EIC UK Event. Simon Tearle.

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1 EIC UK Event Business Presentation from SNF Oil and Gas Ltd. Tuesday 16 th July 2013 Simon Tearle.

2 The World Leader in Polymer Technology for Water Treatment and Enhanced Oil Recovery

Turnover Growth 3000 2500 2000 1500 M M$ 1000 500 0 2006 2007 2008 2009 2010 2011 2012 We have

3 Turnover Growth M M$ We have historically reinvested all available cash flow back into the business and intend to maintain this policy

4 Key Figures of the SNF Group Sales in 2012: 1.8 G ($ 2.4 billion) Market Share: 45% Capacity (active polymer): 615 kt 3650 people 20 factories 50 affiliates Customers , End Users Presence in 130 countries

5 2012 Sales

6 kt Market Growth Oil Specialties Monomers Mining Paper Industrial Water Municipal Water

7 20 factories Production Sites 5 major ones in the USA, France, China and Korea Longview Dolton Wayne Taylor Trois Rivières St Avold Qingdao ANDRÉZIEUX Los Angeles Baytown RICEBORO PLAQUEMINE Pearlington Vizag ULSAN TAIXING Salalah Cikande Lara

8 State of the art production facilities All SNF production sites use the same technology and can offer a consistent and high level of product quality

9 Plaquemine site

10 Our cost base fluctuates with propylene prices Most of our raw materials are propylene derivatives. The propane route to propylene should positively impact our cost position in the mid-term Methyl acrylate ADAME Powders Naphta Acrylic acid ADAME Quat Emulsions Cationic Liquids PAM Oil Propylene Acrylonitrile Acrylamide Propane Acrylic acid Anionic PAM Powders Emulsions Gas Liquids

11 We remain focused on expanding our manufacturing assets We are investing to increase capacity of 53% over 3 years in order to fulfill the large demand arising out of EOR applications MT 95 kt +75 kt +60 kt +65 kt MT France China USA Others MT % 46% 38% SNF share of worldwide capacity

12 Production Investments Plan Russia India Korea China USA France Powders +15% Emulsions +11% India & others UK Korea China USA France

13 Enhanced Oil Recovery (EOR) +15 $ >150 > bbl

Enhanced Oil Recovery Methods The three stages of Oil Field Development Primary production Natural flow and artificial lift techniques (pumps) Secondary recovery Water flooding or pressure

14 Enhanced Oil Recovery Methods The three stages of Oil Field Development Primary production Natural flow and artificial lift techniques (pumps) Secondary recovery Water flooding or pressure maintenance Tertiary recovery Enhanced Oil Recovery methods Gas Thermal Chemical Other CO 2 Nitrogen Air Steam In Situ combustion Hot water Polymers (PF) Surfactant Polymer (SP) Alkaline reagents (ASP) Microbial

15 Oil Recovery Factor Primary and secondary recovery leads to an average RF of 35% Primary production Natural flow and artificial lift techniques (pumps) Secondary recovery Water or Gas Injection ; pressure maintenance %RF to 50% 40 to 50% Worldwide Average RF ~35% 20 Water or Gas injection Water injection 20 to 30% Water injection 5-20% Water injection Oil viscosity (cp)

Oil Recovery Factor Polymer flooding allows to recover from 5 to 15% additional oil

fingering Water cut reduction compensates for the cost of chemicals %RF Secondary recovery

to 40% Water or Gas injection 30 to 40% Water injection +5 to 15% Polymer only 20 to 30%

16 Oil Recovery Factor Polymer flooding allows to recover from 5 to 15% additional oil Primary production Polymer Flooding: Improves initial sweep efficiency Prevents early fingering Water cut reduction compensates for the cost of chemicals %RF Secondary recovery Tertiary recovery Chemical to 20% Alkaline / Surfactant / Polymer RF ~60% to 40% Water or Gas injection 30 to 40% Water injection +5 to 15% Polymer only 20 to 30% Water injection +5 to15% Polymer only 5-15% Water injection Oil viscosity (cp)

17 Chemical EOR: Polymer Flood Implementing polymer flood at the very early stage of waterflood is much more efficient Polymer flooding: low risk technique and application over a wide range of reservoir conditions Improvement of the areal and vertical sweep efficiency Enables to recover more oil in less time Water Flooding Oil PAM Flooding Oil

18 Polymer Technology Evolution Oil viscosity (cp) Seventies Near future Temperature ( F) Minimum permeability (md) Depth (ft) Salinity (ppm)

19 SNF activities in O&G FLOPAAM for chemical Enhanced Oil Recovery (EOR) Polymer flooding, SP, ASP FLODRILL for Water based drilling fluids Fluid loss agent for mud and cement Viscosifiers Thinners Shale inhibitor Bentonite extender FLOJET DR Water injection drag reducer Hydraulic fracturation for unconventional gas recovery FLOPERM for reservoir stimulation Gels and micro gels for water shut off Sand control Gel; micro gel and dual system for injection well conformance FLOPAM, FLOSPERSE, FLOQUAT for injected and produced fluid treatment : Scale inhibition Coagulation & flocculation OIW and TSS reduction Oil sands MFT dewatering

$Hydraulic fracturing Additives for hydraulic fracturation fluids$ turbulent flow) Proprietary dissolution and injection equipment

20 Hydraulic fracturing Additives for hydraulic fracturation fluids (possibly thickeners but mostly drag reducers for transport in turbulent flow) Proprietary dissolution and injection equipment for inverse emulsion or powder form drag reducers (patent WO A2)

21 Drilling Cement and mud drilling additives : fluid loss agents, thickeners, bentonite extenders, clay inhibitors Water based drilling fluid additives Viscosifier Shale inhibitor Fluid loss agent Bentonite extender Dispersant Mud Cement

to link clay particles together Weighting

22 Mud Products Base Fluids to act as the base for the mud to be mixed Emulsifiers used to mix oil and water together when making certain types of oil based mud Viscosifiers for viscosity and gel strength Filtration agents for filtration control Shale Inhibitors to obtain the correct mud chemistry Bentonite extender to link clay particles together Weighting Agents for density Thinners to thin the mud in certain situations

SNF chemical expertise: patented technologies SNF has a full range of products to provide viscosity the injected fluid and improve the reservoir sweep efficiency up to 120 C and more than 200,000 TDS

23 SNF chemical expertise: patented technologies SNF has a full range of products to provide viscosity the injected fluid and improve the reservoir sweep efficiency up to 120 C and more than 200,000 TDS SNF has the largest range of EOR polymers including copolymers, post-hydrolyzed, sulfonated, SAV and associative products SNF Patented technologies: Shear resistant polymers in inverse emulsion SP technology with Associative polymers and low surfactant dosage Associative polymers Protected Polymer Packages

24 SNF engineering expertise: patented technologies SNF can provide conceptual study, design Pre-FEED, FEED, construction, start-up, training, O&M assistance and consultancy services on polymer injection projects. SNF Patented technologies: Polymer Slicing Unit On-line viscometer Non-shearing chokes

25 UK Group SPCM UK Holdings Ltd Simon Tearle Managing Director Group Financial Controller Kenneth Lowther Future added companies. SNF (UK) Ltd Andrew Wharton Managing Director SNF Oil and Gas Ltd TBA General Manager SNF UK Property Ltd

26 Proposed development in Billingham, Teesside.

27 SITE

28 Approved Development 5 Emulsion production modules plus acrylamide production and a tank farm. Each module able to produce 30,000 tonnes of 100% polymer equivalent per 50% activity = 60,000 30% activity = 100,000 Mtpa/module Planning for maximum 500,000 Mtpa of 30% active emulsion.

29 SITE PLAN

30 PRODUCTION BUILDING

31 Summary Staff Number Predictions for All Five Production Modules Module EM Prod Lines Early Shift Office and Day Shift Second Shift Night Shift and Saturday Maximum No. of vehicles on site Total Direct Employed Staff Additional Indirectly Employed

32 THANK YOU.

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