Terra Nova Development

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1 Canada-Newfundland and Labradr Industrial Benefits Public Quarterly Reprt April June 30, 2012

2 Table f Cntents Sectin 1.0 Intrductin... 3 Sectin 2.0 Prject Activity and Benefits Accmplishments... 4 Sectin 3.0 Emplyment... 5 Sectin 4.0 Canadian-Newfundland and Labradr Cntent... 7 Sectin 5.0 Cntracting and Prcurement... 8 Sectin 6.0 Cnclusin... 9

3 Sectin 1.0 Intrductin The Terra Nva Oil Field is situated n the Grand Banks, abut 350 kilmeters east-sutheast f St. Jhn s, Newfundland, and 35 kilmeters sutheast f the Hibernia Oil Field. The Terra Nva field is cmprised f a cmbinatin f prducing wells, as well as water injectin and gas injectin wells, and delivers prductin frm the Graben, East Flank and Far East blcks. Discvered in 1984, the field was the secnd t be develped ff Newfundland. Prductin frm the field began in 2002, thrugh the use f a Flating, Prductin, Strage and Offlading (FPSO) vessel. This was the first develpment in Nrth America t use FPSO technlgy in a harsh weather envirnment. The FPSO is a ship-shaped vessel which has integrated il strage capability frm which il is ffladed int a shuttle tanker. The strage capacity f the Terra Nva FPSO is 960,000 barrels f il and can accmmdate up t 120 persnnel while prducing. The vessel is meters lng, 45.5 meters wide and stands higher than 18 streys. Terra Nva pre-prductin capital expenditures were apprximately $2.8 billin. The FPSO arrived in field n August 21, 2001 and prduced first il in January Suncr Energy, as peratr f the Terra Nva prject, is cmmitted t enhancing pprtunities fr the peple f the prvince thrugh participatin in the Terra Nva Develpment. A lasting ecnmic legacy is being created fr the prvince thrugh Suncr s recruitment and training f lcal talent, its prvisin f full and fair pprtunity t lcal businesses, and by giving first cnsideratin t lcally prduced gds and services within the Prvince, where thse gds and services are deemed cmpetitive. The fllwing represents Suncr s Industrial Benefits Public Reprt fr the quarter ending June 30, This secnd quarter public reprt prvides a summary f activities related t the prductin phase f the Terra Nva prject carried ut by Suncr and its majr sub-cntractrs. 3

4 Sectin 2.0 Prject Activity and Benefits Accmplishments Suncr achieved a number f milestnes during the secnd quarter f Sme f these highlights and achievements include: the cmmencement f the Terra Nva Off-Statin Prject (OSP), which is the mst extensive planned shutdwn in the histry f the Terra Nva FPSO: includes a FPSO swivel replacement, subsea riser and flwline replacement, which will enhance integrity and reliability f ffshre assets and prductin, and includes a new Suth West drill centre satellite, which relates strictly t enhanced prductin. peratinal and capital expenditure fr the Terra Nva prject at just ver $129 millin, 69% f which was spent in Newfundland and Labradr (NL) and the ther prvinces and territries f Canada: 55% was spent in NL, and 14% was spent in the ther prvinces and territries f Canada. three new cntracts with a value greater than $250,000 were awarded, tw f which were awarded lcally t cmpanies based in NL and ne that is based in ther prvinces r territries f Canada. a ttal f 1,681 purchase rders valued at $16.7 millin were issued, 1,568 f which were awarded t vendrs with a NL lcatin r anther Canadian lcatin (89% with a ttal f $14.9 millin): $12 millin in purchase rders awarded t NL lcatins (72%), and $2.9 millin in purchase rders awarded t ther Canadian lcatins (17%). a ttal f 2,307 peple wrking n the Terra Nva prject by the end f June 30, 2012: 1,940 r 84% were residents f Newfundland and Labradr, and 171 r 7% were residents f ther Canadian prvinces r territries. 4

5 Sectin 3.0 Emplyment As f June 30, 2012 a ttal f 2,307 peple were wrking n the Terra Nva develpment. During the secnd quarter, there was an increase in emplyment due t an additinal 796 peple wrking n the Off- Statin Prject as well as an additinal 387 peple supprting Suncr s drilling peratin with the MODU Henry Gdrich. Of the 2,307 ttal, 1,940 r apprximately 84% were residents f NL, while anther 171 r apprximately 7% were residents f ther regins f Canada at the time f hiring (Table 3.1). Of the Newfundland and Labradr residents, 1,225 emplyees wrked nshre, 715 wrked ffshre and 0 wrked in anther lcatin utside f NL. Of the residents frm ther Canadian prvinces and territries, 44 wrked nshre, 77 wrked ffshre and 50 wrked utside f NL (Table 3.2). Table 3.1 Ttal Emplyment Summary Terra Nva Prject Direct Emplyment (Ttal Number f Persns) Newfundland and Labradr Residents (%) Other Canadians (OC) (%) Nn-Canadians (NC) (%) 2,307 84% 7% 9% Table 3.2 Emplyment Summary by Lcatin Terra Nva Prject Ttal Number f Persns Lcatin Residency Status Gender Ttal NL OC NC Male Female Onshre 1, , ,345 Offshre Other Ttal: 2,307 Of the 2,307 emplyees supprting the Terra Nva develpment, 1966 are male and 341 are female r apprximately 15% f the ttal wrkfrce (Table 3.3). The secnd quarter had a lwer percentage f 5

6 females cmpared t 25% in the first quarter due t the start up f OSP. The OSP has a high number f male wrkers filling traditinal skilled trades psitins. Table 3.3 als breaks dwn the emplyment summary by discipline, which includes management, administratin, engineers, technicians, prfessinals, skilled trades wrkers, labur wrkers, students and thers that d nt fit under these categries. The discipline that is the mst male-dminant is the skilled trades categry at 97% male, while the discipline that is the mst female-dminated is administratin at 67% female. Table 3.3 Emplyment Summary by Discipline Terra Nva Prject Number f Persns Discipline Male % Female % Ttal Number f Persns Management % 22 11% 205 Administratin 67 33% % 204 Engineers % 26 14% 178 Technicians % 39 12% 333 Prfessinals % 49 24% 208 Skilled Trades % 19 3% 619 Labur % 21 15% 140 Students 26 60% 17 40% 43 Other % 11 3% 377 Ttals: 1, ,307 Ntes: 1. Disciplines are based n the fllwing Natinal Occupatinal Classificatin (NOC) Cdes: Management includes: Senir Managers as well as Middle & Other Managers Administratin includes: Administrative & Sr. Clerical Persnnel as well as Clerical Persnnel Engineers includes: nly thse in that NOC Cde Technicians includes: Semi-prfessinals & Technicians Prfessinals includes: nly thse in that NOC Cde Skilled Trades includes: Skilled Crafts & Trades as well as Skilled Trades & Service Labur includes: Semi-Skilled Manual Wrkers, Other Manual Wrkers as well as Intermediate Sales & Service 2. Students includes: any student enrlled at a recgnized educatinal institutin r accredited academic prgram and includes bth graduate and undergraduate students, cadets r any ther student. 3. Other includes: psitins that d nt fit int any f the ther disciplines. 6

7 Sectin 4.0 Canadian-Newfundland and Labradr Cntent The fllwing table is intended t reflect the benefit distributin frm Terra Nva cash expenditures. Table 4.1 summarizes the cntent distributin f these perating and capital cash expenditures fr the perid being reprted by Newfundland and Labradr, ther Canadian and nn-canadian spending. Table 4.1 Canadian-Newfundland and Labradr Cntent Terra Nva Prject - Operating and Capital cash expenditures Reprting Perid Newfundland and Labradr (%) Cntent Other Canadian (%) Nn-Canadian (%) This Quarter: Year t Date (YTD): Prject Cumulative(since prductin started in 2002): The expenditure cntent percentages fr the first quarter ending n March 31, 2012 were 45%, 19% and 36% fr Newfundland and Labradr, ther Canadian and nn-canadian spending, respectively. In cmparisn, this means there is an increase in Newfundland and Labradr cntent (+10%), and a decrease in ther Canadian (-5%) and nn-canadian cntent (-5%) fr the secnd quarter f These changes are due t expenditures fr the Off-Statin Prject in the prvince f Newfundland and Labradr, and the recent planned shutdwn f the Terra Nva FPSO. 7

8 Sectin 5.0 Cntracting and Prcurement Three new cntracts with a value greater than $250,000 were awarded during the perid April 01, 2012 t June 30, 2012 (Table 5.1). Table 5.1 New Cntracting Activity Terra Nva Prject Descriptin Supply Vessel Services Atlantic Raven Wellstream Offshre Persnnel Cntract (Seven Pacific) Biindicatrs Diagnstic Tls fr Effective Assessment f Specific Marine Life Cntractr Atlantic Raven Limited Partnership Wellstream Canada Ltd. Petrleum Research Atlantic Canada (PRAC) Cntractr Lcatin (NL, Other Canadian, Nn- Canadian) NL Other Canadian NL 8

9 A ttal f 1,681 purchase rders with a cumulative value f apprximately $16.7 millin were awarded during the secnd quarter f Figure 5.1 summarizes the lcatin f the vendrs that were awarded purchase rders as well as the percentage f the ttal awarded value. Figure Purchase Orders (Percentage f Participatin n a Value Basis) <Quarter 2, 2012> Ttal Value f Purchase Orders: $16.7 millin Other Canadian Vendrs 17% Freign Vendrs 11% NL Based Vendrs 72% Sectin 6.0 Cnclusin Suncr Energy is cmmitted t enhancing its lcal Industrial Benefits fr the peple and the prvince f Newfundland and Labradr. Thrughut Terra Nva s life f field, Suncr Energy will be creating a lasting ecnmic legacy that will benefit the peple f the prvince. 9

Terra Nova Development

Terra Nova Development Canada-Newfundland and Labradr Industrial Benefits Public Quarterly Reprt January 01, 2015 March 31, 2015 Table f Cntents Sectin 1.0 Intrductin... 3 Sectin 2.0 Prject Activity and Benefits Accmplishments...