2011 Activity and SD Report TECHNIP

2011 Activity and Sustainable Development Report

OUR ENERGY AT WORK

MEETTECHNIP

We are a world leader in project management,

engineering and construction for the energy industry.

From the deepest subsea oil and gas developments

to the largest and most complex offshore and

onshore infrastructures, our 30,000 people work

together to offer the best solutions and most

innovative technologies to meet the world’s energy

challenges.

Present in 48 countries, Technip has state-of-the-art

industrial assets on all continents and operates

a fl eet of specialized vessels for pipeline installation

and subsea construction.

What we accomplish, together with our partners,

is nothing short of amazing. Because taking it further

is what we do.

TECHNIP AT A GLANCE

ACTIVITIES IN SUBSEA, OFFSHORE AND ONSHORE -ONE TECHNIPWITH ENGINEERING, TECHNOLOGIES AND PROJECT MANAGEMENT CAPABILITIES, ON LAND AND AT SEA, WE SAFELY AND SUCCESSFULLY DELIVER THE BEST SOLUTIONS FOR OUR CLIENTS IN THE ENERGY BUSINESS.

TECHNIP TODAY

REVENUE IN 2011: € 6.8 BILLION

€ 710 MILLION OPERATING INCOME FROM RECURRING ACTIVITIES IN 2011

BACKLOG AT THE END OF 2011 € 10.4 BILLION

BogotaCaracas

St. John’s

BarceLisbon

ParisMarseille

Le TraitLondon

T

Orkan

StavangeEvanton

NewcastleAberdeen

Monterrey

Ciudad del Carmen

Mexico City

Angra

Macaé

Açu (under construction)

Los Angeles

Calgary

MobileCarlyss

Houston

Rio de Janeiro

Vitória

La

Accra

WHEREVER IN THE WORLD OUR CLIENTS OPERATE, WE HAVE THE RESOURCES TO MAKE THEIR PROJECTS A SUCCESS.

WHEREVER IN THE WORLD OUR CLIENTS OPERATE

A MULTI-LOCALCOMPANY

OPERATINGCENTERS

CONSTRUCTION YARD

SERVICES BASES

SPOOLBASES

MANUFACTURING PLANTS(FLEXIBLE PIPELINES AND/ORUMBILICALS)

TECHNIP WORLDWIDE

Lobito

Luanda

BarcelonaLisbon

ParisMarseille Rome

Le TraitLondon

WarsawDüsseldorf

Lyon

Athens

The Hague

Doha

Al KhobarDubaï

Bagdad

Baku

Cairo

Oslo PoriSt. Petersburg

Orkanger

StavangerEvanton

NewcastleAberdeen

under truction)

Dande

Miri

Kuala Lumpur Tanjung Langsat

BatamSingapore

Shanghai

Seoul

Balikpapan

Jakarta

Perth

neiro

MumbaiNew Delhi

Ashgabat

Chennai

ria

Abu Dhabi

Lagos

AccraPort Harcourt

BangkokHo Chi Minh City

Rayong

To undertake our offshore operations, we operate a specialized fl eet comprised of 34 vessels (of which four are under construction) which is unique in the industry.

4 RIGID REEL-LAY & J-LAY

we operate aTo undertake our offshore operations, w perate awhich(of which four are under construction) w h is uniq

A UNIQUE FLEET

9 FLEXIBLE-LAY & CONSTRUCTION

5 RIGID S-LAY AND HEAVY LIFT

16 DIVING & MULTI SUPPORT

Y J4 RIGID REEL-LAY & J-LAY

9 FLEXIBLE LAY &9 FLEXIBLE-LAY & CONSTRUCTION

FT5 RIGID S-LAY AND HEAVY LI

UPPORT16 DIVING & MULTI SU16 DIVING & MULTI SUPPORT 16 DIVING & MULTI SU

30,000 PEOPLE

INDUSTRIAL ASSETS ON ALL CONTINENTS

PRESENCE IN 48 COUNTRIES

WE LIVE AND WORK ACCORDING TO OUR VALUES. THEY ARE AT THE ROOT OF OUR ACCOMPLISHMENTS AND WILL BE THE FOUNDATION OF OUR GROWTH IN THE FUTURE.

Our conduct speaks louder than words. That is why we strive to always do the right thing wherever business takes us. That means not only acting transparently and keeping commitments, but also ensuring the safety of people and sustainable practices within the community and across the planet. Safety, ethics, quality, security and respect always take us further.

You already know the feeling that comes from joining together to successfully solve a major challenge. Our ability to combine talents and deliver success makes us unique. We value diversity, and have passion and true belief in each person’s contribution. It is the trust and confi dence between team members and between teams that take us further.

WE LIVE AND WORK ACCORDING TO OUR VA

WHAT DRIVES US

Our conduct speaks louder than word

DOINGTHE RIGHT THING

You already know the feeling that co

TRUSTINGTHE TEAM

y

sity, s

and respect always take us further.

OUR VALUES

We believe in profi table projects based on sustainable relationships. We seek to enhance our performance and share the benefi ts of every achievement with our stakeholders, clients, employees, shareholders, partners, suppliers and local communities. Fair returns take us all further.

At Technip, we are building the future through today’s most ambitious energy infrastructure projects. We are also creating the conditions that will generate tomorrow’s game-changing innovations by developing our people. Entrepreneurial attitude, investment and anticipation are at the very heart of how we are taking it further.

We believe in profi table projects based on

ENCOURAGINGA FAIR RETURNFOR ALL

At Technip, we are building the future thro

BUILDING THE FUTURE

CONTRIBUTING TO SUSTAINABLE DEVELOPMENTThanks to the expertise and know-how of our teams, we make an important contribution to the development of technologies and sustainable solutions to enhance the world’s energy resources. We assume our responsibilities and the impact of our decisions and activities within our sphere of infl uence in all three areas of sustainable development: social, environmental and economic. Our commitment to the safety and health of all our people is particularly unconditional.

AN EXPERT IN HIGH ADDED VALUETECHNOLOGIESINNOVATION PLAYS AN IMPORTANT ROLE IN ALL OUR ACTIVITIES. IT HELPS US MEET OUR CLIENTS’ NEEDS EFFECTIVELY AND PROVIDE TAILORED, HIGH-PERFORMANCE SOLUTIONS. AS AN INNOVATIVE COMPANY, WE HAVE UNRIVALLED RECORDS IN DELIVERING PIONEERING SOLUTIONS AND PROJECTS.

200 + PATENT FAMILIES REGISTERED SINCE 2003

OVER € 50 MILLION R&D INVESTMENT PER YEAR

8 R&D CENTERS

GLOBAL NETWORK OF MORE THAN 500 EXPERTS

INNOVATION & TECHNOLOGIES

RECENT TECHNOLOGICALACHIEVEMENTS

2010

2009

2007

2011

2010

2008

2006

Signature of an engineering, procurement and construction contract for Prelude, the world’s fi rst Floating LNG unit, which Shell will operate off the shores of North West Australia.

Qualifi cation of the fi rst 20,000 pound-force per square inch fl exible

jumper at a water depth of 3,000 meters.

Signature of the contract for the world’s fi rst subsea implementation of our reelable, electrically trace-heated pipe-in-pipe (ETH-PIP) technology (for Total).

World’s fi rst full-scale fl oating wind turbine (for Statoil).

World’s fi rst open sea catamaran fl oatover topside installations on

the deepwater Kikeh Spar (Murphy Sabah Oil Co. Ltd.).

Technological world fi rst with a riser and lifting system contract for a subsea mining project.

World’s fi rst deployment of the Integrated Production Bundle (IPB) on Dalia fi eld; an innovative technology developed by Technip R&D teams, for high-level fl ow assurance (for Total).

CONTENTS The Group in 2011

Our activity

Sustainable development

Glossary

02 24 44 82

THE GROUP IN 2011MESSAGE FROM THE CHAIRMAN 042011 IN PICTURES 062011 IN FIGURES 10GOVERNANCE & ORGANIZATION 14ETHICS & COMPLIANCE 18MARKETS & STRATEGY 22

03

TECHNIP2011 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT

Thierry PilenkoChairman and Chief Executive Offi cer

"IN 2011 WE FOCUSED ON THE ACCELERATION OF OUR PROFITABLE GROWTH"

MESSAGE FROM THE CHAIRMANAND CHIEF EXECUTIVE OFFICER

THE GROUP IN 2011

WHAT KIND OF YEAR WAS 2011?The fi nancial crisis remained in the background throughout 2011 and it will certainly continue to affect and reshape our world in the years to come. The year was also affected by events such as the Arab Spring and the Fukushima disaster, which both had a strong impact on the energy industry.

For Technip, 2011 was a year of signifi cant achievements in all of our business segments. In the Subsea segment, we completed pioneer projects such as Pazfl or and Jubilee. We continued to invest strongly in our assets and delivered our second Brazilian-fl agged construction vessel. Our Malaysian plant delivered its fi rst fl exible pipeline and we announced the construction of a new manufacturing plant in Açu, Brazil.

The offshore business began to grow rapidly. The 10-year agreement with BP in the Gulf of Mexico and the Lucius Spar awarded to us by Anadarko demonstrate a rebirth of the Spar business. We were also awarded the engineering, procurement and construction phase of the Prelude Floating LNG project by Shell, which will be the largest fl oating unit in the world. This project is a real breakthrough for the energy industry and a true game-changer for offshore natural gas developments.

Onshore, we successfully delivered several installations, such as the Yansab ethylene plant in Saudi Arabia, and we continued to focus on the execution of our ongoing projects. We also increased the geographic diversifi cation in our backlog with projects like the RPBC (Brazil) and Burgas (Bulgaria) refi neries.

CAN YOU COMMENT ON TECHNIP’S FINANCIAL RESULTS?

Our fi nancial results refl ect our profi table growth strategy. In 2011, our revenue grew 12% compared to 2010. We confi rmed our future development potential by increasing our backlog by nearly € 1.2 billion, to € 10.4 billion. We also launched new investments and completed several strategic acquisitions, including Global Industries, the largest transaction completed by

Technip in the last 10 years. This provides us with additional talent in the subsea area as well as state-of-the art assets.

We delivered strong profi tability, beyond our initial expectations, with a record net income of € 507 million and a Group operating margin from recurring activities of 10.4%, which refl ects the effi cient execution of our projects. This is the third year in a row that we deliver operating margins above 10%.

Given this performance and the outlook for 2012, we have recommended that the shareholders approve a dividend increase of 9%, to € 1.58 per share.

COULD YOU TELL US ABOUT THE GROUP’S COMMITMENT TO SUSTAINABLE DEVELOPMENT?More than ever, we will pay particular attention to achieving the best performance in terms of both safety and quality. A good example of this is the acquisition of Cybernétix, an expert in subsea robotic technologies. It enabled us to expand our offer in asset integrity management.

Our corporate social responsibilities, which include the environment and local communities, will also continue to be a priority. It is the duty of a large international company such as Technip to be at the forefront of these important areas. In renewable energy, for example, we bought Subocean, a company recognized for its expertise in subsea cable installation in the offshore renewable energies sector, a business that we want to develop.

WHAT IS THE OUTLOOK FOR 2012?While economic and political uncertainties should not be ignored, we continue to see opportunities in nearly all the markets in which we operate. Our clients are confi dent about oil and gas prices and continue to invest to meet challenging production targets. Successful exploration programs, notably in mature fi elds such as the North Sea, are stimulating fast-track offshore developments and requirements for new technology solutions.

One of our main objectives for 2012 is the integration of Global Industries into our organization. We are already making good progress on this. Our fi rst project wins involving Global Industries’ assets confi rm the logic of the acquisition, as does the positive reaction of both our clients and our teams to the combination of our businesses.

In 2012, using our strong balance sheet, we will maintain our investments in key assets and local content to meet growing demand. Our Subsea and Onshore/Offshore segments are both expected to deliver revenue growth. We are aiming for operating margins of around 15% for Subsea and between 6% and 7% for Onshore/Offshore.

Thanks to our people, technology, assets and market positions, we enter 2012 well positioned to take Technip further. We are confi dent we can continue to successfully deliver projects to our customers and that we will see another year of profi table and sustainable growth, delivering value to our shareholders.

We continue to see opportunities in nearly all the markets in which we operate

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➊ Performance guarantees were successfully achieved in the Yansab ethylene plant in Yanbu, Saudi Arabia. ➋ Technip completed the design and construction of a small-scaled LNG unit for Ningxia Hanas in China. ➌ Technip successfully completed the Pazflor project for Total in Angola, which is our biggest subsea project to date. ➍ Total’s Islay project involved the first implementation of Technip’s electrically trace heated pipe-in-pipe technology. ➎ Technip is at the forefront of pre-salt developments, as illustrated by the Tupi project for Petrobras in Brazil. ➏ Technip carried out the first offshore development in Ghana: the Jubilee project for Tullow Oil. ➐ The Brazilian Petrobras P-56 semi-submersible platform, one of the largest worldwide, started production.

THE YEAR IN REVIEW

2011 IN PICTURES

Major milestones for our projects

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THE GROUP IN 2011

➊ Technip increased its brownfield activity by securing a contract with ZADCO for the Satah Full Field Development project in Abu Dhabi. ➋ Petrobras appointed Technip to add five new units at the RPBC refinery in Brazil, enabling us to develop our onshore business in the country. ➌ Technip’s 10-year frame agreement with BP, and the award of the Anadarko Lucius Spar contract confirm the renewal of the Spar business in the Gulf of Mexico and our leadership in the sector. ➍ Technip and Odebrecht Oil and Gas signed a contract with Petrobras to provide twin flexible pipeline installation vessels for the booming offshore Brazilian market. ➎ A good example of our technological know-how that can be used to protect the environment is the well containment system that we have been working on to prevent another oil spill in the Gulf of Mexico. ➏ Technip was awarded a major contract from Shell for the construction of Prelude, the first FLNG facility and also the largest floating unit ever built.

An array of new contract awards➏

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➊ Technip completed the acquisition of Global Industries, the largest in 10 years, enabling us to combine our complementary know-how and assets in the subsea business. ➋ Technip benefits from the unique robotic expertise of Cybernétix, acquired at the end of the year. ➌ Technip reinforced its leading position in the asset integrity management by acquiring AETech, specialized in acoustic technology. ➍ Technip acquired Subocean, confirming its commitment to the renewable energies market. ➎ The Skandi Niterói, a new Brazilian vessel specialized in flexible pipe installation in deepwater, joined the Technip fleet. ➏ Strategically positioned in the Asia Pacific market, Technip’s Asiaflex Products flexible pipe plant started making its first deliveries. ➐ Technip has decided on the construction of a new flexible manufacturing plant in Brazil.

Key acquisitions to reinforce our leadership

Leading-edgeassets

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2011 IN PICTURES

THE GROUP IN 2011

➊ Technip was awarded the Top Employers label in France, Spain and Brazil, underlining the quality of its human resources. At the beginning of 2012, Technip won the Top Employers Europe label as well. ➋ Jubail, Asab3, PMP and Connect are some of the many projects that received an award for their HSE performance. ➌ With the creation of our Relief and Development Fund, Technip supports a wide range of humanitarian causes, focusing on health and education. ➍ Technip celebrated HSE through three main Group events: World Environment Day, Pulse Communication Week and Health Day. ➎ Technip has been a member of the Dow Jones Sustainability Index for ten years, confirming its reputable performance in sustainable development.

A strong commitment to sustainabledevelopment

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OPERATING INCOME FROM RECURRING ACTIVITIES (€ MILLION)

REVENUE (€ MILLION)

KEYFIGURESTechnip’s 2011 revenue surpassed our initial expectations, coming in at € 6.8 billion. Driven by strong execution and successful delivery of projects worldwide, Technip’s operating margin from recurring activities was above 10% for the third year running. Our backlog at the end of the year stood at € 10.4 billion, our highest since the end of 2006. The solidity of our fi nancial results as well as the quality of our people, technology, assets and market positions allows us to enter 2012 with good perspectives.

2009 2009*2010 20102011 2011

6,456 677

620

710

6,082

6,813

2011 IN FIGURES

* Excluding the exceptional € 245 million provision related to TSKJ matter in 2009

Subsea revenue in 2011 (€ 2,972 million) mainly refl ect a pick-up of activity in the North Sea, completion of several large African projects and robust activity in Brazil.

Onshore/Offshore 2011 revenue (€ 3,841 million) refl ect the delivery of several projects, including a biodiesel plant in Rotterdam, The Netherlands and the P-56 semi-submersible platform in Brazil. As well, it includes the ramp-up of construction phases on Middle East projects, notably on the Jubail refi nery in Saudi Arabia.

We delivered strong profi tability, beyond our initial expectations, with an operating margin from recurring activities reaching 10.4%.

THE GROUP IN 2011

2009**

2009

20092010

2010

20102011

2011

2011

NET INCOME (€ MILLION)Net income in 2011 was € 507 million,

up by 21.5% compared with 2010.

NET CASH (€ MILLION)On December 15, 2011, Technip issued bonds

(OCEANE) convertible into and/or exchangeable for new or existing shares with a fi nal maturity of

January 1, 2017 in an aggregate amount of € 498 million representing 5,178,455 bonds.

Capital expenditures for full year 2011 were € 357 million, compared with € 389 million in 2010. Technip’s investment in key differentiating assets

during the year included delivery of the new-built Skandi Niterói and the upgrade of

Sunrise 2000, both for long-term charters with Petrobras. Ongoing investments included the

upgrade of our manufacturing plant in Newcastle, United Kingdom for steel tube umbilicals,

early works on a new fl exible pipe plant in Brazil, fi nalization of the construction of G1201 vessel, and the construction of four new vessels: Deep Orient for the Asia Pacifi c market, Deep Energy and two 550-ton Flexible-Lay vessels for Brazil.

BACKLOG (€ MILLION)2011 was a year of signifi cant achievement for Technip. We confi rmed our growth potential,

increasing our backlog by nearly € 1.2 billion to € 10.4 billion.

170

8,018

1,784

418

9,228

1,332

507

10,416

721

** Including the exceptional € 245 million provision related to TSKJ matter in 2009

11


TECHNIP ONTHE STOCK MARKETTechnip’s shares are listed on the NYSE Euronext Paris exchange and the USA over-the-counter (OTC) market as an American Depositary Receipt.

SHARE PRICE PERFORMANCE ON EURONEXT PARIS – COMPARTMENT A (FROM JANUARY 2, 2011 TO DECEMBER 28, 2011)

As of December 31, 2011, Technip’s shares ranked 24th on the CAC 40 by weighted capitalization, compared to 36th, when Technip joined the index.

Despite uncertainty in relation to the worldwide economic recovery and European sovereign debt crisis, in 2011 Technip’s share price rose by 5.09% which outperformed the STOXX® 600 Oil & Gas Index* by 3.7%

and the CAC 40 Index by over 20%. On August 1, 2011, Technip’s share price reached a historic high of € 78.14 per share.

In 2011, Technip continued to implement its strategy focused on profi tability, based on successful project execution, technological excellence and profi table order intake. At the start of 2011, Technip’s share price

was € 69.10 and ended the year at € 72.62.

* STOXX® 600 Oil & Gas Index includes European companies that are involved in the energy sector

2011 IN FIGURES

15%02/01/11

01/02/11 03/03/11

04/02/1105/02/11

06/01/1107/01/11

07/31/11

08/30/11

09/29/11

10/29/1111/28/11

12/28/11

10%

5%

0%

-5%

-10%

-15%

-20%

-25%

-30%

Technip

CAC 40

THE GROUP IN 2011

DIVIDEND FOR THE FISCAL YEAR (€ PER SHARE)

Our 2011 performance enables the Board of Directors to recommend a dividend

increase by 9% to € 1.58 per share.

SHAREHOLDING STRUCTURE, NOVEMBER 2011

SUSTAINABLEDEVELOPMENT INDEXESSustainable development concerns are integrated into the Group’s approach to project execution and in defi ning and applying its values. Thanks to our achievements in sustainable development, our stock has been reselected for 2011-2012 as part of both the European and World Dow Jones Sustainability Indexes, for the 10th consecutive year. Technip is also part of SAM's list of best performing companies in sustainable development and ASPI Eurozone's index of socially responsible groups.

SHAREHOLDERS AND INVESTORS CONTACTSTechnip’s fi nancial communications team is available to answer questions and provide information to individual shareholders, institutional investors and fi nancial analysts in French and English:

Individual shareholders relationsTel: +33 (0)1 47 78 66 75E-mail: [email protected]

Investors and analysts relationsTel: +33 (0)1 47 78 69 77E-mail: [email protected]

NORTH AMERICA29.4%

UK & IRELAND10.3%

IFP ÉNERGIES NOUVELLES

2.6%

INDIVIDUAL SHAREHOLDERS

6.6%

TREASURY SHARES2.1%

OTHERS4.5%

EMPLOYEES2.0%

REST OF WORLD17.6%

FONDS STRATÉGIQUED’INVESTISSEMENT5.4%

FRENCH INSTITUTIONALINVESTORS19.5%

INSTITUTIONALINVESTORS

82.2%2009 2010 2011

1.35

1.45

1.58 13


GOVERNANCEAND ORGANIZATION

AN EXECUTIVE MANAGEMENT TEAMREPRESENTING BOTH OPERATIONS AND SUPPORT FUNCTIONS

The Chairman and Chief Executive Officer (CEO) is responsible for the general management of Technip, with the assistance of the Executive Committee. Three special committees report to the Chairman and CEO: the Sustainable Development Committee, the Ethics and Compliance Committee and the Disclosure Committee.

The Executive Committee prepares decisions for submission to the Board of Directors; specifically those relating to the approval of accounts, the setting of objectives, budgetsand strategic orientation, as well as the acquisition and sale of assets and companies. It supervises the monitoring of major contracts and evaluates key investment decisions. It also examines the plans and recommendations put forward regarding internal audits, informationsystems and telecommunications, human resources and asset management.

Since 2011, the Executive Committee has been comprised of the Chairman and CEO, two Chief Operating Officers from Technip’s business segments (Subsea and Onshore/Offshore) and one other senior executive from the operational business. Three senior managers also represent key corporate functions: the Chief Financial Officer, the Director of Human Resources and the General Counsel.

"Our 2011 profi ts were ahead of our initial goals and in addition, we grew our backlog in line with our risk parameters."

Julian WaldronChief Financial Officer

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CLEAR AND ACCOUNTABLE LEADERSHIPTechnip is committed to implementing the highest standards of corporate governance, notably by complying with the French AFEP/MEDEF corporate governance code for listed companies.

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TECHNIP EXECUTIVE COMMITTEE

"In 2011, we endeavored to live our values on a daily basis – "doing the right thing", "trusting the team", "encouraging a fair return for all" and "building the future" – in all that we do."

John HarrisonGeneral Counsel

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"The Onshore segment had a solid performance in 2011 with very good technical and economical results. The prospects for 2012 are positive and well diversifi ed in the traditional oil and gas market and also in the energy industry in general."

Nello UccellettiSenior Vice President, Onshore

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"To ensure that our core business is well covered, we have adapted our corporate structure with the appointment of two Chief Operating Officers for the Subsea and Onshore/Offshore segments."

Thierry PilenkoChairman and Chief Executive Officer

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THE GROUP IN 2011

"With three acquisitions, investment in key industrial and marine assets and major projects completed and awarded, 2011 was a very active year for the Subsea segment."

Frédéric DelormelExecutive Vice President and Chief Operating Officer Subsea

➐"Intergenerational human resources management is at the heart of our social responsibility: it is crucial to foster Junior’s employment and to capitalize on the knowledge of Seniors."

Thierry ParmentierHuman Resources Director

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"In the offshore business we continue to expand our position from frontier zones to technology projects in deep and shallow waters."

Philippe BarrilExecutive Vice President and Chief Operating Officer Onshore/Offshore

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15


GOVERNANCEAND ORGANIZATION

A BOARD OF DIRECTORS REFLECTING OUR DIVERSITY

The Board of Directors determines the strategic business directions of Technip and supervises their implementation. It is assisted in its duties by recommendations made by four committees.

The Audit Committee’s role is to enable the Board to ensure the quality of internal controls as well as the integrity of the information disclosed to shareholders and financial markets.

The Nominations and Remunerations Committee makes recommendations to the Board on the appointment of Directors and examines the policy regarding compensation of Executive Committee members and proposes those of the Chairman and CEO of the Group.

The Strategic Committee assesses Technip’s overall strategy (strategic orientations, plans and budgets, investments, acquisition and disposal of assets) as proposed by the Chairman and CEO.

Finally, the Ethics and Governance Committee promotes best practices regarding governance and ethics within the Group.

The activities of the Board of Directors are governed by a set of internal regulations, and a Directors Charter defines their rules of conduct and duties.

Technip’s Board of Directors consists of 11 members, including eight independent directors, bringing an in-depth understanding of the Group’s major clients and markets such as North America, the North Sea and Brazil. With three women and six nationalities represented, it also reflects the diversity of the Group.

AN ORGANIZATION FOSTERING PROXIMITY TO OUR CLIENTS IN HIGH-GROWTH MARKETS

Technip’s organizational structure consists of seven Regions that are responsible for their own client interface, operations and financial results: Asia Pacific, Brazil, Middle East, North America, North Sea-Canada, Region A (Western Europe, Africa, India and Pakistan) and Region B (Italy, Greece, Eastern Europe/Russia/CIS and South America).

The head office, which is comprised of the Group’s senior management and corporate teams, supports the Regions with advice and expertise in transversal areas such as quality, health, safety and environment, security, finance, legal affairs, human resources, product lines, communications and information systems.

COMPOSITION OF THE BOARD OF DIRECTORS AT FEBRUARY 29, 2012

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THE GROUP IN 2011

➊ Thierry Pilenko / Technip’s Chairman and CEO ➋ Olivier Appert / Chairman of IFP Énergies nouvelles ➌ Pascal Colombani* / Chairman of the Board of Directors of Valeo ➍ Leticia Costa* / Associate of Prada Assessoria ➎ Marie-Ange Debon / Corporate Secretary of Suez Environnement ➏ C. Maury Devine* / Member of the Boards of Directors of FMC Technologies and John Bean Technologies ➐ Gérard Hauser* / Member of the Boards of Directors of Alstom and Ipsen ➑ Marwan Lahoud* / Chief Strategy & Marketing Officer of EADS ➒ Daniel Lebègue* / Chairman of the Institut Français des Administrateurs ➓ John O’Leary* / Chairman and Chief Executive Officer of Strand Energy Joseph Rinaldi* / Partner in Davis Polk & Wardwell

* Independent Director

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17


ETHICSAND COMPLIANCE

PUTTING ETHICS FRONT AND CENTERAs a multinational company, Technip must conduct business ethically and in strict compliance with the law. Ethical behavior is expected by our employees, demanded by our clients and is the basis of the trust of our shareholders. For us, it is the only acceptable way of doing business.

A CLEAR STRATEGY FOR A STRONG POLICY

In addition to being contrary to our values, unethical behavior poses criminal and financial risks to both our employees and the Company. Our objective, therefore, is to conduct business everywhere in the world with the highest standards of honesty, integrity and fairness, and in compliance with the principles set out in the United Nations Global Compact.

To this end, we continue to implement a "best in class" compliance program with three main priorities:1. Comply with the laws and regulations in

force in the countries where we operate, 2. Conduct due diligence of our business

partners globally to ensure our operations are performed in strict accordance with the laws in force,

3. Train our employees to foster ethical behavior.

ACCOUNTABLE MANAGEMENT

Technip has a comprehensive compliance structure in place that stretches from the Board of Directors right through to day-to-day business, to guarantee that everyone in the Group applies and respects our principles.

Created in December 2008, the Ethics and Governance Committee is composed of members of the Board of Directors. It assists the Board in promoting best practices regarding governance and ethics within the Group. One of the Committee’s main duties is to monitor compliance with ethics principles and discuss all matters that the Board of Directors (or its Chairman) may send to it for examination. The Committee meets at least twice a year. Each year it presents an evaluation of its operating policies and proposes measures to improve its practices.

Why is it particularly important to refer to strong ethics principles when you hold an operational position?In all organizations, leaders set an example for the behavior of the employees working for them. Therefore, they must be committed to the highest standards. Leaders holding an operational position are constantly balancing risks and opportunities within the business process. Decisions made according to ethical principles allow us to provide the best returnto all stakeholders.

Would you tell us more about the implementation of the Ethics & Compliance campaign in the North America Region in 2011?Ethics and Compliance have been a regular part of the discussions within the North America management team, so the roll out of the program was welcomed by all. We decided to broaden the Ethics and Compliance reach beyond the minimum level expected, by providing as much training depth as possible to all employees who may become exposed to compliance situations. By constantly discussing and prompting them, we were able to complete the training in due time, capturing a larger population than originally intended.

What are your comments and suggestions on the Ethics e-learning program?41 senior leaders, including myself, and over 1,240 North America Region employees completed the program. The training was comprehensive and in most part very interesting. Even if e-learning programs do not always lead to the best retention of information, they are easier to set up and allow completion by more learners. To further improve future trainings, I would recommend to split the material over modules and space them out, to start each session with a recap of the last one and a test but also to provide individuals with a reference guide.

3 QUESTIONS FOR

Alan MarriottChief Operating Offi cer, Subsea Business Unit, Technip in North America

THE GROUP IN 2011

A second committee, the Ethics and Compliance Committee is composed of senior managers from across the Group and reports directly to the Chairman and Chief Executive Officer (CEO). It ensures that the Group’s Ethics Charter and all internal regulations derived from it are properly adhered to. The Ethics and Compliance Committee makes proposals to the Chairman and CEO and the Board of Directors of the Company concerning ethics and compliance. It also organizes reports from the managers of the Regions on how the Charter is being applied. Any employee can refer an issue to the Ethics and Compliance Committee on any subject related to the principles set forth in the Ethics Charter. The Ethics and Compliance Committee is chaired by the Group Compliance Officer.

Technip’s ethics and compliance programs are supervised by the Group Compliance Officer, who reports to the General Counsel and to

the Technip Board of Directors through the Ethics and Governance Committee. The Group Compliance Officer is responsible for ensuring the application of the Ethics Charter and the effective implementation and enforcement of applicable anti-corruption and compliance policies. Regional Compliance Officers oversee everyday operations in the Regions. They are responsible for providing support for the effective implementation of the Company’s anti-corruption and compliance policies.

CLEAR RULES FOR EVERYONE

Technip regularly reviews its ethics and compliance policies and procedures to make sure they are compliant with the most stringent international practices. Our rules and systems provide a clear and comprehensive operational framework for conducting business in all of the countries where we operate.

Good ethics is good business

ETHICS AND INTEGRITY ARE CORE VALUES OF TECHNIP

19


ETHICSAND COMPLIANCE

Our Ethics Charter defines our objectives in terms of integrity and the corresponding rules of good conduct: • Respect the spirit and letter of the law,• Never make personal use of insider information,• Always protect the confidentiality of

sensitive information,• Avoid conflicts of interest,• Never offer any inducements to secure

commercial favors,• Always inform the Ethics and Compliance

Committee of any behavior that violates these rules.

With respect to this last issue, a whistle-blowing procedure was introduced in June 2010, pursuant to which employees of the

Group can inform the Ethics and Compliance Committee of any behavior violating the ethical rules governing finance, accounting and corruption.

STRICT OPERATIONAL STANDARDS

Technip has implemented several ethics-related operational standards.

The "anti-corruption policy" provides a clear and comprehensive Group-wide framework that helps employees operate with honesty and integrity. These rules are of vital importance for those whose jobs include negotiating with third parties and making decisions about contracts to sign.

The "know your partner" principle requires potential commercial and industrial partners of Technip to complete a questionnaire and sign a declaration of compliance. We check the information provided and pay particular attention to any indicators that could cast doubt on the honesty and integrity of the potential partner. If any such issues cannot be resolved in a satisfactory manner, the commercial relationship is terminated.

Fighting corruption is one part of Technip's commitment to ethics; protecting human rights is another

UPHOLDING HUMAN RIGHTS

Fighting corruption is one part of Technip’s commitment to ethics; protecting human rights is another.

Technip is a signatory to the United Nations Global Compact. This means that we are committed to a continual process of applying and supporting the 10 principles of the Global Compact, which cover human rights, working and environmental standards and fi ghting corruption.

In the fi eld of human rights, we respect the letter and spirit of all applicable legislation. We have added a clause to our general purchasing terms and conditions informing suppliers that we uphold the Global Compact. We verify that our suppliers contribute to the implementation of these values through regular inspection and audits.

We also encourage our subsidiaries and affi liates to undertake local initiatives to demonstrate their commitment to doing business in a way that upholds human rights. In Italy for example, Technip is proud to have received Social Accountability 8000 certifi cation for the eighth year in a row. SA 8000 is an international standardized code of conduct for improving working conditions around the world.

GOOD ETHICS IS GOOD BUSINESS AND ESTABLISHES THE BASIS OF SUSTAINABLE PARTNERSHIPS

THE GROUP IN 2011

PROMOTING ETHICS AND COMPLIANCE2011 saw the launch of a worldwide ethics and compliance campaign. Kicked off with a message from the Chairman and CEO, this unprecedented initiative was aimed at raising awareness and understanding of the topic, while providing a clear insight into ethical and responsible behaviors.

An ambitious poster campaign was rolled out across the Group, followed by the distribution of an "Ethics in Business" booklet that provided simple and practical guidelines for handling business situations ethically, fairly and in compliance with the law. The booklet was produced in our three main languages (English, French and Portuguese) and distributed to all employees.

This campaign was supported by targeted learning comprised of an Open University informative program focused on anti-corruption and an interactive e-learning module called "Ethics throughout Technip" that was tailored for the activities of the Group.

A third standard sets out the rules governing the acceptance of gifts and hospitality to avoid any corrupt practices.

TRAINING AND AWARENESS

Finally, ethics training courses are conducted for employees across the Group and online training has been available to all employees. In addition, a major awareness campaign was launched in the first quarter of 2011 (see box on the right).

In 2012, we will carry on training our employees and performing due diligence of our business partners. Due to the heightened enforcement environment and fast developing legislation around the world, Technip will continue to review its policies and procedures. This will ensure full compliance with stringent international practices and, therefore, provide the maximum protection of our employees, the Company, our clients and shareholders.

THE ETHICS CHARTER IS ONE OF TECHNIP’S SIX CHARTERS OUTLINING ITS CORE COMMITMENTS, ALONG WITH SOCIAL ACCOUNTABILITY, ENVIRONMENTAL PROTECTION, HEALTH AND SAFETY, QUALITY AND SECURITY

EVERY EMPLOYEE OF TECHNIP RECEIVED AN AWARNESS-RAISING BOOKLET ABOUT ETHICS IN 2011

21


MARKETS: STEADY PERSPECTIVES IN OIL AND GAS

The improvement seen in our market environment since the second half of 2009 continued throughout 2011. The annual economic growth rate remained over 3% in 2011*, mainly driven by non OECD countries. After a significant growth of 2.7 million barrels per day (Mb/d) in 2010**, the world oil consumption continues to increase with an additional 0.7 Mb/d in 2011 to reach 88 Mb/d. The crude oil market sustained high price levels in 2011, the Brent spot price averaging more than USD110 per barrel for the first time in its history.

OPPORTUNITIES: INVESTMENTS CONTINUE TO INCREASE

Despite current volatility and economic crisis in many countries, the industrial environment is expected to remain favorable for Technip in 2012, with demand for oil forecast to rise by more than 1 Mb/d.

Oil and gas today account for more than half of the energy consumed by the world’s 7 billion people. Despite alternative energies initiatives and their growing importance, fossil energy remains the main source of support for the development of emerging economies.

In 2011, a favorable business environment encouraged oil producers to pursue a more dynamic investment policy. Looking ahead, our customers continue to invest in projects, through front-end engineering works and larger final investment decisions. We therefore see growth opportunities in nearly all our markets. Moreover, oil and gas producers are being held to higher-than-ever operational standards. As a result, they are faced with new challenges in terms of safety, local content and efficient resource management. The Fukushima disaster had led to a resources shifting for Japan, which would be more focus on natural gas on a long-term basis than on nuclear power. On the other hand, shale gas development in the United States may lead the country to export its gas surplus through

revamp of existing gas terminals into liquefied natural gas plants. These evolutions, on two highly active markets, open door to revamping and adjustment of current production units in order to cope with future markets needs. Meeting these challenges requires the kind of capabilities that Technip possesses.

STRATEGY: IMPLEMENTING OUR FRAMEWORK

We concentrated in 2011 on the five key areas of our strategy:1. Focus on energy, especially oil and gas, where

our past achievements and the strength of our research and development activities enable us to offer high quality solutions in response to customer requirements,

2. Improve our operational performance with an on-going commitment to health, safety, environment and quality, and focus on excellence in execution,

3. Invest in expertise, technologies and industrial assets,

4. Improve profitability through top-line

MARKETSAND STRATEGY

30,000 PEOPLE SERVING OUR CUSTOMERS’ NEEDSThrough our technological expertise and management skills, our human energy enables us to help our customers meet their main objective: satisfy the growing worldwide demand for energy while minimizing the environmental impact of their activities and responsibly managing the planet’s reserves.

* International Monetary Fund figures – September 2011** International Energy Agency figures – January 2012

HYDROCARBONS STILL SUPPLY MORE THAN 50% OF ALL ENERGY FOR THE EARTH’S 7 BILLION INHABITANTS

THE GROUP IN 2011

ONSHORE: CAPITALIZING ON OUR EXPERTISE

Technip is a world leader in the onshore market, and has a solid track record of delivering major projects with high technological content. Our strategy is focused primarily on building on our strengths: technological expertise (through proprietary technologies and partnerships with licensors), engineering and project management capabilities, and project delivery skills (in procurement and construction, for example). Technip is also strongly committed to the development of renewable energies. By leveraging our know-how and track record in offshore operations and project management, we intend to play a major role in the offshore wind business in Europe.

In parallel, we are committed to controlling our risk profile by diversifying our contract portfolio and by working with customers from the earliest stages of a project to gain the best-possible understanding of the risks. Finally, we are increasing our local presence in markets such as the Middle East, Asia Pacific and Latin America, to better meet the needs of our customers.

growth in each segment while maintaining superior operating profit margins,

5. Develop our human resources and empower the organization.

This global strategy is applied throughout our business segments.

SUBSEA: CONSOLIDATING GLOBAL LEADERSHIP

Our comprehensive expertise covers the entire value chain for subsea infrastructures, from pipeline and umbilical design through to manufacturing and installation vessels (deep to shore projects). Our subsea strategy, which aims to extend our market leadership, is illustrated by our recent acquisition of Global Industries. First, we intend to capitalize on vertical integration by increasing the production capacities of our flexible pipe and umbilical production plants and by modernizing and improving the capabilities of our fleet. Second, we aim to set the industry benchmark for meeting the challenges of deepwater developments. Third, we are focused on growth in our subsea activities in regions that offer high development

potential – West Africa, the Gulf of Mexico, Brazil and Asia Pacific – by not only managing a diversified portfolio of projects, but also by establishing a long-term industrial footprint.

OFFSHORE: FOCUSING ON FRONTIER PROJECTS

Oil and gas developments have gone beyond the traditional frontiers of the offshore industry in terms of complexity and execution requirements. Thanks to our mix of capabilities and broad experience, we provide world-class standards and advanced technologies to deliver fit-for-purpose solutions, designed to overcome the challenges of ultra-deepwater, harsh environments and Arctic conditions. Our ability to mix cross-segment capabilities has enabled us to win the contract for the first floating liquefied natural gas (FLNG) unit. We are also focused on responding to our customers’ needs with technologies that ensure respect of the environment and execution models that maximize the use of local human resources.

INVESTING IN OUR ASSETS IS A STRONG AXIS OF OUR STRATEGY

WE STAYED ON COURSE IN 2011, FOCUSING ON OUR STRATEGIC PRIORITIES

23

OUR ACTIVITYSUBSEA 26OFFSHORE 32ONSHORE 38

25


SUBSEA

UNDERWATER INFRASTRUCTURE, FROM DEEP TO SHORE

€ 2,972 M 16.8% € 4,097 M€ 4,380 M2011 revenues

2011 operating margin Order intake at end 2011

Backlog at end 2011

SUBSEA

OUR ACTIVITY

In the Subsea segment, we are a vertically-integrated technology leader committed to being at the forefront of frontier developments such as ultra-deepwater, high-pressure/temperature fl exible pipe and asset integrity technologies. This is illustrated by our strong internal research and development (R&D) programs and by the recent acquisitions of state-of-the-art technology companies such as AETech and Cybernétix. This commitment to technologies – combined with our leading-edge fl eet, international assets and the integration of Global Industries in 2011 – enables us to make Technip a global leader from deep to shore.

27


DIFFERENTIATION THROUGH TECHNOLOGY

Our clients continue to pursue deepwater and ultra deepwater projects, where they face fl ow management issues, high pressure and temperature, corrosives fl uids and even greater safety requirements. We support them by combining innovation with continuous improvement of existing technologies.

ULTRA DEEPWATER

Technip’s R&D center in Le Trait, France, completed its flexible pipe qualification programs for 3,000 meters of water depth. These kinds of products are critical for the pre-salt development in Brazil, as well as the Gulf of Mexico and West Africa. In 2011, we opened an R&D center in Vitória, Brazil, specializing in flexible pipe technology, demonstrating our commitment to developing innovations closer to key markets.

EMERGING TECHNOLOGIES

2011 was a milestone for carbon fiber armor, an innovation in the composition of flexible pipe. Thanks to this exclusive technology, Technip can provide flexible risers for use in deepwater that weigh 50% less than traditional flexible pipes while offering excellent corrosion and fatigue resistance.

Avoiding hydrates or wax formation which can block a pipe is a major challenge of our industry. In the field of flow assurance, we have designed reeled, electrically heated pipe-in-pipe for both shallow and deepwater environments. This innovation provides an energy efficient solution for active insulation. We are providing Petrobras with new flexible integrated production bundles (IPB) with built-in electrical heating and monitoring system. IPBs were developed in our R&D centers, and the first series were manufactured in our Le Trait plant.

The corrosion of fluids is a key element to take into consideration when ensuring the integrity and life expectancy of the pipes. That is why we have fully qualified a mechanically lined rigidpipe, which is a steel pipe hosting a thin corrosion resistant material. It is a very cost-effective alternative to traditional alloy pipes and metallurgically bonded clad pipes.For flexible pipe technology, we have patented an anti-hydrogen sulfide (H2S) layer for highly corrosive fluids. It is based on a polymer with an oxide composite which neutralizes H2S that has permeated through the bore. This new layer provides significant weight and cost reduction.

REMOTE INTERVENTION, ASSET INTEGRITY AND IN-SITU MONITORING

Since the Macondo incident in 2010, our clients have become even more demanding concerning safety enhancements and production optimization solutions. In 2011, Technip acquired AETech and its acoustic

REACHING SUBSEA RESOURCES AND BRINGING THEM SAFELY TO SHORE

SUBSEA

THE SKANDI NITERÓI JOINED HER SISTER SHIP SKANDI VITÓRIA WITHIN TECHNIP’S FLEET

OUR ACTIVITY

In December 2011, we fi nalized our most important deal in the past 10 years: the acquisition of Global Industries. This US-based company brings complementary subsea know-how, assets and experience to Technip. This includes two state-of-the-art newly built S-Lay vessels as well as strong positions in the Gulf of Mexico (US and Mexican waters), Asia Pacifi c, Brazil and the Middle East. The acquisition of Global Industries reinforces Technip’s leadership in the fast-growing subsea market. Strong revenue synergies are expected as the acquisition will substantially increase our current capabilities and expand our addressable market by approximately 30% in deep-to-shore subsea infrastructure.

Technip also announced in 2011 the acquisition of the French company Cybernétix. This strategic deal gives us access to the fi rm’s expertise and capabilities in designing, manufacturing and deploying robotic systems in harsh environments.

AETech was the third acquisition of the year in the subsea business. The company uses acoustic non-destructive technology to monitor underwater structures, such as subsea risers. This technology is based on leading-edge research into the use of acoustic emissions for measuring the health of industrial materials and structures.

sensors technology for monitoring pipe integrity. We also acquired Cybernétix, a leader in robotics of complex systems in hostile environment with a strong portfolio of in-situ monitoring, inspection and maintenance technology.

These moves, combined with our own expertise and existing frame agreements with organizations such as Schlumberger and France’s CEA (Alternative Energies and Atomic Energy Commission), make Technip a leader in this technologically demanding market.

DEVELOPMENT OF ASSETS BASE

Continuous investment is a condition to maintain our leadership in the subsea business. In 2011, Technip pursued to invest in land-based and fl eet assets in key regions, such as Brazil, Asia Pacifi c and the Gulf of Mexico.

VERSATILE FLEET

For subsea developments, the fleet is an important key to success. Technip has a highly versatile fleet, capable of using different pipelay methods in a variety of regions and water depths. We provide the three main installation methods for rigid pipe (Reel-Lay, J-Lay and S-Lay), as well as heavy lift, flexible and umbilical installation, construction and diving.The Skandi Niterói, a Brazilian-flagged vessel specialized in flexible pipe installation at depths exceeding 2,000 meters, joined the Technip fleet in 2011 and started its four-year charter

We support our clients by combining innovation with continous improvement of existing technologies

A YEAR OF ACQUISITIONS

OUR FLEXIBLE PIPE PLANT IN MALAYSIA BEGAN MAKING ITS FIRST DELIVERIES IN 2011

TECHNIP FINALIZED THE ACQUISITION OF GLOBAL INDUSTRIES AT THE END OF 2011

29


to Petrobras. The building of the Deep Orient, a construction support vessel, which will be dedicated to the Asia Pacific market, and that of the Deep Energy, a state-of-the-art pipelay vessel, has made progress in 2011. Finally, in partnership with Odebrecht Oil and Gas, we are building two very high tension flexible pipelay vessels that will be dedicated to the Brazilian pre-salt market.

MANUFACTURING PLANTS AND BASES

Being close to the clients and the development areas is an advantage for Technip. In 2011, our Asiaflex Products plant in Malaysia began making its first deliveries, confirming our flexible pipe strategy for emerging markets. Our presence in the Asia Pacific market continued to grow with the acquisition of Global Industries offshore base in Batam, Indonesia, strategically positioned to become the hub of our Asia Pacific fleet.

On the other side of the globe, in Brazil, we have completed our logistics base in Vitória. It is a key stepping stone for us and our client, Petrobras, as we move forward with pre-salt developments. Our 78,000 square meters Angra offshore base, with its 359 meters long quay side, is ideally positioned to serve the latest offshore developments in Brazil. Finally, Technip has moved forward to the implementation of a new high-end flexible pipe manufacturing plant in Açu, Brazil.

SUPERIOR OPERATIONALPERFORMANCE

In 2011, Technip made important strides towards even greater excellence in project execution. The operational margin is one major indicator of our performance, but we also measure our success using project health, safety and environmental indicators, the quality of the products, and the adaptability of our organization.

EXCELLENCE IN HEALTH, SAFETY AND ENVIRONMENT

Technip is committed to reaching the highest standards of health, safety and environment (HSE) during production and operations at sea, as illustrated by several initiatives taken in 2011.

The mobile training unit (MTU) has been developed by Technip in Aberdeen to deliver cost-effective, practical training for vessel personnel and for onshore work sites. The concept is to bring training to the trainee, thanks to the design of a comprehensive training package focused on working at heights or in confined spaces and also on advanced rescue techniques. The project won Technip’s

SUBSEA

Technip is committed to reaching the highest standards of quality and HSE during production and operations at sea

ENGINEER ON THE PAZFLOR PROJECT (ANGOLA)

OUR ACTIVITY

Jacques Franquelin award in 2010, enabling its designers to drive their innovative concept forward in 2011 and implement it in the field.

To build HSE awareness on the Hibernia project, Technip carried out a communication campaign in Canada, praised by the client ExxonMobil, starring employees’ children outfitted for various sports with full protection equipment. The aim was to demonstrate that there is no age to learn safety rules.

EXECUTION CAPABILITY

Our portfolio of projects reflects a diverse and balanced customer base. The following projects are among the most notable of 2011, due to their size, location or technological scope. They all share two

common traits: quality of execution and the safety and integrity of people and the environment.

At the start of 2011, we completed operations of Jubilee for Tullow Oil, the first subsea projectin Ghana, which was a success in terms of safety performance, technical achievement and budget.

Technip led the subsea part of the Pazflor project for Total in Angola, which is to date the biggest subsea project we have ever executed (see interview above). Total’s Islay project is a North Sea development that uses our innovative rigid reeled electrically heated pipe-in-pipe. The installation was finished in 2011 and is a new technology reference for Technip.

Could you briefl y describe the Pazfl or project and Technip’s role in it?Technip was the consortium leader and acted as a contractor to Total, the project operator. In water depths ranging from 600 to 1,200 meters, we provided design and subsea installation of more than 180 kilometers of pipeline, 40 kilometers of fl exible lines and risers, and 85 kilometers of umbilicals. Pazfl or was a challenging oil fi eld development and we delivered a complex project while providing world-class HSE performance and pushing the frontier of subsea technologies. We were able to do this thanks to the support of our two Angolan facilities, the Dande spool base and the Lobito umbilical manufacturing plant.

What were the project challenges and how did you overcome them? There were many challenges, but managing two different oil characteristics was one of the main ones. We had to use two distinct subsea architectures. In particular, the large footprint of one of the fi elds made thermal effi ciency an issue and required us to use pipe-in-pipe fl owlines and integrated production bundle (IPB) fl exible risers. We also demonstrated the effi ciency of using a consortium for managing simultaneous offshore operations. Finally, Pazfl or was an opportunity to implement our automatic FPSO hook-up system, which is based on patented diver-less risers. This leading-edge technology enabled a safer and faster hand-over of the fi rst oil to the benefi t of the client.

What is Technip’s subsea experience in West Africa and the potential of the region?Technip is very familiar with Gulf of Guinea subsea projects, whether in Nigeria, Ghana, Congo or Angola. Coming after the Dalia project in 2005, Pazfl or confi rms our position as a major subsea contractor in the region. Angola has huge potential for future oil fi eld development and is a key country for Technip.That is why we have a strong strategy of promoting local content and sustainable development, aimed at enhancing our capacities in the region to be ready for future projects.

We also completed the Tupi export line for Petrobras in partnership with Allseas.

INTERNATIONAL AND FLEXIBLE ORGANIZATION

Our unique, vertically integrated subsea business was reinforced by the acquisition of Global Industries in 2011 (see box p.29). We also enjoyed a record backlog and a peak year in terms of order intake, with € 4,097 million, which will translate into greater activity in the coming years. This increase in business represents a sizeable challenge in terms of human resources. We have anticipated this situation, maintaining our headcount during the recent economic crisis, and are continuing to hire and train the specialists who will work on the delivery of the coming projects.

3 QUESTIONS FOR

Alain PoinchevalTechnip Pazfl or Project Director (Angola)

31


FIT-FOR-PURPOSE PLATFORMS AT SEA

OFFSHORE

€ 914 M 5.8% € 2,371 M€ 2,534 M2011 revenues


Backlog at end 2011

OFFSHO

OUR ACTIVITY

Our offshore activities include engineering, procurement, construction and installation of fi xed and fl oating platforms for the energy industry.

Technip has developed world-class standards and advanced technologies to deliver fi t-for-purpose solutions, designed to overcome the challenges of shallow and ultra-deepwater and harsh environments.

We are positioned in the design and construction of complex installations which include fl oating production, storage and offl oading (FPSO) units that are among the world’s largest, and are a leading contractor in fl oating liquefi ed natural gas (FLNG) projects.

RE33


MAJOR OPERATIONAL DEVELOPMENTS IN 2011

In 2011, Technip worked on projects in both shallow waters and at great depths. The Offshore segment increased its contribution to the company’s backlog with the signature of several major contracts.

SUSTAINED ACTIVITY IN THE CONVENTIONAL OFFSHORE SECTOR WORLDWIDE

During 2011, Technip started engineering on Statoil’s Valemon project in the Norwegian sector of the North Sea. It is one of Statoil’s large field developments, with estimated recoverable reserves of about 200 million barrels of oil. Samsung Heavy Industries awarded us the engineering services contract for detailed design, procurement, engineering and follow-up engineering support for the platform topsides. The contract is scheduled for completion in the second half of 2012.

After successfully completing the front-end engineering and design (FEED) for the offshore processing platform for Chevron’s Wheatstone project in 2011, Technip continued to provide engineering services through DSME (see interview p.36). The platform topside will be one of the world’s largest ever installed with a single integrated floatover method.

In the Middle East, Technip continued work on the FEED of the Upper Zakum 750K project, which aims at increasing output to 750,000 barrels of oil per day from one of the world’s largest oil fields. We performed engineering of four artificial islands and interconnecting pipelines.

FLOATING PLATFORMS FOR DEEPWATER PROJECTS

2011 has been the year of renewal for the Spar business in the Gulf of Mexico, a trend that benefited Technip, reinforcing our leadership in Spars and ultra-deepwater production.

GOING BEYOND THE TRADITIONAL FRONTIERS OF COMPLEXITY AND EXECUTION REQUIREMENTS

OFFSHORE

2011 has been the year of renewal for the Spar business in the Gulf of Mexico

THE P-56 IS THE THIRD SEMI-SUBMERSIBLE PLATFORM DELIVERED BY TECHNIP TO PETROBRAS IN BRAZIL

OUR ACTIVITY

BP awarded Technip a 10-year master agreement for Spar platforms. The agreement covers the design, procurement and construction of hulls and mooring systems for Spar platforms in the Gulf of Mexico, as well as the design of top tension risers for dry tree units. The Spars will be fabricated at our yard in Pori, Finland, where most of the previous Technip Spars have been manufactured. Engineering design work for the first Spar under this agreement, Mad Dog Phase II, has already begun.

In parallel, Anadarko awarded Technip the engineering, construction and transportation of a 23,000-ton Truss Spar hull for its Lucius field development in the Gulf of Mexico. This field sits at a depth of 2,165 meters and will have a daily capacity of more than 80,000 barrels of oil and 12 million cubic meters of natural gas. This Spar, whose construction has already started in Pori, will be the fifteenth delivered by Technip (out of 18 worldwide).

IMPROVING SAFETY AND ENVIRONMENTAL PROTECTION OF OFFSHORE OPERATIONSIn addition to constantly improving the safety of our operations to prevent environmental accidents, we design systems to mitigate such accidents. One such development is a well containment system for use in the Gulf of Mexico (see Environment chapter).

Another is being developed as part of an agreement, signed in 2011, with the owners of the Dalian Developer drillship. They have tasked Technip with the conceptual design of a topside production system that would allow the vessel to operate as an oil spill response unit to receive, process and stabilize the spilled crude for storage. Technip is involved in promoting the Dalian Developer as an oil spill response/extended well test unit to oil companies. Technip is also targeting a role in thesubsea components of the oil spill response system.

The Dalian Developer production system can safely handle 100,000 barrels of liquids per day, almost 6 million cubic meters of gas and can store 1 million barrels of captured oil per day in a single vessel. It can also store bulk methanol and dispersant chemicals. When operating as an extended well testing unit, it would be capable of processing 30,000 barrels per day of heavy crude.

The Dalian Developer should enter service in 2013.

We continued to engineer a Spar platform, within a design competition, for Statoil’s Luva gas condensate field development in the Norwegian North Sea. The unit will store condensate in its hull and offload to shuttle tankers rather than using a pipeline. When completed, it will be the first Spar platform with onboard product storage, a technology with applications for other remote gas condensate field developments.

In Brazil, production of the Petrobras P-56 semi-submersible platform began in 2011. It was the third in a series of semi-submersible platforms with topsides in excess of 30,000 tons, delivered to Petrobras by Technip in consortium with Keppel-Fels. Furthermore, we continued engineering work on the first two Brazilian FPSOs: P-58 and P-62.

TECHNIP’S ENGINEERING TEAMS IN AUSTRALIA ARE DESIGNING THE WHEATSTONE PLATFORM

35


OFFSHORE

3 QUESTIONS FOR

Nick PalmerTechnip Wheatstone Project Manager (Australia)

Could you briefl y describe the Wheatstone project and Technip’s role in it?The Wheatstone project is operated by Chevron. It is a green-fi eld LNG development supplied from gas fi elds on the Northwest Shelf offshore Western Australia. Subsea wells and systems will produce gas to an offshore processing platform, where it will be sent down a 220 kilometers trunkline to the onshore LNG and domestic gas plant. The main execution contractor, DSME, selected Technip as the detailed design subcontractor. The platform consists of a 37,000-ton topside on a steel gravity base structure in 80 meters of water. We are designing the complete platform facility and providing equipment procurement assistance.

Would you tell us more about the importance of safety in the project design?Safety is a core value shared by Technip, DSME and Chevron. To ensure the safety of the staff that will build and operate the facility, the engineering teams worked together to make facilities safety a key driver in design. This was especially useful during the FEED phase when the design was being optimized, and continues now through the detailed design. The core improvement was the development of easy-to-understand performance indicators. They were used to improve the inherent safety and to validate design decisions.

This detailed design contract follows the FEED. How important is it to build on the continuous relationship with the client?Our ability to develop an effective FEED and use the same team for the detailed design meant we delivered an impressive design schedule and supported a cost-effective and safe outcome. Wheatstone is a tremendous opportunity for us to demonstrate our ability to deliver the design from beginning to end. Chevron sees Technip as a solid partner for future developments.

GROWTH DRIVEN BY TECHNOLOGY, ADDED-VALUE ENGINEERING AND PROXIMITY

We are active in all types of offshore projects and are honing our ability to deliver fi t-for-purpose designs that provide the best solutions for high-growth and high-technology markets. Another driver is our global footprint that allows proximity with our clients.

TECHNOLOGIES FOR FRONTIER PROJECTS

As with subsea, the offshore market is faced with the challenge of exploiting new hydrocarbon fields in increasingly extreme conditions, such as water depths approaching 3,000 meters and Arctic environments. In 2011, we continued to invest in new technologies and tools for production in these frontier environments.

In the emerging market of FLNG (see box p.37) we have designed cryogenic flexible pipes and continued to work on the qualification of a floating offloading line for use on standard liquefied natural gas tankers. We are also working on technologies to optimize the operating costs and safety aspects of these units.

Two new designs have been brought to maturity. One was for a novel semi-submersible platform that minimizes vessel motion and improves riser performance. The other was for a new shallow water platform for use in ice-bound waters. We also continued the design of a deepwater tension leg platform (TLP) with wellheads on the platform instead of the seabed.

To better answer our clients' needs, we are pushing back the limits of floatover installationswith our floatover high air gap concept. It allows heavier topsides to be installed at greater heights above the surface of the water.

TECHNIP'S YARD IN FINLAND IS SPECIALIZED IN SPAR FABRICATION AND IS CURRENTLY EXECUTING THE LUCIUS PROJECT

OUR ACTIVITY

In May 2011, the Technip Samsung Consortium was given the green light to begin construction of Shell Prelude, under its 15-year frame agreement with Shell. Prelude will be the fi rst FLNG facility in the world and the largest fl oating facility ever built, with 488 meters from bow to stern - longer than four soccer fi elds laid end to end. The unit will operate about 200 kilometers off the Northwest coast of Australia and liquefaction of the produced gas will occur directly onboard by cooling.

This represents a technological breakthrough for the energy industry given that until now, all gas liquefaction operations took place onshore, requiring long subsea pipelines and major onshore infrastructures. FLNG will therefore help to open up new offshore natural gas fi elds that are currently too costly or diffi cult to develop.

Technip is ideally placed to play a leading role in this new market, which combines the expertise of each of its three business segments, and will generate new business in the short and medium terms.

STRONGLY POSITIONED IN THE FLNG MARKET

It is ideal for installing platforms in regions with high waves and/or cyclonic weather conditions, such as Southeast Asia and Northwest Australia. The concept can be used with monohull and catamaran configurations, depending on a project’s needs. In Brazil, for example, a catamaran solution has been proposed for the installation of several fixed platforms. It minimizes the effect on the jacket design and builds on our catamaran installation that was used on Malaysia’s Murphy Kikeh project.

In a large FPSO or FLNG, the turret that allows the unit to rotate with the swell while continuously producing is a strategic element. In 2011, Technip and Bluewater entered into an exclusive global agreement to jointly market the spiral stacked turret (SST), a flexible-hose-based alternative to the traditional mechanical swivel stack to be used in floating units. Suited for high pressure and large-capacity flow transfer systems, the SST allows each flexible pipe to wind and unwind from a conical tray, giving significant rotational freedom and extended service life. This agreement is a significant sales channel for the fluid transfer hoses manufactured in our flexible pipe plants.

STRONGER PRESENCE CLOSE TO FAST-GROWING MARKETS

Technip’s multi-local presence through our own assets, as well as strategic partnerships, is a core strength of our offshore business, providing early involvement with local customers and excellent coverage of growthmarkets. In the Asia Pacific region, as an extension of our long-term strategic agreements with MISC Berhad, Malaysia Marine and Heavy Engineering Holdings Berhad (MHB), we set up in 2010 a joint company called TMH to perform hull engineering.

In 2011, we continued to invest in new technologies and tools for production in frontier environments

ENGINEERING STARTED ON STATOIL’S VALEMON PROJECT (NORWAY)

CONSTRUCTION PHASE HAS BEGUN ON SHELL PRELUDE FLNG’S BREAKTHROUGH PROJECT

37


LAND-BASED OIL, GAS, PETROCHEMICAL, RENEWABLE ENERGIES FACILITIES AND OTHER INDUSTRIES PROJECTS

ONSHORE

€ 2,927 M 7.6% € 1,507 M€ 3,502 M2011 revenues


Backlog at end 2011

ONSHO

OUR ACTIVITY

In the Onshore segment, Technip’s activity covers the full range of onshore installations required to meet the production, processing and transportation needs of the oil and gas, petrochemical and other industries, in particular renewable energies and mining and metals.

In 2011, growth in our onshore business remained healthy, thanks to a strong focus on strategic priorities. We continued to balance our portfolio of contracts in terms of client and contract types, as well as geographically, to refl ect the market’s move towards the South and the East. We also maintained investment in our differentiating assets: people, technologies, project management expertise and construction supervision capability.

RE39


SUSTAINED ACTIVITY FOR OUR OIL AND GAS PRODUCT LINES

Technip is involved in major onshore oil and gas projects with a high level of technological input. 2011 was an active year in all areas of this business.

NATURAL GAS: RE-EMERGENCE OF MAJOR PROJECTS IN THE SHORT TERM

In Qatar, following the three mega liquefied natural gas (LNG) projects delivered in 2010, Technip leading a joint venture with Chiyoda progressed with the execution of the engineering, procurement and construction (EPC) contract for gas treatment units and utilities awarded by Qatargas in 2010 for the Plateau Maintenance Project.

In China, the design and construction of a small-scaled LNG unit at Yinchuan for Ningxia

Hanas was substantially completed at the end of 2011. Work on a similar contract for a second LNG unit has already begun with a third expected to start at the beginning of 2012. Many study contracts with potential for future work were secured in 2011. These included pre-front-end engineering design, front-end engineering design (FEED) and feasibility studies for projects in Mozambique and Abu Dhabi (LNG), Malaysia (boil off gas reliquefaction) and Uzbekistan (gas-to-liquids [GTL] – see interview p.41).

Our onshore teams also contributed substantially to floating liquefied natural gas (FLNG) projects, and Shell’s Prelude project in particular. REFINING: CONFIRMED LEADERSHIP POSITION AND NEW PROSPECTS

In 2011, we successfully started-up the Paraxilene (intermediate used in the fabrication of polyesters) complex at the Plock refinery in Poland for PKN Orlen. Construction progressed

LEADERSHIP BUILT ON PROJECT MANAGEMENT CAPABILITIES AND TECHNOLOGICAL EXPERTISE

ONSHORE

TECHNIP IS INVOLVED IN SEVERAL REFINING PROJECTS

SMALL-SCALED LNG UNITS, LIKE THE NINGXIA HANAS PROJECT, ARE ONE OF THE RECENT TENDENCIES OF THE LNG MARKET

OUR ACTIVITY

on the Jubail refinery for SATORP in Saudi Arabia. Site preparation activities started in Algeria for the Sonatrach Algiers refinery expansion project. A residue hydrocracker project for Lukoil in Bulgaria entered the detailed EPC phase. The hydrocracker expansion project at the Total refinery in Normandy, France, for which we provide EPC services, is progressing smoothly. The FEED works for the Cienfuegos refinery in Cuba, for CNPC, are close to completion.

To maintain leadership in the refining field and gain notable knowledge of the high-potential projects from very early stages, we secured several conceptual and

feasibility studies in 2011, in Egypt, Azerbaijan, Kazakhstan, Estonia, Russia and The Netherlands.

HYDROGEN : STILL GOING STRONG

Two new hydrogen production units came on stream in 2011: one for Air Products in The Netherlands, and one for DOW-Solvay in Thailand. Our alliance partner, Air Products, awarded us a contract for a new plant in Louisiana. We were also awarded contracts for three plants in China, one in Thailand and one in Russia.

Could you describe the GTL Uzbekistan project and Technip’s scope? The Uzbekistan GTL project is led by a joint venture between Petronas, Sasol and UNG. It is the latest application of Sasol’s world leading GTL technology. The plant will have a capacity of 1.4 million tons per year and will produce GTL diesel, kerosene, naphtha and liquid petroleum gas. Our scope of work covers preliminary activities and traditional FEED activities that have ramped up at the beginning of 2012.

Can you explain the strategic value of this project?Although the amount of this project is modest for Technip, it brings together three strategically important factors: high technological content, strong relationship with a top-tier client, and development in an emerging geographical market. It enables us to leverage our technological edge in the GTL fi eld and also opens up a number of prospects in the GTL market; Sasol alone has plans in Canada, the United States and Qatar.

Could you tell us more about Technip’s relationship with Sasol and successful projects carried out together?This recent award comes on the heels of the successful completion by Technip of the ORYX facility in Qatar for the same client. On the ORYX project, we worked with the client rather than for the client. Today, their technology is mature and proven, and the plant fully delivers its expected results in terms of both product quality and plant capacity. The lessons learned are really helpful for the Uzbekistan job and for other projects. This successful project is also creating business for Technip. We were recently awarded a contract for support services for the expansion of ORYX. Globally, the GTL market appears prosperous and should provide real opportunities for Technip in the future.

To maintain leadership in the refi ning fi eld and gain notable knowledge of the high-potential projects from very early stages, we secured several conceptual and feasibility studies in 2011

3 QUESTIONS FOR

Cosimo CannalireVice President Alliances, Technip in Italy

41


The steam reformer in this last plant has a capacity of 238,000 cubic meters per hour – one of the largest in our hydrogen portfolio of close to 300 units worldwide.Our research and development (R&D) produced several new advances, including novel configurations for reforming catalyst and the corresponding tube assemblies. We also continued to look for incremental improvements that are directly applicable to existing products. One example is a new design for a process gas waste heat boiler, which will be deployed in one of our current projects.

ETHYLENE: MARKET UPTURN AND NEW TECHNOLOGIES FOR 2012

In 2011, performance guarantees were successfully achieved in both Yansab ethyleneplant in Yanbu, Saudi Arabia, and RLOC project in Ras Laffan, Qatar, triggering the official close-out of these major projects. Braskem and Idesa selected Technip for a new 1 million ton ethylene plant in Mexico.

The ethylene market showed signs of recovery that should yield new projects in 2012 and 2013, notably in South America, India and Russia, driven by new gas and shale gas fields coming on line in the US.

Our innovative swirl flow tubes technology (Heliswirl tubes), developed in 2010, has been under testing since the end of 2011 and has confirmed that it allows higher performance of the cracking furnaces. It is now ready to be marketed.

PETROCHEMICALS AND FERTILIZERS: A NEW WAVE OF PROJECTS

Strong demand for fertilizers and petrochemicals in Latin America, Russia, India and Africa is feeding investments in new production facilities. Thanks to our alliance

and cooperation with best-in-class technology partners, Technip is well positioned in ammonia and urea.

FEED contracts in Gabon and Brazil, as well as the successful outcome of a public bid in India in 2011, could generate important EPC contracts in 2012. Similarly, the unprecedented level of awards in polyethylene and polypropylene made by our alliance technological partner INEOS (with the support of Technip as licensing

support contractor) resulted in nine process design packages in Russia, Brazil, India and China. There are also sound prospects for several downstream FEED and EPC projects in 2012.

In addition to our work in traditional petrochemicals, Technip is also developing activities and strategies in the field of green chemicals (see Environment chapter).

ONSHORE

New and renewed collaboration agreements in 2011 illustrated the capacity of Technip to innovate through tight and long-term relationships with key technology-oriented companies

TECHNIP HAS A LONG-TERM EXPERTISE IN THE BIOFUEL BUSINESS (PICTURE - ROTTERDAM PROJECT FOR NESTE OIL)

OUR ACTIVITY

TAKING OUR COMMITMENT TO RENEWABLE ENERGIES FURTHER

In 2011, Technip reinforced its footprint in renewable energies.

MAJOR PROJECTS IN BIOFUELS

Following the Singapore unit, in 2011 we delivered the second largest renewable diesel production unit in the world to Neste Oil in Rotterdam, The Netherlands. This unit will produce biofuels for civil aviation for the first time.

FAIR WINDS FOR THE OFFSHORE WIND INDUSTRY

In 2011, Technip confirmed the launch of a dedicated offshore wind business unit, highlighting our commitment to the sector. Other progress included the launch of the Vertiwind vertical axis wind turbine R&D project and the acquisition of Subocean, a United Kingdom based subsea cable-installation company.

Technip is active in two wind farms projects in the United Kingdom: Aberdeen Bay for Vattenfall and a project offshore Glasgow for SSE. In France, Technip partnered with Iberdrola, Areva, Eole Res and Neoen to bid for two of the five offshore wind areas that the French government put up for tender.

These recent achievements, following the successful delivery of the world’s first floating wind turbine for Statoil in 2009, along with our vast experience in offshore operations, are milestones towards achieving our goal of becoming a leading player in this market.

STRENGTHENING RENEWABLE ENERGY TECHNOLOGIES

New and renewed collaboration agreements in 2011 illustrated the capacity of Technip to innovate through tight and long-term relationship with key technology-oriented companies. In May, Technip and Oski Energy signed a license purchase agreement with Kalex to jointly license and market Kalex Geothermal Systems Technology worldwide. This advanced power plant technology is an ammonia-water binary cycle process that can generate 15 to 30% more electric power than traditional binary systems over a wide range of geothermal resource temperatures. This agreement strengthens our position in the geothermal market, where we have already executed severalstudies. Other agreements bond Technip with CIMV, a green chemistry start-up and with Nenuphar, a floating offshore wind specialist.

Technip is involved in several stages of the nuclear industry chain from front-end mining activities to the back-end decommissioning and waste storage facilities. In 2011, TSU Projects, a jointly owned subsidiary of Technip and SGN (Areva Group), continued to work on the vast Imouraren mining project in Niger. Technip, in partnership with Ingérop, was awarded by ANDRA, the French national radioactive waste management agency, a contract to design the overall architecture and the operation principles of the future industrial geological storage center for high-activity and medium-activity, long-life radioactive waste. Through its newly acquired subsidiary Cybernétix, Technip is also active in nuclear facilities decommissioning projects in France and Japan.

Technip is present in the two world major nickel mining projects. For Xstrata, Koniambo in New Caledonia reached in 2011 the peak of its construction phase and we delivered a fi rst step bankable feasibility study for Eramet Weda Bay project in Indonesia. Technip was also awarded, with its partner Egis, the prefeasibility study for the Xstrata managed Zanaga Iron Ore project in Republic of Congo.

The subsea mining emerging business calls upon the broad industrial and offshore assets developed by Technip over the last 30 years for deepwater oil and gas fi elds. Therefore, Technip has been confi rmed as a key player in providing riser technologies to Nautilus Minerals and in delivering prefeasibility studies to Neptune Minerals or Trans-Tasman Resources.

A FOCUSED INTEREST IN MINING AND NUCLEAR ENERGY

CONSTRUCTION HAS BEGUN FOR THE PLATEAU MAINTENANCE PROJECT IN QATAR

IN THE MINING AND METAL SECTOR, TECHNIP IS PARTICIPATING IN THE EXECUTION OF THE KONIAMBO PROJECT IN NEW CALEDONIA

43

SUSTAINABLE DEVELOPMENT

SUSTAINABLEDEVELOPMENT MESSAGE FROM THE CHAIRMAN 46OF THE SUSTAINABLE DEVELOPMENT COMMITTEE

STAKEHOLDERS 48HSE 62 INDICATORS 72

45


MESSAGE FROM THE CHAIRMAN OF THE SUSTAINABLE DEVELOPMENT COMMITTEE

Amran AhmadChairman of the Sustainable Development Committee

" WHAT IS GOOD FOR SUSTAINABLE DEVELOPMENT IS GOOD FOR OUR BUSINESS"


WHICH CHALLENGES ARE FACING TECHNIP IN TERMS OF SUSTAINABLE DEVELOPMENT?Our clients are working to satisfy the world’s energy needs in a sustainable way. As it is our role to support them in their projects, we must focus on addressing important issues like managing energy resources, delivering projects profi tably and safely, and minimizing the environmental impact.

But sustainable development is not possible without the right people. That is why at Technip our goal is to enable each of our employees to achieve his or her maximum potential. Our commitment to our people of course covers their protection through an active health, safety and security policy.

When it comes to the environment, the challenge is to reduce the footprint of our business and that of our clients and suppliers. We are able to achieve this by providing them with technological solutions that minimize greenhouse gas emissions and by promoting renewable energies.

There is also the challenge of contributing to the economic and social balance of local communities. In particular, we are focused on creating sustainable local employment. Lastly, our economic priority is to improve our fi nancial and operational performance, by accurately anticipating the future needs of our industry and associating our business partners with our own development.

By fi nding ways to meet all of these challenges, we will be able to provide sustainable progress for all our stakeholders. This will also give us a competitive edge by helping to drive innovation. What is good for sustainable development is good for our business!

WHAT IS TECHNIP’S SUSTAINABLE DEVELOPMENT STRATEGY?Our sustainable development strategy is one of integration. The planet and people are an integral part of everything we do and the way we grow our business. Our goal is to increasingly integrate all dimensions of sustainable development into each of our projects.

IS THERE AN ORGANIZATIONAL STRUCTURE TO PROMOTE SUSTAINABLE DEVELOPMENT?Our commitment to corporate social responsibility dates back over a decade. In 2003, Technip signed the United Nations

Global Compact on human rights, working standards, environmental standards and anti-corruption. We apply the ten principles of the Global Compact to every aspect of our business.

I chair the Sustainable Development Committee, which monitors all actions undertaken by Technip in this area and is the body responsible for the preparation of this Report. The Committee’s eight members represent the various Group divisions and met eight times in 2011. It coordinates our global sustainable

development strategy and submits its recommendations to the Group Executive Committee. A regional structure supported by a network of around 100 local entities’ representatives deploys initiatives at the local level and contributes to team involvement.

HOW DO YOU MEASURE SUSTAINABLE DEVELOPMENT PERFORMANCE?We use a worldwide IT system to gather sustainable development data. All of our local representatives contribute to this reporting process, which is consolidated at the Group level. The resulting indicators are published in our Reference Document and in this Report, which is prepared in accordance with the standards set out by the Global Reporting Initiative (GRI G3).

Our sustainable development policy and performance have also received external recognition. For the tenth consecutive year, the Technip share was included in the European and global Dow Jones Sustainability Indexes.

WHAT PROGRESS WAS MADE DURING 2011 ON THE TWO PRIORITY AREAS: ENVIRONMENT AND LOCAL COMMUNITIES?For the environment, for example, we have reinforced our commitment to offshore wind by creating a dedicated business unit.

In terms of local communities, we launched the Technip Relief and Development Fund to collect donations from Technip and our employees. This endowment fund supported its fi rst projects in 2011 and will improve over time the way we coordinate our charitable initiatives.

We also progressed in other subjects related to sustainable development. Momentum continued in both the Pulse and Human Resources Without Borders programs. In quality assurance, we launched the Business Excellence program. Concerning corporate performance, the acquisition of Global Industries allowed us to reinforce our leadership in the subsea business. Last but not least, the Ethics and Compliance program was a key step in helping people to understand the importance of Ethics in our business environment.

WHAT ARE YOUR OBJECTIVES FOR 2012?Our objectives for 2012 continue to be the Communities and the Environment. We will also upgrade our level of Global Reporting Initiative compliance. Other objectives include continuing to grow profi tably while maintaining competitiveness, investing in human capital development, and empowering staff to encourage and promote innovation and new technology.

Our goal is to increasingly integrate all dimensions of sustainable development into each of our projects

47


STAKEHOLD UNDERSTANDING EXPECTATIONS, MAINTAINING A HEALTHY DIALOGUE AND OFFERING PRACTICAL SOLUTIONS

STAKEHOLDERS


ERSTechnip is deeply engaged with all its stakeholders, including employees, local communities and business partners. Our strategy and future success rely on them being actively involved in our projects. By working closely together, we can reap the rewards as one, for the sustainable development of all.

As part of taking our dialogue with stakeholders further, we invite you to share your views on this Report by contacting us at:[email protected]

49


HUMAN RESOURCES

A WORLD OF TALENT

During the last three years, with the Human Resources Without Borders (HRWB) program, we focused on our HR processes and network. 2012 will see the launch of a new 3-year plan. It will allow us to strengthen the way we support business globally and to further reinforce the quality of HR practices.

DEVELOPING AND KEEPING TALENT

"I would like to be the last Chief Executive Offi cer (CEO) recruited from outside," says Thierry Pilenko, Technip Chairman and CEO. To make this happen, Technip’s HR strategy strives to recruit and develop future leaders from within the organization, regardless of their origins.

PLANNING SUCCESSION

Leadership succession management is a priority. In 2011, we conducted our first worldwide succession planning campaign, where the performance of more than 3,000 employees was reviewed. Their profiles have been described in a common language across all entities thanks to the new Group job classification, which translates more than 70% of Technip positions to about 440 pivotal jobs.

Thanks to these inputs, HR managers gained a deeper knowledge of our potential future

leaders. Together with business executives, they used this information to build the succession plans of more than 400 leaders throughout the Group, with solid candidates up to the very top.

ENCOURAGING MOBILITY

Mobility, in any shape or form, helps to build leaders. We frequently propose new career opportunities and non-obvious moves across businesses, functions and Regions to support and accelerate the development of employees’ careers.

With our business increasingly moving South and East, our HR strategy is to support growth and get even closer to our clients

TRUSTING THE TEAM IS ONE OF OUR VALUES


30,000 people in 48 countries

collaboration. These traits are used to focus career-related discussions on what really matters when developing our people.We want our employees to grow in both technological and leadership roles. Special focus has been put on the College of Experts, Technip’s technological reference body, with regards to the definition and review of expertise-related objectives during performance appraisals. To support leadership roles, the Technip Leading Edge program puts the high-potential employees with sufficient experience within Technip on the track to become leaders.

IMPROVING ENGAGEMENT AND RETENTION

Losing an employee is always a failure. Our career management practices contribute to retention by improving employee engagement.

Our new Policies on International Assignments provide a balanced approach that allows us to develop talents under the best conditions, whatever their country of origin.

Our job portal is now used by all entities across Technip to publish both internal and external vacancies. With consistently more than 1,000 job postings listed, we are progressively meeting our commitment to ensure total transparency of employment opportunities.

FORMING LEADERS

The qualities that we want in future leaders are clearly defined and summarized in the six Technip leadership traits: enterprising; driving profitable execution; role modeling, HSE compliance and diversity; leading people courageously and effectively; making strategy happen; and fostering cross-border

For example, we consider career talks to be an opportunity for quality discussions about career and development and a right for our employees. In 2012, an initiative on employee engagement will aim at further reinforcing the level of trust between Technip and its employees.Technip continued in 2011 to offer long-term incentive plans consisting of stock options, performance shares and cash. They are designed to build loyalty and improve retention.

Additionally, an alert system allows managers and HR teams to act quickly at the earliest sign of discontent or a change of attitude in a key employee. With more than 150 alerts raised since the system went live, we have been able to retain about 70% of the employees concerned.

WE RECENTLY WELCOMED THE TEAMS OF GLOBAL INDUSTRIES AND CYBERNÉTIX IN THE TECHNIP FAMILY. THEY ARE ADDING THEIR COMPLEMENTARY SKILLS AND EXPERTISE TO OUR HUMAN RESOURCES

51


ENHANCING KNOWLEDGE AND SKILLS

In 2011, the HR organization continued to align itself closely with business imperatives and structure. HR managers have been nominated at the head of each business segment, and the Talent Management network has further developed within the Regions. Competency development is supported by Technip University and the Project Management Academy.

TECHNIP UNIVERSITY

As a cornerstone for sharing knowledge across entities, Technip University works with local and regional training teams to ensure learning and development programs meet the needs of its employees and those of the Group.

Technip University plays an essential part in every employees’ career path. It focuses on a few, carefully targeted subjects that closely match the Group’s functions and business objectives, such as ethics, diversity or knowledge of the oil and gas industry. It also works as a tool to inform employees about Group priorities. In 2011, about 600 employees took part in classroom sessions and more than 3,500 e-learning modules were delivered.

PROJECT MANAGEMENT ACADEMY

Tailored initiatives have been launched to further align and integrate the project management population, which is key for Technip. These are being handed over to the newly-created Project Management Academy. Project managers worldwide are given the opportunity to assess their competencies and development areas against a unique framework. In 2012, a Competency to Development matrix will enable them to identify concrete development actions. We are also developing consistent project management guidelines and lessons learned systems.

EMBRACING OUR SOCIAL RESPONSIBILITY

We are fully aware of our social duties and moral obligations, which is why Technip is committed to a responsible human resources policy. Multiple actions have been taken to promote health and cultural issues as well as good working conditions within the Group. In 2011, we received several distinctions underlining the quality of our human resources policies and working conditions. These included Top Employers awards (from CFR Institute) in France, Spain and Brazil, and the Healthy Working Lives Gold standard status in Scotland.

STRENGTHENING SOCIAL DIALOGUE

In 2011, 81 new collective bargaining agreements were signed, covering issues such as working hours, training, working conditions, equal opportunities, health, hygiene and safety. The 174 agreements now in force reflect the importance and effectiveness of social dialogue within the Group. The European

WITH 105 NATIONALITIES IN 48 COUNTRIES, DIVERSITY IS OUR STRENGTH

9 entities with more than 20 nationalities

HUMAN RESOURCES


Works Council, established in 2005, meets twice a year and brings together 15 employee representatives from 10 European countries.

PROMOTING DIVERSITY

Since our markets are international and our clients multinational, diversity is our strength.

Gender diversity objectives have been defined for the top 130 positions in the Group, as well as in all succession plans across the Regions. Non-Western diversity is also a strong focus for all key successions at Group level. Diversity Committees will be set up in 2012 to challenge and monitor progress. This increased push for diversity is also illustrated at the highest level of the Group, with the renewal in 2011 of the Board of Directors to now include three women and six nationalities.

All talent pools are considered when recruiting. In Abu Dhabi for example, International and National Internship programs are offered to engineering students from local universities and young professionals from national oil companies.

An effort is made to promote recruitment of young people, who tend to suffer from a higher unemployment rate than the average in the Western countries. In 2011, hires of fresh-out graduates increased by 34% at Technip and the average number of interns and apprentices increased by 58% compared to 2010. At the other end of the age pyramid, it is also essential for us to value and capitalize on the expertise of our senior employees.

CHANGING HOW DISABLED PEOPLE ARE SEEN

Several initiatives were conducted in 2011 in the field of disability. In Italy, disabled employees were given special leave to participate in extracurricular activities, such as sportive competitions. In France, Technip participated in the "Week for the Employment of Persons with Disabilities" with an art exhibition held at La Défense to convey a positive vision of disabled people. In China, Indonesia, Finland, Greece and the US, Technip participated in fund raising and volunteer activities in favor of disabled people.

ATTRACTING TALENTS

Technip offers international careers, with assets and highly technological projects all over the world. In their every day jobs, our engineers contribute to meet the world energy challenges. These factors, combined with our strong commitment to develop our people, make Technip an attractive employer. This is confi rmed by the average 10,000 resumes that we receive each month.

To further reinforce our attractiveness, we are carrying out initiatives to promote sciences at school and maintain strong relationship with engineering schools. In 2011, we also launched an employer branding initiative to defi ne and harmonize our recruitment messages throughout all Group entities.

IN 2011 TECHNIP PUBLISHED THE PEOPLE MANAGEMENT BOOKLET SUMMARIZING ITS COMMITMENTS TOWARDS ITS PEOPLE

Julie Cranga Vice President, Human Resources, Communications and Security - Technip in the Middle East

3 QUESTIONS FOR

Could you draw us a picture of Technip’s diversity in your Region?Diversity is the main trait of our workforce, with 49 nationalities from all continents. The main nationality is Indian with more than 55% of the workforce, while Arab nationals represent only 7%. Females represent 13% of our workforce, with only a few in senior roles, top positions being mainly occupied by Western males. This refl ects the labor market of the Middle East where the majority of the workforce comes from abroad. When I joined Technip six years ago, I was a Project Control Engineer on the liquefi ed natural gas construction sites in Qatar. I was the fi rst woman to be hired by Technip there, but then around 20 other women have worked on this site, proving that this is an area where we are progressing!

What are the challenges of diversity?The main challenge is to create and maintain a work environment based on common understanding and respect of each culture – a place where everybody feels comfortable and in a position to reach their full potential. It is also about respecting religious practices and offering menus for all diets at the canteen. For managers, it is about adjusting our managerial style and being able to communicate effi ciently with our whole team. You also need to be careful not to give more credit to someone because they come from a culture close to your own.

Is it a strength for the company?Promoting diversity in the Middle East Region is a must. We recruit from all talent pools. It keeps us competitive and allows us to staff our projects and increase our competencies. Having a diverse workforce allows us to better serve our clients’ needs because their workforce is like ours: diverse.

105 nationalities1,173 expatriates

53


IN THAILAND TECHNIP PRESENTED A CHEQUE TO HELP ITS EMPLOYEES WHO WERE AFFECTED BY THE FLOODING

LOCAL CONTENT: GOING BEYOND A PROJECT’S LIFESPAN

Local content is a reality at Technip. Our policy is to establish a sustainable presence wherever we conduct business and stay for the long-term. Moreover, Technip is a multi-local company. We need to be close to our customers, ensure that their projects contribute to local development and have a keen understanding of all strategic markets. Local content is therefore the key to delivering these benefi ts.

CONTRIBUTING TO ECONOMIC ACTIVITY

Our presence in 48 countries, our production assets on every continent and our extensive network of suppliers give us the capability to undertake projects involving a very high level of local content. This in turn, links host country economies with our own growth.

For example, the engineering contract started in 2011 on the first two Brazilian-built FPSOs, P-58 and P-62, for Petrobras will be executed with over 90% local content. In the subsea business, our strategy of locating plants in dynamic markets like Brazil or Malaysia helps strengthen the manufacturing base of the countries we operate in.

Through technical or commercial partnerships with local companies, such as Crestech in Nigeria or MHB in Malaysia, Technip is further enhancing the local content of its offering.

Lastly, we work with our customers to source materials and equipment from local industries.

64% of Technip recruitment is in non OECD countries

A LONG-TERM PARTNER OF LOCAL COMMUNITIES

LOCAL COMMUNITIES

Undertaking initiatives to support and ensure that local communities gain economic and social benefi ts from our projects are part of Technip’s commitment to encouraging a fair return for all.


In 2011, Technip launched the Growing Together program at our logistic base in Angra dos Reis, Brazil. 90 people from the city were selected for training in welding, industrial electrical installations and mechanical assembling. Lectures were held to raise awareness of other job opportunities in Angra. The initiative will be renewed in 2012.

In almost every region of the world, Technip is working to encourage the emergence of a new generation of oil and gas professionals by introducing its business and activities to students and sponsoring their studies. Our Ghanaian operating center, for instance, signed a three-part agreement with the University of Kumasi, Ghana. In addition to providing scholarships to attend a masters program and internships in France, Technip is holding regular workshops and lectures at the university to inform students about the oil and gas industry. Technip is also supporting the Kumasi business incubator for entrepreneurship.

This was one of the drivers, along with reducing procurement costs, behind a program launched in 2010 to qualify more suppliers from emerging countries.

PROMOTING EMPLOYMENT AND SKILLS TRANSFER

Technip plays a key role as a local employer by giving priority to on-site hiring. For example, 100% of the staff at our Dande spoolbase in Angola is Angolan. This "act local" policy strengthens the multicultural identity of Technip and contributes to building an international company with a strong local presence. Our projects and activities also create indirect jobs in the housing, medical, transportation and catering sectors.

Recruiting locally is an opportunity to access local talent pools and widen the expertise of the Group. This policy relies on the transfer of skills between our operating centers and the training of local talents.

WHEREVER WE CONDUCT BUSINESS WE ENSURE THAT LOCAL COMMUNITIES REAP ECONOMIC AND SOCIAL BENEFITS FROM OUR PROJECTS

What is your policy when it comes to relationships with the local communities? Our policy consists of understanding their needs and contributing to their sustainable development. We never give money to the communities; we prefer to provide workshops, lectures and specifi c social actions. All our actions aim to improve local development and expand opportunities for communities and for our employees. Many of our facilities are in cities of rural areas, where there are lots of people in need and where communities have to learn to develop for themselves. We cannot close our eyes to this reality.

How are you organized to carry out these actions?We have a Social Management team inside the Human Resources department that works in two areas: social service, which is directed at getting employees and their families support with social issues, while social responsibility is more about helping external communities. Although the team is small, our actions are successful thanks to the generous involvement of our staff. We reward voluntary work and, during campaigns, we can count on the involvement of all the employees.

Can you give us some examples?We conducted over 30 social actions in 2011. One was the Technip Citizen Movement, which consisted of a day dedicated to a wide range of community assistance activities. About 500 people participated. There was also a drama program called Plays at Schools, which involved children, families and teachers. Over 4,000 people benefi ted from this action. We plan to go further in 2012, notably with a more structured social responsibility area. All actions will be built around one major program for all sites in Brazil.

Tereza Cristina Batista Corporate Social Responsibility Coordinator, Technip in Brazil

3 QUESTIONS FOR 55


SUPPORTING LOCAL COMMUNITIES

Obtaining the support of local people is an integral part of a project’s success for us and our clients. Technip is strongly committed to respecting local cultures and works continually to improve the wellbeing of communities. Historically, actions in favor of local communities have been mainly driven at project level, where the link between Technip and the population is the closest. In 2011, we created a Relief and Development Fund to be able to launch Group-level actions (see box p.57).

UNDERSTANDING AND RESPECTING LOCAL CULTURES

When working with local communities, our approach is one of dialog and consideration.

The Macedon Gas project that we are building for BHP Billiton in Western Australia involves the construction of an onshore gas pipeline and a gas plant in a region where Aboriginal people, the Thalanyji, have lived for more than 30,000 years. The area is rich in rock art and has places of cultural significance. Therefore, the management of cultural heritage issues has naturally become a key focus of the project. Local people have been engaged by BHP Billiton to assist with the project’s indigenous cultural heritage surveys. Prior to any ground disturbance associated with construction, Thalanyji heritage monitors survey the land to identify significant sites. The Macedon project team has also developed several initiatives and resources to promote the importance

of heritage management and to encourage an appreciation for the Thalanyji’s history in the area. We also communicate regularly and transparently with the local community regarding the project’s progress.

IMPROVING THE WELLBEING OF COMMUNITIES

The health checks provided to Technip employees working on our construction sites have been extended to include local sub-contractor personnel. This allows improved access to healthcare and enables the identification of any medical issues that could potentially cause accidents.

Initiatives in favor of local communities in 32 countries in 2011

TECHNIP WON AN AWARD IN 2011 IN GHANA FOR ITS PARTNERSHIP WITH THE KUMASI UNIVERISTY

LOCAL COMMUNITIES


In and around project sites and operating centers, Technip conducts preventive health initiatives and awareness campaigns to alert employees and local communities of public health issues (see Health, Safety and Security chapter). We also regularly carry out other healthcare initiatives, including supporting medical research or hosting blood drives.

In some projects, health, safety and environment (HSE) and local communities are even more closely linked. An initiative was developed in 2011 on the main sites of the Pazflor project in Angola to provide funding for social programs if our staff reached HSE targets. Our teams successfully met the challenge, allowing the funding to provide for furniture and school supplies for the Musseque Cabele School, near Barra do Dande.

FOSTERING SOLIDARITY INITIATIVES

Technip employees are passionate about their jobs and generous in their charitable actions, and the Group encourages and supports this sense of solidarity. For example, Technip in Italy allows non-governmental organizations

and charities to promote their work on the company’s premises. Also, a Social Initiatives Committee organizes and encourages employee contributions to social programs.

Around the globe, Technip backs a wide range of social causes, with particular emphasis on issues related to children, education and scholarships, disabled persons and humanitarian projects. Our policy is to encourage long-term engagement rather than one-shot initiatives. This is illustrated, for instance, by the sponsorship of 50 needy families from Pasir Gudang, Malaysia, who are receiving regular income support from Technip over a two-year period. Technip in Scotland is also committed to a long-standing partnership with the Cornerstone charity, providing services for people with learning disabilities.

When the situation calls for it, Technip is also capable of rallying significant resources quickly. In 2011, we donated € 280,000 to help our staff affected by the flooding that was devastating Thailand at the time. Our Thai operating center, as well as regional and corporate crisis teams, were fully mobilized during this crisis to limit the impact on the quality of life of the victims and the activity of the center.

THALANYJI HERITAGE MONITORS IN A SURVEY MISSION FOR THE MACEDON PROJECT IN AUSTRALIA

TECHNIP RELIEF AND DEVELOPMENT FUND

At the end of 2011, Technip established the Technip Relief and Development Fund. This endowment fund refl ects our willingness to strengthen our social corporate responsibility and is consistent with our strategy of enhancing our local presence in the countries where we operate.

The purpose of the Fund is to support non-profi t social and general interest projects, particularly those that focus on health and education and that benefi t underprivileged communities. In the event of natural disasters, emergency missions are also considered on a case-by-case basis.

The Fund’s goals are entirely consistent with Technip’s values. It was built on the principles of transparency and ethics, which are guaranteed by operational and governance rules. It is guided by a Board of Directors composed of Executive Committee members and representatives from Human Resources and HSE.

Every employee in the Group can make a personal contribution to the Fund’s activities by submitting project proposals. In 2011, the Fund had already supported two projects initiated by our teams in Ghana: one related to a library and another one with a local association that helps orphans and vulnerable children.

Technip in Colombia, Brazil and Ghana recognized for actions towards local communities in 2011

57


BUSINESS STAKEHOLDERS

CUSTOMERS: DELIVERING EFFICIENT OPERATIONS

Technip is committed to creating value for its clients by providing high-quality services and delivering high-performance installations that include signifi cant local content.

FOCUS ON QUALITY TO IMPROVE CUSTOMER SATISFACTION

Our commitment to customer satisfaction is demonstrated by the way we ensure quality. The quality management systems of all our operating centers are ISO 9001 certified. To gauge customer satisfaction in projects, we measure nine indicators: health, safety and environment (HSE); project delivery; client relationships; documentation; scheduling; costs; resources; contract management and installation performance. Evaluation is conducted over the duration of the project by using questionnaires. These help us to understand client expectations and identify

potential improvements. Over 180 surveys were conducted in 2011. The results showed a high level of satisfaction, on par with 2010, especially in HSE, client relations, engineering and installation performance. To capitalize on the lessons learned, we have begun deploying a new knowledge management system in Region A, Brazil, North America as well as for construction activities.

We have maintained our focus on costs and scheduling to further improve competitiveness. Following the 2010 introduction of Lean operations principles and Six Sigma quality improvement, more than 80 Lean-Six Sigma leaders were trained in 2011 to pass on the programs. Also, more than 50 quality initiatives were launched across all our business areas.

INCREASING THE LOCAL CONTENT OF OUR CLIENTS’ PROJECTS

With a presence in 48 countries, our organization is both international and very local. This allows us to deliver world-class

projects to our clients while meeting their objectives to increase local content (see Local Communities chapter).

SUB-CONTRACTORS: PARTNERS IN SUSTAINABLE DEVELOPMENT

Technip rarely works alone when delivering a project. We rely on suppliers to provide certain kinds of equipment, and on construction sub-contractors for the manpower employed on our onshore project sites. An integrated approach and close working relationships are therefore necessities that benefi t all stakeholders.

SUSTAINABLE PROCUREMENT

At Technip, we want our suppliers to share our values and standards and recognize the strategic importance of HSE in the quality of our suppliers' operations and our relationship with them. When selecting equipment suppliers, we take into account sustainable development

OUR ECONOMIC RESPONSIBILITIES: BEING PROFITABLE AND SHARING VALUECompleting projects profi tably and having a strong balance sheet are among Technip’s main responsibilities. This contributes to sustainable development just as much as environmental protection and social actions, by ensuring growth and employment over the long-term, while creating a stable business environment for our various economic partners.

TRAINING OF OUR SUB-CONTRACTORS PRIMARILY FOCUSES ON SAFETY AND ETHICS


TECHNIP STRIVES TO PROVIDE A FAIR RETURN FOR ALL ITS STAKEHOLDERS, BOTH INTERNAL AND EXTERNAL

TRAINING OUR SUB-CONTRACTORS

Technip is constantly increasing training programs for business partners concerning ethics and safety. These programs are disseminated on each and every construction site in a consistent manner to ensure that all project stakeholders understand Technip’s values and implement measures to promote them. Regional and corporate training organizations have been established to ensure the training programs meet the highest possible standards.

The HSE portion of the training for sub-contractors is based on the Technip Pulse program, which contains several courses. The objective is to promote an HSE climate in which both employees and business partners behave positively and proactively.

Ethics training for sub-contractors consists primarily of an induction program and an introduction to Technip’s Code of Ethics. For example, in Region B, the Social Accountability department has worked with the Construction department to produce a single training program to be disseminated during site visits for both Technip personnel and sub-contractors. This gives all parties a common foundation upon which any changes or improvements in the course of the project’s execution can be built.criteria along with economic and technical

performance data. For example, starting in 2011, greenhouse gas emissions produced by equipment transportation are considered when making technical and commercial comparisons. In 2011, 99 suppliers have also been evaluated on their capability and resources to manage the HSE risk during the execution phase of the Shell Prelude FLNG project.

Since 2006, we have incorporated references to Technip’s values and added a clause to our general purchasing terms and conditions informing suppliers that we uphold the United Nations Global Compact. We verify that our

suppliers are compliant with these values through inspections and audits. In Italy, Technip carries out regular audits among its suppliers as part of ensuring SA 8000 compliance. First introduced in 2009, the SA 8000 certification focused initially on human rights and working conditions and was extended in 2010 to cover communities and environmental issues. It has been renewed in 2011.

To sustain the long-term, profitable performance of Technip, two new information technologies tools were deployed during the course of the year. The first embeds a thorough design-to-cost culture among our engineers, while the second provides our buyers with the most competitive best practices for procurement.

In 2011, we also continued to work with customers to develop procurement policies aimed at increasing the local content of projects, both in terms of industrial capacity and human resources. Following the 2010 launch of a program to qualify more suppliers

An operating income from recurring activities of € 710 million in 2011

59


from emerging countries, we held a series of meetings in Shanghai that brought together Chinese, Indian and Korean suppliers, as well as representatives of international oil companies to discuss best practices in HSE.

Finally, Technip buyers are trained on ethical standards and recognition of the risks of corruption that they may face. They were among the first to receive training in 2011 as part of the major ethics awareness campaign (see Ethics & Compliance chapter).

MAKING CONSTRUCTION SUB-CONTRACTORS ACCOUNTABLE

As for equipment suppliers, the selection and evaluation of our construction sub-contractors integrates criteria related to ethics and sustainable development. Following our "know your partner" ethics principle, an investigation is carried out to verify the integrity of each sub-contractor. Their quality and HSE policies are monitored through performance check-lists and reviews of applicable procedures and standards. This is done by initial inquiries down to detailed project reviews during the course of the execution.

On a project level, we are committed to hiring local staff, at all levels of responsibility. We then help them to develop their potential through post-graduate education programs. In addition, we contribute to their wellbeing by giving them access to regular health check-ups. We also work closely with our customers and

sub-contractors to mitigate the impact of our projects on the environment and help local communities (see Local Communities and Environment chapters).

The Group Construction Development Center in Abu Dhabi is working on the harmonization of best practices across Technip as well as on the implementation of a more vertically integrated engineering, procurement and construction execution model from the early stages of projects. This contributes to better accountability in construction.

More than 180 client satisfaction surveys conducted in 2011

WE ORGANIZE REGULAR TOPIC-SPECIFIC CONFERENCES FOR OUR INDIVIDUAL SHAREHOLDERS

BUSINESS STAKEHOLDERS


SHAREHOLDERS: SHARING THE BENEFITS OF GROWTH

Technip encourages a fair return for all of its stakeholders and therefore takes care to share the benefi ts of its growth with its shareholders. On this basis, Technip’s Board of Directors proposed that the Annual General Meeting of shareholders of April 26, 2012 approve a dividend of € 1,58 per share, a 9% increase over 2011.

Our relationship with our shareholders is built on transparency and proximity.

In 2011, Technip continued to promote an active and ongoing dialog with individual shareholders. Two topic-specific conferences were hosted in 2011 at Technip’s corporate headquarters and were very well received by the shareholders. One was dedicated to subsea operations and the other was on polymers and petrochemicals. Another conference on plant construction was held in early 2012. Technip

also met with its shareholders in Lille, France, and invited them to visit its flexible pipe manufacturing plant in Le Trait, France.

During 2011, we have also continued to provide the institutional investment community with in-depth information regarding our strategy, operations, technologies and financial results. This is done notably through our dedicated Investor website where all press releases, presentations, audio webcasts and transcripts are freely available. Group and individual meetings were also held with investors at various occasions, including roadshows in 23 cities worldwide, broker hosted conferences, visits to Technip’s corporate headquarters and energy industry conferences. In July, we also hosted a technical workshop on floating liquefied natural gas (FLNG) via an audio webcast. Lastly, in October, we successfully organized an investor and press day in Brazil, which included a tour of our Vitória flexible manufacturing plant.

In 2011 Technip received the Extel award of Best Investor Relations (IR) by a CEO, Best IR Team and Best IR Professional. Why did Technip win?These awards are based on the votes from fund managers and analysts, recognizing all-round excellence in IR. Trust is the most important quality that investors look for with company’s IR, and Technip is clearly providing such trust.Alongside the votes, we collect detailed data from fund managers. The two critical IR practices they look for are transparent, interactive one-on-ones with CEO or CFO and deep knowledge and excellent service from the IR team. Technip is ahead of its peers in both these regards.

Why is it important for a publicly traded company to have good relations with the fi nancial community?Very simply, it will increase the stock value. The price of any company’s stock is a simple matter of earnings multiplied by the multiple that the investment market calculates. Virtually all employees in a company are focused on earnings, and it is only those in IR who can really infl uence this multiple. Open relations with investors generate a greater level of belief and consequently a higher multiple.

What could Technip do to continue to improve?Investors have the desire for more discussions with operational managers, to really understand the value drivers and the "corporate story". They are also much more receptive to IR teams and companies that work more intelligently to properly understand individual portfolio managers’ focus and requirements, and treat each as a specifi c client. Matching up to these two trends will go a long way towards Technip continuing to enhance its IR program, and to being an Extel winner again in 2012.

Steve Kelly Managing Director, Extel

3 QUESTIONS FOR

Proposal of a € 1.58 dividend per share to be paid in May 2012

ON PROJECT SITES, TECHNIP PEOPLE WORK CLOSELY WITH CONSTRUCTION SUB-CONTRACTORS

61


HSEPROTECTING OUR PEOPLE, PRESERVING THE PLANET

HSE


At Technip, we believe that business success and health, safety and environment (HSE) go hand in hand. You cannot have the former if you do not ensure the highest standards of the latter. This philosophy is shared across our organization and sponsored at the highest level by our Chairman and Chief Executive Offi cer Thierry Pilenko, as illustrated by the objective he has set to see Technip becoming the reference company in terms of HSE.

63


SAFETY: A CORE VALUE

In 2011, a total of 142 million man-hours were worked at our facilities and project sites worldwide. During each of these hours, for each person, our commitment is to create a safe working environment.

MEASURING AND ANALYZING OUR PERFORMANCE

Technip’s Total Recordable Incident Frequency Rate (TRCF), which measures the recordable events per 200,000 hours worked, had fallen substantially in recent years and reached a threshold at 0.22 in 2010. The reporting culture has also developed in a very satisfying manner within the company. In 2011 however, our TRCF rose slightly to 0.26, reminding us all that vigilance in safety is necessary at all times. When reviewing these figures, we have identified a number of areas for improvement.

We were also saddened by two fatal accidents directly related to our operations that happened in 2011. One occurred at our manufacturing facility in Vitória, Brazil, following the collapse of a section of a building. The other took place during elevator maintenance in our office in Delhi, India. Two other fatalities occurred

during operations related to Technip, but not directly under our control. In all cases, full investigations were performed and reviewed by senior management, and appropriate measures were implemented.

The TRCF indicator does not fully take into account the severity of the incidents. Consequently, we have turned our focus to analyzing incidents of all types through the Serious Injury and Fatality Frequence (SIFF). Near misses are also included in this analysis, as they are often an early sign of unsafe behavior that could produce more serious incidents if left uncorrected.

Another area of focus in 2011 was tracking the leading indicators that enable us to gauge the effectiveness of the proactive actions taken to improve safety performance, such as training, management site visits and audits. The frequency of these activities can be increased when the indicators fall behind.

THE PULSE PROGRAM CONTINUES TO SPREAD

The implementation of Pulse, our leadership program aimed at developing a positive HSE culture, moved forward in 2011. The program is structured around a series of components designed to change perceptions and behavior. It aims to create awareness of the challenges posed by safety and the human, material and financial costs of accidents. So far, 10,000 people have taken part in Pulse sessions, ranging from senior managers and managers/supervisors to the general workforce and engineers. In 2012, we will undertake a global HSE culture survey to measure progress made through the program.

We have pursued our policy of including sub-contractors in developing a robust HSE approach on worksites. Our safety requirements and expectations are made clear from the contract stage. As part of Pulse and

HEALTH AND SAFETY,SECURITY

PROTECTING PEOPLE, OUR PRIORITY

From project sites to offi ces, from manufacturing facilities to vessels, we strive to protect all of our employees, clients and sub-contractors. We do this by defi ning and strictly applying an ambitious health, safety and environment (HSE) policy, as well as an uncompromising security strategy.

SAFETY IS A PRIORITY IN OUR ASSETS AND PROJECT SITES


other training programs, we provide training to all personnel working on our construction sites and ensure that all stakeholders – Technip, clients and sub-contractors – are fully engaged in this process.

FOSTERING CONTINUOUS IMPROVEMENT

We continue to challenge and improve our approach to HSE management and look for innovative ways to improve performance and set the benchmark for our industry. The reporting and analysis of incident data, plus the review of our processes, enable us to identify areas for improvement. These areas are part of an HSE Accelerator program, which focuses on key risk conditions and associated actions, behavior-based safety and an HSE portal for enhanced communication across the Group. All these measures will be implemented in 2012.

Martin Lawson Offshore Construction Manager, Technip in North Sea-Canada

3 QUESTIONS FOR

TECHNIP SAFETY PERFORMANCE

2007 2008 2009 2010 2011

8

7

6

5

4

3

2

1

0

0.40

0.35

0.30

0.25

0.20

0.15

0.10

0.05

0

6

0.25

0.22 0.22

0.26

7

2 2

0.27

4

Fatalities Total Recordable Case Frequency (TRCF)

You recently won an HSE award. Could you tell us more about it?In February 2012, I received the T-MOS (Technip Marine Operations Services) Individual Safety Award for my contribution to safety in 2011.Technip had been awarded a contract for the West Delta Deep Marine (WDDM) project, offshore Egypt. While I was working on this project onboard the Fugro Saltire third party vessel as the Offshore Construction Manager, an incident happened. During the investigation and safety reviews that were immediately carried out, we identifi ed a number of improvements. I introduced a new method of toolbox talks and new engineering procedures. I believe my strength was to make the most of individuals' knowledge and experience, team effort being the key to safety. The innovations were

paramount and the newly developed communication skills and designated people on equipment had a massive impact on the project. Some of the procedures were even taken up by the client and used on all the vessels involved in the project.

Could you describe us the HSE plan that was put in place for the WDDM project?For this project, a complete HSE and security management system was implemented to meet the requirements of both Technip and our client Burullus. Several reference documents were developed in a joint approach. The success of the project was achieved through a very effi cient emergency response system, supported by several onshore trainings and offshore exercises, as well as daily operational meetings focusing on HSE operations.

Several initiatives also helped make the project a success: a major incentive scheme for the Maadia Yard (Alexandria) personnel and a successful "dropped objects" prevention campaign, amongst others.

What is specifi c about safety on board vessels, and why is it particularly important?Safety is what gets you back home at the end of a project! It is the key priority onboard any vessel. The personnel safety is paramount and is everyone's responsibility. I believe 75 to 95% of offshore accidents are due to human mistakes. That is why a massive emphasis is put on communicating, understanding one's responsibility and anticipating any diffi culty.

65


HEALTH: RISK PREVENTION AND INFORMATION

Protecting the health of our employees is one of our key commitments. Because we are present in nearly 50 countries, our employees travel and work in areas with different health profi les. Preventive healthcare starts with accurate information and regular training.

PROTECTING TRAVELERS AND EXPATRIATES

Detailed leaflets about destination countries are available to travelers and expatriates on the Intranet.

Specific training for antimalarial treatments and other health risks is provided for projects in areas prone to epidemics (malaria, dengue fever...). We evaluate local medical resources and their ability to handle emergency situations such as accidents and epidemics. This was carried out in Cameroon, Gabon, Angola and Niger in 2011.

In addition, medical risk alerts are issued when necessary. In 2011, 17 were issued, some of them concerning outbreaks of illnesses that can be prevented through vaccinations, such as measles and polio.

ENCOURAGING WELLNESS IN ALL ENTITIES

All of Technip’s entities organized a sleep awareness day in 2011, completed with posters, information leaflets and workshops. Across the Regions, employees also participated in awareness activities to prevent health issues such as heart disease, smoking and diabetes.

How to evaluate workplace risks, including social and psychological risks, was at the center of our healthcare strategy in 2011 and will continue in 2012. A new health management process was drafted in 2011, featuring a more practical approach to prevention and includes health risk assessments, emergency planning, first aid training, medical checkups, prevention of workplace risks and public health. In 2012, guidelines will be provided to assist in the implementation of this new process.

HELPING VICTIMS OF TRAUMA

The psychological impact of experiencing a major incident, and the post-traumatic stress disorders (PTSD) that victims can suffer from, is diffi cult for non-professionals to evaluate and are often underestimated. Consequently, after signifi cant work was done on the processes and operational management of a crisis, the Medical Department and Security Division of Technip worked together in 2011 to develop an approach to prepare emergency response teams to take care of victims of traumatic events.

In December 2011, a psychologist provided a one-and-a-half day pilot training session at the corporate level. It focused on three important factors when managing a PTSD situation: how to judge one’s own ability to control emotional response, how to detect when a victim’s level of stress is impacting his or her cognitive capabilities, and how to manage the emotional response of those receiving information about a traumatic situation. This training will be customized for each of Technip’s Regions to take into account cultural differences and will be deployed in the entities.

A PTSD fi rst response unit will also be set up to ensure that Technip is able to respond quickly and appropriately to a traumatic event affecting its employees and their families.

OUR EMERGENCY RESPONSE TEAMS ARE TRAINED TO COMMUNICATE WITH VICTIMS OF TRAUMA

THE PULSE PROGRAM LEVERAGES LEADERSHIP AND COMMUNICATIONS TO IMPROVE THE HSE CULTURE AND BEHAVIOURS WITHIN THE GROUP

HEALTH AND SAFETY,SECURITY


SECURITY: ANTICIPATING AND PREVENTING ALL TYPES OF MALEVOLENT ACTS

Ensuring that Technip is able to keep its people and crews out of harm’s way while operating in challenging environments is our priority.

PROTECTING OUR PEOPLE, INSTALLATIONS, VESSELS AND TECHNOLOGICAL ASSETS

The Technip Security Division monitors security issues affecting the working conditions and environments of our people, regardless of whether they are traveling, working in offices, on construction sites or onboard vessels operated by the Group.

Our strategy is to increase our ability to anticipate and manage crises, while ensuring business continuity in the event of an incident. The effectiveness of this strategy is backed by our culture of security, which is shared by all the internal and external stakeholders of any given project.

2011: TAKING SECURITY FURTHER WITH INNOVATIVE AND PRACTICAL TOOLS

We keep our employees informed of security issues at all times. Security booklets are available for all countries where Technip operates. Security alerts are issued

whenever a security situation changes, and the whereabouts of all traveling personnel are monitored. Technip is independent in its security assessments and decision making, thanks to dedicated internal resources.

2011 was a challenging year for the security teams worldwide, with major and sudden changes occurring in several countries where Technip operates. Technip’s robust Emergency Response System proved highly effective, managing the Arab Spring, the tsunami in Japan and the flooding in Thailand. The continuous Emergency Response training program (with regular live exercises) ensures that Technip has the recognized capacity to respond to any incident. We also continue to strengthen our emergency communications capabilities to keep in touch with employees, families, partners, subcontractors and the media in the event of a major incident.

To manage changing political situations, Technip launched several initiatives to ensure that projects are well integrated into the local

environment and can continue to operate in volatile countries. By forming closer ties with the local communities, clients and partners, the Group is able to anticipate risks and work on sustainable actions.

The Information Security© handbook on data protection and the confidentiality of sensitive information will be distributed in 2012. A permanent independent auditing system is also in place to anticipate the evolution of potential threats to information systems.

Lastly, the Security Division internally developed a customized monitoring and alert tool that allows Technip to locate the position of the fleet in real time and identify areas of potential risk. This is the latest addition to Technip's arsenal of anti-piracy measures, which also include awareness campaigns and anti-piracy exercises for vessels and their crews.

A MONITORING AND ALERT TOOL ALLOWING US TO LOCATE THE POSITION OF OUR FLEET IS THE LATEST ADDITION TO OUR ARSENAL OF ANTI-PIRACY MEASURES

67


SUSTAINABLE RESPONSES TO ENVIRONMENTAL CHALLENGESThe energy industry must respond effectively to worldwide environmental challenges, especially those related to global warming and prevention of accidental pollution. We face these challenges in our own activities and those of our clients.

CONTROLLING OUR ENVIRONMENTAL FOOTPRINT

The main focus of Technip’s environmental policies is to reduce greenhouse gas emissions as well as waste and water consumption in its operating centers, fl eet and facilities to the lowest practical levels.

A GLOBAL COMMITMENT TO IMPROVING ENVIRONMENTAL PERFORMANCE

Our environmental strategy is an important part of Technip’s overall health, safety and environment (HSE) policy. Our commitment to create an incident-free workplace has contributed to reduce the number of environmental incidents and unplanned events (such as spills or releases of hydrocarbons and chemicals) in the past few years.Technip is steadily working to improve its HSE management systems. This will lead

to improved environmental performance and compliance, increased energy efficiency, and lower consumption, emissions and waste.

Also, our Environmental Working Group continually assesses, scrutinizes and challenges Technip’s environmental performance and operations. It has overseen the development of a number of activities and processes such as global environmental reporting and environmental awareness and improvement programs. One of its key objectives in 2011 was the development of a global Environmental Management Performance standard. This standard spells out the minimum environmental requirements for Technip entities, projects, vessels and construction yards. These include the full development and implementation of ISO 14001 environmental management systems.

Technip is committed to limit greenhouse gas emissions in its assets and those of its clients

ENVIRONMENT

ON THE MACEDON PROJECT IN AUSTRALIA, WE TOOK NUMEROUS INITIATIVES TO PROTECT THE TURTLES


The standard also defines the responsibilities of each level of our organization, and those of our sub-contractors. Technip’s environmental challenges for 2012 will be to assess and audit these processes and look for innovations and efficiencies in its operations.

MINIMIZING OUR ENVIRONMENTAL IMPACT

Technip is committed to reducing the environmental footprint of its offices and fostering responsible behavior. To this end, Technip launched the Green Office program in 2010. It began with a survey of all operating centers to identify environmental best practices. In 2011, a Green Office guideline was published, focusing on our commitments and defining the Technip Green Office standard. This is a global set of green actions, from energy saving to transport plan or recycling, to be spread all over the Group’s offices in 2012. Some entities have already begun

implementing the standard. For example, Technip in Italy has launched a Paperless Company initiative that includes a web-based tool for consulting vendor documentation, which typically represents 40 to 50% of the paper used during a project.

The same care for the environment is taken in our industrial assets. For example, our Angra dos Reis facility in Brazil has developed a mobile wastewater treatment system that is used to clean painting equipment and tools. The system was constructed with re-used materials that would otherwise be discarded as landfill. The idea came from the maintenance workers themselves and will soon be used at other Technip sites in Brazil thanks to its efficiency, low cost and easy operation.

Could you present Planète Urgence, your non-governmental organization (NGO)?Planète Urgence, founded in 2000 around the idea of Congé Solidaire® (Solidarity Leave), is a French International Solidarity organization. In 2009, it was declared of public interest, thus allowing companies, communities and citizens to support projects created and managed by local actors throughout the world.

Could you tell us more about the reforestation campaign Technip participated in? The Mangrove Reforestation and Community Development program in Indonesia started in 2007, with our local partner NGO Yagasu, in the provinces of North Sumatra and Aceh. This program is pursuing a double target: the rehabilitation of degraded mangrove areas and the support to the socio-economic development of local communities through micro credit, a sustainable aquaculture model and awareness campaigns about the importance of the mangrove ecosystem. Since 2007, over 3 million trees have been planted, covering almost 750 hectares. They benefi t to more than 3,000 people, mainly from poor areas.

What was the outcome of the actions implemented? In 2011, Technip supported the program through a partnership with Planète Urgence, fi nancing the plantation of 62,700 mangrove trees in the village of Pangkalan Susu. This action contributed to restore the mangrove ecosystem on 9.5 hectares, to enhance the local biodiversity and protect the local communities against erosion, tsunamis, winds and climate change impacts.Beyond those actions, Technip's support has been crucial to the organization of village and school meetings during which Planète Urgence and Yagasu highlighted the importance of the mangrove ecosystem and fostered socio-economic development: 58 micro projects were fi nanced in Pantai Labu in a year and a half, and a sustainable aquaculture model was developed in Percut (also implemented in two projects early in 2012). Those actions are of outmost importance to alleviate poverty and ensure the long-term restoration of the mangrove.

Fabien GarnierPlanète Urgence Reforestation Project Manager in Indonesia

3 QUESTIONS FOR

OUR ENTITIES ARE SUPPORTING ENVIRONMENTAL INITIATIVES, SUCH AS THIS REFORESTATION PROGRAM IN INDONESIA

69


IMPLEMENTING ENVIRONMENTALLY-FRIENDLY SOLUTIONS FOR OUR CLIENTS

As the energy demands of emerging economies continue to rise, we are helping our clients tackle the challenges of greenhouse gas reduction and other environmental issues.

RESPECTING THE ENVIRONMENT OVER A PROJECT’S LIFESPAN

At every stage of a project, we take into account the environmental challenges and offer innovative solutions tailored to the client’s technical and geographic needs.

In the design phase, environmental and noise engineers ensure that any plant designed by Technip is compliant with all applicable environmental laws, regulations and standards. Studies and modeling are used to develop the most suitable environmentally compliant design. During 2011, the Environmental and Noise team based in Paris, France, worked more than 20,000 man-hours on 15 different projects.

During the construction phase, we work with our clients to minimize the impact on the flora and fauna. One example is the BHP Billiton Macedon Gas Project in Western Australia. The site for the shore crossing, where the umbilical and pipeline meet the ocean, was selected at a far distance from sea turtle breeding grounds. During construction, various strategies were used to avoid disturbing the turtle population, including 24-hour monitoring during the installation of the pipeline shore crossing. The monitoring has shown that the turtles continue to breed normally in the area and no adverse effect on the population has been observed.

PREVENTING ACCIDENTAL POLLUTION

The Macondo accident in the Gulf of Mexico in 2010 was a sharp reminder to the whole oil and gas industry of the importance of safety and prevention, but also of having systems ready to mitigate the impact of any accidents, should they occur.

Soon after this accident, international operators led by ExxonMobil joined together to create the Marine Well Containment Company. Technip is proud to have been awarded an engineering contract, followed in March 2011 by a design, procurement and fabrication contract, to develop a well containment system. It will fit the requirements for a broad range of water depths, well types and weather conditions. It can be mobilized within 24 hours of an accident and be fully deployed within a matter of weeks. Technip also signed an agreement to design the conversion of a drillship, the Dalian Developer, into an oil spill response unit (see Offshore chapter).

INVESTING IN GREEN CHEMICALS

In addition to our ongoing work in traditional petrochemicals, we are developing our activities in green chemicals, which are derived from biomass. It is currently a niche market, but the growth perspectives are promising. Several projects are currently underway and there is increasing demand from end customers for green products.

In 2011, we began working on our fi rst green chemical project in China for Solvay. The plant will convert glycerine derived from vegetable oil into epichlorhydrin (a basic chemical for various applications, notably in the electronics, automotive and aeronotics industries). Not only does this innovative process use a renewable feedstock, it also requires less energy and produces less environmental impact than traditional technologies that employ propylene and chlorine: carbon dioxide emissions are expected to be 20% lower while water consumption should be 90% lower.

Technological alliances are also in discussion concerning upstream (biorefi neries) and downstream applications.

ENVIRONMENT


WORLDENVIRONMENT DAY AT TECHNIPWorld Environment Day (WED) is a global initiative sponsored by the United Nations each year on June 5. The WED celebration began in 1972 and has grown to become one of the main vectors

for stimulating worldwide awareness of the environment and encouraging political attention and action.

In June 2011, Technip took part for the fourth consecutive year in WED. This year’s theme was "Forest - Nature at Your Service." We marked this day with environmental activities throughout our entities. The event was an opportunity to raise environmental awareness, participate in environmental actions and demonstrate our commitment to reducing the impact of our activities.

In Brazil, for example, WED was promoted on all Technip sites and included the participation of employees, their families and the local communities. A variety of initiatives were organized, including an ecology awareness walk at the Rio botanical garden, forums and talks about the "Forests and People" in Vitória, environmental games at the Macaé Base and fi lms at the Angra Porto site.

CONTRIBUTING TO RENEWABLE ENERGIES

2011 was a record year for investment in renewable energy, with over USD200 billion spent worldwide in the industry. Technip believes this long-term trend will continue, as environmental protection becomes a driver for economic development.

Historically, our activities in the field of renewable energy have been focused mainly on biofuels. While this continued to be the case in 2011, we also expanded in the offshore wind market, most notably in Europe. Offshore wind will open up business opportunities, as it is a precursor for other marine energy technologies, such as tidal and wave energy. Marine energy is a natural fit for the project management, offshore operations and technological skills present in our core activities. Technip also has all the capabilities to be a leader in the whole chain of carbon capture and storage (CCS). It is for this reason that we decided in 2011 to join the Global CCS Institute, the leading authority in this promising sector.

Technip reinforced its activities in renewable energies in 2011

TECHNIP'S COMMITMENT TO RENEWABLE ENERGIES IS MAINLY ILLUSTRATED BY BIOFUELS AND OFFSHORE WIND PROJECTS (HYWIND PROJECT)

THE HSE TEAM OF THE JUBAIL PROJECT (SAUDI ARABIA) RECEIVING AN AWARD FOR EXCELLENT ENVIRONMENTAL RESULTS

71


INDICATORSA COMMITMENT FOR TRANSPARENCY

INDICATORS


Financial fi gures, social indicators, environmental indicators... all of this data refl ects the Group’s commitment to achieving excellence. Presented in a transparent manner, they highlight the enhancements already made and areas for further improvement.

In preparing this Report, Technip has applied the standards required by the Global Reporting Initiative (GRI G3), the most widely-used benchmark for non-fi nancial reporting. Again this year, Technip has requested GRI approval of its reporting policy and procedure.

73


BogotaCaracas

St. John’s

Calgary

Los Angeles

Monterrey

Mexico CityCiudaddel Carmen

Duco

Angra

Mobile

CarlyssHouston

Rio de Janeiro

VitóriaMacaé

Barra do Riacho

REPORTINGSCOPE

The main 2011 social, environmental and fi nancial data are listed in the following pages of this Report. More information is also available in the 2011 Reference Document.

SOCIAL DATA

The 2011 social reporting perimeter includes 76 entities at end December 2011 taking into account:• The integration of several companies during

2011: Subocean in the United Kingdom, Cybernétix and AETech in France, Global Industries mainly in the United States,

• The creation of a subsidiary in Portugal.

Social indicators cover 100% of the Group’s international scope unless otherwise mentioned. Social data of companies integrated in December 2011 (Global Industries, AETech and Cybernétix) are not consolidated when sections cover the whole year.

The input, collection and consolidation of social data have been conducted using a common software tool across the Group. Users dispose of an indicator definition protocol that is reviewed and improved each year based upon feedback from the entities and the problems observed. Data consolidation is centralized by the Group Human Resources Division.

ENVIRONMENTAL DATA

Environmental data is collected annually by means of Technip's worldwide data management system. HSE and Administration staff members from all Regions, including project sites participate in data collection.

Technip Group entities and main projects report data related to these various environmental performance indicators. This reliable data thus enables changes to be measured at each site.

INDICATORS


Lobito

LuandaAngoflex

BarcelonaLisbon

ParisMarseille Rome Baku Ashgabat

Bagdad

Dubaï

Le TraitLondon

DüsseldorfLyon

Athens

Cairo

The Hague

Duco

DohaAl Khobar

OsloPori St. Petersburg

Warsaw

NovogradNExBTL plant

KstovoOrkanger

StavangerEvanton

NewcastleAberdeen

Dande

Miri

Kuala Lumpur

Batam

Asiaflex ProductsSingapore

Balikpapan

Shanghai

SeoulNanjing

Raiu

Surat

Al Jubail

Arlit

QCS

NKW Refinery

CWLH

Jakarta

Perth

New Delhi

ChennaiLagos

Accra

Port Harcourt

Bangkok

Ho Chi Minh City

Abu Dhabi

Chonburi

VizagMumbai

Rayong

Countries in which Technip has carried out initiatives in favor of local communities in 2011

Offi ces and assets reporting their social and/or environmental data

Project and installation sites reporting their social and/or environmental data

75


BREAKDOWN OF EMPLOYEES BY GEOGRAPHIC ZONE

12/31/2011 12/31/2010

Europe 11,491 10,026

Americas 7,491 5,406

Asia Pacific 6,528 5,501

Middle East 1,833 1,569

Africa 675 581

Russia & Central Asia 201 194

Regular workforce (1) 28,219 23,277

Other contracted workforce 2,873 2,515

Total 31,092 25,792

(1) Employees on payroll and contracted workers in Technip fleet, plants and yard

PAYROLL EMPLOYEE ARRIVALS AND DEPARTURES

2011 2010

Arrivals 5,862 4,077

Permanent contracts 3,717 2,643

Temporary contracts (fixed-term) 2,145 1,434

Departures 3,277 3,094



Economic lay-offs (2) 0 0

Renewal rate of permanent positions (3) 1.64 1.27

(2) According to article L. 1233-3 of French Labor Code(3) Start/termination of permanent positions

BREAKDOWN OF EMPLOYEES BY CATEGORY

12/31/2011 12/31/2010

Employees on payroll 25,717 21,137



Contracted workforce 5,375 4,655

Contracted workers in fleet, plants and yard 2,502 2,140

Other contracted workforce 2,873 2,515

Total 31,092 25,792

BREAKDOWN BY GENDER

12/31/2011 12/31/2010

Executive Committee 7 8

Women 0% 0%

Men 100% 100%

Managers (4) 2,810 2,588

Women 17% 18%

Men 83% 82%

Others 22,900 18,541

Women 25% 26%

Men 75% 74%

Total 25,717 21,137

Women 24% 25%

Men 76% 75%

(4) Employees playing towards subordinates a hierarchical role, in accordance with the Human Resources Without Borders program

ORGANIZATION OF WORKING HOURS

12/31/2011 12/31/2010

Full-time employees > 25,000 > 20,000

Part-time employees < 600 < 500

Employees working in teams < 2,500 < 1,500

Overtime (France and regional headquarters) 773,394 750,966

ABSENTEEISM

2011 2010

Total rate of absenteeism (sickness/accident) 2.11% 2.13%

Number of days lost due to strikes 165 403

SOCIALDATA(WORLD SCOPE, UNLESS OTHERWISE INDICATED)

INDICATORS


BREAKDOWN OF EXPATRIATES BY GEOGRAPHIC ORIGIN

12/31/2011 12/31/2010

Europe 591 603

Asia Pacific 278 303

Middle East 166 127

Americas 136 114

Africa 1 4

Russia & Central Asia 1 0

Total 1,173 1,151

TRAINING OF EMPLOYEES ON PAYROLL

2011 2010

Hours of training 842,879 591,564

Technical training 360,043 199,993

Non technical including management, cross disciplines 295,084 195,065

Health/safety/security 84,376 131,025

Languages 68,794 52,206

Human rights, ethics and Technip's values awareness training 34,582 13,275

Number of employees on payroll who benefited from at least one training course during the year

19,495 16,362

Female 4,514 4,010

Male 14,981 12,352

Average hours of training per employee on payroll 35 25

EUROPE41%

AMERICAS27%

ASIA PACIFIC23%

MIDDLE EAST6%

AFRICA2% RUSSIA & CENTRAL ASIA

1%

ANNUAL PERFORMANCE REVIEWS

2011 2010

Percent of payroll employees assessed 92% 92%

PROFITS SHARING (IN € THOUSANDS)

12/31/2011 12/31/2010

Amounts allocated to incentive profit sharing (France, Spain, Italy) 8,052 12,127

Amounts allocated to mandatory profit sharing (France) 6,052 14,655

GEOGRAPHICAL BREAKDOWN OF REGULAR WORKFORCE (5)

(5) Employees on payroll and contracted workers in Technip fleet, plants and yard

77


INDICATORS

ENVIRONMENTALINDICATORS

Consumption 2011 20102011 Breakdown

Construction Fabrication Fleet Offices

Paper

Paper (tonnes) 1,053 571 56 45 0 953

Energy

Direct energy consumption (MWh)

Gas (MWh) 16,545 1,367 0 9,638 0 6,907

Fuel-oil, diesel (MWh) 1,354,272 1,549,867 261,241 114,028 976,560 2,443

Indirect energy consumption (MWh)

Electricity (MWh) 90,761 69,004 2,019 32,841 0 55,901

Water

Total water consumption (m3) 2,480,785 2,946,805 1,728,138 230,594 98,798 423,255

Waste water (1)

Industrial & domestic effluents (tonnes) 350,311 1,329,308 214,071 56,454 79,786 0

Waste

Non-hazardous waste (tonnes) 55,871 23,005 43,160 8,331 1,803 2,577

Hazardous waste (tonnes) 4,513 2,368 1,507 442 2,527 37

Total waste (tonnes) 60,384 25,373 44,667 8,773 4,330 2,614

Atmospheric emissions CO2

Direct emissions (t CO2 equiv) 342,075 373,256 69,401 9,462 261,143 2,069

Indirect emissions (t CO2 equiv) 36,085 28,652 2,110 11,846 0 22,129

Total 378,160 401,908 71,511 21,308 261,143 24,198

Annual expenditure on environmental protection (k€)

Total environmental expenditure (k€) 405 710 - - - -

Total capital expenditure committed 1,846 2,632 - - - -

Provisions and guarantees to cover environmental risks (k€) 0 0 0 0 0 0

Decontamination costs (k€) 0 0 0 0 0 0

Number of fines and compensation awards (k€) 0 0 0 0 0 0

Amount of fines and compensation awards (k€) 0 0 0 0 0 0

Total man-hours worked (millions) 142 188 69 18 9 56

Performance indicators

Energy consumption (kWh/h) 10.3 8.6 3.8 8.2 112.1 1

Water consumption (l/h) 17.47 16 25.11 12.83 11.34 7.59

Waste (kg/h) 0.43 0.13 0.65 0.49 0.5 0.05

Greenhouse gas emissions (kg eq CO2/h) 2.66 2.14 1.04 1.19 26.98 0.43

(1) Effluents treated in water treatment plants and discharged directly into the natural environment


GREENHOUSE GAS EMISSIONS(KG EQUIVALENT CO2 PER HOUR)

The increase in greenhouse gas emissions can be attributed to a widder emissions reporting, particularly from fabrication sites. In 2011, greenhouse gas emissions

were 378,160 metric tonnes equivalent CO2.

WASTE(KG PER HOUR)

In 2011, 60,384 tonnes of waste were produced, of which 7% were hazardous waste.

Again, the widder fabrication site reporting can explain this increase.

WATER CONSUMPTION(LITERS PER HOUR)

In 2011, water consumption was 2,480,785 cubic metres. The increase compared to 2010 fi gures is largely

due to a higher level of entity reporting.

TECHNIP'S MAIN ENVIRONMENTAL INDICATORSDespite improvements of overall environmental performance, most of the main indicators have shown an increase between 2010 and 2011. This can be attributed to the increased pipe manufacturing, size of pipe, improvement and enlargment of the environmental data reporting and a larger number of entities.

2011

2010

2009

2008

2007

2.14

2.66

2.94

1.64

1.73

2011

2010

2009

2008

2007

16

17.47

12.29

17.89

5.04

2011

2010

2009

2008

2007

0.13

0.43

0.18

0.26

0.16

79


SUMMARY OF FINANCIAL INFORMATION

INDICATORS

CONSOLIDATED STATEMENT OF INCOME

€ million (except diluted earnings per share, and diluted number of shares) 2011 2010

Revenue 6,813.0 6,081.9 Gross margin 1,286.6 1,184.9 Research & development expenses (65.3) (56.6)SG&A and other (511.8) (508.0)Operating income from recurring activities 709.5 620.3 Non-current operating result (15.7) (5.6)Operating income 693.8 614.7 Financial result 17.4 (20.1)Share of income / (loss) of equity affiliates - - Income / (loss) before tax 711.2 594.6 Income tax expense (208.7) (179.4)Non-controlling interests 4.8 2.4 Net income / (loss) 507.3 417.6 Diluted number of shares 117,498,889 109,839,190Diluted earnings per share (€) 4.41 3.81

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

€ million Dec. 31, 2011(audited)

Dec. 31, 2010(audited)

Fixed assets 5,317.2 4,146.0Deferred tax assets 306.3 324.6Non-current assets 5,623.5 4,470.6Construction contracts – amounts in assets 588.0 378.6 Inventories, trade receivables and other 2,411.8 2,267.1 Cash & cash equivalents 2,808.7 3,105.7 Current assets 5,808.5 5,751.4 Total assets 11,432.0 10,222.0 Shareholders’ equity (parent company) 3,651.6 3,179.8 Non-controlling interests 21.7 22.3 Shareholders’ equity 3,673.3 3,202.1 Non-current financial debts 1,543.5 1,092.1 Non-current provisions 139.2 110.2 Deferred tax liabilities and other non-current liabilities 265.0 144.7 Non-current liabilities 1,947.7 1,347.0 Current financial debts 544.4 681.3 Current provisions 344.6 236.7 Construction contracts – amounts in liabilities 644.5 694.9 Trade payables & other 4,277.5 4,060.0 Current liabilities 5,811.0 5,672.9 Total shareholders’ equity & liabilities 11,432.0 10,222.0 Net cash position 720.8 1,332.3


CONSOLIDATED STATEMENT OF CASH FLOWS

Full year

€ million 2011 2010

Net income / (loss) 507.3 417.6Depreciation & amortization of fixed assets 174.0 145.6Stock options and performance share charges 46.0 27.0Non-current provisions (including employee benefits) 18.4 (0.3)Deferred income tax 27.5 (50.8)Net (gains) / losses on disposal of assets and investments 0.8 2.5Non-controlling interests and other 8.5 (2.4)Cash generated from / (used in) operations 782.5 539.2Change in working capital requirements (130.9) (500.9)Net cash generated from / (used in) operating activities 651.6 38.3 Capital expenditures (357.2) (388.9)Proceeds from non-current asset disposals 3.8 22.3Acquisitions of financial assets (13.3) (114.7)Change of scope of consolidation (1) (591.0) (26.5)Net cash generated from / (used in) investing activities (957.7) (507.8) Net increase / (decrease) in borrowings 132.9 894.2Capital increase 34.4 40.4Dividends paid (156.1) (143.6)Share buy-back 0.4 (2.2)Net cash generated from / (used in) financing activities 11.6 788.8Net effects of foreign exchange rate changes (2.5) 131.2 Net increase / (decrease) in cash and cash equivalents (297.0) 450.5 Bank overdrafts at period beginning (0.1) (1.2)Cash and cash equivalents at period beginning 3,105.7 2,656.3Bank overdrafts at period end (0.1) (0.1)Cash and cash equivalents at period end 2,808.7 3,105.7 (297.0) 450.5

(1) Acquisitions of subsidiaries, net of cash acquired

BREAKDOWN OF 2011 BACKLOG BY ACTIVITY

BACKLOG AT YEAR-END 2011 BY GEOGRAPHICAL AREA

EUROPERUSSIA & CENTRAL ASIA18%

AMERICAS37%

ASIA PACIFIC16%

MIDDLE EAST17%

AFRICA12%

OFFSHORE24%

SUBSEA42%

ONSHORE34%

81


CARBON FIBER ARMOR

An exclusive technology for the composition of flexible risers, for use in deepwater, allowing them to weight 50% less than traditional flexible pipes while offering excellent corrosion and fatigue resistance.

CCS (CARBON CAPTURE AND STORAGE)

The CCS is a solution for reducing greenhouse gas emissions from industrial installations in response to global warming.

DEVELOPMENT (OF A GAS OR OIL FIELD)

All operations associated with the exploitation of an oil or gas field.

DJSI(DOW JONES SUSTAINABILITY INDEX)

Launched in 1999, this index was the first to track the financial performances of leading sustainability-driven companies worldwide. Technip’s share has been part of the index for 10 years.

EPC (ENGINEERING, PROCUREMENT, CONSTRUCTION)

Type of contract comprising management and engineering services, procurement of equipment and materials, construction.

FEED (FRONT-END ENGINEERING DESIGN)

Engineering studies whose detail allows the client to launch the bidding process for the execution of the project.

FLNG (FLOATING LIQUEFIED NATURAL GAS)

In a FLNG solution, the gas liquefaction installations are situated directly above the offshore gas field, thus making the construction of long subsea pipelines and large onshore infrastructure unnecessary.

FLOATOVER

Installation method of an integrated production deck (topsides) on a fixed or floating offshore structure without heavy lift operations.

FLOWLINE

Flexible or rigid pipe laid on the seabed for the transport of production or injection fluids.

FPSO (FLOATING, PRODUCTION, STORAGE AND OFFLOADING)

A converted ship or custom-built vessel used to process oil and gas and for temporary storage of the oil prior to transport.

GLOBAL COMPACT

International initiative of the United Nations, launched in 2000. It unites businesses, United Nations bodies, labor groups and civil society around ten universal principles relating to human rights, labor and the environment. Technip has been an official member of the Global Compact since 2003.

GRI (GLOBAL REPORTING INITIATIVE)

A network-based organization that has pioneered the development of the world’s most widely used sustainability reporting framework and is committed to its continuous improvement and application worldwide. In order to ensure the highest degree of technical quality, credibility, and relevance, the reporting framework is developed through a consensus-seeking process with participants drawn globally from business, civil society, labor, and professional institutions.

GTL (GAS-TO-LIQUIDS)

Transformation of natural gas into liquid fuels (Fischer Tropsch technology).

HSE (HEALTH, SAFETY AND ENVIRONMENT)

Defines all measures taken by Technip to guarantee the occupational health and safety of individuals and the protection of the environment during the performance of its business activities, whether in offices or on construction sites.

GLOSSARY

IPB (INTEGRATED PRODUCTION BUNDLE)

A flexible pipe with an incorporated electrical heating system aimed to increase internal fluid temperature, thus increasing oil flow.

ISO 9001

A standard dealing with quality management systems.

ISO 14001

A standard dealing with environmental management systems.

LEAN & SIX SIGMA

To improve competitiveness, Lean focuses on cost and schedule improvement and Six Sigma on quality by reducing defect rate. Technip integrated a quality program based on these methods at the end of 2010.

LNG (LIQUEFIED NATURAL GAS)

Natural gas, liquefied by cooling its temperature to - 162°C, thus reducing its volume 600 times, allowing its transport by LNG tank.

PETROCHEMICALS

Industry relating to chemical compounds derived from hydrocarbons.

PIP (PIPE-IN-PIPE)

Steel pipes assembly consisting of a standard production pipe surrounded by a so-called carrier pipe. The gap between the carrier and production pipes is filled with an insulation material. As the insulation is protected from the external pressure by the carrier pipe, a high thermal performance material can be used.

PIPELINE INSTALLATION

Technip’s fleet masters the three installation methods for rigid pipes: J-Lay (a vertical lay system, in deepwater), S-Lay (the most common installation method for steel pipe in medium to shallow water. A horizontal lay from the back of a vessel, under tension, which gives it an "S" configuration) and Reel-Lay (an onshore assembly of rigid steel pipeline, made of long sections welded together as they are spooled onto a vessel-mounted reel for transit and subsequent cost-effective unreeling onto the seabed. Minimum welding is done at sea), as well as Flexible-Lay (including the Vertical Lay System – VLS, a proprietary technology for installation of flexible pipes in deepwater).

RISER

Pipe or assembly of flexible or rigid pipes used to transfer produced fluids from the seabed to surface facilities, and transfer injection or control fluids from the surface facilities to the seabed.

SA 8000 (SOCIAL ACCOUNTABILITY 8000)

An international standardized code of conduct for improving working conditions around the world.

SEMI-SUBMERSIBLE PLATFORM

Offshore platform that is stabilized by pontoons whose degree of immersion can be changed through ballasting and de-ballasting.

SPAR

A cylindrical, partially submerged offshore drilling and production platform that is particularly well-adapted to deepwater.

SST (SPIRAL STACKET TURRET)

A flexible hose-based alternative to the traditional mechanical swivel stack to be used in floating units.

TLP (TENSION LEG PLATFORM)

Floating production platform anchored by tensioned cables, thus limiting vertical movement caused by heavy swells. This platform design allows for the well-heads to be located at the surface, on the platform.

UMBILICAL

An assembly of steel tubes and/or hydraulic hoses which can also include electrical cables or optic fibres used to control subsea structures from a platform or a vessel.

83

In 2011, we embarked on a Group-wide branding initiative. The revitalization of our brand has taken the form of a unified and more consistent approach to communication by, and about, Technip. The redefinition of our vision, mission and business purpose, as well as key messages (summarized by the "Take it Further" tagline) and values now crystallizes and embodies this new identity. A new tone of voice and look and feel, which will over time become symbolic of Technip, have been adopted.

Following the launch of our new brand, Technip held an internal "Capture Our Brand" photo contest for all employees. The contest gave them the opportunity to be involved by expressing the essence of our brand in photos. They were asked to illustrate our new tagline and to show how our Group values are expressed in Technip’s day-to-day activities.

Pictures of this Report marked with the pictogram are some of the photos of this successful contest.

Through this contest, our employees have put a personal mark on our international brand and have shown their passion in pictures, taking our brand further!

A PHOTO CONTEST TO CAPTURE OUR BRAND

This document is published by the Technip Group Communications Department.

E-accessible version for visually impaired e-accessibility publication

To obtain copies, please contact:

Group Communications Technip89, avenue de la Grande Armée - 75116 Paris – FrancePhone: +33 (0)1 47 78 24 00e-mail: [email protected]

Photos: Technip photo library, Jean Gaumy/Magnum, Harry Gruyaert/Magnum, Patrick Zachmann/Magnum, Øyvind Hagen/Statoil, all rights reserved.

This document is printed on Heaven 42. April 2012.

Design and production:

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89, avenue de la Grande Armée 75116 Paris – FranceTel. : +33 (0)1 47 78 24 00

589 803 261 RCS ParisSIRET 589 803 261 00223

www.technip.com

2011 Activity and SD Report TECHNIP

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