NTNU Visit Overview SISOG ONS portfolio

1. Solutions for the Oil & Gas Industry NTNU VisitOverview SISOG ONS portfolio

2. SISOGCIS Product Family / Overview R&D “Incremental” Innovations “Disruptive” or “Radical” innovations • Compressor Stations • COMP A (Automation) • COMP D (Electrical Drives) • Gas Wellheads / Gas Treatment • Tank Farm Management • Pipeline Supervisory / Security • US-based Software Projects • Oil and Gas Manager (OGM) • Pressure Protection Manager (PPM) • Oilsand Portfolio (Extraction/Separation/Transport) • Synthetic Fuels • Water Re-injection • US-based Software Projects • Engineering Information Management platform (EIMp) • Electronic Management of Change (eMOC)

3. 4 OGM PortfolioInvest over Product LC and Innovation Type 2007 2008 FY 2009 Basic development/Introduction** Growth** Maturity/Harvest*** Total 2‘4 Upgrades 2’5 2’7 5‘6 Incremental Innovations 6’0 6’0 1'9 Radical Innovations 1’9 2’3 5‘5 1’5 3’8 4’0 4’0 5‘0 5’2 1‘1 1‘2 Total * Generic developments; no marketable product or market still not stable; ** Strong growing market (>5%); *** Flat or shrinking market (+5% to <-5%)

4. SISOGCIS COMP A Project Title: Automation for Compressor Stations GZ: IP O&G Responsible: Helmut Liepold Product Lines: Automation Product Family: SISOGCIS Type of Incremental Innovation Status: M250 (Realization) Economic value: 2‘1 € EBIT Margin (Ø 5y.): 7.0 % Additional Sales (Ø 5y.): 5’5 € Objective of R&D project • Development of a globally applicable, integrated compressor station control system • End-to-end system covering all subsystems of the Compressor station, i.e. station control, ESD, Fire & Gas, unit control • Best practice approach • Use of standard automation Kernel (CIS CK) Initial Situation • Huge revamp market due to about 4000 installed compressor stations worldwide • Most compressor station have various different automation platforms for different subsystems, resulting in difficult and expensive maintenance • Siemens attended existing markets with locally maintained solutions • Market share increase difficult Customer Benefits / USP • End-to-end system platform - lowest lifecycle costs - lowest CAPEX due to most efficient utilization of system resources - safety of investment due to worldwide availability of service Approach Strategic Fit • Strengthen technology and automation focus • Completion of portfolio for pipelines Risks • Competition with - major players like ABB, Honeywell, Yokogawa - A&D service providers like grey logic - Specialists for station subsystems Total FY07 R&D cost: 0‘600 x’xxx Feasibilitystudy Realization Pilot / Incr. Rollout 2003 Cost: 0‘050 2004/05 Cost: 0‘200 2006 Cost: 0’250 2007/08 Cost: 0’xxx

5. SISOGCIS COMP A: Typical Architecture

6. SISOGCIS COMP A: Supplied scope COMP A consists of • Station Control System • Emergency Shut down - ESD • Unit Control System • Compressor Station Utilities • Energy management • Remote data transmission Station control means • Station start-up / shutdown sequencing • Station flow controller • Load sharing • Flow routing • Gas mixing • Metering • Production reporting • Energy management

7. SISOGCIS COMP D Project Title: Electric Compressor Drives GZ: IP O&G Responsible: Günther Duchon Product Lines: Drives Product Family: SISOGCIS Type of Incremental Innovation Status: M300 (Commercialize) Economic value: 10‘0 € EBIT Margin (Ø 5y.): 5-7% % Additional Sales (Ø 5y.): 17’0 € Objective of R&D project • Development of a highly standardized and reliable drive solution • Achieve highest quality in project execution through standardization • Standardize documentation during offer and project execution Initial Situation • No standardized solutions for large drive systems • Offer process depending on few key persons • Increasing demand for electric compressor drives Customer Benefits / USP • High reliability and availability due to best design and extensive experience • Flexible design allows for optimized plant solutions • High reliability and longer maintenance cycles mean lower costs for spare inventories and maintenance • Single source for products, solutions and services lead to optimal overall performance Approach Strategic Fit • Completion of portfolio for pipelines / transport • Drives as core competence Risks • Limited resources sufficiently qualified • PGI is acting as competitor to key customers of COMP D • 100% dependency on A&D products Total FY07 R&D cost: 0‘250 0’050 Feasibilitystudy Realization. Improve- ments Rollout 2003 Cost: 0‘015 2003/04 Cost: 0‘150 2006 Cost: 0’050

8. SISOGCIS COMP D: Reference List

9. SISOGCIS WELL Project Title: Modular solutions for small and marginal gas fields GZ: IP O&G Responsible: Jan Arents Product Line: Automation / Power Product Family: SISOGCIS Type of Incremental Innovation Status: M300 (Commercialize) Economic value: 2‘0 € EBIT Margin (Ø 5y.): 15.0 % Additional Sales (Ø 5y.): 1‘5 € Objective of R&D project • Develop a reliable production solution for marginal gas fields • Skid based, modular solution based on industrial standards • Qualification for 4” and 6” flowline • Add a skid based solution for gas drying • Define an alliance strategy with the solution partners included Initial Situation • The traditional solution requires big onsite efforts like civil works, asphalt paving, communication setup etc. • Cost / benefit calculation does not work out for marginal gas fields • BC NL developed a skid based prototype with Shell / NAM that was well accepted • First WELL solutions sold Customer Benefits / USP • Mobile concept / Reuse of the complete system • Wireless communication (GPRS) included • Dramatically reduced effort on site, meaning reduced costs and incidents Approach Strategic Fit • Globally applicable • Increased recovery • Solution approach instead of component supplier Risks • Solution will probably be copied by competitors within a short time frame • Development risks Total FY07 R&D cost: x‘xxx 0’250 FeasibilityStudy RealizationPilot Improve-ments Drying 2004 Cost: 0‘050 2004/05 Cost: 0‘220 2006 Cost: 0‘500 2007 Cost: 0‘250

10. SISOGCIS WELL: Scope of supply

11. SISOGCIS TMS Project Title: Integrated solution for Tank farm and Terminal Management GZ: IP O&G Responsible: Eric Swager Product Line: Automation / Power Product Family: SISOGCIS Type of Incremental Innovation Status: M300 (Commercialize) Economic value: x‘x € EBIT Margin (Ø 5y.): xx.x % Additional Sales (Ø 5y.): x‘x € Objective of R&D project • Subject to BTeA / decision Initial Situation • CS7 based solution commercialized • Main client (and development partner) Saudi Aramco • BTeA underway • Application does not yet provide all core features (f.e. Ship loading) Customer Benefits / USP • Vertical integration from field level to ERP / MIS • Scalable redundancy • Based on standard hardware • Horizontal integration (mainly safety systems) Approach Strategic Fit • Integrated solutions • Additional volume in Instrumentation, Automation, MIS and services possible • Joint sales-channel with SISOG Pipe Risks • Marketing risks not yet evaluated • Development risks Total FY07 R&D cost: x‘xxx 0’250 PilotProject Standardi- zation BTeA Realization 1999-2003 Cost: 1‘500 2005/06 Cost: 0‘300 2006 Cost: 0‘50 2007 Cost: 0‘290 Customer paid

12. SISOGCIS TMS: Overview • Solution for control, monitoring and transaction handling of the receipt, inventory and deliveries of all liquid products in: • Refinery Tank farms • Product Supply Terminals (truck, train, marine) •  Air Fueling Operations • All material flows are completely traceable and accountable, fully integrated into enterprise-wide business environment. • Reliable data handling throughout the company, e.g. from single sites to networked multiple site architectures.

13. Corporate LAN/ Intranet/ Internet Customer Relations Management ERP Server ERP Workstations Business Performance (XHQ/ PI) SISOG TMS Workstation Router Tank Gauging Router ESD FEP RTU Driver ID Truck ID RemoteAFO Unit Field Devices SISOGCIS TMS: Typical Architecture Level 1 (ERP) Levels 2 & 3 (MES & AUTOMATION) SISOG TMS/ SCADA Operator Workstations System Printer Alarm Printer SCADA Servers LAN Ethernet(TCP/IP) Single or Redundant PLC Serial Servers Level 4 (FIELD) PROFIBUS BOL Printer Metering System Preset Controllers Field Devices

14. SISOGCIS PIPE Project Title: Pipeline Supervisory systems and telecommunication solutions GZ: IP O&G Responsible: Sanjeev Sinha Product Line: Automation / MES Product Family: SISOGCIS Type of Incremental Innovation Status: M300 (Commercialize) Economic value: 15‘0 € EBIT Margin (Ø 5y.): 15.0 % Additional Sales (Ø 5y.): 30‘0 € Objective of R&D project • Assure provided technology to be cutting edge • Cost reduction in engineering / add on development • Incorporate features provided by competition (esp. Telvent, ABB) • Integration of pipeline specific third party components / solutions (esp. HSE) • Development of Migration strategies for LSX / CS7 clients Initial Situation • About 100.000 km of pipelines planned • Worldwide trend towards more intelligent systems • LSX / CS7 at end of lifecycle • Siemens with vast experience but declining market share • Demand for high end solutions that are not served via system integrators and commodity systems Customer Benefits / USP • Solution partner instead of product supplier • Telecommunication included • MIS / MES and HSE integration • High end solution serving transnational pipelines • Highest redundancy and availability • Vast project experience / references Approach Strategic Fit • Integrated solutions • High volume in instrumentation, automation, telecommunication and services Risks • Competitive market environment • Development risks Total FY07 R&D cost: x‘xxx 0’680 LSX / CS7Lifecycle BTeAPoC Realization Rollout 1994/2005 Cost: x‘xxx 2006 Cost: 0‘160 2006/08 Cost: 1‘000 2008 Cost: x‘xxx Customer paid

15. Master Control Center Back-Up Master Control Center Operator Station Operator Station Operator Station Engineering Station Training Station Router Remote Workstation Remote Workstation Front End Processor Printer Server SCADA Server Application Server Operator Station Operator Station Operator Station Engineering Station Training Station Router Front End Processor Printer Server SCADA Server Application Server RTU RTU RTU RTU RTU RTU RTU ESD ESD Router SISOGCIS PIPE: Typical Architecture TELECONTROL VIA WAN / LAN DCS - Station Control System DCS -Station Control System Router

16. SISOGCIS PIPE: Additional scope of supply Telecom solutions Pipeline specific applications • Fibre Optic Transmission System on SDH / OTN • UHF Trunked Radio System • Digital Microwave System • V Sat System • EPABX and Hotline System • HFSSB System • Non Directional Beacon System • Marine Radio System • Air to Ground Radio System • Leak detection & Location • Batch tracking • Pig Tracking • Planning / Scheduling • Forecaster • Pipeline Inventory & Efficiency • Compressor & Pump Optimization • Simulator • Trainer

17. New project: Oilsand PortfolioImproved SAGD Project Title: Flexible Optimization of Energy and Steam Consumption GZ: I&S OGM Responsible: Michael Koolman Product Line: Automation / Energy Product Family: SISOGCIS Type of Radical Innovation Status: M90 Economic value: x‘x € EBIT Margin (Ø 5y.): 6 % Additional Sales (Ø 5y.): 100’0 € Initial Situation • Declining conventional oil reserves • Oil price on high level above US$60 • Oil sands in strategic focus for US and worldwide • I&S IP O&G participated in a pilot plant for evaluation of an extraction process (BITMIN) with Petro-Canada • Regional shortage of engineering capacity • Reference projects in mining and water technologies Objective of R&D project • Main technology program in the area of Extraction / Injection for e-SAGD process • Alternatives in special solutions currently assessed and evaluated with pot. customers • Positioning of Siemens with key partners to enable for solution sales • Approach supported by I&S CTO and Corporate Technology Customer Benefits / USP • Flexible Optimization of Energy and Steam Consumption • Reduction of overall Water Consumption • Strong reliable partners sought after since shortage of resources • Siemens role as unique source for integrated solutions from conception to project execution • OPEX reduction Approach Strategic Fit • “Mega-Trend” for alternative oil sources identified in Trendsetting project • Cross GG impact of oil sand activities: Mining: Floatation Cell for SeparationWater: Excessive Demand for Produced Water and Waste Water Treatment Risks • Limited process Know How • Market under dynamic change Total FY07 R&D cost: x‘xxx 0’120 Feasibility Study Definition Realization Rollout 2006/07 Cost: 0‘120 2007 Cost: 0‘150 2007/08 Cost: x‘xxx

18. New project: Synthetic FuelsBiomass gasification and Fischer Tropsch Synthesis Project Title: Development of a Portfolio for Synfuels GG: I&S OGM Responsible: Product Line: Power Product Family:SISOG Type of Innovation:Radical Status: M90 Economic value: to be evaluated EBIT Margin (Ø 5y.): tbd Sales (average): to be evaluated Initial Situation • Declining reserves for conventional liquid fuel generation process • Increased environmental concerns on CO2 emissions • Technological know how on Gasification (both char and biomass) with PG • Know how for Fischer-Tropsch synthesis in industrial scale rare • Plants running in South Africa, China Objective of R&D project • Major players and competitors • Analysis of applicability of Synfuel Technologies onto Oil and Gas branch, economic issues and challenges • Investigate state of the art of technology and existing plants • Investigate available public funding (EU) • Customer requirements, regional regulation’s impact on economics • Strategy proposal for I&S Customer Benefits / USP • CO2-neutral cycle for liquid fuels • Avoiding high environmental taxes • Independence of crude supply from instable regions • Unique combination of Biomass gasification and Fischer-Tropsch synthesis in industrial scale Approach Strategic Fit • Fit with mega trends in the area of urbanization and environment • Unique combination of components and solution conception as I&S value added • Synergies in between groups I&S and PG • Intellectual property potential is high Risks • Business case heavily depending on oil price • High capex in Synfuel plants Total FY07 R&D cost: tbd € 0’050 Study / Strategy Develop-ment Proto-type Marketintroduction 07/08- 0’xx 07/07 - 09/07 Cost: 0’05 10/07 - 09/08 0’xx 01/08 - 0’xx