purchase Agreement they have with BC Hydro. The project consists of two twin turbine powerhouses with associated penstocks and diversion structures as well as 145 km of transmission line through mountainous terrain.

TMGP has engaged WorleyParsons as the owner’s engineer for the project to provide design review services, auditing of the environmental, HSE and QA/QC plans for the project and technical and project management assistance as required during the engineering, procurement and construction phases.

WorleyParsons has brought to this project significant experience in hydro-electric power generation as well as project and risk management expertise drawing on resources from Toronto, Calgary and Edmonton in support of the main project team based in Vancouver.

Offices Vancouver, Calgary, Toronto, Edmonton

196 megawatt power generation facility

Varennes Greenfield Titanium Sponge Plant

Customer: Titanium Metals Corporation (TIMET)Location: Varennes, QuebecTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Titanium Metals Corporation (TIMET) is considering the development of a new Titanium Sponge Plant in Varennes, Quebec using its existing sponge plant facility as the basis for the study. All areas of the existing facility including magnesium recovery, vacuum distillation, crushing and shearing, and gas handling will be analyzed and streamlined to ensure that TIMET’s production goals in regard to titanium sponge production are met.

TIMET engaged ColtWorleyParsons to perform Select phase services on the study. Activities included the provision of engineering, environmental permitting support and project management of a scoping study. Following completion of the scoping study, additional activities included geotechnical services, basic engineering and final structural engineering for the main process building and a capital estimate for the new plant.

As part of the design process, a computerized model (Visual 8) was used to verify the plant layout and to determine bottlenecks. Value improvement practices were identified to streamline the plant operations and for future consideration on the final design. In addition, we applied our EcoNomics™ based resource utilization concepts to identify savings in utility usage and to decrease the facility’s impact on the environment.

Offices Toronto, Calgary

$750 million total installed cost

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Long Lake Commercial SAGD Project

Customer: Nexen Inc.Location: North Alberta, CanadaTimeframe: 2002 – 2006

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

The Long Lake Project, a cooperative venture between Nexen Inc. and OPTI Canada Inc. in the Athabasca oil sands, is expected to produce 72,000 barrels per day of bitumen from Phase 1, utilizing the steam assisted gravity drainage (SAGD) process. The Long Lake commercial SAGD project facilities include a steam SAGD production field, central production facility and two cogeneration plants, which will be operated by Nexen, integrated with an OPTI-operated upgrading facility designed to significantly reduce reliance on natural gas.

ColtWorleyParsons Calgary provided the key project management, engineering, procurement, project control and information technology functions for the SAGD portion of the project. These functions were critical to the success of the facility design and project execution. The engineering and design for the cogeneration plant was executed in the ColtWorleyParsons Edmonton office.

The Long Lake facility, the largest SAGD project in operation in Alberta, drew on our specialist resources to utilize synthetic fuel gas, produced from an upgrading process as the main fuel for the SAGD operation, which reduced the SAGD operating costs. Our specialists also provided input to the diluent-based treating, which greatly reduced the salt content of the oil and made the front-end desalting in the upgrader more effective. The plant also recovered all of the produced water and wastewater streams to provide high quality treated water to the upgrader.

ColtWorleyParsons was subsequently awarded the Long Lake South Phase 2 project.

Offices Calgary, Edmonton

70,000 barrels per day of bitumen

Talisman Energy – Prime Alliance

Customer: Talisman Energy Inc.Location: Alberta, British Columbia, Saskatchewan, Canada, New YorkTimeframe: 1991 – ongoing

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Since 1991 Talisman Energy Inc, through the Talisman Prime alliance, has continuously engaged ColtWorleyParsons to provide engineering; procurement and construction management services for its oil and gas assets in western Canada.

The Prime alliance’s core business objective is sustained, cost effective and efficient execution of Talisman Energy’s yearly North American capital project plan. The secondary objective is operational and maintenance engineering support.

The majority of work performed under the contract is in support of Talisman’s gas assets. The work completed over the years has included well tie-ins, major sour mountain pipelines, compression additions, plant modifications, plant upgrades, grass roots facility installation, proactive and reactive operations support, and complete drawing management.

Cost effective implementation of capital is a key component for Talisman in reaching its return on investment goals – and as such it is a key focus for our personnel on this long term Improve contract.

Major projects completed recently include the Lynx/Palliser sour gas gathering system in the foothills of the Rocky Mountains, the Musreau gas plant expansion, the Ram gas plant and sour gas gathering system, and over 200 wells tied in per year.

Office Calgary

C$400 million of capital projects completed in the last three years

Joslyn North Mine Pre-Project Study

Customer: Total E&P Canada Ltd.Location: 65 km north of Fort McMurray, Alberta, CanadaTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Total’s Joslyn North Mine Project ( JNMP) is a proposed open pit, truck and shovel mine which includes a bitumen froth production and treatment plant, designed to produce diluted bitumen. Based on an innovative process that reduces the use of tailings ponds, the project reflects Total’s commitment to sustainable development.

The project is also recognized as the first owner driven engineering evaluation into the potential for carbon neutrality in oil sands mining and extraction facilities in Alberta.

To support this initiative, ColtWorleyParsons was engaged to conduct a carbon neutral study, ‘Moving Towards Carbon Neutrality.’ The study identified all sources of greenhouse gas (GHG) emissions from the JNMP; quantified the GHG emissions and carbon reductions that result over the life of the project; and estimated the costs and benefits of various options for achieving carbon neutrality. Options considered include process changes, fuel switching, carbon offsetting, carbon capture and sequestration (CCS) and energy efficiency improvements.

In a challenging regulatory environment, WorleyParsons EcoNomics™ assessment capabilities enabled Total to assess future proofing options for the project by embedding financial, social and environmental sustainability into project alternative assessments, thus helping to support Total’s commitment to sustainable development.

Office Calgary

100,000 barrels per day of diluted bitumen

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USAMeeting the Deepwater ChallengeAs the worldwide search for hydrocarbons moves into ultra-deep waters, the technical challenges multiply and the scale of the investment required to safely deliver these projects continues to escalate. Two companies that have been at the forefront of meeting this challenge for many years through both leadership and technical innovation in the Gulf of Mexico, West Africa and other deepwater locations are INTEC Engineering and WorleyParsons Sea.

Our recent acquisition of INTEC has allowed us to forge the capabilities of these two industry leading companies into a single entity known as INTECSEA, thus providing customers with a fully integrated deepwater, subsea, pipelines and floating production capability.

INTECSEA incorporates all the capabilities within INTEC, WorleyParsons Sea and the WorleyParsons floating systems, offshore pipelines and subsea teams. This allows us to offer customers a full service solution in a range of specialty areas, including subsea production, offshore pipelines, marine production risers, flow assurance and floating production systems including all types of deepwater hulls, tendon and mooring systems.

When harnessed with our established capability in the design of offshore facilities, ranging from the simplest of unmanned platforms through to complex floatover topsides weighing up to 30,000 tonnes, the WorleyParsons Group is now able to offer customers a single integrated project delivery service from ‘wellhead to the market’ for their most challenging deepwater developments.

INTECSEA will provide our deepwater customers with a shorter project delivery cycle, advanced technologies to enhance project economics, reduced interface management requirements and, most importantly, a level of project delivery certainty that only comes from a highly experienced and unified team operating under a single leadership structure.

AnchorageArcadiaBillingsBismarck ChattanoogaChicagoDallasDeer ParkDenver

HamptonHoustonIdaho FallsLong BeachLos AltosMartinezMinneapolisMonroviaPortland

ReadingRichlandSacramentoSeattleTulsaVancouver, WA

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Business Overview

US operations continued to grow during 2008, expanding to 24 offices, and in excess of 5,700 personnel. Recruiting and retaining staff remains a high priority, however, we continue to workshare and access alternate resource pools to increase productivity and meet customer demands.

The acquisition of INTEC Engineering, Polestar and UniField this year has continued to expand our regional presence and capability. The addition of INTEC Engineering, a leading international offshore deepwater engineering and project services company, has complemented our existing hydrocarbons capability at a time when this sector is seeing increased activity. Our increased capability has been well received in the marketplace, and improves our position to respond to the increasing levels of activity. Polestar provides services to the nuclear industries, and UniField focuses on Improve services in the Hydrocarbons, Power and Minerals & Metals sectors.

Demand for our Select services has steadily increased across the US, with Select teams currently working on Arctic as well as power assignments. There is also a high degree of interest in our EcoNomics™ services. We expect to see an increased demand for EcoNomics™ assignments as we proceed into fiscal year 2009, in particular in the area of renewable energy.

Reorganization along geographic lines has helped to create more local attention across all customer sector groups and assist with preserving and increasing the value of our recent acquisitions, by committing our management resources to lead their integration and growth. Under this new organization, no operational center will focus on a single customer sector group; instead, all will take a multi-sector approach.

We are well positioned to take advantage of the trends in our markets and have the know-how and resources to meet our customers’ goals.

USA

Alaska North Slope Renewal Program

Customer: BP Exploration AlaskaLocation: Alaska North SlopeTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

BP Exploration Alaska (BPXA) established the Alaska North Slope Renewal Program to determine the facility and infrastructure requirements for the next 50 years of operation for its Greater Prudhoe Bay (GPB) and Milne Point (MPU) assets, and prepare a long term development plan. GPB is a $30 billion asset encompassing 360 square miles and includes: 1,300 wells, 45 well pads and seven production facilities. The GPB facilities currently process 286,000 barrels of oil, 1 million barrels of water, and 10 billion standard cubic feet of gas per day.

Select studies performed by WorleyParsons include a high level holistic condition assessment of Greater Prudhoe Bay processing facilities and infrastructure, to create a baseline against which renewal development options can be compared. We also developed high level cost estimates for conceptual ‘cost blocks’ for the modifications and expansions required for the GPB facilities to produce both future and remaining reserves.

In concert with BPXA, WorleyParsons developed a methodology to effectively assess both brownfield and greenfield development cases efficiently and reliably, based on the concept of building blocks. This approach enabled a small team to evaluate a large number of potential development scenarios very quickly and report results clearly to the BPXA project team.

Offices Arcadia, Perth, Anchorage

50 year vision for Alaska development

Meltshop Fume Collection System Design

Customer: Nucor Steel MemphisLocation: Memphis, TennesseeTimeframe: 2007

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Nucor acquired the Memphis, Tennessee facility as one of a group of mills from Birmingham Steel Mills. Although not operational at the time of the acquisition, Nucor plans to refurbish and reopen the steel mill with a fume control system that meets Environmental Protection Agency (EPA) regulations for dust emissions. The refurbishment involves the purchase of a new electric arc furnace (EAF), a vacuum degasser, a three-strand caster and reuse of the existing ladle metal furnace (LMF).

To support the refurbishment Nucor engaged WorleyParsons Gas Cleaning group to provide Computational Flow Dynamics (CFD) modeling, basic and detailed engineering services for the development of a new melt shop fume control system. The fume control system will involve the collection of the off-gas from the EAF primary and secondary emission sources, LMF and ladle trim station, and caster canopy hood all tied into a new positive pressure reverse air baghouse system.

The engineering activities were completed within budget and schedule. The project is currently in the construction phase, and Nucor, one of WorleyParsons’ largest steel industry customers in the US, remains on target to bring the facility back into operation in accordance with EPA emission requirements.

Office Dallas

US$20 million total installed cost

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Oxy Elk Hills Continuing Services

Customer: Occidental of Elk Hills, Inc.Location: Tupman, CaliforniaTimeframe: 2007 – ongoing

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

WorleyParsons’ relationship with Occidental Petroleum began with a project at the Oxy THUMS location in Long Beach, California. The project’s success led to the creation of an engineering alliance with Occidental of Elk Hills, Inc. (OEHI) in 2007, enabling OEHI to consolidate their engineering support under a single Improve contract to develop the infrastructure at Elk Hills and increase recovery from the field.

In addition to support at Elk Hills, WorleyParsons assisted Occidental with over 25 retro-fit projects at offsite locations. Projects range from instrumentation and controls upgrades to designing new compressor stations. The offsite projects have increased gas refrigeration capacity, improved process plant reliability and provided more responsive instrumentation and control.

Workshare with other WorleyParsons offices has also been a feature of the alliance. WorleyParsons’ Long Beach office has supported the execution of work at offsite locations, a geograhic information systems (GIS) project is currently underway with Calgary, and multiple offices provided support to a series of large-scale power distribution upgrade projects.

The OEHI alliance exemplifies WorleyParsons’ ability to manage complex, brownfield, cross-sector projects utilizing workshare with other offices, while providing OEHI with one point of contact, irrespective of execution location.

Offices Monrovia, Long Beach, Sacramento, Chattanooga, Chicago, Reading, Calgary

No. 1 natural gas producer in California

ESBWR Program Management

Customer: GE Hitachi Nuclear Energy (GEH)Location: Wilmington, North CarolinaTimeframe: 2006 – 2009

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

GE Hitachi Nuclear Energy’s next evolution of boiling water reactor technology is the Economic Simplified Boiling Water Reactor (ESBWR). This simplified design provides enhanced safety, excellent economics, better plant security, a broad seismic design envelope and operational flexibility. Compared to the current mix of US electricity, the electricity produced by a 1,520 MWe ESBWR nuclear reactor would avoid the emission of 7.4 million tons of greenhouse gases per year, or the equivalent of taking 1.3 million passenger vehicles off US roads for a year.

WorleyParsons was selected to provide program management support to the deployment of the ESBWR program across multiple sites. Activities include the development of detailed execution plans for key areas such as engineering, project controls, procurement and materials management, quality assurance, construction, modularization and information management.

GE has designated the ESBWR an ecomagination product. GE’s ecomagination initiative is a business strategy that reflects GE’s commitment to help customers meet environmental challenges through the application of more energy-efficient, less-emissive products and innovative solutions. Consequently, WorleyParsons believes GE’s ecomagination-certified ESBWR complements our EcoNomics™ initiative and its goal of delivering profitable sustainability.

Office Reading

1,520 MWe net

NCP Petrochemical Complex

Customer: Saudi Polymers CompanyLocation: Al Jubail, Saudi ArabiaTimeframe: 2005 – 2011

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

By installing what will be among the world’s largest polymer production lines, the Saudi Polymers Company will become one of the lowest cost polyolefins producers in the world through economies of scale. Per annum production of the new facilities includes 1.2 million tons of ethylene; 1 million tons of polyethylene; and 400,000 tons of polypropylene.

WorleyParsons is providing project management, FEED, detailed design, procurement, and construction management services for this world-scale grassroots petrochemical complex at Al Jubail, Saudi Arabia.

WorleyParsons has added value to this project by leveraging the skills, knowledge, and performance of our project team. We performed the same suite of services on the recently completed JCP project, which is located at the same jobsite. WorleyParsons was awarded the NCP contract largely due to our high value performance on the previous project and our team’s stability. Virtually all key project team members have been in place for the last six years with this customer.

Offices Houston, Al Khobar, Beijing

US$5 billion total installed cost

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Latin AmericaCOMPERJ – Brazil’s Largest Industrial Development

Rio de Janeiro’s Petrochemical Complex (COMPERJ) will be the largest industrial undertaking in the history of Petrobras and Brazil, and with a forecast total installed cost of US$8.5 billion one of the largest in the world. Due for completion in 2013, COMPERJ will process 150,000 barrels per day of Marlin crude, which will increase Brazil’s heavy oil refining capacity and produce petrochemical products for the internal and export markets.

This complex will bring together a first-generation refining and petrochemical facility producing ethylene, propylene, benzene, and paraxylene. The second-generation units will produce styrene, ethylene glycol, polyethylene, polypropylene, and putrified terephthalic acid (PTA) and include the supply of water, steam and electrical energy for the whole complex.

WorleyParsons is providing proven mega-project management and delivery know-how to yield optimal project execution to meet Petrobras’ goals and objectives. Our activities include: project integration services for the complex, licensing and basic design and front-end engineering design for the auxiliary units, utilities and offsites, commissioning and start-up.

A unique approach has been the use of integrated workshops to define the key elements of site plan configuration, engineering systems for global implementation, procurement of key equipment and materials, constructability and logistics. WorleyParsons is providing early critical assessment to key areas, enabling Petrobras to obtain the data required to validate the aggressive project schedule.

BrazilRio de JaneiroChileSantiagoJamaicaMandeville

MexicoMexico CityTrinidad & TobagoPort-of-Spain

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Business Overview

During the past year the Latin America and Caribbean region has experienced an exciting period of growth that produced positive results for the year, and which positions the region well for the future.

Our focus on long term client relationships is key to our success. We have ongoing long term service agreements with clients such as BHP Billiton and CODELCO (the state-owned copper company in Chile), which provide an important base of work for our local offices.

Our local presence is an important differentiator for our clients in the region. In addition to our existing offices in Santiago, Chile and in Port-of-Spain, Trinidad, we opened new offices in Sao Paulo, Brazil and in Mandeville, Jamaica. We will continue to evaluate opportunities to further develop our presence in the region, including regional high value engineering opportunities, as we have done in similar markets elsewhere.

Our local capabilities across sectors combined with our ability to workshare with offices outside our region are also a differentiator that has enabled us to win major multi-sector projects, such as mining and power, mining and infrastructure, and/or the combination of all three.

Latin America has also contributed to major and mega-project wins that are primarily being executed in the major execution hubs outside the region and supported by our local offices. Examples are the contracts for the Petrobras COMPERJ project in Brazil and the Pequiven/Braskem Jose Olefins project in Venezuela.

The recent addition of the INTEC capability has also increased our ability to pursue opportunities in this market.

Latin America

Engineering Services for Hydro-Electric Power Plant El Manzano IX

Customer: Hydroeléctrica El Manzano S.A.Location: Melipeuco, ChileTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

In Chile, growth in the energy market continues to be driven by strong demand from the mining and industrial sectors. This increased demand, coupled with recent changes in environmental legislation that require cheaper and cleaner power sources, has placed a strong demand on water rights. Chile’s geographic profile is ideal for run of river hydro as a renewable energy, as it maintains an ecological water flow in the river, which meets Chilean environmental laws.

ARA WorleyParsons performed the detailed engineering for the complete installation of the El Manzano hydro-electric power station, including water intake, penstock, pipelines, powerhouse, transformer and switchyard. Engineering services included civil works, control systems and electrical distribution services, contract management and technical inspection on-site.

Hydroeléctrica El Manzano S.A. is a young company which intends to become a part of the growing Chilean renewable energy market, having in its portfolio other similar projects in the area. The highly successful integration of the Hydroeléctrica El Manzano and ARA WorleyParsons teams has enabled them to meet a very aggressive project schedule and thus enter the Chilean power market delivering renewable energy in a rapid and cost effective manner.

Office Santiago

4.85 MW hydro-electric plant

Mexilhao Gas Export Pipeline

Customer: Petrobras S.A.Location: Santos Basin 160 km offshore BrazilTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Petrobras is expediting the development of the strategically important Mexilhao field in the Santos Basin, Brazil, approximately 160 km off the coast of Sao Paulo. The Mexilhao development will comprise a fixed gas production platform, with the gas being transported via submarine pipelines to an onshore gas processing plant for connection to the national gas transmission system.

Petrobras engaged INTEC to provide the front-end engineering design (FEED), installation feasibility analysis, stability analysis and the specification for the construction for the new 34 inch, 130 km long pipeline that will be installed in water depths from 170 m to shore. The pipeline will connect the Mexilhao fixed platform with the gas treatment facilities in Caraguatatuba, currently under construction. The design also accommodates receipt of gas from the giant Tupi field that was subsequently discovered and will be tied back through Mexilhao to shore.

INTEC was able to complete the pipeline engineering under a tight schedule to enable timely receipt of materials and installation tenders to support the aggressive first gas date. Furthermore, stability analysis was performed to confirm the adequacy of the existing 34 inch pipe, originally designed for use as an oil pipeline.

Office Rio de Janeiro

130 km subsea pipeline

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Lithium Carbonate Plant Expansion

Customer: SQM S.A.Location: Salar del Carmen, ChileTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

SQM is the world-leading producer and service provider in three main business areas – specialty plant nutrition, iodine and lithium – where it currently holds approximately 31% of the worldwide market share. SQM’s vision is to have secured a consolidated leadership position in its three main business areas by 2010. A key element in this strategy is to increase its annual lithium carbonate production from 28,000 tons to 40,000 tons.

ARA WorleyParsons assisted SQM to derive a series of modifications to its production plant. The scope of services included conceptual, basic and detailed engineering and procurement services for modifications to several plant areas including the solvent extraction area, first, second and third stage reactors, product compaction and dust collection system, and the pneumatic transport system. The remote and extreme conditions of the plant and the need to sustain current production levels required a design that applied a fit-for-purpose approach to facilitate construction and minimize operational shutdowns.

ARA WorleyParsons’ strong client relationship approach provided the ability to integrate effectively with the SQM project team and operations. This was recognized as a critical success factor in the delivery of this challenging project.

Office Santiago

40,000 tons per annum increase in lithium carbonate production capacity

Latin Americas EcoNomics™ Capability

Customer: VariousLocation: VariousTimeframe: 2007 – ongoing

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

The southern hemisphere of the Americas is a region with tremendous growth potential tied to abundant natural resources such as oil, natural gas, iron, nickel, bauxite and other minerals. Many of the regional corporations, both government and privately owned, have strongly embraced the concept of sustainable development and governments have ratified the Kyoto Protocol. Extraction and utilization of their natural resources must be done in a way that has minimal impact on the environment, including the impact of greenhouse gas emissions.

E85 fuel, using ethanol derived from sugar cane, has become a major source of transportation fuel in several Latin American countries. The potential conflict between industrial growth and sustainability, the debate on the sustainability of renewable energy from biofuels and the identification of project-related social issues illustrate the value of the services provided by WorleyParsons through EcoNomics™.

Whether the customer is looking at a new dam, a mine, an offshore platform, a refinery, a petrochemical plant or an infrastructure development such as a port, the tools and services provided by EcoNomics™ will assist in making the most sustainable and profitable decision while identifying social issues that affect the project.

Offices Various

2020 A vision for a sustainable future

Jose Olefins Complex

Customer: Polimerica (A joint venture between Pequiven and Braskem)Location: Jose, Anzoategui, VenezuelaTimeframe: 2008 – 2010

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

The Jose Olefins Complex is a world-scale grassroots integrated petrochemical complex to be developed within the Jose Petrochemical Complex in Venezuela. The Jose Olefins Complex will support the development of the plastics sector in Venezuela and export markets in North America, Europe and Latin America.

WorleyParsons is providing front-end engineering design and project management consultancy services to Polimerica for the complex, which consists of an ethylene plant plus three polyethylene plants (LDPE, HDPE and LLDPE) and facilities.

The use of the WorleyParsons Project Management Process to underpin delivery has added significant value to the project. The system has enabled an effective mega-project methodology to be adopted by a newly formed client organization, providing a sound basis for our relationship with Pequiven and Braskem.

We are also utilizing our skills, knowledge, and prior project experience in Venezuela, and the Jose area in particular, to further our presence and to meet the expanding needs of our customers in this region.

Office Houston

US$3.0 billion total installed cost

Polimerica Jose Olefins Project

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Australia & New ZealandPilbara Iron Ore and Infrastructure Project

In May 2008, the ambitions of Fortescue Metals Group to establish a new iron ore operation were realised when the first shipment of iron ore departed Port Hedland headed for China. This milestone marked the culmination of more than three and a half years of services provided by WorleyParsons.

Following its successful execution of the definitive feasibility study and front-end engineering design, WorleyParsons was appointed to take the project from design through construction, and ultimately practical completion. Construction began in February 2006 and was completed in May 2008 with practical completion being achieved in July 2008.

Support to the project was provided through the Minerals & Metals and Infrastructure & Environment customer sector groups, including specialist technical services such as rail car design, expediting services (provided by MaisonWorleyParsons) and power generation and distribution engineering.

WorleyParsons enabled Fortescue to meet its ambitious construction timeframe despite the remote project sites, challenging project environment and fierce competition for physical and human resources in a boom economy. The delivery of the project on time enabled Fortescue to meet its sales commitments to Chinese steel mills.

WorleyParsons has now been appointed to prepare the FEED to expand Fortescue’s operations to 160 million tonnes per annum by developing a new mine, and expanding existing, and constructing new, infrastructure.

AustraliaAdelaideBallinaBell BayBrisbaneBunburyDarwinGeelongGladstone

KwinanaMackayMelbourneNewcastlePerthSingletonSpotswoodSunshine CoastSydney

TownsvilleWollongongNew ZealandAucklandChristchurchHastingsNew PlymouthWellington

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Business Overview

The Australia and New Zealand (ANZ) operation continues to grow significantly across all customer sectors, with employee numbers rising to over 7,700 – an increase of some 50% on last year. The Hydrocarbons and Minerals & Metals sectors remain particularly active, with a number of new major developments commencing as others move into construction. A significant milestone occurred when Fortescue Metals Group’s Pilbara Iron Ore and Infrastructure Project shipped its first cargo of iron ore to China – a milestone that we are proud to have helped achieve.

The delivery of long term sustaining capital projects – through WorleyParsons’ Improve – continues to be a key focus. Significant expansion was achieved across a number of industries and locations with particular progress being made in both the Minerals & Metals and Power sectors. The ongoing growth of relationships with industry leaders through Improve continues to underscore our leading position in this region.

The acquisition of specialist water and wastewater consulting companies, Patterson Britton and John Wilson and Partners, enhances our capability in this important area. Water is anticipated to be a key growth area regionally and internationally. These acquisitions ensure that our Infrastructure & Environment group is well-positioned to meet anticipated demand.

The ANZ operation continues to play a leading role in our EcoNomics™ initiative, with numerous customers undertaking EcoNomics™ assessment and efficiency studies. In addition, strong industry support has been developed for the WorleyParsons led Advanced Solar-Thermal (AST) initiative. Through AST, WorleyParsons and its partners are helping industries to work collectively to bring about the essential change that needs to take place in our society, and in doing so achieve the right outcomes for future generations. Work on our future coal initiative also commenced to further support this goal.

Australia & New Zealand

Wheatstone Concept Selection Study

Customer: Chevron Australia LimitedLocation: NW Shelf, Western AustraliaTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Chevron Australia has about 4.5 trillion cubic feet of gas in two permits it wholly owns across the Wheatstone and Iago fields. The objective of this Select phase study is to optimize total long term economic and strategic value of the Wheatstone and Iago resources. To address this objective, the study reviewed stand-alone and combined developments with other operators, multiple offshore development scenarios, multiple onshore site locations and multiple commercialization themes including LNG, GTL and domestic gas.

The study undertook the concept narrowing and selection for all upstream onshore and offshore facilities to process gas from the Wheatstone and Iago gasfields. Activities included the technical evaluation of a comprehensive range of development scenarios, the development of cost estimates, execution schedule, and basis of design development, as well as supporting the Chevron team to meet its toll gating and internal approval requirements.

This concept selection study initially started with a very wide frame, considering a number of commercialization themes, production rates and onshore locations. WorleyParsons’ conceptual phase cost estimating system, Selector, enabled the rapid development of multiple concept estimates (over 50 in total) to meet Chevron’s requirements and support its investment decision.

Office Perth

1.1 billion standard cubic feet per day upstream facilities

Various workshare projects

Customer: VariousLocation: VariousTimeframe: 2006 – ongoing

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Given the size of the local domestic market in Victoria and the limited growth opportunities this presents, the management team sought to develop other opportunities using WorleyParsons’ well-established workshare process.

Victoria has now delivered workshare projects across all five phases of the asset life cycle including Select, Deliver and increasingly major Improve contracts. A number of these projects also involve the high value engineering (HVE) center in Beijing, delivering a more cost effective service to the customer.

Our increasing experience in workshare means our team knows how to implement and deliver successful workshare projects and enables the Victorian team to draw upon an increasingly strong skill base which services all four customer sector groups.

Victoria has for a long time been a strong center for engineering execution with an excellent source of graduates and experienced professionals. In a resource-constrained environment WorleyParsons has been able to attract quality personnel from the marketplace by offering potential employees the opportunity to work on world-scale projects while remaining based in Melbourne.

Offices Melbourne, Geelong, Spotswood, Adelaide, Brisbane, Perth, Beijing, New Plymouth, Singapore, Abu Dhabi, Al Khobar, Bangkok

>40% of the Victorian business involves workshare with WorleyParsons’ global operations

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ZeroGen Project

Customer: ZeroGen Pty LtdLocation: Rockhampton, AustraliaTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

ZeroGen is a clean coal power project that aims to create cleaner power. The project is combining the technologies of Integrated Gasification Combined Cycle and Carbon Capture and Storage to produce low emission base load electricity. The project is a significant step forward in helping us manage and utilize the non-renewable resources we have now in a more effective manner.

WorleyParsons has been contracted to provide evaluate and define phase services in the development of process design and infrastructure and conformation of the optimization studies. These services will culminate in the completion of a front-end engineering and design package for the project. WorleyParsons’ Brisbane office will complete the work using workshare with the Power center of excellence in Reading, USA, which has had involvement with similar projects.

Through benefits such as accelerating the deployment of large-scale low emission coal power plants in Australia and around the world, and providing a secure source of base load electricity supply with low CO2 emissions, the ZeroGen Project is helping to preserve coal exports and the sustainability of the Australian coal industry and reduce the impact of climate change. As such it exemplifies the EcoNomics™ principle of delivering profitable sustainability.

Offices Brisbane, Reading, USA

1st power plant in the world to combine IGCC and CCS

WorleyParsons OneSteel Alliance

Customer: OneSteelLocation: Newcastle, Sydney, Port Kembla, Whyalla, Melbourne, Geelong, KwinanaTimeframe: 2004 – ongoing

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

In 2004 OneSteel appointed WorleyParsons as its Alliance partner to manage its capital and major maintenance projects. OneSteel was looking to improve performance in: safe design and project delivery; capital planning, project selection and execution; reducing engineering costs; achieving better access to high quality personnel; and accessing good practice and benchmarking information.

The WorleyParsons Alliance with the OneSteel Market Mills business is responsible for total capital management across all market mills sites. The primary objective of the alliance is to constantly deliver business case outcomes for OneSteel.

We provide capital and major maintenance projects, technical support and operations support to OneSteel’s Heavy Metal manufacturing plants (bar, rod, wire, pipe and tube).

WorleyParsons has delivered many significant improvements at its OneSteel contract sites with the achievement of three years lost time incident free in October 2007. In addition we have improved capital planning and project selection and execution, provided easy access to best practice and benchmarking information and improved resource retention and optimization of resources – the same work is now done by 20% fewer people – and we have reduced project cycle time by 200 days.

Office Newcastle

3 years lost time incident free

NWSV LNG Phase V Expansion Project

Customer: Woodside Energy Limited (as operator for the NWSV)Location: Karratha, Western AustraliaTimeframe: 2005 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Woodside, as the operator for the North West Shelf Venture (NWSV), is installing a fifth liquefaction train and associated facilities at the Karratha gas plant in Western Australia. The new train will provide an additional 4.4 million tonnes per annum of Liquefied Natural Gas (LNG), increasing total annual output to over 16 million tonnes, enabling the NWSV to take advantage of expanding Asian LNG markets.

Woodside engaged WorleyParsons, in conjunction with joint venture partner Foster Wheeler, to provide front-end design and then engineering, procurement and construction management services for the project, which includes a fifth liquefaction train, an additional fractionation unit, acid gas recovery unit, boil-off gas compressor, gas turbine power generation units and a second loading berth.

This is the world’s first modular, large-scale LNG facility. This approach reduced the project’s dependency on local skilled labour, which is in extremely high demand, and enabled the project schedule to be compressed (by undertaking module fabrication in parallel with site preparation and civil works, as opposed to the sequential erection required by a conventional “stick-built” construction approach).

Offices Perth, Karratha, Reading, UK

1st modular large-scale LNG Plant

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EuropeEuropean Nuclear Power Profile

WorleyParsons has been actively engaged in the nuclear power industry for over 55 years. During the first nuclear energy boom of the 1970s, we successfully participated in the design and construction of 18 nuclear generating units totaling 11,100 MW. In 2003, WorleyParsons established a nuclear hub in Sofia, Bulgaria, and has since become a premier service provider for Generation III/III+ nuclear power programs. Services offered to our regional nuclear customers include: full program management, design services, licensing support, and construction supervision through all phases of nuclear power projects.

Currently, our European power operation employs over 500 personnel. We are heavily engaged in comprehensive feasibility studies, site selection, technology analyses and selection, environmental impact assessments, cost estimation, scheduling, economic analysis and financial structuring, contracting strategy development and risk assessments, bid specification preparation, and complex assessments of offers in accordance with the latest European Utility and International Atomic Energy Agency (IAEA) requirements.

Our services engagements range from engineering services through to roles as the architect-engineer on behalf of the owner for new build facilities or major upgrades. Current nuclear projects where we have an active involvement include the Belene NPP construction and Kozloduy NPP modernization in Bulgaria, the Mochovce NPP construction in Slovakia, the Oskarshamn NPP modernization in Sweden, and the Radwaste Disposal Facility front-end engineering in Bulgaria.

We are also providing engineering services to various European and former Soviet Union nuclear power plants, as well as supporting evolving nuclear programs in Canada, South Africa, Egypt, and the Middle East.

BulgariaSofiaEnglandBristolLeedsLondonWoking

KazakhstanAksaiAlmatyAstanaAtyrauNetherlandsDelftRomaniaPloiesti

RussiaMoscowScotlandStirlingSpainMadridUkraineKharkovKomsomolskKremenchuk

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Business Overview

WorleyParsons’ European operations have continued to undergo significant growth this year, with our personnel base increasing from 1,600 to over 2,100. Geographic expansion has also continued through the opening of new offices and project operations in Astana, Kazakhstan, Stirling, UK, Ploiesti, Romania and Kremenchuk, Ukraine.

Major safety milestones achieved this year have included three million hours without a recordable incident in our Kazakhstan operation and 1 million hours without a recordable incident, since December 2004, on the Sakhalin Project in Russia.

In the Hydrocarbons sector our involvement continues for the ongoing mega-projects in Kazakhstan for TengizChevroil and Agip KCO. Also of significance is the award of Petrom’s Vision 2010 project, involving the upgrade and expansion of the Petrobrazi refinery in Romania. This represents the third contract awarded to WorleyParsons in Romania within a six-month period at a time of increasing local market activity. In addition, mobilisation is underway to provide pre-feasibility engineering and management services for the Chemaweyaat project in Abu Dhabi, potentially the world’s largest fully integrated chemical complex.

Our power operation continues its successful relationship with NEK in Bulgaria through the extension of our architect-engineer role into the project execution phase of the Belene nuclear power plant. We have also delivered a number of Select projects involving renewable energy (solar and wind), as well as in the nuclear and fossil fuels sectors.

Our Minerals & Metals business continues to grow and is delivering various capital sustaining projects in Moscow under an Improve alliance contract with Strategic Minerals Resources.

The Infrastructure and Environment business continues to expand having undertaken logistics studies for the Tambao Manganese mine in Burkina Faso and various EcoNomics™ projects for customers across the business.

Europe

Bozymchak Cu/Au Mine Definitive Feasibility Study

Customer: Kazakhmys Gold Kyrgyzstan LtdLocation: Bozymchak, KyrgyzstanTimeframe: 2008 – 2009

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Kazakhmys’ core business is copper production, with a fully integrated operation producing ore through to finished copper metal. The Bozymchak mine is planned to supply copper concentrate to Kazakhmys Group smelters in neighboring Kazakhstan, with gold contained as a significant by-product.

Kazakhmys engaged WorleyParsons to prepare the early feasibility studies to permit fast-track design, construction and commissioning of the mine and processing plant. The objective is to optimize the design of the mine and location of the process plant and associated infrastructure within the limited lease area, situated in mountainous terrain. The feasibility study will also provide details beyond those required for local approvals to satisfy the lending criteria of international banks.

Kazakhmys and WorleyParsons have adopted an integrated team approach to develop a strong relationship built on trust, respect and transparency to expedite the study and design processes. Our Select team employed risk management techniques early in the project to rapidly identify, understand and manage design, safety, cost and schedule risks. The resultant risk management plan will be updated throughout the study.

Offices London, Almaty, Calgary, Victoria

36,000 tonnes per annum of copper sulfide concentrate and 48,000 troy ounces per annum of gold

Maritsa East 2 TPP Rehabilitation

Customer: Maritsa East 2 TPPLocation: Kovachevo Village, BulgariaTimeframe: 2005 – 2010

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Maritsa East 2, located in the Stara Zagora region of Bulgaria, is the largest thermal power station in the country. With a total installed capacity of 1,465 MW, it generates 30% of Bulgaria’s electricity. Commissioned in 1966, the plant is undergoing extensive rehabilitation to improve safety, equipment availability and reliability throughout the expected lifetime of the plant. In addition, the installation of flue gas desulfurization facilities will reduce SO2 and dust emissions and improve environmental performance, to ensure plant operation is in compliance with EU environmental regulations.

WorleyParsons is providing consultancy services to the owner for the rehabilitation of units 1 to 6 and for the construction of flue gas desulfurization facilities for units 1 to 4. Program management activities include consultancy services on environmental protection, risk control and management and the control of equipment factory acceptance tests, quality management, construction supervision and a variety of specialist consulting services.

WorleyParsons has been instrumental in optimizing the project schedule to reduce implementation delays. The recommendations issued by our site team have also assisted the owner to analyze project documentation and manage its ongoing relationship with the project’s associated suppliers and contractors.

Office Sofia

30% of Bulgaria’s electricity generation

Photo courtesy of Maritsa East 2 TPP

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SMR Major Project and Sustaining Capital Alliance

Customer: SMR International Investments LimitedLocation: Russia, FSU and other locations worldwideTimeframe: 2007 – ongoing

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

SMR is Russia’s leading extractor of molybdenum and producer of ferromolybdenum (FeMo); together its mines constitute the largest molybdenum reserves in Russia. To realize its growth potential, SMR is upgrading and developing its FeMo processing facilities in eastern Russia at Sorsk and Zerikhen. The upgrade will increase FeMo production overall from 7 to 16 million tonnes per annum. SMR is looking to achieve world class operations in terms of safety, environmental protection as well as increased productivity through improved plant operability and availability.

WorleyParsons has entered into a project management alliance with SMR to provide program management and technical resources in workshare centers globally to deliver a portfolio of projects required to upgrade both facilities. In addition, WorleyParsons will manage several specialist technology partners and Russian design Institutes engaged to assist in the delivery of the program.

As our first Mineral & Metals alliance in Europe, the SMR alliance is an important step in the growth of our Improve business in this region. To support its success WorleyParsons proven suite of Improve project delivery methodologies, systems and procedures will be utilized to deliver international best practice on complex brownfield modifications.

Offices Moscow, London, Sydney, Melbourne, Santiago, Toronto and local Russian Design Institutes

16 million tonnes per annum of export concentrate

Vision 2010 Work Stream 1

Customer: Petrom S.A.Location: Ploiesti, RomaniaTimeframe: 2008 – ongoing

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Petrom S.A. is Romania’s largest oil and gas group, with activities in exploration and production, refining and petrochemicals and natural gas, as well as sales and marketing. Increasing demand for high quality automotive fuels, environmental pressure and low energy efficiency standards require PETROM to modernize their Petrobrazi refinery. This will be undertaken through the VISION 2010 project.

PETROM has engaged WorleyParsons to provide the front-end engineering and design (FEED) and procurement services associated with the VISION 2010 project. The modernization program includes the installation of a grass roots hydrocracker, including a new hydrogen unit, plus the revamp of numerous existing units including the diesel, kerosene and naptha HDS units and the isomerization, sulfur recovery and amine units, and sour water stripper.

The project will be executed from WorleyParsons’ offices in London, Edmonton, Beijing and Ploiesti, Romania. This multi-office execution approach follows the proven WorleyParsons workshare principles that enable our worldwide resources and expertise to be brought together in an efficient, cost effective, and optimum manner to deliver mega-projects throughout the globe. The project also demonstrates the successful integration of our heavy oil capability provided by the ColtWorleyParsons operations in Canada.

Offices London, Edmonton, Beijing, Ploiesti

€1 billion modernization and development program

Reftinskaya GRES – Ash Handling System Rehabilitation Project

Customer: OAO Wholesale Generating Company No. 5Location: Reftinskii, RussiaTimeframe: 2008 – 2010

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

At 3,800 MW Reftinskaya is the largest coal-fired power plant in Russia; however, operations are limited by a shortage of land to extend the ash pond area, and water for ash transport, with disposal accommodated. To improve operability the ash ponds will be modified from wet to semi-dry mode within the existing land area, providing a 50% reduction in water consumption. The new facility will allow the plant to operate at full capacity year-round. Also, a new 6 million tonne per annum dry fly ash facility will be erected to facilitate the commercial use of the recovered ash.

Together with our Russian partner ROS Postavka WorleyParsons Select is currently providing the front-end process design and management services for the design and reconstruction of the ash handling system. It is anticipated that WorleyParsons’ involvement in the project will continue, and include engineering and procurement support to the owner and commissioning for all ash handling equipment.

Through the specialist capabilities of our power and gas cleaning divisions and their in-depth knowledge of the new semi-dry technology, the ash handling system proposed will also reduce the secondary air pollution from the future ash pond and make a significant contribution towards the long term, environmentally sustainable, operation of the plant.

Offices Sofia, Sydney, Toronto

6.2 million tonnes per annum ash handling and disposal system

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AfricaSupporting the Development of Nigeria’s Engineering and Construction Capability

To fulfil the Nigerian Government’s desire to maximize work executed in Nigeria and develop local Nigerian engineering and construction capability, Mobil Producing Nigeria awarded an Engineering, Procurement and Construction Management (EPCM) contract to DeltaAfrik, a joint venture between WorleyParsons and DeltaTek for completion of several facilities upgrade and replacement projects offshore Nigeria. The EPCM contracting strategy enables the work to be broken down into smaller components, thereby increasing the ability of Nigerian contractors to bid and execute the work and hence build up local Nigerian capability.

The portfolio of projects includes the repair and/or replacement of several subsea pipelines, three production platforms, three living quarters platforms and miscellaneous modifications to existing production platforms. DeltaAfrik undertakes all engineering, procurement and construction management of locally awarded contracts wholly in Nigeria.

In the first 18 months, DeltaAfrik has mobilized approximately 320 personnel, of whom 60% are Nigerians. Plans and procedures for project delivery have been developed and the full suite of WorleyParsons EPCM delivery and management systems established. This will assist in the ongoing training and development of DeltaAfrik’s personnel as well as development of other Nigerian contractors as the project progresses.

AngolaLuandaEgyptCairo

LibyaTripoliNigeriaLagos

South AfricaPretoriaSecunda

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Business Overview

WorleyParsons enjoyed strong growth and diversification in Africa this year. DeltaAfrik, WorleyParsons’ Nigerian entity, grew to more than 650 personnel. Significant capability was added, and state-of-the-art tools and systems implemented to support Mobil Producing Nigeria’s major EPCM contract. Through a significant investment in developing its local resources, DeltaAfrik is now an established market leader within the Nigerian Hydrocarbon sector, offering world-class services using local resources.

In South Africa, our 50% acquisition of Pangaea, to form PangaeaWorleyParsons, has already enabled a track record in the Power sector to be established, along with increasing capability and market share in the Hydrocarbons and Infrastructure & Environment sectors. WorleyParsons is optimistic about the growth opportunities in South Africa, with the access it provides to Sub-Saharan Africa.

WorleyParsons Angola Limitada continues to establish itself in the Angolan market while building resource depth and capability. WorleyParsons’ acquisition of INTEC is expected to provide favourable access to the Angolan deepwater market, which represents a significant future proportion of global deepwater development investment.

In Egypt our increased capability has supported solid growth, particularly in the Hydrocarbons sector. With more than 80 personnel now in the country, and several new projects underway, including the Gulf of Suez Petroleum Company (GUPCO) (BP) Improve contract, expansion and diversification are set to continue. Meanwhile, in Libya, WorleyParsons North Africa is now operational with projects underway with Waha Oil Company. In a region that is highly prospective, WorleyParsons looks forward to being at the forefront of this emerging market.

Africa continues to present an exciting market to WorleyParsons. With our growing local operations and enhanced capabilities we expect this to generate further opportunities for WorleyParsons, enhanced employment and development opportunities for our African staff, and added benefit for the communities in which we serve.

Africa

Muzhil Field Development

Customer: PETZED Investment & Project Management Ltd (PETZED)Location: Gulf of Suez, EgyptTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

The Muzhil oil field is located on the eastern side of the Gulf of Suez approximately 6 km offshore southeast of Abu Rudais, and is one of six concessions PETZED is pursuing in the region. The development consists of the installation of an unmanned 12 well slot minimum facilities platform, which will initially produce from nine wells. Production from the platform will be transported via a pipeline to a new onshore facility where produced fluids will be separated, degassed and metered before being delivered into the SUCO processing and storage facilities.

WorleyParsons Cairo, in conjunction with the Bangkok office, performed the Select phase services, assessing various options to develop a fast track project to meet PETZED’s schedule objectives. Following project sanction our involvement continued through to full FEED and detailed engineering.

WorleyParsons’ Select phase outcome determined a jack up rig installation was feasible which ensured a shorter project schedule and better economics. Since PETZED has a long term contract with the jack up drill rig contractor it was able to optimize the new platform installation schedule and the benefit from jack up rig costs being approximately one quarter of the alternative lifting barge option.

Offices Cairo, Bangkok

12 well slot minimum facilities platform

BP Angola Program PSVM Development

Customer: Heerema Marine ContractorsLocation: Block 31, offshore Angola, West AfricaTimeframe: 2007 – 2009

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

The development of BP’s Block 31 assets is based on a program approach; with the first of four developments – Block 31 North East, consisting of the Plutao, Saturno, Venus and Marte (PSVM) fields, due for completion of detailed design in the first quarter of 2009. The program approach should allow the detailed design team to roll over from its work on the PSVM development to the second and subsequent development phases.

INTEC London office is currently performing the detailed design for Heerema Marine Contractors of the Umbilical Riser Flowline 1 (URF 1) scope for BP’s first Block 31 project, PSVM, in its Angolan development program. The work involves pipe in pipe production flowlines and single pipe service lines, flowline termination assembly and inline termination assembly structures, subsea floating and seabed founded spools and oversight of the design of the hybrid tower risers.

In total, the design activity on the program is expected to last beyond 2011 and represents a significant continuing project for INTEC in the UK. As part of the ongoing Angolan content and training initiatives, four Angolan trainees will be seconded from WorleyParsons’ Angolan office in Luanda into INTEC UK where they will undergo an extensive subsea engineering training program and then receive on-the-job training for a period of six months.

Office London

2,000 m water depth

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Cairo Oil Refinery Company Refinery Expansion Project

Customer: Egyptian Refining CompanyLocation: Mostorod, EgyptTimeframe: 2007

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

The Egyptian Refining Company (ERC) is upgrading the existing Cairo Oil Refining Company (CORC) refinery at Mostorod, Egypt. The Project will process atmospheric residue from the CORC refinery to high value grade products such as gasoline, diesel and LPG. This undertaking is a major step in upgrading a low grade, polluting product to more valuable and cleaner products, such as ultra low sulfur diesel for domestic consumption.

WorleyParsons was awarded a program management services contract for the engineering, procurement and construction phase of the project in April 2007. In March 2008, ERC commissioned a multi-discipline team led by WorleyParsons to conduct Environmental and Social Impact Assessment for this project.

Delivering profitable sustainability is core to the WorleyParsons EcoNomics™ approach. In this case the pragmatic identification and mitigation of environment and social impacts has delivered a refinery which will produce products extremely valuable to the Egyptian economy, eliminate the emission of 93,000 tons per annum of sulfur currently emitted to the atmosphere, and provide temporary and permanent local employment opportunities for residents in Cairo, during construction and operation.

Office Cairo

93,000 tons per annum reduction in sulfur currently emitted to the atmosphere

Infrastructure and Power Projects

Customer: EskomLocation: Mpumalanga, South AfricaTimeframe: 2008 – 2011

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Eskom, the South African Electricity Utility, has embarked on a substantial capital expansion program to almost double their existing installed generation capacity of 40,000 MW by 2025. To satisfy part of the need for increased base load electricity supply by 2010, Eskom has begun construction on a coal-fired power station in Mpumalanga (Project Bravo), and is nearing the completion of the return-to-service of three previously mothballed plants.

In November 2007, through an enabling contract Eskom engaged PangaeaWorleyParsons (in joint venture with consulting firm KV3) to assist them to meet expected project delivery demands over the long term. To date we have been appointed for the Majuba Rail, Bravo Road and Bravo Rail projects. In addition PangaeaWorleyParsons has been appointed to assist in the evaluation of bids for Eskom’s main nuclear technology provider.

The award of the enabling contract with Eskom is firmly aligned with our intent to establish and grow our Improve business across all customer sectors in South Africa. The award of this contract helps to further establish our position in the energy sector in South Africa and is expected to improve our ability to secure further Improve style contracts with Eskom, and other independent power producers.

Offices Secunda, Pretoria

40,000 MW by 2025

Transnet New Multi-Product Pipeline

Customer: Transnet LimitedLocation: Durban to JohannesburgTimeframe: 2007 – 2010

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

A new 705 km, 600 nominal bore multi-product pipeline is to be built to transport refined products from Durban to Johannesburg, to provide the capacity necessary to meet demand. The new pipeline will include three pump stations and storage terminals in Durban and Johannesburg. The facility requires to be operational in 2010 to meet Johannesburg’s increased fuel demand.

Transnet engaged WorleyParsons, in joint venture with Arup SA, to finalize the FEED and provide engineering, procurement and construction management services for the pipeline and the associated pumping and storage facilities. In addition, the project team will assist Transnet to obtain environmental and other statutory approvals and secure the land tenure for the pipeline route. The completed pipeline system will be commissioned by the project team.

The delivery of this high profile pipeline project for Transnet, a major South African pipeline operator, is a critical aspect of its network expansion and the growth of WorleyParsons in South Africa. Our experience on other major projects is providing Transnet with the confidence that we can truly deliver the project using our full global capability.

Offices Perth, Johannesburg

705 km multi-product pipeline

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Middle EastEMAL – The World’s Largest Single Site Aluminium Smelter

EMAL, a joint venture between Dubal and Mubadala, is building the world’s largest single-site aluminium smelter at Al Taweelah in the UAE. With an ultimate capacity of 1.4 million tonnes per annum, the facility will showcase the Dubal developed DX smelting technology, providing a highly competitive smelter to position EMAL in the top echelon of aluminium producers.

WorleyParsons, in joint venture with SNC Lavalin, is providing the engineering, procurement and construction management services for this multi-billion dollar project, which also includes a 2,000 MW gas-fired power plant and associated facilities on a 500 hectare site. The project schedule is fast, with first metal planned for 2010.

To deliver this challenging project, WorleyParsons has drawn on its global Minerals & Metals, Infrastructure & Environment and Power groups to establish a multi-disciplined project management office at Al Taweelah, which is anticipated to peak at around 500 personnel. This team is further supported by our extensive workshare capability, with the cast-house, carbon plant and port engineering being completed in Melbourne and Geelong, and additional detailed engineering services provided by our Beijing High Value Engineering center.

Currently, the project remains on schedule with an on-site workforce of 2,800 personnel, and 2.7 million man-hours have been achieved without a lost time incident. On-site manning is forecast to peak at around 10,000 personnel in 2009. Throughout the project a number of value improvement programs have been successfully implemented and substantial cost savings have been achieved in all areas of the plant.

BahrainManamaKuwaitAhmadiOmanMuscat

QatarDohaSaudi ArabiaAl KhobarYanbu

UAEAbu Dhabi

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Business Overview

The Middle East operations exhibited continued strong growth this year, with personnel increasing to approximately 2,200. The Hydrocarbons sector remains dominant; however, the Infrastructure and Minerals & Metals sectors increased their relative share of the business throughout the region.

Abu Dhabi, the key regional hub, continued to strengthen with a healthy mix of project management and engineering projects, including the significant EPCM contract on the Emirates Aluminium Al Taweelah Smelter project with SNC Lavalin, and pre FEED studies for a potentially world-scale petrochemical plant recently awarded from Chemaweyaat.

In Saudi Arabia, WorleyParsons continues to deliver a broad range of engineering services, from straightforward minor plant modifications to leading project management contractor roles on mega-projects such as the mine and associated chemical plants at Jalamid and Ras As Zawr for Ma’aden, and the delivery of Improve services through contracts such as the Maintain Potential Program for Saudi Aramco’s offshore facilities. Today the Saudi operation has five Eastern Province offices located in Al Khobar, one Western Province office in Yanbu and a newly opened offshore office in Bahrain.

Elsewhere in the region, in Oman we continue to deliver engineering and maintenance services for Petroleum Development Oman through an Improve style contract, as well as completing the Select phase of a significant gas project for BP. The Oman office currently employs in excess of 90 Omani nationals. In Qatar we are now the largest in-country service provider, executing a number of Improve contracts and engineering projects. Meanwhile in Kuwait, we were awarded a five year project management contract with Kuwait Oil Company involving an in-country team and workshare with Houston.

Middle East

Khazzan/Makarem Gas Field Development

Customer: BP Exploration (Epsilon) Ltd.Location: OmanTimeframe: 2008 – 2009

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

BP Exploration (Epsilon) Limited is reviewing its development options for the Khazzan and Makarem gas fields, Block 61, onshore Oman. The full field development (FFD) concept aims to develop the reserves using data obtained from an extended well testing (EWT) program. As the EWT appraisal will not be completed until 2010, the concept phase of the FFD study will consider a broad range of development options.

BP awarded WorleyParsons Oman the select stage engineering of the Khazzan/Makarem Project, which involves the engineering definition of options for the extended well testing of tight gas reservoirs contained within the field. BP has the option to carry forward with WorleyParsons as the FEED and EPCM services provider for the define and execute phases for surface facilities associated with the extended well test facility.

This project represents an important step in achieving a more diversified business and customer base in Oman and increasing Select services to customers in the Middle East region. The project was led by WorleyParsons Oman, with key input from WorleyParsons Select Perth and specialist safety and risk support from Kuala Lumpur.

Offices Muscat, Perth, Kuala Lumpur

100 million standard cubic feet per day capacity

Shah Gas Development (SGD) Project – PMC Services for FEED Phase

Customer: Abu Dhabi Gas Industries Ltd (GASCO)Location: Abu Dhabi, United Arab EmiratesTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

To meet an anticipated shortfall of injection and sales gas in Abu Dhabi by 2012, GASCO is undertaking the development of the Shah Arab sour gas reservoir to avoid a gas shortfall. Based on the sourness of the feed gas, and the quantity of produced sulfur that will be recovered, the Shah Gas Development sets a new benchmark for the world’s gas processing and treating industry. Once complete, the facilities will process one billion standard cubic feet per day of gas to produce sales gas, condensate, NGL and include 10,000 tonnes per day of sulfur recovery.

The primary function of WorleyParsons is to provide the management and administration for the development of the project definition report, front-end engineering design and associated activities on behalf of GASCO. The objective is to define the project requirements and deliver fit-for-tender engineering, procurement and construction enquiry packages for facilities within the cost and schedule targets set by ADNOC.

In selecting WorleyParsons, GASCO recognized its expertise in executing projects in remote, hostile environments, with extremely sour gas streams. This was further enhanced by the inclusion of an effective workshare plan and a highly experienced PMC team to effectively manage this technically challenging project.

Offices Irvine, Houston, Vancouver, Abu Dhabi

1 billion standard cubic feet per day gas processing facility

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FEED for Sulfur Recovery Upgrade Project

Customer: Qatar PetroleumLocation: Mesaieed, QatarTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

The work pertains to the improvement of recovery efficiency of the existing 2 stage Claus Sulfur Recovery Unit (SRU) at the NGL3 plant in Mesaieed, State of Qatar. In order to comply with local environmental regulations, the NGL3 sulfur recovery process will be upgraded to improve the sulfur recovery from its present level to 99.5%.

To meet the new sulfur recovery targets, Qatar Petroleum selected WorleyParsons to optimize the concept and develop a FEED package to upgrade the existing NGL3 facilities and associated utilities. The scope included an initial concept optimization study, followed by front-end engineering design. The techno-economic study examined different configurations and operating scenarios to comply with or exceed the local environmental requirements.

In addition to WorleyParsons’ own range of proprietary sulfur technologies, a comprehensive understanding of wider technologies available for sulfur removal and recovery enables WorleyParsons to select solutions that will deliver the best operational and economic outcome for projects. In this case, the FEED for the process and utilities determined that WorleyParsons proprietary sulfur recovery technology delivers the optimum balance of capital and operating costs and environmental performance.

Offices Doha, London, Beijing, Abu Dhabi, Kuala Lumpur

99.5% sulfur recovery

Ras Tanura Refinery Expansion Project

Customer: Saudi AramcoLocation: Kingdom of Saudi ArabiaTimeframe: 2007 – 2012

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

WorleyParsons is providing project management, front-end engineering design, contract bid package development, detailed design support, detailed design package preparation and construction management services for the Saudi Aramco Ras Tanura Refinery Expansion Project at Ras Tanura, Saudi Arabia. The project is part of Saudi Aramco’s major program to build new refineries and upgrade some existing plants to significantly increase the Kingdom’s refining capacity. The specific aim of the Ras Tanura Refinery Expansion will be to supply middle distillates such as diesel and kerosene to help meet the country’s rapidly growing domestic fuel consumption needs.

The project includes several grassroots units: 400-MBOD crude distillation unit, 210-MBOD vacuum distillation unit, 120-MBOD visbreaker crude unit, 100-MBOD continuous catalyst regenerator, 90-MBOD diesel hydrotreater, 200-TPD sulfur recovery unit, 820-GPM amine regeneration unit, 225-GPM sour water stripper, along with related utilities, controls, interconnections with existing facilities, flares, and tankage.

WorleyParsons has participated in major hydrocarbons projects in Saudi Arabia since 1956. The Ras Tanura Refinery Expansion Project capitalizes on WorleyParsons’ long history of achievement and taps the Company’s worldwide resources to deliver a project that represents all that is best in global execution. WorleyParsons is providing out-of-Kingdom services at offices in California and China and in-Kingdom services at offices in Al Khobar and at the Ras Tanura site.

MBOD = thousand barrels of oil per dayTPD = tons per dayGPM = gallons per minute

Offices Arcadia, Al Khobar, Beijing

400,000 barrel per day refinery

Engineering Services Contract

Customer: Occidental Petroleum Qatar LimitedLocation: Arabian GulfTimeframe: 2006 – 2009

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Since 1996 Occidental Petroleum Qatar Limited (OPQL), in a production sharing agreement with Qatar Petroleum, has operated the PS 1 offshore complex located in the Idd El Shargi North Dome field. The field includes some 11 platforms in the central complex and more than 40 satellite platforms producing around 100,000 barrels per day.

In mid-2006 OPQL engaged WorleyParsons in a long term Improve style contract to assist with maintaining the integrity, reliability and availability of its facilities, compliance with environmental legislation and support to its future growth initiatives. A multi-disciplinary team of engineers and designers in Doha provide a comprehensive range of engineering services for all projects on the offshore facilities. The team is further enhanced through the use of our established workshare practices to engage a variety of specialist technical inputs from Perth, Kuala Lumpur, Abu Dhabi and New Plymouth.

An ability to workshare with other offices has solved local resource challenges and enabled WorleyParsons to secure additional work for future developments with OPQL, the two major ones being the FEED for ISSD wellhead platforms performed in Perth, and the detailed design of the new PS 1M living quarters platform performed in Kuala Lumpur.

Offices Doha, Perth, Kuala Lumpur, New Plymouth, Abu Dhabi

11 platforms in the central complex and more than 40 satellite platforms

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South East AsiaSecond Singapore Petrochemical Project

The Second Singapore Petrochemical Project is the development of ExxonMobil Chemical’s second world-scale steam cracker and associated derivative units on Jurong Island, Singapore. The project is co-located and fully integrated with ExxonMobil’s existing chemical plant and refinery and includes a 1 million ton per year ethylene steam cracker, two 650,000 ton per year polyethylene units, a 450,000 ton per year polypropylene unit, a 300,000 ton per year specialty elastomers unit, an aromatics extraction unit producing 340,000 ton per year of benzene, a 125,000 ton per year oxo-alcohol expansion and a 220 MW power cogeneration unit.

WorleyParsons (in a joint venture with Foster Wheeler, known as FWP) is providing coordination services in an integrated team with ExxonMobil for the overall venture. FWP also provides FEED and reimbursable EPC services for all enabling works, temporary facilities, process infrastructure and utilities for the project, and the expansion/revamp of the existing process units and tank farms at the chemical plant and refineries.

FEED was completed in 2007, using offices in Singapore, Reading (UK) and Houston, and engineering and procurement is currently underway in Singapore and Reading (UK). Construction of the enabling works and temporary facilities are largely complete and work on the process facilities has commenced.

A key challenge is to realize the project ethos: “nobody gets hurt on or off the job.” At the project peak in mid-2009, some 12,000 workers speaking more than 10 languages will work on the project. FWP therefore continually strives to raise the safety bar and has, to date, spent over 5 million site hours and 2.5 million home office hours without a lost time incident.

BruneiKuala BelaitIndiaHyderabadMumbaiIndonesiaJakarta

MalaysiaBintuluKertehKuala LumpurKuantanMiriPhilippinesManila

SingaporeThailandBangkokSrirachaVietnamHo Chi Minh City

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Business OverviewGrowth continued throughout South East Asia. In Singapore, ExxonMobil’s Singapore Parallel Train commencing construction and strong domestic demand for Power, Hydrocarbons and Infrastructure services were key drivers. Our ability to provide specialist front-end services through Select and deliver large cross-sector projects helped pull through significant projects like Singapore LNG’s Regasification FEED.

In Malaysia, Ranhill WorleyParsons delivered projects across all customer sector groups, with workshare playing an increasingly important role. A strengthened environmental capability improved our position in the growing environmental markets, and the INTEC acquisition complemented our regional subsea and pipeline capability. Improve contracts were enhanced with the award of the Maintenance Engineering Services Contract by Sarawak Shell Bhd.

In Indonesia, FEED contracts for ExxonMobil and ConocoPhillips, and the detailed design of a 16,000 tonne topsides for Total Indonesia were completed. Major projects underway include Orica’s Ammonium Nitrate Project in eastern Kalimantan and contracts with major nickel producers, Inco and Antam.

In Thailand, a significant highlight was the completion of over six million man-hours without a lost time incident on the Thai Oleochemicals’ EPCM project. Diversification continued as the Power business made a successful start-up following the award of several contracts. Workshare continued to play an increasingly important role, with new projects underway for the Middle East, Canada and Australia.

In Brunei, growth continued with the completion of major design projects and a two year extension to the engineering design services contract for Brunei Shell Petroleum, and a two year extension to engineering design contract with TOTAL.

In India, we increased our shareholding in our Mumbai JV and completed the business integration, positioning the operation for future growth. The Hyderabad office successfully completed several workshare projects with Houston and Kuala Lumpur for offshore deepwater projects.

In 2008, we entered the growing Vietnamese market through the establishment of a new Joint Venture with a PetroVietnam subsidiary.

South East Asia

Singapore LNG Terminal

Customer: PowerGasLocation: Jurong IslandTimeframe: 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

To increase the security of Singapore’s domestic gas supply, PowerGas is constructing the nation’s first Liquefied Natural Gas (LNG) regasification terminal on Jurong Island. The terminal will process 3 million tonnes of LNG per annum, reducing Singapore’s dependency on existing natural gas pipelines and providing the capacity required to underpin the current suite of large scale process plant developments underway in Singapore. It will provide the primary building block for future expansion of the nation’s process and energy infrastructure.

WorleyParsons’ role is to provide PowerGas with a basis of design and front-end engineering design. Key activities within the scope also include the development of the EPC contractor tender documents with their subsequent evaluation and recommendations for contractor selection.

PowerGas’ relationship with WorleyParsons spans over 15 years, during which we have provided a range of specialist engineering services. On this project, our expertise in hydrocarbons, power and infrastructure, coupled with a 20 year heritage in Singapore, and a global process capability will enable us to assist PowerGas to fast track the local regulatory issues and ensure that the finished facilities are amongst the best in their class.

Office Singapore

1st LNG regasification terminal in Singapore

Combined Cycle CCGT Feasibility Study

Customer: ConfidentialLocation: Central Kalimantan, IndonesiaTimeframe: 2007

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

A customer seeking to develop a power plant in a remote area of central Kalimantan needed to determine the optimum development scenario for monetizing the gas reserve. Of particular interest to the customer was the relative project economics of constructing a power plant close to the gasfield with the associated construction of new transmission lines to connect to the grid, versus the construction of a gas pipeline allowing the location of the power plant closer to the load center.

WorleyParsons performed a study examining all aspects of the project feasibility, including the technical opportunities and constraints, as well as environmental impacts of project development. Key issues such as site access, constructability, and transportation and service corridors were examined.

The identification of development options and their economic assessments are key capabilities within WorleyParsons Select. In this case the study determined that the optimum solution for the customer was to locate the power plant close to the load center and existing transmission infrastructure. Key aspects driving this decision were the remoteness of the gasfield and access challenges for large equipment. Other factors included access to a reliable cooling water supply and maintainability issues for a transmission line through dense jungle.

Offices Singapore, Jakarta

120 MW combined cycle gas turbine power plant

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Maintenance Engineering Services for Technical Integrity Restoration

Customer: Sarawak Shell Bhd (SSB)Location: Sarawak, Sabah, East MalaysiaTimeframe: 2007 – ongoing

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Following experience from the UK North Sea, Sarawak Shell Bhd (SSB) embarked on a comprehensive condition assessment of all its facilities. The Facilities Asset Integrity Reviews have resulted in a major program of refurbishment and rejuvenation to maintain and extend the life of facilities for future production.

SSB engaged Ranhill WorleyParsons through the award of a three year Improve style Maintenance and Engineering Services Contract to assist with the refurbishment program. Under this contract, our existing service to SSB will be extended from only an engineering design service to include asset management, technical integrity, construction and maintenance planning and management and a range of specialist engineering services. This contract along with an existing long term Miri design office contract with SSB is anticipated to require up to 200 personnel in Miri and a further 50 in Kuala Lumpur.

In awarding this contract, SSB has recognized the benefits that Ranhill WorleyParsons offers through local service delivery and comprehensive regional support.

Ranhill WorleyParsons will be supported by the Transfield Worley Joint Venture which has existing long term Improve relationships with Shell in New Zealand and Woodside in Australia, effectively drawing Malaysia into the best practice arena for Improve services.

Offices Miri, Kuala Lumpur

10 offshore and associated onshore facilities, including pipelines in Sarawak and Sabah waters

Resource Recovery Centre/ Refuse Derived Fuel – Waste to Energy Project

Customer: Recycle Energy Sdn. Bhd (RESB)Location: Selangor Darul Ehsan, MalaysiaTimeframe: 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

The Recycle Energy Sdn. Bhd (RESB) Resource Recovery Centre/Refuse Derived Fuel – waste to energy project aims to maximize the recovery of recyclable, reusable and recoverable resources from municipal solid waste. Materials like glass, metals and, many plastics will be sold, inert residue materials and non-recyclables will be disposed of as landfill. Heat from the combustion of refuse derived fuel will be used to produce electricity to operate the plant, and provide a surplus for export to Malaysia’s national power grid.

RESB has engaged WorleyParsons as the project management consultant for the project. We are responsible for identifying the scope of works, developing the engineering specifications, administering the tendering works and supervising the construction and commissioning activities for RESB.

The reclamation, reuse and recycling of various waste streams, including its use for power generation, are central to WorleyParsons’ EcoNomics™ sustainability principles. The project will assist Malaysia to achieve its 5 Fuel Diversification Policy as outlined in the 8th Malaysian Plan, and support the spirit of the Kyoto Protocol in fostering sustainable development objectives through the generation of Certified Emission Reduction credits.

Office Kuala Lumpur

700 tonne per annum municipal solid waste processing facility

Lan Tay Compression Module

Customer: BP Exploration Operating Company Ltd VietnamLocation: Offshore VietnamTimeframe: 2005 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

In response to Vietnam’s increasing energy demand, BP needed to install compression facilities on its Lan Tay production platform. Key project drivers were timely completion with minimum interruption to the current production facility and achieving the targeted increase in production performance. These goals were important to BP, its partners and Vietnam’s government, because the gas produced by the Lan Tay platform fuels power generation to produce around 35% of Vietnam’s total power supply.

In November 2005, BP Exploration Operating Company Ltd Vietnam awarded Ranhill WorleyParsons a contract to conduct a FEED study for the Lan Tay compression facility. The contract was subsequently extended to cover EPCM services. The project completed the FEED within the 20 week stretch target and completed all the EPCM activities – comprising engineering, procurement support, module fabrication management and offshore installation, hook-up and commissioning management – within the following 65 weeks.

The project involved the design, fabrication and installation of a two train gas compression module with Solar Titan 130 turbines and Dresser-Rand D10R5B compressors. The scope also included the associated brownfield modifications and tie-ins necessary to debottleneck the existing Lan Tay platform, to ensure gas production output of 530 million standard cubic feet per day was achieved.

Office Kuala Lumpur

530 million standard cubic feet of gas produced per day

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ChinaMaximizing the Workshare Opportunity

At a time of unprecedented demand for skilled technical resources, WorleyParsons’ ability to workshare – put the work where the right people are, regardless of their location – assists its customers to successfully deliver projects. Central to our workshare capability is MaisonWorleyParsons – China’s largest international EPCM service provider. The operation provides a ‘full service’ to major international companies completing developments in China and comprehensive, cost effective technical support to WorleyParsons’ operations worldwide.

Workshare creates significant opportunities for our customers in terms of access to scarce resources and cost effective delivery. However, to fully realize the opportunity, our focus on critical issues such as the alignment of systems and processes must be equally balanced by our efforts to create strong bonds and effective working relationships between the home and workshare offices. The understanding and trust developed through these efforts are today reflected in the size and technical complexity of the projects we regularly deliver in a business as usual workshare environment.

Our commitment to continuously develop our workshare model ensures we constantly strive to achieve the full potential workshare offers. A new model to increase the use of MaisonWorleyParsons’ highly skilled and cost effective resources to deliver more vertically integrated packages, and capitalize on its proven project management, modularization and leading Chinese procurement capabilities, will extend the boundaries of current workshare and high value engineering practice – and in turn make cost effective high value project delivery a reality.

BeijingLianyungangNanjingShanghaiTianjin

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Business Overview

MaisonWorleyParsons continues to be the largest international EPCM service provider in China, employing in excess of 1,600 personnel. The operation provides an extensive range of project delivery services to customers in the chemical, hydrocarbons, minerals & metals, power and infrastructure industries. With offices in Beijing, Shanghai, Tianjin, Nanjing and Lianyungang, and as a holder of Class A Design and Consultancy licenses, well-established IP protection systems and a highly experienced procurement organization, the operation has acquired a solid reputation as the service provider of choice for major international companies seeking to make investments in China.

The China operation’s growth continues to impress in terms of client base, revenue and EBIT. Approximately 75% of all new awards annually are from repeat clients such as Eastman Chemical, Ashland Chemical, Evonik (Degussa), Dow, Celanese and Dupont.

During the past years the China operation has secured a number of significant projects which have helped to underpin growth, including: Evonik (Degussa), Celanese Nanjing, Linde (BOC) and Motorola.

In addition to stand-alone ‘in country’ project delivery, the Beijing based high value engineering center provides quality, cost effective technical support to many other parts of WorleyParsons’ operations worldwide. With access to a large, highly qualified resource base, state-of-the-art technical applications and communications equipment, and a thorough understanding of both local and international codes and standards, the delivery of projects such as for Roc Oil’s Zhao Dong ZAP and Lynas’ Rare Earth Project in a workshare based environment are now commonplace.

With emphasis on safety and the learning and development of people for a broad spectrum of career opportunities, MaisonWorleyParsons is recognized as a leader in localization and as a preferred employer to many, as such it enjoys the benefits of a very stable and committed operation.

China

Select Phase Services

Customer: VariousLocation: VariousTimeframe: 2007 – ongoing

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With over 200 projects executed in China and a growing portfolio of overseas projects, MaisonWorleyParsons’ Select division provides expertise in the early phases of project development, particularly the preparation of basic engineering packages and definitive cost estimates. With a history of delivering conceptual solutions to the complex chemicals and pharmaceutical industries, MaisonWorleyParsons has successfully expanded into the delivery of Select for hydrocarbons projects.

As a holder of the required in-country Design and Consultant licenses with well-established IP protection systems and processes, Select also provides strategic advice and front-end design services to potential external investors in China. In providing this roadmap through the permitting and project application process, Select ensures a timely completion of the preparatory steps required to reach full project sanction.

With its access to a large skilled resource pool, China is a key region for WorleyParsons development. Whilst the in-country project delivery has provided the past growth platform, it is the operation’s ability to simultaneously deliver overseas projects that differentiates MaisonWorleyParsons and provides an important platform for the further development of the China business. By capturing project opportunities early in their development cycle to assist with the pull through of later phase services, Select has been a key success factor in the China story.

Offices Beijing, Tianjin, Shanghai, Nanjing

200+ projects executed in China

Zhao Dong ZAP Project

Customer: Roc Oil (Bohai) CompanyLocation: Zhao Dong Facilities, Bohai Bay, ChinaTimeframe: 2007 – 2008

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Roc Oil (Bohai) Company (ROC) plans to increase production from its existing Zhao Dong facilities in Bohai Bay, China. The development includes: a new unmanned conductor platform (CP2), a new gathering station platform (PT1), a new drilling platform (ODB) bridge-linked to the existing ODA platform, a new processing platform (OPB) bridge-linked to the existing OPA platform, brownfield modifications to OPA and ODA platforms and two new pipelines.

ROC engaged MaisonWorleyParsons to carry out detailed design and procurement activities for the expansion. Our specialist centers performed the FEED phase, with the PT1 and CP2 FEEDs performed in Melbourne, ODB and OPB, and brownfield FEEDs performed in New Plymouth, pipelines FEED and detailed design performed in Singapore, and the detailed design for the brownfield modifications and the four new platforms with full procurement services performed in Beijing.

The successful use of extensive workshare for this project, with the majority of the hours being executed in Beijing, provided ROC with access to lower base cost specialist input and the ability to be local to the Chinese fabrication and installation areas for construction and commissioning support.

Offices Beijing, Melbourne, Singapore, New Plymouth

4 new offshore facilities

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MATCH Project

Customer: Evonik – Degussa Specialty Chemicals (Shanghai) Co. Ltd.Location: Shanghai Chemical Industrial Park, ChinaTimeframe: 2007 – 2009

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Evonik Industries – whose chemicals business was formerly known as Degussa, is developing a greenfield integrated methyl methacrylates and methacrylate specialties production plant in Shanghai, (known as MATCH). This world-scale facility will produce products to supply the optoelectronics, paint and adhesives, and automobile industries.

MaisonWorleyParsons commenced early in the project, as part of an integrated team to support the government approval process and develop a preliminary design package. Involvement continued through basic engineering and the provision of EPCM services for the process units and all related infrastructure and utilities. The use of state-of-the-art design tools and our extensive Chinese procurement capability enabled construction to commence in September 2007. The total site workforce is expected to peak at 2,500 people before completion in 2009.

The MATCH project continues our long relationship with Evonik – Degussa, where, safety is at the forefront of our performance goals. This strong focus on safety was rewarded in April 2008 when the MATCH site achieved the safety milestone of two million man-hours worked without a lost time injury.

Offices Beijing, Houston, Kuala Lumpur, Reading

US$350 million plastic monomers plant

China Improve Capability

Customer: VariousLocation: VariousTimeframe: 2007 – ongoing

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

MaisonWorleyParsons, through its commitment to consistent long term performance and meeting the objectives of its customers, is recognized as a service provider of choice for both brownfield and greenfield development projects in China. Our strong orientation towards project delivery and added-value services, including an uncompromising emphasis on safety, has resulted in the growth of a customer base of which over 75% is from repeat customers.

Our understanding of the complexities of project delivery in live operating environments has enabled a number of customers to capitalize on MaisonWorleyParsons’ Improve business, whereby our localized technical support services are tailored to meet the specific project and technical needs associated with brownfield modifications and expansions. Projects delivered by Improve vary greatly in size and complexity, including plant expansions and de-bottlenecking, where safety and minimizing impact on plant operations are high priorities.

MaisonWorleyParsons’ broad experience in adapting international codes and standards to local code requirements in China greatly facilitates investment planning and design transfer for brownfield expansions based on existing global reference plant design. Our Improve business with proven IP protection program has been successfully extended to support the highly competitive area of front-end loading development for technology providers pursuing market position in China.

Offices Beijing, Shanghai, Nanjing, Tianjin

>75% repeat customers. Testament to consistent performance and customer focus

Wood Modification Project

Customer: Diamond Wood (Nanjing) Manufacturing Company LimitedLocation: Nanjing Chemical Industrial Park, Jiangsu Province, ChinaTimeframe: 2008 – 2010

OPERATEEXECUTEDEFINEEVALUATEIDENTIFY

Diamond Wood China Limited is developing a large scale Accoya® wood production facility in Nanjing, China. The project will use, under licence from Titan Wood Limited, the Accoya® wood modification technology that has been developed and proven in the Netherlands.

Accoya® wood is produced using a patented process that effectively converts certified, sustainably grown non-durable solid wood into a high value, durable, stable and reliable “new wood species” via acetylation. Accoya® wood answers the need for an environmentally compatible alternative to increasingly scarce tropical hardwoods and artificial materials such as UPVC. Accoya® wood has already been used in a wide range of applications across Europe.

Diamond Wood engaged MaisonWorleyParsons to prepare a feasibility study, project application report and conceptual design. This was subsequently expanded to include basic engineering and EPCM services.

The use of innovative new technologies and renewable and sustainable resources to produce alternative materials on a cost effective basis is a key focus area for our EcoNomics™ initiative. As the first major commercial application of the Accoya® wood technology in China, MaisonWorleyParsons will provide management and technical expertise to enhance the overall energy efficiency of the project and assist Diamond Wood to meet its environmental objectives.

Office Beijing

120,000 cubic meter per year Accoya® production facility in phase 1

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