1. Natalie Stirling-Sanders Procurement Sustainability Manager September 8 th, 2015 – SPE Lunch Mexico Local Content

2. Building Capacity – Local Content Local Content (LC) is a coordinated, focused and sustainable approach to developing human, social and economic capacity – with tangible results for people, communities, businesses in host countries. ExxonMobil’s LC program consists of three elements: ̵ Workforce development The recruitment and development of qualified nationals for construction and operations phases ̵ Supplier development Purchasing local goods and services and developing local suppliers to form a competitive industrial base ̵ Strategic community investments (SCI) Investing in health, education and infrastructure to assist in sustainable socio- economic development in host communities and countries Chad-Cameroon project technical trainees Graduate from our Industry Vocational Program in Indonesia Latin American WEConnect Forum

3. Goals for the supply chain(s) Serve domestic market only, or a broader market? Which phase (exploration, development, operations, decommissioning) Timeline External factors How vulnerable are your supply chains to external factors? Globally competitive Currency Global market stability Cost of inputs Global demand Local Content Expectations & Trade Agreements Expectations of society Commitments in trade agreements (e.g. NAFTA, WTO) High Level Considerations 3

4. Sample – Goods &Services Linkages with other Industries 4 Generally, specific to Oil & Gas Some linkages with other industries, but often tailored to oil & gas industry needs Commonly found in other industries Drilling Drilling support services Seismic Offshore installation Offshore pipe lay Geophysical / geotechnical Tubular fabrication Design engineering Engineering Facilities fabrication Utility generation Valves & fittings Marine services Helicopter services Maintenance services Instrumentation Electrical Utility generation Warehousing Transportation Financial / legal support Office suppliers Administrative support Safety, Health & Environment Machining Civil works Accommodation Catering Communications QA/QC

5. Micro Assessment Specific supplier level Capability vs. Capacity vs. Competitiveness Synergy with other industries Supply Assessment - Micro 5 CapabilityCapacityCompetitiveness Technical# of SuppliersDomestic SSHEOutside O&GInternational ProductivityConcentrationVulnerability Health of the supply chain

6. Gap Analysis – Phased Approach 6 Engaging Contract Owners/ End-users Supplier Mapping Commodities Selection & Prioritisation Value Chain Analysis Upgrading Strategy Source – draft materials prepared for IPIECA by Community Insights

7. Opportunities and Challenges Opportunity Jobs & contracts supporting Mexican domestic and international markets Catalyst to improve and develop new technologies Integration of international standards Challenges Capacity / capability to meet needs of the industry Ensuring globally competitive offerings Meeting expectations of society

8. Opportunities in Oil & Gas Industry - By Phase Source – IPIECA & Community Insights

9. Opportunities 9 Employment Value Add Effort/Investment – Time: Red-High, Blue-Med, Green-Low Reservoir Engineering Well Testing Services Design Engineering PM Support Construction Facilities Fabrication Tubular Fabrication Steel Fabrication Fabrication Maintenance Civil Works Instrumentation & Electrical Mechanical Vessel Fabrication Valves & Fittings Operations & Maintenance Services Logistics/Warehousing Offshore Installation/Marine Services Drilling Support Services Drilling - Deepwater Communication/IT Safety, Health, Environment Services Financial/Legal Support Utility Generation Marketing & Transportation Oil & Gas Consulting QA/QC Services Accommodation/Catering Geophysical/Geotechnical Services Machined Tools / Spare Parts Offshore Pipe Laying Major Equipment Repair Shops Shallow Drilling

10. How can companies prepare? Short Term Focus on ensuring a robust safety and controls culture Start investigating international standard requirements business Medium Term Ensure competitive positioning for your company Ensure adherence to international standards Long Term Ensure global competitive positioning for your company Collaborate on opportunities that create efficiencies and create a win-win relationship for all Safety - Technically Capable - Globally Cost Competitive