1. Introduction to DUCO June 2005 DUCO Umbilicals 27th June 2006 Subsea North East Launch Alasdair MacDonald

2. Introduction to DUCO July 2006 2 Overview Duco manufactures Control Umbilicals for Subsea Production Systems  Electrical and hydraulic power transferred from host facility to subsea wells  Fluids to assist well productivity tranferred from host facility to subsea wells  Control signals between wells and host facility to monitor production. Worldwide market Broad client base  Majors and Independant Oil Companies  State Oil Producers  EPIC contractors  Wellhead equipment manufacturers International business with a local North East focus

3. Introduction to DUCO July 2006 3 Make Up of an Umbilical? Electric Cable Fibre Optic Cable Tube Fillers Outer Sheath Armour Layers Inner Sheath

4. Introduction to DUCO July 2006 4 UMBILICAL ASSEMBLY Typical Umbilical Lay-up

5. Introduction to DUCO July 2006 5 A Sense of Proportion - LENGTH

6. Introduction to DUCO July 2006 6 1978 Dunlop enters umbilical business Southampton facility 1983 Joint Venture formed between Dunlop & Pirelli 1990 - £7m DUCO moves to Walker Plant 1989 - £5m New joint venture between Dunlop & Coflexip DUCO 1998 - £33m DUCO LTD first umbilical manufacturer to be awarded API 17E licence 1994 - £14m Coflexip Merge with Stena Offshore 1996 - £25m DUCO Inc Channelview, Houston Opens 2001- £37m Technip & Coflexip merge 2004 - £61m Angoflex Ltda factory opens 2006 - £100m Reviewing options for further international and local expansion *Newcastle Revenue only

7. Introduction to DUCO July 2006 7 LOCATIONS DUCO Inc. USA Houston Angoflex Angola DUCO Ltd. Newcastle HQ

8. Introduction to DUCO July 2006 8 DUCO Ltd – Newcastle, UK Capacity 300km per annum Workforce : 350 approximately Facility located 30m (100ft) from 800m (2625ft) long quayside

9. Introduction to DUCO July 2006 9 SIGNIFICANT MANUFACTURING ACHIEVEMENTS Largest Single Length Thermoplastic Umbilical Produced by Newcastle Facility  Exxon Mobil Arthur : 31km ; 983 tonnes ; 146mm diameter Supplier of the GOMEX longest umbilical (DUCO Inc.)  SHELL, MENSA DEVELOPMENT, 106 km Supplier of the world’s heaviest and largest umbilical (DUCO Ltd.)  PETROCANADA, TERRA NOVA @ 170kg/m, 320mm diameter Supplier of the world’s largest number of components (DUCO Ltd.)  TALISMAN, BUCHAN ALPHA, 98 HOSES Currently manufacturing world’s heaviest umbilical  BP SECU 305mm diameter @ 190kg/m Safety Performance  In excess of 1400 days incident free

10. Introduction to DUCO July 2006 10 WHY IS MARKET SO ATTRACTIVE? High oil price here to stay Next 5 years:-  40% increase in subsea production  Doubling FPSO’s Planned delays to decommissioning Enhanced recovery to existing subsea production systems By 2013 oil demand predicted to exceed supply