Maintainance Service Proposal

Y

PT. Energy Project Resources

e p r o

1 November 2011

Investor Executive Summary

Turn-around Operation and Maintenance

ServicesAn EPRO division of Innovative

Engineering and Project Management, is committed to

servicing the energy and petrochemical industries by

providing the highest quality turn around maintenance, repair, plant upgrades, modifications, operation

and maintenance management.

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Market Review

Based on data (2007-2010), Energy Business Companies in Indonesia annually spent expenditures:a. CAPEX for New Project

Development = USD 6 BillionThere are a lot of competitors/ contractors for New Project Facilities: IKPT, Rekin, Adhi Karya, Waskita Niaga, pfCE Indonesia, Tripatra, etc. Requires relative more investment costMore resources are required.

b. OPEX for Operation and Maintenance = USD 4.5 Billion

Less or maybe no Turn-around Operation and Maintenance Contractor in Indonesia yet, most of them are OEM Services and Labor Supply. Requires relative less investment costRequires high technical competency and capacities. YES, EPRO HAS BOTH OF THESE REQUIREMENTS.

Operation and Maintenance Service Market Share Annually(in Million USD)

EPRO’s Project Value Target in 2012 (USD 10 Millions of USD 2 Billions Operation and Maintenance Service Market Share)Worst case scenario

and no aggressive target yet!

USD 2 Billions O&M market share for service only!

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SWOT Analysis

Strengths Weakness1.EPRO has strong resources

capabilities and competencies (Project Management and Engineering)

2.Good relationship with OEM Companies in Indonesia (Siemens, Yokogawa, ABB, Schneider, etc.)

3.Good relationship with customers. EPRO is connected to smartplus network with members more than 1,800 professionals spread around Indonesia energy companies (Middle management and technical expert panel).

4.High spirit and motivation

1.EPRO needs more fund for starting the Turn-around Operation and Maintenance Services business.

2. EPRO may be the first turn-around

operation and maintenance service provider in Indonesia.

Opportunities Threats1.EPRO is supported by smartplus

institute that provides “a competent and ready to work” energy professionals.

2.Customer will need turn-around operation and maintenance service for their cost efficiency and performance in the next year.

1.Miss project target.2.Sales are growth more than EPRO

capacities.3.Need customer education on new

operation and maintenance strategy

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Indonesia Market Map (Smartplus Network)Operation and Maintenance Services

Lhokseumawe and Medan Area:Arun NGL, Pacific Medan Industri , Asean Aceh Fertilizer, Pertamina UP I, Exxon Mobil Oil Indonesia, Ecogreen Oleochemical, PTP IX Plantation, Indah Pontjan, PIP Belawan, Pupuk Iskandar Muda, Pamina Adolina, Raja Garuda Mas, PGN

Jambi, Riau and Batam Area:Chevron Pacific Indonesia, Bumi Siak Pusako, PGN, Pertamina UP II, IKPP Perawang, Ecogreen Oleochemical, Petrochina, CNOC

Palembang Area: Musi Pulp & Paper, Pertamina UP III, Kurnia Kapuas Utama, Pupuk Sriwijaya, ConocoPhilip

Merak to Cilacap AreaAsahimas Chemicals, Indonesia Toray Sysntetic, Fatra Polindo, Chandra Asri , Petnesia Resindo , PENI, Gajah Tunggal, Mitsubishi Chemical Indonesia, Pardic Jaya, Indorama, Sumi Rubber, Nippon Shokubai Indonesia,Tifico, Indobharat, Sunkyong Keris Indonesia, Pertamina UP VI, Standard Toyo Polymer, LIPI, Unggul Indah Corporation, Pelita Cengkareng, Kolon Ina, PLN Suralaya, Semen Cibinong, Univenus, Satomo Indovyl Monomer, Dumex Pharmaceutical, Sulfindo Adi Usaha, Justus Sakti, INDACHI, Stririndo Mono Indonesia, Sumi Asih, DSS, Showa Esterindo, IKPP Serang, Cahaya Kalbar, Fajar Surya, Multi Nitrokimia, PGN

Semarang to Surabaya Area:Petroxo, Polydaya, Palur Raya, Petrokimia Gresik, Tjiwi Kimia, Pakerin, Smelting Co., Aneka Iwatani Gas, TPPI, Ispat Indo, Samator Gas, Surabaya Agung, Pura Barutama, Petronika, PLTGU Gresik, LEMIGAS CEPU, PGN, Total, Pertamina EP, Maspion Mitratama Energy, Conoco Philip, Chevron Gheothermal

Balikpapan & Bontang Area:Pertamina UP V, Total Indonesie, VICO, Kaltim Methanol Indonesia, Kaltim Prima Coal, Badak NGL, Pupuk Kaltim, Chevron Petroleum Indonesia, Kaltim Parna Industri, KPC

Sulawesi Area:Semen Tonasa, Aneka Tambang, Matindok Pertamina

Irian Jaya Area:BP Tangguh,FreeportTotal Annual Operation

and Maintenance Budget:More than USD 2 Billion

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Considering …. Changes in Customer's Needs

FasterThe customer gets what they need quickly

First TimeThings work the first time

EasierEasier than before and with less precious

effort

Lower CostIt costs less for the same

More ValueThe customer gets more added values

EnduringIt is sustainable and a better experience

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Office and Workshop Map ProposalPT. Energy Project Resources (SBU 3)

EPRO Balikpapan Branch Office

Offshore Workshop

(JO with ISS)

EPRO Pekanbaru Branch Office

Work ShopServicesEngineering

Balikpapan

SurabayaCilegon

Jakarta

Pekanbaru

Marketing & Sales Channel

AcehMedan

Palembang

Duri

EPRO Duri Branch Office

Cilacap

EPRO JakartaHead Office

EPRO Jayapura Branch Office

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Business Model (Client – EPRO + Business Partner)

SBU-3Operation and MaintenancePT. EPRO

ClientsOil and GasPower Plant

Petrochemical Plants

Other Industry Plant

Business Partners – Mutual Agreement1. EPRO acts as a Local

Representative for Business Partners (OEM), has two roles: Marketing and Local Technical Support

2. EPRO will get OEM Product Technical Training and Supporting Letter (Agent).

Marketing/ Contracting Strategy:1. Umbrella Contract (Unit Rate and

Cost Plus)2. Project Based Contract

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OEM Service Provider• Siemens• Yokogwa• ABB• Schneider• Sulzer• Baloon• Endless Hauser• Etc.

Vendors

Contractor/ Sub Contractor

Technology Support• Tank Cleaning• Hot Tap• Etc

Turn-aroundOperation and MaintenanceServices

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2012 Opportunity Projects (Target)

2012 Projected Sales Project valuea. PT. Badak Kaltim - Turn around maintenance $1,000,000b. Bumi Siak Pusako and Kondur- Pipeline maintenance and project

$500,000

c. BP Tangguh - Turn around maintenance $1,500,000

d. PGN - Man power supply and training $500,000

e. Pertamina UP5 Dumai - Turn around maintenance $1,000,000f. Energy Contractor Indonesia Pre-Comm. Comm, Startup Technical Support Services

$1,000,000

g. PLN Projects Support (PLTU Ubeb, Kaltim, Kalteng) O/M during Warranty Period

$1,500,000

h. Indonesia Instrumentation and meter services (PGN, Pertamina, MEM, COPI, BSP, etc).

$500,000

i. 450 MW PLTGU Belawan - Operation and maintenance support and PMC

$1,000,000

j. Pertamina EOR - Operation engineering and maintenance support Services

$1,500,000

    Total $10,000,000

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Investment Cost and Expenditure Budget2012 Budget Plan (1st Six Months):1. Business startup, marketing, bidding cost

Rp. 2,320,000,000

2. Initial Project cost Rp. 2,880,362,405

3. Man power cost Rp. 284,637,595

4. Over head Rp. 515,000,000Sources:Investor/ Investors Group – Rp. 6,000,000,000(Six Billion Rupiah)

2011 2012December January February March April

Rp.2,000,000,000 Rp.1,000,000,000 Rp.1,000,000,000 Rp.1,000,000,000 Rp.1,000,000,000

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2012 Financial Data (Profit Calculation)

The Component Cost Calculation:Revenue:• Projected

salesExpenses:• Less and

Variable Expenses

• Fixed Expenses– Salaries

and Wages– Overhead,

Marketing and Sales

• Bank/ Investor Charges

• Depreciation• Other

Management Cost

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P-10 P-50 P-90% of Target

Sales 45% 65% 85%

Project Value $ 4,500,000 $ 6,500,000 $ 8,500,000

Investor Net Profit (By 31 December 2012) in Million Rupiah

a. Pay Back (1 year, 14% rate)

6,840 6,840 6,840

b. Net Profit Sharing 40%

871 2,784 4,698

TOTAL 7,711 9,624 11,538% Profit 29% 60% 92%

EPRO Net Profit (By 31 December 2012) in Million Rupiah

a. Net Profit Sharing 60%

1,306 4,176 7,046

TOTAL 1,306 4,176 7,046

2012 Target Sales (USD 10,000,000)

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Business Model (EPRO-Investor)

SBU-3Operation

and MaintenancePT. EPRO

GroupInvesto

rs

Join Accoun

t

ClientsOil and gas

PetrochemicalPower Plant

Other industry

Financial Management:1. Manage d by separated team (By

DOA of Investor) 2. All project income will be

saved in joint account.3. For any additional fund,

request is prepared by EPRO4. Reviewed and approved by

Investor, refer to approved budget plan.

5. Fund will be paid from join account after all documentation is approved by both authorized person from Investor and EPRO.

Project Proposal and Management:1. EPRO will prepare marketing/ sales

plan. The plan will be reviewed and approved by Investor prior execution.

2. EPRO will prepare bid proposal.3. EPRO will execute the project if award

the bid.4. EPRO will communicate any project plan,

related with cost spending plan monthly.

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What are The Advantages?

For INVESTOR1. Secure and profitable

investment, because the working team is competent and professional and good relationship with the user/ customer (Market).

2. Become primary and resident investor for any EPRO’s project.

For EPRO1. More business

opportunities2. Better cash flow3. Sustainable business

can be maintained4. Positive growth

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Semoga Kita Bisa Kerjasama!Thank You

13smart service for your more benefit

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Company History

• FOREWORDPT. Energy Project Resources (EPRO) is a national engineers and constructors which established in 2007 with the objective of providing professional, high-quality, cost competitive engineering services that meet the expanding needs of the Indonesia oil and gas, petrochemical, infrastructure and other related energy industries. EPRO resources are consisted of experienced and competence man-powers who have completed many engineering projects for rapidly expanding industry for over the past 15 years. The entire EPRO Organization is project based and designed to focus on efficient and dependable in what we do with a smart resources network to guarantee proximity to our customers.

• OUR PURPOSETo create value added for our people and stakeholders.

•Continues Productivity Im provement•Perform ance Developm ent and M onitoring

Continues Perform ance Im provement

•Excellent Costum er Services•Custom er Value Added Services•M arketing and Sales Strategy Innovation

Sales and Product Enhancem ent

•Loss Reduction Strategy and Innovation•Continues Cost Reduction Program

Cost Reduction

•Lesson learn and Best Practice Sharing Forum•Em ployee Training and Sem inar•Knowledge M gt Program

Continues Learning and People

Com petencies Developm ent

O peration Excellence(W ord Class Services)

Profitable G rowth

Strong Leadership

and M aster

Com pany Plan

(Strategic and

Tactical)

Sustained Superior

Perform ance

PT. Energy Project Resourcese p r o

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Business Development Strategy(EPRO Group)

DEMAND

SUPPLY

YES

NOT YET

NOT Y

ET

YES

Smartplus InstituteProfessional School

Turn Around Ops-MaintenanceSBU 3 PT. Energy Project Resources

Need Research and Development+

Marketing Program

Need Business Planning +

Marketing ProgramMore competitions … More Players

Focus Area

No Business !

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EPRO Experience List

PMC Services (Project Management and Engineering Services), Makassar LPG Terminal, 20.000 m3 capacity, Bosowa and Pertamina, 2010.

PMC Services, Mixed Use Balikpapan Project, a Property Project, PT. Rumpaka Jaya, 2009.

PMC Services (Project Management and Engineering Services), Santan Crude Terminal Safety Ugrade (Fire Protection System), Chevron Indonesia company, with PT. Elnusa, 2009.

PMC Services (Project Management and Engineering Services), Gresik LPG Terminal, 20.000 m3 capacity, Maspion Energy Mitratama and Pertamina, 2009.

PMC Services (Project Management and Engineering Services), FEED Design, Maspion Jetty Fire Protection Improvement, HESS-Pangkah Indonesia, with PT. Promatcon Tepat Guna, 2008.

Detail Instrument and Electrical Design, Area 12 North Duri Development, Chevron Pacific Indonesia, Riau, Indonesia, with Truba Jaya, 2008.

PMC Services (Project Management and Engineering Services), FEED Pondok Tengah, Oil and Gas Production Facility, 20.000 BOPD, 15 MMSCFD Gas, including Water Treatment Plant, Oil and Gas Terminal, SPM and SPL and Power Plant, Fire Potection System, Pertamina EP, Indonesia, with Singgar Mulia, 2007.

FEED of Coal Fired Power Plant 2x7 MW Gorontalo, Wali Nusa Energi, Indonesia, with MLD/ DHV, 2007.

Feasibility Study and FEED of Coal Fired Power Plant 2x100 MW, West Sumatra, PLN, Indonesia, with PPGT, University of Indonesia Jakarta, 2007.

Feasibility Study and FEED of Coal Fired Power Plant 2x100 MW, Lampung, PLN, Indonesia, with PPGT, University of Indonesia Jakarta, 2007.

Site Selection Study, Suban Gas Plant phase 3 project, ConocoPhillips, Indonesia, with MLD/ DHV, 2007-2008.

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Selected EPRO Resources Experiences List EPC Project, Well Surveillance SCADA Project Covering Instrument and Electrical

Engineering Design, EPC, Commissioning and Start-up, included developing SCADA standard for the organization, US 12 MM.

EPC Project, Duri Central Gathering Station (CGS) 10 Project, PT. Oil and Gas Facility Pacific Indonesia, US 115 MM

EPC Project, Duri Automatic Well Test 10 Project, PT. Oil and Gas Facility Pacific Indonesia, US 10 MM

EPC Project, Duri CGS Sand Plant Project, PT. Oil and Gas Facility Pacific Indonesia, US 28 MM

EPC Project, Duri Automatic Well Test 8 project, PT. Oil and Gas Facility Pacific Indonesia, US 5 MM

FEED Study, Reliability Improvement of Duri 13.8 KV Power Distribution Project, PT. Oil and Gas Facility Pacific Indonesia, US 300 K

SCADA of COGEN Power Plant Project, PT. Oil and Gas Facility Pacific Indonesia, US 100 K

EPC Project, Minas 6D Power Substation Project, 2 x 28 MVA. Including the control room building, 115 KV/ 13.8 KV Switchyard and its SCADA, PT. Oil and Gas Facility Pacific Indonesia, US 3 MM

EPC Project, Minas Power Plant 9 Project, Gas Turbine, 33 MVA. Including the control room building, 115 KV/ 13.8 KV switchyard and its SCADA, PT. Oil and Gas Facility Pacific Indonesia, US 15 MM

EPC Project, Minas Power Plant 10 Project, Gas Turbine, 33 MVA. Including the control room building, 115 KV/ 13.8 KV switchyard and its SCADA, PT. Oil and Gas Facility Pacific Indonesia, US 16 MM

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Company OrganizationPT. Energy Project Resources

Existing Strategic

Business Unit(SBU)

NewStrategic Business

Unit(SBU)

FutureStrategic

Business Unit(SBU)

PT.ENERGY PROJECT RESOURCES (HOLDING)

SBU 1Project Management and Engineering

Consultant

Project Management

Multi-Disciplines Engineering

SBU 2Engineering Procurement Construction and

Installation (EPCI) Contractor

Engineering Procurement Construction/ Installation

Commissioning/ Startup

SBU 3Operation and Maintenance Services

Maintenance Services

Operation Services

GroupInvestors

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SBU 3Operation and Maintenance Services

SBU 3 Operation and Maintenance Services

Operation Services

Operation Engineering

Man Power Supply

Process Equipment Rental

Maintenance Services

Tank and Machinery

Pipeline Maintenance

Field Instrumentation/

Metering/ Industrial Controls

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Scope of SupplyOperation ServicesOperation Engineering

PIMS

Predictive/ Preventive Maintenance

Reliability Engineering

Operation Assurance

Operation Excellence

Man Power SupplyOperator

Technician

Engineer

Operation Management

Security

Operation TrainingsProcess Equipment Rental

Tank

Power Plant

Compressor/ Pump/ Separator/ Vessel

Processing Plant/ Terminal

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Scope of SupplyMaintenance ServicesPipeline Services

(Onshore/ Offshore)ROW Clearing and Maintenance

On Site Painting

Pipeline Repair

Hydro Testing

Heavy Hauling

Hot tapping

Road Boring

Leak Detection

Pipeline Pigging, Cleaning and Drying

Pipeline Inspection

New Pipeline Installation

Tank and MachineryTank Cleaning

Tank Repair

Tank Painting

Machinery Lubrication Field Electrical/ Instrumentation/ Metering/

Industrial ControlsMeter Skid Fabrication and Installation

PLC/ DCS/SCADA System Integrator

Field Instrument Calibration

Electrical Service Work

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