We've Come a Long Way

Petrofac Annualreport Petrofac accounts2010 and We’ve come a long way... Petrofac Services Limited 117 Jermyn Street London SW1Y 6HH United Kingdom T +44 20 7811 4900 F +44 20 7811 4901 www.petrofac.com Annual report and accounts 2010 Designed and produced by CONRAN DESIGN GROUP +44 (0)20 7284 5200 ...but the journey Photography by Sam Robinson. This Report is printed on Revive 100 Pure White Silk paper and Revive Pure White Uncoated paper and has been independently certified on behalf of the Forest Stewardship Council (FSC). The inks used are all vegetable oil based. is just beginning Printed at St Ives Westerham Press Ltd, ISO14001, FSC certified and CarbonNeutral® 1 Petrofac Annual report and accounts 2010 In 2011, Petrofac turns 30. In three decades we have grown from a Texas-based producer of modular plant to a leading FTSE 100 company, with 13,900 people in 26 countries, providing integrated facilities solutions across the life cycle of oil & gas assets. We are planning to make the coming decades even better. By continuing to learn, evolve and innovate and by staying focused on execution and delivery, we will go on developing our capabilities and service offering – for the benefit of all our stakeholders. 2 Petrofac Annual report and accounts 2010 Financial highlights Revenue Backlog Earnings per share (diluted) US$4,354m 2009: US$3,655m US$11,699m 2009: US$8,071m 162.46 cents per share 2009: 103.19 cents per share +19 % +45% +57% EBITDA Net profit3 Return on capital employed US$759.4m 2009: US$549.7m US$557.8m 2009: US$353.6m 2009: 46.9% +38% +58% 65.2% Revenue EBITDA Net profit US$ millions US$ millions US$ millions 4,354 4,354 759 759 558 558 3,665 3,330 550 354 2,440 419 1,864 265 301 189 198 120 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 EPS (diluted) Backlog Cents per share US$ millions 162.46 162.46 11,699 11,699 103.19 8,071 77.11 54.61 4,173 4,441 3,997 34.87 06 07 08 09 10 06 07 08 09 10 Five year summary1 2010 2009 2008 2007 2006 Information not subject to audit Restated Revenues2 4,354.2 3,655.4 3,329.5 2,440.3 1,863.9 EBITDA2 759.4 549.7 419.0 301.3 198.3 Profit for the year2,3 557.8 353.6 265.0 188.7 120.3 Diluted earnings per share (cents)2 162.46 103.19 77.11 54.61 34.87 Total assets 3,601.3 3,600.6 2,269.8 1,748.0 1,401.8 Total equity 779.1 8 97.5 559.0 523.0 324.9 Number of employees at year end2 13,900 11,700 11,100 9,800 8,100 Backlog 11,699 8,071 3,997 4,441 4,173 1 In US$ millions unless otherwise stated. 2 On continuing operations. 3 Attributable to Petrofac Limited shareholders. 3 Petrofac Annual report and accounts 2010 Contents Record-breaking results Petrofac delivered another outstanding 4 At a glance Overview 6 Our services performance in 2010. The group achieved 8 Expansion into new regions... 1 10 Building long-term relationships... growth of 58% in net profit (26% on a 12 Sustained investment... like-for-like basis2) and revenue increased 14 We seek the best and brightest people... by 19% to US$4.4 billion. We won significant new contracts across many countries. During the year our order intake has 16 Chairman’s statement review Business 18 Interview with the Group Chief Executive resulted in achieving a record year-end backlog 22 Operating review of US$11.7 billion, providing outstanding visibility 50 Senior management team 52 Financial review of revenue for well beyond the coming year. Petrofac’s success – and our strategic goal of becoming the leading provider of facilities solutions to the oil & gas industry – is built on 56 Our CSR strategy... responsibility social Corporate 58 Marketplace the following priorities: 60 Health, safety, security and integrity assurance 62 Environment 64 Our people 66 Community Governance ■■ maintaining and improving our ■■ training and hiring local resources 68 Directors’ information high safety and integrity standards where we operate, to help develop 71 Corporate governance report wherever we work national workforces 79 Nominations Committee report 80 Audit Committee report ■■ providing a range of services across ■■ attracting and retaining recognised the life cycle of the energy asset specialists and key personnel 82 Risk Committee report 84 Directors’ remuneration report ■■ expanding our offering into new ■■ identifying, acquiring and growing regions, prioritising areas with major complementary businesses where 96 Directors’ statements hydrocarbon reserves and significant they expand our skill set and support capital and operational expenditures our strategic goals ■■ providing fully integrated services statements financial Group for resource holders under flexible, 97 Independent auditors’ report tailored commercial models, which 99 Consolidated income statement leverage our service capability and 100 Consolidated statement of may include the provision of capital comprehensive income 101 Consolidated statement of Notes financial position 1 Net profit for the year attributable to Petrofac Limited shareholders. 102 Consolidated statement of cash flows 2 Like-for-like net profit growth excludes the gain of US$124.9 million on the EnQuest demerger and the trading net profit from Energy Developments’ demerged assets of US$12.7 million for 103 Consolidated statement of changes the year ended 31 December 2009 and US$2.1 million for the year ending 31 December 2010. in equity 104 Notes to the consolidated financial statements 145 Independent auditors’ report Company financial statements (Petrofac Limited) 146 Company financial statements, Petrofac Limited 159 Oil & gas reserves (unaudited) 160 Shareholder information 4 Petrofac Annual report and accounts 2010 Growth was a key feature of our business in 2010. 2010 performance, We grew our revenue and profits; extended at a glance our integrated service offering; moved into new countries, and expanded our workforce. We now have 13,900 employees and six strategically located operational centres: in Aberdeen, Abu Dhabi, Chennai, Mumbai, Sharjah and Woking, and a further 20 offices worldwide. Engineering & Construction Engineering & Locations Highlights Key capabilities Construction Order intake of US$6.0 billion, including: – design and engineering Engineering & – procurement, including inspection Construction Ventures Petrofac’s largest ever award, of US$3.4 billion, for the EPC phase of and logistics of project materials our contract with Turkmengas on the and equipment South Yoloten project in Turkmenistan – pre-fabrication and on-site 5,400 construction a contract, for more than US$600 Employees million, for gas sweetening facilities – health, safety, security and for Qatar Petroleum environmental management in % of group line with national and international two awards for Kuwait Oil Company regulations (KOC): a US$400 million contract – quality and integrity assurance + for the installation of gas and oil 30% and control pipelines and a US$430 million Revenue US$3,254m award for effluent water and – project management 2009: US$2,509m sea water injection facilities – commissioning and initial operations % of group a US$280 million award for the SEPAT offshore early production +41% system for PETRONAS in Malaysia Net profit US$373.0m 2009: US$265.1m Offshore Engineering & Operations Locations Highlights Order intake was US$1.6 billion, including: two capacity-broadening acquisitions: oilfield pressure control equipment a US$250 million Duty Holder contract service and repair company Scotvalve with the Government of Sharjah to Services and metering systems business provide facilities management services Stephen Gillespie Consultants for the Sajaa gas plant 4,400 a £500 million award with Total for the Key capabilities Employees development of a gas processing plant on the Shetland Islands, in our first – on and offshore facilities % of group predominantly lump-sum contract management, including the in the UK, supported by Engineering & Duty Holder service offering + Construction – offshore engineering and 15% construction Revenue US$722m a £40 million contract for the provision – project management 2009: US$627m of engineering services to the UK Continental Shelf (UKCS) assets of – maintenance management Maersk Oil and support services % of group extensions of existing contracts, – mechanical services and metering + including a five-year agreement with – supply of highly competent 34% BHP Billiton in the Irish Sea and a and experienced personnel Net profit US$17.2m five-year extension to a contract with 2009: US$12.8m CNR International in the North Sea 5 Petrofac Annual report and accounts 2010 2010 performance, at a glance Petrofac delivers its services through seven business units that make up our four reporting segments. In their individual development, they are enabling us to become active across the entire value chain of the oil & gas industry, to the benefit of our customers, our shareholders and our people. Overview Engineering, Training Services and Production Solutions Engineering Services Locations Highlights Key capabilities Training Services Engineering Services: Engineering Services: Production Solutions utilisation rates rose across all three – field development planning offices – Mumbai, Chennai and Woking – conceptual engineering and the acquisition of renewable energy front end engineering design specialist TNEI marked our entry into – engineering and procurement 3,400 the new energy sector services Employees Training Services: Training Services: refurbished and equipped a world-class – competence-led training in Syrian training centre which we have % of group safety and technical

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