EcoNomics ™ Brochure

EcoNomics

TM

Capability & Experience

HYDROCARBONS MINERALS & METALS

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POWER INFRASTRUCTURE & ENVIRONMENT

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WorleyParsons Project Phases

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EcoNomicsTM EcoNomics™ is WorleyParsons’ enterprise-wide framework that ensures profitable integration of sustainability into our customers’ projects and operating assets.

We work with our customers’ objectives, commitments, risks and opportunities in mind to identify and deliver both profitable and sustainable outcomes.

Our EcoNomics™ framework comprises three components: Sustainable Decisions, Sustainable Project Delivery and Sustainable Operations. These components, along with our carbon management service; Carbon EcoNomics™, provide our customers with the capability to enhance project risk management and improve sustainability performance across the asset lifecycle.

Sustainable Decisions We use our EcoNomics™ Assessment process to quantify and monetize relevant environmental, social and financial project factors across the asset lifecycle, helping our customers make profitable and sustainable decisions.

Sustainable Project Delivery Through our proprietary project delivery systems, we integrate sustainability enhancing systems, tools and expertise into our customers’ projects, enhancing project risk management and converting their sustainability objectives into profitable project outcomes.

Sustainable Operations We utilize our established Improve Operating Platform to identify and deliver projects that improve the environmental, social and financial performance of existing assets.

Carbon EcoNomicsTM We provide our customers with solutions to emerging issues, risks and opportunities associated with carbon emissions and climate change.

Sustainable Decisions Carbon EcoNomics™ Sustainable Operations

Sustainable Project Delivery

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Sustainable Decisions We enhance our customers’ decision quality by quantifying the environmental, social and financial sustainability of project options over the long term, helping our customers identify optimal business outcomes.

Our economic, engineering, environmental, social, risk and estimating specialists work in integrated teams to assess project options against technical, social, environmental and financial considerations and uncertainties. We utilize a suite of sustainability decision-making techniques, including our EcoNomics™ Assessment process to help customers make informed decisions for the long term.

EcoNomics™ Assessment Using this unique process, audited and approved by Lloyd’s Register Quality Assurance under ISO 9001, we quantify and monetize relevant environmental, social and financial project considerations, helping our customers make robust decisions.

During early alignment, we work with our customers to determine project objectives, risks and constraints, and identify a wide range of options for comparison. Our integrated teams develop engineering concepts and estimates for each option, and quantify and monetize relevant non-technical considerations.

We then assess the performance of options using our proprietary DELTΔ tool, comparing and communicating the lifecycle costs and benefits of options in monetary terms, over a wide range of possible future business conditions.

WorleyParsons’ EcoNomics™ Assessment represents global best practice in advanced business decision making for sustainability. Having delivered over two hundred EcoNomics™ Assessments worldwide, this process has helped our customers save millions of tons in CO2 emissions, billions of gallons of water and significantly enhanced our customers’ financial outcomes.

Project Biofouling Control & Research Customer Biofouling Control & Research Project Location United Arab Emirates Phases IDENTIFY EVALUATE DEFINE EXECUTE

OPERATE

WorleyParsons undertook a sustainability assessment to evaluate existing disinfection practices at the desalination and power plants of the United Arab Emirates. Thirteen biofouling control options were compared, and the WorleyParsons’ EcoNomics™ Assessment process was used to compare the lifecycle costs and benefits of each option given environmental, social and financial considerations. The process identified the most profitable and sustainable option over a wide range of future business conditions to help the Regulations and Supervision Bureau make a strategic decision on the future disinfection practices at all existing and new plants.

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Project Sullom Voe Terminal H2S Management Project Customer BP Project Location Scotland Phases IDENTIFY EVALUATE DEFINE EXECUTE OPERATE BP contracted WorleyParsons to select the best technical and commercial option for treatment of H2S in the gas stream feeding the BP Sullom Voe Terminal in the North Sea. The project had to deliver a solution that was technically robust and commercially favourable under the changing H2S regime. Commercial decision-making using EcoNomics™ Assessment was embedded in the WorleyParsons project delivery. An overall EcoNomics™ Assessment was conducted for the final option review process and customer sanction. Here, the key uncertainties around energy prices, capital and operating expenditure, carbon prices, sulphur emission prices and schedule delays were monetized and examined on a like-for-like basis. This allowed for selection of the optimum option from a commercial perspective along with the technical selection criteria.

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Sustainable Project Delivery Through our proprietary project delivery systems, we integrate sustainability enhancing systems, tools and expertise into our customers’ projects, enhancing project risk management and converting their sustainability objectives into profitable project outcomes.

Using the Sustainable Project Delivery process, WorleyParsons works with our customers to: • Bridge the gap between our customers’ commitments to stakeholders and project delivery • Identify and manage the full suite of business risks that may impact our customers’ projects and operations • Ensure projects are aligned to our customers’ corporate sustainability goals, and; • Support decision making when trade-offs exist between technical, social, environmental and financial performance.

During early project alignment, we work with our customers to identify their corporate and project goals, non-technical risks and stakeholder commitments.

Our integrated engineering, estimating and non-technical specialist teams then identify opportunities that help achieve our customers’ goals, manage their risks and address their commitments. We then work with our customers to implement profitable and sustainable opportunities, and communicate improved performance metrics.

Typical achievements include: waste and emissions reduction, increased production efficiencies, energy and water savings, reduced environmental and social impacts within operations and improved stakeholder relationships. This process helps our customers realize their sustainability goals, enhance their social license to operate, and demonstrate tangible value to their shareholders.

Project Southern Seawater Desalination Plant Customer Water Corporation Project Location Australia Phases IDENTIFY EVALUATE DEFINE EXECUTE OPERATE WorleyParsons forms part of The Southern SeaWater Alliance (SSWA) which is designing, constructing and operating the Southern Seawater Desalination Plant (SSDP) in Western Australia.

Critical to the success of this project is integrating sustainable practices and processes into engineering design, construction and operation to create a world leading sustainable and energy efficient desalination plant. The Sustainable Project Delivery process incorporated a number of specialists from across the sustainability and engineering sectors to provide strategic and integrated sustainability solutions. This unique capability has provided significant value to the Water Corporation including over $8m direct financial savings as well as other substantial savings in areas of carbon emissions, energy, water and environmental impact.

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Project Joslyn North Mine Project: Moving towards carbon neutrality Customer Total E&P Canada Ltd. Project Location Canada Phases IDENTIFY EVALUATE DEFINE EXECUTE OPERATE Embedded EcoNomics™ specialists made an award-winning contribution to Total E&P Canada Ltd. when the project team won a President’s HSE award for their Carbon Neutrality Study. Total’s proposed open pit, truck and shovel mine includes a bitumen froth production and treatment plant, designed to produce 100,000 bpd of diluted bitumen.

WorleyParsons, as part of their pre-project study engineering design used embedded EcoNomics™ specialists to support the design work and complete the first industry-led study on the costs and benefits of various carbon neutrality options for an oil sands mine. The landmark report supported decisions by Total to include carbon capture and co-generation in the project design. Embedded EcoNomics™ support in the project team also included environmental permitting support, HAZID support, development of the mine site restitution framework, and the development of specific environmental management plans for the project construction phase.

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Sustainable Operations Building on the strong relationships within our established Improve alliances, we work to realize our customers’ sustainability objectives while continuously achieving new benchmarks in return-on-investment in their entire asset portfolio.

US$6B estimated total value delivered to our customers annually

The business world faces many challenges, not only to maintain performance and security but also to reduce costs and mitigate risk, all the while increasing revenues to remain profitable. The impact of these challenges has been magnified in recent years, brought about by the opening of markets to create a globalized economy coupled with constant pressure imposed on industry from external regulatory bodies. Today, organizations have to deal with more challenges than ever before to be sustainable.

The Sustainable Operations process begins with the identification of our customers’ business risks and sustainability goals. Typical aspirations include reducing waste, emissions and use of resources, and increasing production efficiencies. All generally have the potential to improve our customers’ financial performance. We consider these goals when identifying and prioritizing value adding projects to undertake, and then when delivering the projects to ensure our customers optimize the profitability and sustainability of their operations.

In responding to our customer’s aspirations and by understanding relevant project and operational issues, we are confident we have the systems, tools and people to offer tailored solutions for our customers to remain both sustainable and profitable in the long term.

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Project Ten Year Energy Plan Customer Confidential Project Location Australia Phases IDENTIFY EVALUATE DEFINE

EXECUTE

OPERATE

In addition to work being completed under an existing long term Improve alliance, the Sustainable Operations process was engaged to identify and examine options for energy efficiency improvement and emissions reduction within a refinery complex. A wide range of options, from the conventional to innovative, were considered and assessed using the EcoNomics™ Assessment process. This approach compared the environmental, social and financial costs and benefits of each option over a 20 year lifecycle. The optimal solutions identified CO2 emissions reductions of over 1.2 million tons, thousands of tons of NOX, SOX and PM10 emissions, almost $20 million in annual energy savings and over $100 million net improvement to the customer’s financial bottom line.

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Carbon EcoNomicsTM WorleyParsons is uniquely positioned to help our customers manage the risks and maximise the opportunities of the emerging low-carbon economy.

$US3bn financial opportunities given to customers

Around the world, governments, investors, business and the public are moving towards a low carbon future. This trend will accelerate in the years to come. This trend presents unique business risks and opportunities for industry operating in a carbon constrained world where greenhouse gas (GHG) emissions will increasingly be capped and priced, and environmental legislations covers a broadening range of business activities Adjusting to the business reality of carbon requires industry to deploy a range of solutions to manage risks and maximise opportunity. WorleyParsons provides a broad range of technological, engineering and management solutions to meet the carbon challenge. Each aims to provide a component of a complete carbon management strategy for our customers in the hydrocarbons, power, mining and metals, and infrastructure sectors. These focus areas are: • Carbon consulting • Energy efficiency and recovery • Renewable energy • Carbon capture and sequestration (CCS) • Advanced coal

A unique service The range of solutions that industry will need to deploy to adjust to a low carbon future is illustrated in the widely discussed “wedge” concept. It is a fundamental part of the Carbon EcoNomics™ approach. Each may provide a component of a complete carbon management strategy for our customers in the hydrocarbons; power; minerals and metals; and infrastructure and environment sectors.

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Project Strategic Analysis of the Global Status of CCS Development Customer Global CCS Institute Project Location Global Phases The Global Carbon Capture and Storage (CCS) Institute commissioned WorleyParsons, with Schlumberger, Baker & McKenzie and Electric Power Research Institute (EPRI), to complete a strategic analysis of the global status of carbon capture, transport and storage projects and technologies. The project covered the status of demonstration projects, the costs of CCS and the impact of the global financial crisis, policy and regulatory frameworks, research and development efforts, and the commercial and non-commercial gaps to the global deployment of CCS. The reports delivered are the first step in the global CCS Institute’s objective of beginning broad deployment of carbon capture and storage by 2020.

Project CSG to LNG project – Greenhouse Gas Assessment Customer Confidential Project Location Australia Phases WorleyParsons was selected as the Environmental Impact Statement (EIS) and approvals consultant for a major coal seam gas to liquefied natural gas project in Queensland. A major task in preparing the EIS was to perform the Greenhouse Gas (GHG) assessment over the estimated 30 year project lifetime. The GHG mitigation measures that were identified included reduced flaring, energy efficient turbines, utilisation of waste heat for power generation, and boil-off gas recovery during LNG ship loading. These combined measures could save 62 million tonnes CO2-e over the project lifetime.

Project Climate Change Study for Energy Sector Customer World Bank Project Location Albania, Uzbekistan Phases WorleyParsons has undertaken a project providing engineering services for adaptation of vulnerable energy infrastructure to climate change for the World Bank. WorleyParsons EcoNomics™ Assessment capabilities are utilised to quantify the social, ecological, and community impacts of existing and planned facilities in the face of potential climate change effects, and to evaluate appropriate adaptation actions that could be taken to manage the risks. Our wide-ranging, global experience in the Power sector supports the EcoNomics™ Assessment process by providing key technical and engineering expertise. This project demonstrates WorleyParsons’ proven experience as an innovator in the area of climate change, asset integrity and engineering.

Project Whareroa Energy Efficiency Project Customer Fonterra Project Location New Zealand Phases IDENTIFY EVALUATE DEFINE EXECUTE OPERATE WorleyParsons’ energy efficiency specialist group, Demand Response, assisted Fonterra to achieve a 15% reduction in annual energy use over five years. Fonterra is one of the largest dairy companies internationally. In 2002 WorleyParsons was engaged to assist improving Fonterra’s energy efficiency.

A site-wide process description was prepared, providing the basis for the pinch analysis. The key was to rethink the project boundaries and integrate the water, heat and energy systems. The energy savings generated a payback period of less than two years on the $3.5 million invested.

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Setting a new standard Our vision is that EcoNomics™ will be a key differentiator for WorleyParsons in delivering sustainable long term business outcomes for our customers.

We have embedded EcoNomics™ into our proprietary project delivery systems, across all project phases, in a manner that ensures scalability, efficiency, consistency and quality. It provides a common framework for project execution and applies to all project activities throughout WorleyParsons.

EcoNomics™ principles are applied across all our services: Select - during front end design phase, EcoNomics™ provides concepts designed for sustainability over the lifecycle of a project, rather than simply focusing on upfront costs Deliver - embedding EcoNomics™ systems, tools and expertise in our project teams during execution ensures we manage non-technical risks and identify sustainability opportunities from early in the project.

Improve - EcoNomics™ enables the identification of opportunities in existing operations to improve efficiency, maximize reuse and minimize waste, thus reducing operating expenses and dependence on resources.

We deliver EcoNomics™ to those customers interested in owning a more financially, socially and environmentally robust project. More of our customers are electing to engage this framework, and the systems, tools and expertise that underpins it, to minimize risk and maximize the sustainable benefits for their projects. In the future, we believe that all of our customers will see the benefits of working with WorleyParsons to deliver projects using EcoNomics™.

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Our Vision

WorleyParsons will be the preferred global provider of technical, project and operational support services to our customers, using the distinctive WorleyParsons’ culture to create value for them and prosperity for our people.

Leadership

Agility

• Committed, empowered and rewarded people • EcoNomics™ – Delivering profitable sustainability • Integrity in all aspects of business • Energy and excitement • Minimum bureaucracy

• Smallest assignment to world-scale developments • Local capability with global leverage • Responsive to customer preferences • Optimum solutions customized to needs

Relationships

Performance

• Rapport with all stakeholders • Open and respectful • Collaborative approach to business

• Zero harm • Results for our customers and employees • Creating wealth for our shareholders • World-class resources, capability, and experience

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For further information about our global capability, email economics@worleyparsons.com

www.worleyparsons.com