A Private Engineering Company

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A Private Engineering Company

04/05/2018

S O F R E S I D

A PRIVATE ENGINEERING COMPANY Basic Industries Division 04/05/2018

S O F R E S I D

A Presentation

of

the Basic Industries Division

TABLE OF CONTENTS

FOREWORD

SECTION 1 COMPANY PROFILE 1.1. Company History 1.2. General Information 1.3. The SOFRESID Group 1.4. Shareholders 1.5. Financial Information 1.6. Banker, Auditor, Insurance

SECTION 2 SOFRESID OFFICES 2.1. Headquarters 2.2. Human Resources 04/05/2018

2.3. Company Organization Charts 2.4. Data Processing Centre

SECTION 3 SERVICES

SECTION 4 BASIC INDUSTRIES DIVISION 4.1. Oil, Gas and Pipeline 4.2. Metallurgy and Aluminium 4.3. Mining and Ore Beneficiation 4.4. References

SECTION 5 BROCHURES FOREWORD

- 4 - SOFRESID: A PRIVATE ENGINEERING COMPANY

Established in France in 1958, SOFRESID has developed an international reputation in Industrial Engineering.

SOFRESID is now the leader of a group of companies with a staff of 2000, a turnover of FF 1,2 billion, and with references in more than 80 countries throughout the world.

SOFRESID with its wide skills and experience provides services to various industries:

- Onshore and offshore Oil and Gas Production - Pipelines - Metallurgy - Mining and Ore Beneficiation - Refineries and Chemicals - Energy - Environment - General Industry

SOFRESID provides these services as a consulting engineering company, as well as on a turnkey basis, depending on its clients' requirements.

These services comprise management, design, procurement, quality control, construction supervision, commissioning and assistance to operation.

The organization of projects draws resources from the various companies of the Group, depending on the specific technical requirements.

- 5 - SOFRESID is divided into three main divisions:

- General Engineering - Petroleum, Chemicals, Pharmaceuticals - Basic Industries and one Production Division providing technical supports.

The BASIC INDUSTRIES DIVISION is specialized in:

- Oil, Gas and Pipeline - Metallurgy - Aluminium - Mining and Ore Beneficiation

The purpose of this presentation is to summarize the expertise and capabilities of the Group, and specifically of the Basic Industries Division.

- 6 - SECTION 1 COMPANY PROFILE

1.1. Company History 1.2. General Information 1.3. The SOFRESID Group 1.4. Shareholders 1.5. Financial Information 1.6. Banker, Auditor, Insurance

- 7 - 1.1. COMPANY HISTORY

1958 - SOFRESID is incorporated as an engineering firm and is awarded the engineering contract of the Dunkirk integrated coastal steel plant (France).

1963 - SOFRESID starts exporting its services.

1970 - SOFRESID acquires a majority of shareholding, 71%, in SOFREMINES, a mining engineering company.

1973 - SOFRESID acquires 62% of the equity of OTP (Omnium des Transports par Pipelines), a pipeline engineering company.

1980 - SOFRESID acquires 80% of the equity of HEURTEY INDUSTRIES, an engineering firm specializing in refineries, petrochemicals and fertilizers.

- The same year, SOFRESID is engaged in the management, detail design and contruction supervision of its first deep sea platform in the Norwegian sector in the Heimdal Field (joint venture with Norwegian and U.K. engineering firms).

1982 - SOFRESID acquires 100% of the equity of HEURTEY INDUSTRIES.

1985 - Additional office facilities are completed. SOFRESID head office now extends on 15 000 m2 of office space including all facilities.

- 8 - 1986 - OTP becomes fully owned by SOFRESID which thereby holds 72% of OTP subsidiary SOCETEC, an engineering company devoted to power generation, offsites for the refining industries and water treatment.

- HEURTEY INDUSTRIES acquires 34% of BEFS REALISATION, an engineering firm specializing in revamping petroleum and chemical facilities, and pharmaceutical and food processing industries.

- SOFRESID acquires 51% of DORIS ENGINEERING which specializes

in concrete offshore structures design.

1988 - SOFRESID reorients its activity in new directions and develops

business in the general engineering sector.

Similarly SOFRESID increases its production consultancy activities with

numerous contracts in its traditional areas: offshore, pipelines and

petrochemicals.

- JOHN BROWN acquires a 35% shareholding in SOFRESID.

This agreement enhances SOFRESID's ability to serve both home and

overseas clients with a wider range of technologies and skills.

1990 - SOFRESID's activities involve projects for public administration as well

as for large industrial or smaller local firms.

- JOHN BROWN's shareholding increases to 49%

- 9 - 1991 - Additional office facilities, adjacent to the head office will be completed

in 1992.

- Today, the total staff of the SOFRESID group exceeds 2000.

- 10 - 1.2. GENERAL INFORMATION

COMPANY NAME SOFRESID

LEGAL STATUS LIMITED COMPANY (Private, not on stock market)

SHARE CAPITAL FF 27,480,900

REGISTERED in PARIS under n° 582.090.007.00011 (SIRET)

HEAD OFFICE 59, rue de la République 93104 - Montreuil Cedex BP 719 - FRANCE

Telephone: (33.1) 48.70.40.00

Telex : 235 006 Mont

Telecopy : (33.1) 48.70.44.44.

- 11 - 1.3. THE SOFRESID GROUP

SOFRESID TRADE MARKS

O.T.P.: Pipelines

HEURTEY INDUSTRIES: Refining, Petrochemicals, Fertilizers

CALIQUA: Heat and Power

MAIN SUBSIDIARIES

DORIS ENGINEERING: Marine Engineering, Concrete Structures

SOFREMINES: Mining, Ore Beneficiation

SOCETEC: Power Generation, Automation

HEURTEY PETROCHEM ENGINEERING: Furnaces

OTHER SUBSIDIARIES ABROAD

HEURTEY KENWARD Ltd (U.K.)

HEURTEY PETROCHEM ITALIANA (Italy)

- 12 - OTHER SUBSIDIARIES IN FRANCE

Paris region:

SITE PHARMA PROCESS ISO Ile de France

North:

INGENORD (Dunkirk)

ISO (Cherbourg)

EURODOC (Cherbourg)

West:

SOFRESID OUEST (Lorient and Brest)

South:

HEURTEY-SOCETEC RHONE ALPES (Lyon)

HEURTEY INDUSTRIES (Aix en Provence)

DELTA E.M. (Martigues)

OTM (Pau)

- 13 - East:

BEFS TECHNOLOGIES (Mulhouse)

- 14 - 1.4. SHAREHOLDERS

SOFRESID's capital is distributed as follows:

- Engineering Company JOHN BROWN 49.0 %

- Oil Companies ELF AQUITAINE 10.9 %

TOTAL 10.9 %

- Steelmaking USINOR SACILOR 10.0 %

- Financial Holdings CIE FINANCIERE PARIBAS 6.1 %

SOGEDIP 6.0 %

FINANCIERE SAULNES 4.7 %

- Miscellaneous 2.4 % ______100 %

- 15 - 1.5. FINANCIAL INFORMATION

Specific figures during the last three years are given hereafter

______| | | | | |M FF | 1988 | 1989 | 1990 | | | | | | |______|______|______|______| | | | | | | | | | | |Consolidated shareholder equity | 55.7 | 70.2 | 99.4 | | | | | | | | | | | |Consolidated turnover | 523.0 | 736.0 | 1,232.0 | | | | | |

- 16 - | | | | | |Production | 542.0 |1,071.0 | 1,516,0 | | | | | | | | | | | |Operating results | 11.9 | 14.3 | 45.0 | | | | | | | | | | | |Result after interest | 14.0 | 12.0 | 49.4 | | | | | | | | | | | |Extraordinary item | 2.0 | 4.1 | (3.6)| | | | | | | | | | | |Net result (Group Part) | 8.3 | 11.4 | 28.0 | | | | | | |______|______|______|______|

Note: The 1991 Balance sheet is not available yet.

- 17 - 1.6. BANKER, AUDITOR, INSURANCE

BANKER

BANQUE NATIONALE de PARIS 2, Rue de la République 94160 Saint Mande - FRANCE Telephone: (33.1) 43 98 72 00 Telex: 211 605

Contact: Mr. DELECRAY

SOFRESID's AUDITOR

FIDUCIAIRE CONTROLE et CONSEIL (F.C.C.) 23, Rue de Lübeck 75116 Paris - FRANCE Telephone: (33.1) 47 23 41 65

Contact: Mr. T. BELLOT (Chartered Accountant and Auditor)

INSURANCE COMPANY

U.A.P. INCENDIE-ACCIDENTS

9, Place Vendôme

75038 Paris Cedex 01 - FRANCE

N° of policy: 9100 042 Y

For any information, please contact:

- 18 - JEAN MOULIN & Fils S.A.

55, rue d'Amsterdam

75008 PARIS - France

Telephone: (33.1) 42 80 61 75

Telex: 650 720

Telefax: (33.1) 45 26 50 69

- 19 - SECTION 2 SOFRESID OFFICES

2.1. Headquarters 2.2. Human Resources 2.3. Company Organization Charts 2.4. Data Processing Centre

- 20 - 2.1. HEADQUARTERS

SOFRESID's offices are in two buildings of 10 and 4 floors which are located in MONTREUIL sous BOIS, in the eastern outskirts of PARIS.

Total office area is 15 000 m2 which provides working space to about 800 SOFRESID's personnel.

These buildings offer all the required resources to the engineering forces, i.e.:

- Data processing centre, - Micro-computers, - Computerized technical library, - Word processing facilities, - Model shop, - Printing, photocopying and editing of documents, - Travel agency, - Telexes, Telecopies, - Telephone (100 grouped lines which allow for 1100 simultaneous incoming calls).

SOFRESID has started building its third office block, adjacent to the head office. The 10 floor building will be completed in 1992 and accommodate 650 people with 10 000 m2 of office area.

In addition, SOFRESID occupies 2000 m2 on two floors, in "Les Mercuriales" a 30 floor office building located at Bagnolet, also in the eastern outskirts of Paris, very close to the main offices.

- 21 - 2.2. HUMAN RESOURCES (as of 01/03/92)

The GROUP's permanent resources 2000 SOFRESID's permanent staff 879

- SOFRESID TECHNICAL STAFF Engineers 491 ) Draftmen/Designers 118 ( 761 Technicians 65 ) Others 87 ( which breakdown as follows:

~~~~~~~~~~~ - PROJECT/PROCESS/QA ENGINEERS 226 including the Basic Industries Division

~~~~~~~~~~~ - DESIGN DISCIPLINES Mechanical/Piping 93 ) Electrical/Automation 72 ( 346 Civil 143 ) Heat/Power 38 (

~~~~~~~~~~~ - PROJECT SERVICES 56 scheduling, cost control, data processing

~~~~~~~~~~~ - PROCUREMENT Purchasing 25 ) 47 Quality control/expediting 22 (

~~~~~~~~~~~ - CONSTRUCTION 86 ~~~~~~~~~~~

The majority of our technical staff is bilingual in French and English 2.3. COMPANY ORGANIZATION CHARTS

See next pages:

- SOFRESID Organization Chart - Basic Industries Organization Chart Oil, Gas and Pipeline Metallurgy Aluminium Mining and Ore Beneficiation 2.4. SOFRESID DATA PROCESSING CENTRE

The data processing centre offers programs and computer systems to users and clients for:

Project management system, Process design, Offshore structural and marine engineering, Weight control, Submarine pipeline and risers analysis, Piping and mechanical systems, Electrical and instrumentation design, Material take-offs, Procurement follow-up, Budget control, Schedule control

SOFRESID's main frame computer feeds a network of more than 200 VDU's, for both scientific calculations and office work purposes.

There is a tendency to increase in a considerable proportion the number of compatible Pcs to be organized in network.

In addition, SOFRESID employs several systems of computer aided design: CADAM, INTERGRAPH, AUTOCAD.

See next pages: SOFRESID Data Processing Configuration SECTION 3 SERVICES 3. SERVICES OFFERED

SOFRESID offers a large range of services, i.e.:

FEASIBILITY STUDIES

- Market studies, - Manpower and training programs, - Process pre-selection, - Preliminary project outlines, - Initial estimate of capital outlay and operating costs, - Financial and economic studies, - Impact and environmental studies, - Hazard and risk analysis (HAZOP/HAZAN).

PRELIMINARY PROJECTS

- Final selection of processes, - Conceptual studies, - Layout and logistic studies, - General sizing of plant and buildings, - Scheduling and project execution budgets, - Financing plans.

PROJECT MANAGEMENT AND EXECUTION:

Management and project services:

- A management team is set up for each project, centralizing all the necessary project management skills. Each team reports to a project manager who is the client's key contact. - Budget and project schedule preparation and control, estimate of cash flows and manpower requirements. - On-going comparison between forecast and execution. Quality Assurance

- Quality policy, - Project quality plan, - Quality classification, - Quality audit, - Corrective actions supervision.

Basic design and detailed engineering:

- Basic design and detailed engineering are carried out from the preliminary project data and within the relevant disciplines (process, civil, structurals, vessels, mechanical, piping, heat exchangers, electrical, automation and instrumentation, safety), - Exact sizing of equipment, - Detailed layout study, - Equipment specifications, - Take offs and bills of materials, - Checking of suppliers' drawings.

Procurement:

- Purchasing (call for bids, bid appraisal,negotiation) - Placing of orders, - Expediting of suppliers and subcontractors, - Quality control, - Traffic. CONSTRUCTION, INSTALLATION AND COMMISSIONING:

- Site organization and management, - On-site co-ordination of contractors, - Fabrication and installation supervision, - Control of budget and construction schedules, - Quality control on site, - Precommissioning, commissioning and start-up supervision, - Project final documentation and as built drawings.

TECHNICAL ASSISTANCE FOR OPERATION:

- Training, - Training of operation and maintenance personnel, - Maintenance, - Setting-up and organization of a Maintenance department: methods, workshops, spare parts, inventories, computerized tools, - Management organization and audits, - Information and management systems for industrial plants: purchasing, procurement, in-plant and external transport, accounting, production management, - Safety and process audits. SECTION 4 BASIC INDUSTRIES DIVISION

4.1. Oil, Gas and Pipeline 4.2. Metallurgy and Aluminium 4.3. Mining and Ore Beneficiation 4.4. References 4.1. OIL, GAS and PIPELINE

The Department covers all aspects of the oil and gas production industry, be it onshore or offshore:

Onshore:

- Wellhead facilities, - Separation, - Gas sweetening and treatment, - Gas compression for injection, - Water treatment and injection network, - Flare system, - Ancillaries such as power generation, desalination, etc..., - Safety, - Oil, gas and water network together with their shipping and receiving stations, - Pipelines and appurtenances including pump/compressor stations and storage facilitites.

Offshore:

- Production topsides, - Drilling topsides, - Wellhead facilities, - Jacket and deck design including helipad, - Module framing, - Living quarters, - Sealines and submarine pipelines. 4.2. METALLURGY and ALUMINIUM

The Department is specialized in:

- Modernization of a facility - Modernization of a shop - Installation of a new facility - Construction of a new unit - Construction of a mini-plant - Construction of a complex - Industrial Rehabilitation

with fields of expertise as complete as:

- Raw materials handling: receipt, storage, distribution, - Sinter plants, - Pellet plants, - Coke ovens, - Blast furnaces, - Direct reduction, - Oxygen steel plants, - Electric steel plants, - Ladle metallurgy, - Continuous casting, - Hot rolling mills, - Cold rolling mills, - Tube mills, - Finishing lines, - Tinning lines, - Galvanizing lines, - Ancillaries and utilities. 4.3. MINING AND ORE BENEFICIATION

The Department is specialized in the mining industry whatever type of ore is concerned:

Coal, Lignite, Iron, Lead, Zinc, Copper, Nickel, Uranium, Phosphate Rock, Potash, Salt...

Our activity covers all mining fields:

- Underground or opencast mines, - Ores preparation and beneficiation, - Handling, blending, storage and transport of ores and bulky materials, - Industrial infrastructures, - Utilities, - Workshops, - Stores, - Social infrastructure and mining townships, - Vocational training centres. 4.4. REFERENCES

As our experience is very diversified, you will find in the following pages a selection of major projects, sorted as follows:

- PIPELINES

- OIL and GAS PRODUCTION

- METALLURGY: integrated steel complexes, continuous casting, rolling mills, revamping operations

- ALUMINIUM: a description of the Aluminium Pechiney Dunkerque Project

- MINING and ORE BENEFICIATION: coal, iron ore, phosphate rocks, gold, copper and vocational training fields only

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