BassGas, Panna and G1

1
BassGas, Panna and G1

• Presentation by David Singleton, CEO
• 31 October 2006

2
G1-G15 Deepwater Development

• G1-GS15 Field Development
• Client Oil and Natural Gas Corporation (ONGC)
  of India
• Indias first deepwater project
• Value 300m
• G1 and GS15 fields located off the east coast of
  India
• Comprises
• One onshore gas treatment plant and export
  pipeline
• One monopod shallow water platform
• Subsea installation in 250-450m of water. 5
  Wellheads
• All infield steel and flexible pipelines
• Detailed design, procurement, construction,
  installation and commissioning

3
Project Status G1

• Contract awarded December 2004
• Clough paid on milestone deliveries
• Client first attempt at deepwater drilling has
  failed
• Clough committed to vendor subcontracts but
  cannot achieve milestones, plus wasted vessel
  time
• Recent agreement
• Enhances cash flow through complete payments
• Approved some VOs
• OEC Independent Adjudication of cost increases (6
  months)
• Installation now likely Jan-May 2008.

4
Panna Field Development

• Panna Field Development
• Client British Gas consortium (include Reliance
  and ONGC)
• Contract value 180m
• The Panna and Tapti fields are located 95km and
  160km from Mumbai.
• The project comprises the construction and
  installation of three wellhead platforms and four
  pipelines.

5
Project Status Panna

• Contract awarded December 2004
• FEED problems delayed programme, drove completion
  costs
• Market cost increases affected LSTK cost base
• Delays caused Monsoon remobilisation
• Variation order raised and now settled
• Clough currently remobilising
• Contract Practical Completion 24 February 2007

6
BassGas

• BassGas
• Client Origin Energy Resources Ltd
• Location Victoria, Australia
• Contract Value 380 million
• Scope
• Onshore Gas Treatment Plant
• Subsea pipeline, shore crossing and onshore
  pipeline
• Offshore Self Installing Process Platform
• Pre-commissioning and commissioning assistance

7
Project Status BassGas

• Completion due June 2004, delayed to December
  2004
• Origin claimed LDs and cashed bonds 38m
• Wellfluids composition (Origin responsibility)
  contaminated rendering plant unusable
• Origin carry out plant modifications over 15
  months

• Clough claim 95m
• Origin claims 100m (LDs and defects)
• Arbitration outcome 1st quarter 2007

8
Operational Changes

• Full Bid Committee initiated (all bids over 5m)
• CEO, CFO, Chairman (or Deputy), Legal Counsel
• Project Peer Review progressively implemented
• PSG and Project X Project Control Systems
• People selection and development

9
BassGas, Panna and G1

• Presentation to JPMorgan
• David Singleton, CEO
• 31 October 2006