INFRASTRUCTURE POWER MINERALS & METALS HYDROCARBONS

POWERINFRASTRUCTURE

HYDROCARBONSMINERALS & METALS

LEADERSHIP

• Committed, empowered and rewarded people

• EcoNomics™ – Delivering profitable sustainability

• Integrity in all aspects of business• Energy and excitement• Minimum bureaucracy

AGILITY

• Smallest assignment to world scale developments

• Local capability with global leverage• Responsive to customer preferences• Optimum solutions customized to needs

RELATIONSHIPS

• Rapport with all stakeholders• Open and respectful• Collaborative approach to business

PERFORMANCE

• Zero harm• Results for our customers and

other stakeholders• World-class resources, capability

and experience

OUR VISION

WorleyParsons will be the preferred global provider of technical, project and operational support services to our customers, using the distinctive WorleyParsons’ culture to create value for our customers and prosperity for our people.

CONTENTS

Customer Sector Groups 1

Our Global Operations 2

Canada 4

USA & Latin America 10

Australia & New Zealand 14

Europe 18

Middle East 22

Asia 26

Africa 30

Annual Review WorleyParsons 1

WorleyParsons is a leading provider of professional services to the resources & energy sectors and complex process industries.Our services cover the full asset spectrum both in size and lifecycle – from the creation of new assets to services that sustain and enhance operating assets.In four customer sector groups we offer extensive expertise delivered by local specialists across our comprehensive global network.

POWER

Renewable energy, clean coal, nuclear and natural gas generation, transmission networks and retrofit project solutions from pre-feasibility to asset operation and maintenance

INFRASTRUCTURE

Complete solutions for the rail, marine, water, resources & energy sectors in all project phases

HYDROCARBONS

From small brownfield service contracts to major greenfield projects in offshore and onshore oil & gas, LNG, refining, petrochemicals and pipelines

MINERALS & METALS

Delivering projects and solutions in base metals, alumina, aluminium, coal, iron ore, steel and chemicals across the world

2 WorleyParsons Annual Review

GLOBAL HUB

LOCAL OFFICE

Our Global Operations

$3,534.6mREVENUE 2007The result was earned on aggregated revenue of $3,534.6m, an increase of 43.4% on the $2,464.4m reported in 2006.

$224.8mNET PROFIT 2007A full year result for 2007 of $224.8m, an increase of 61.6% over the $139.1m net profit reported in 2006.

6.4%NET PROFIT MARGIN 2007After tax the Company earned a net margin on aggregated revenue of 6.4%, compared to the 2006 net margin of 5.6%.

$319.1mEBIT 2007EBIT for the year was $319.1m, an increase of 59.9% from the $199.5m reported in 2006.

101.8cBASIC EPS (cents per share)Basic earnings per share was 101.8 cents per share, an increase of 53.5% above the 66.3 cents per share for 2006.


1 2 3 4 5IMPROVEEXECUTEDEFINESELECTIDENTIFY

Detailed Engineering

Construction

Commissioning

Brownfield Projects

Asset Services

Maintenance

Upgrade

Decommissioning

Front End

Engineering Design

Project Sanction

Conceptual Design

Execution Strategy

Preliminary Analysis

Business Strategy

Project deliveryWorleyParsons’ experience covers all five phases of the asset lifecycle. In each one of these phases we understand the critical issues and customize our services for each phase and for every customer. This enables outstanding project delivery around the world.

WorkshareWorkshare enables WorleyParsons to maximize the utilization of our global resource base for the benefit of our customers. Through Workshare we can alleviate pressure on resources in market “hot spots” and provide access to qualified, experienced resources from the lower cost-base locations. This assists our customers to meet project budgets and schedules. A further benefit is that the highly specialist capabilities that exist throughout WorleyParsons can be made available readily in any of our offices, regardless of size or location.


CanadaWater ManagementPrudent water management makes sound business sense. Our customers often face the challenge of implementing water and wastewater management programs that: comply with environmental regulations; are ecologically sustainable; and are cost effective. WorleyParsons’ specialists deliver practical, compliant and cost effective solutions to some of the world’s most demanding water resource challenges.

In the field of groundwater exploration, protection and remediation, WorleyParsons has solved complex groundwater resource problems. Our geophysicists are at the forefront of research into the characterization and modeling of groundwater aquifers. This expertise has helped to remediate difficult and mobile contaminants as well as to locate groundwater in arid regions where others have failed.

In the area of surface water and watershed management, we have worked with governments, communities and industry customers. We work extensively in identifying the impact of climate change on water resources and have been instrumental in development of many, prudent management strategies.

We understand how to apply existing and emerging water and wastewater treatment technologies to deliver solutions that are cost effective and resilient to potential future needs. Recent projects have utilized constructed wetlands, zero liquid discharge systems, membrane bioreactors, reverse osmosis, tertiary treatment for wastewater reuse and compost systems for recovery of usable biosolids and nutrients.

Efficient management of natural resources is central to WorleyParsons’ EcoNomics™ project delivery. This approach has helped customers such as Suncor, a leading miner of Canadian oil sands, enhance its reputation for sustainable resource development. This was evidenced by Suncor’s inclusion in the Dow Jones Sustainability World Index, a performance assessment against economic, social and environmental criteria, for the eighth consecutive year.

CanadaCalgaryCold LakeEdmontonFort McMurray

Grand PrairieLloydminsterNanaimoSarniaSaskatoon

TorontoVancouverVictoriaUnited StatesAnchorage


Canada – expanding our capabilitiesThe Canadian operation was transformed in 2007 with the merger between the existing WorleyParsons’ business and Colt. The collective capability uniquely positions us to meet an unprecedented level of demand for project and asset services in the region.

Power to meet the growth

The Power team in Canada has an extensive track record in waste heat recovery, simple and combined cycle systems and an emerging capability in nuclear power. Utility and cogeneration projects within major oil and gas infrastructure projects are a core competency of the group.

A world leader in oil sands and heavy oil

Canada has the world’s second largest volume of oil reserves, of which 97% are within oil sands. Colt is a world leader in the design and construction of an oil sands production (both mineable and in-situ), transportation and processing facilities, having completed in excess of 3,000 oil sands related projects. This experience covers all aspects of oil sands production, including dry materials handling, hydrotransport, extraction, froth treatment, water treatment, solvent recovery and tailings technology, as well as full and partial upgrading of facilities.

We also lead in all aspects of conventional heavy oil and thermal in-situ heavy oil production and processing. This reputation is derived from Colt and WorleyParsons MEG’s experience in thermal enhancement, fireflooding, cold production and even cold sand production. The team’s ability to utilize a range of new or highly innovative processes to economically treat the crude is recognized across the industry.



Refining, upgrading and pipeline leader

Downstream – the team has completed a range of greenfield projects as well as modifications to major refineries, upgraders and petrochemical complexes. We are world leaders in the delivery of pipeline projects. A team of close to 1,000 personnel has been involved in the installation of over 50,000 km of pipeline and associated pipeline facilities serving Canada’s vast area. Innovative spatial data management capability of the Geomatics team has ensured integrity, transparency and management of all pipeline data.

Global centre of excellence

The Minerals & Metals team is based in Toronto and is WorleyParsons’ global centre of excellence for base metals. Their expertise in pyrometallurgy, hydrometallurgy, bulk solids handling, off-gas cleaning and energy management is utilized by customers around the world.

Fabrication and construction

Cord Projects provides construction and fabrication capability in Canada, based in Edmonton, Alberta. Primary areas of expertise include direct-hire construction services, shop fabrication and modularization, commissioning and decommissioning and construction management.

Water and environmental expertise

WorleyParsons Infrastructure provides expertise in the management, planning, design, construction and operational support of source water, municipal wastewater and industrial process water treatment systems. Additionally, the team possesses a strong record in design of dams, earthworks, landfills, pipelines, offshore structures and liquid waste and tailings containment structures.

The Environmental group leads the remediation, monitoring, environmental impact assessment services (including ground and surface water expertise), geosciences and watershed management across the worldwide business. Customers value the innovative, cost effective, long term environmental and engineering solutions provided for their assets. Key elements of WorleyParsons’ EcoNomics™ initiative, including provision of environmental and social impact, sustainable development, waste and energy management, are supported through this team.


Business OverviewThe Canadian resources & energy sectors are experiencing unprecedented levels of investment, enabling massive oil sands deposits to be extracted, refined and delivered.

In Calgary we successfully delivered major projects including Steam Assisted Gravity Drainage (SAGD) heavy oil projects for Petro Canada, Nexen, Devon, Suncor and MEG Energy, mineable oil sands developments for Shell and Total, major pipeline projects for Imperial Oil, Enbridge Pembina pipelines and Trans Canada pipelines and hydrotreaters for Suncor.

Environmental, remediation, monitoring and water services are in increasing demand across Canada.

In Calgary we have a record of successful alliances with Syncrude (17 years), Imperial Oil (16 years), Talisman (16 years) and Petro Canada (11 years) and have been awarded long term contracts with BP and Trans Canada pipelines recently.

In Edmonton our experience is grounded in long term plant support alliances with Syncrude, Suncor, Shell Scotford refinery and upgrader and Petro Canada refinery. We are executing major mineable oil sands plant design work for Suncor and Shell. The pipelines and facilities team is executing a series of projects for Enbridge’s major expansion. The power team is providing EPCM services to Epcor and Trans Alta’s Keephills 3,500 MW supercritical coal fired power station as well as cogeneration projects.

Our Ontario based Toronto and Sarnia operations are executing refinery expansion for CCRL and providing ongoing project services to Ontario Power Generation, Marsulex, Petro Canada, Imperial, Shell and Suncor. The team is delivering projects through Workshare for the NanaColt operation in Anchorage, Alaska. Major assessment and EPCM projects have been completed for CVRD Inco, Timet and Windalco by our minerals and metals specialists, WorleyParsons HGE.

Voyageur Hydrotreater ProjectCustomer: Suncor Energy Inc.Location: Fort McMurray, Alberta, CanadaTimeframe: 2006 – 2011

IDENTIFY SELECT DEFINE EXECUTE IMPROVE

Suncor pioneered the world’s first commercially successful oil sands operation in 1967 and reached a new milestone in 2006 with the production of its billionth barrel of oil. Suncor has leases that contain an estimated 15 billion barrels of resources that are recoverable by mining and in-situ operations.

Construction is underway for the next phase of oil sands growth, which is expected to deliver production capacity of 350,000 barrels per day in 2008, growing in stages to a goal of up to 550,000 barrels per day by 2010–2012.

Colt completed the Engineering Design Specification (EDS) in 2007 and was subsequently appointed to complete the detailed engineering & procurement phase for the Hydrotreaters component of the Voyageur project. The Hydrotreaters comprise three units: diesel, gas oil and naphtha.

The EDS was completed in 13 months including early purchase of selected major equipment, which would normally occur in detailed design phase. Design for these large scale units was predicated on maximizing rail and truckable modules to minimize site construction and permit maximum worldwide fabrication flexibility. Suncor’s sustaining capital and environmental (in particular water management) projects have been a major focus for Colt and WorleyParsons over the past four years.

Office Calgary

barrels per day of syntheticcrude oil162,000

Dust Emissions Reduction ProjectCustomer: CVRD IncoLocation: Manitoba, CanadaTimeframe: 2002 – 2008


The Dust Emissions Reduction Project upgrades the off-gas and dust handling system at CVRD Inco’s Thompson Smelter. The upgrade will allow CVRD Inco to meet targets for particulate matter and CEPA metals discharge by 2008.

WorleyParsons commenced work on the detailed engineering and procurement for the project in January 2007 and has recently been awarded the construction management work. The new Electrostatic Precipitators (ESP), along with the necessary ducts, fans, dust-handling and ancillary equipment, are scheduled for installation and operation by July 2008.

The project overcame significant technical challenges, including increasing the capture efficiency of the existing ESP and designing systems and components for –45ºC winter temperatures. The extensive use of Computational Flow Dynamics technology enabled particulate emissions to the atmosphere to be significantly reduced and the nickel in the dust to be recovered.

The project demonstrates WorleyParsons’ ability to Workshare effectively between offices. WorleyParsons’ Reading office supported the project feasibility phases and provided support for subsequent phases including the transfer of construction management resources to Toronto.

Offices Toronto, Reading

operatingtemperature–45ºC

Canada

PowerHydrocarbons

Minerals & MetalsInfrastructure


Keephills 3 Power PlantCustomer: TransAlta/EPCORLocation: Edmonton, Alberta, CanadaTimeframe: 2007 – 2011


The Keephills 3 (K3) generating facility is an important step in ensuring reliable and cost effective electricity for Alberta’s future power needs. EPCOR and TransAlta, equal partners in the ownership of K3, will independently dispatch and market their share of the unit’s electrical output.

Working in an integrated team with the owners, Colt has completed the front end development including preliminary engineering, project planning, CAPEX estimation and construction strategy planning. Colt was also recently awarded the detailed engineering for the balance of plant and construction management for the entire facility.

K3 will feature supercritical boiler technology, the best available technology to economically provide improved environmental performance. When producing the same power the plant will emit 24% less CO

2 and reduce emissions of

sulfur dioxide (SO2), nitrogen oxides (NOx) and

mercury (Hg) compared to the units TransAlta is retiring. Thus, replacing Alberta’s older power plants with today’s best technology leads to a dramatic and immediate reduction in emissions from power generation.

Office Edmonton

450 MW

Groundwater and Surface Water MonitoringCustomer: Suncor Energy Inc.Location: Fort McMurray, Alberta, CanadaTimeframe: 2003 – ongoing


Suncor pioneered the commercial development of Canadian oil sands in 1967 and remains at the forefront of sustainable development in the region. Water is critical to Suncor’s operations, being used to separate the oil from sand and associated fines and to create steam for injection into the oil-bearing reservoir for in-situ extraction. Consequently, careful stewardship of its water management programs helps Suncor to maintain its license to operate and meet its sustainability objectives. The monitoring services ensure the re-establishment, protection and ongoing health of adjacent aquatic ecosystems.

WorleyParsons is actively involved in helping Suncor manage its groundwater and surface water monitoring programs at its oil sands mine sites. Services include the performance of statistical analysis on large amounts of data, risk assessments and assistance with government liaison, expert testimony and program implementation management.

Our innovative use of forensic investigative techniques to clarify site conditions and determine the potential effects of mining activities and tailings ponds on local groundwater, has enabled Suncor to implement highly targeted groundwater and surface water monitoring programs for adjacent wetlands, lakes and, ultimately, the Athabasca River.

Offices Calgary, Fort McMurray

field hours per annum14,000

Memorandum of Understanding for New Engineering Services AgreementCustomer: Enbridge Pipelines Inc.Location: North AmericaTimeframe: 2007 – 2010 (potential one year extension)


Enbridge operates, in Canada and the United States, the world’s longest crude oil and liquid petroleum pipeline system.

Enbridge is currently focused on three major pipeline projects: Southern Access, Southern Lights and Alberta Clipper, each designed to support North America’s need for reliable and secure energy supplies and to provide the required pipeline infrastructure to match the Alberta oil sands producers’ and refiners’ development requirements. Colt is working with Enbridge on all three projects, but has major roles on both Southern Lights and Alberta Clipper.

Colt and Enbridge have signed a memorandum of understanding which will lead to a three year engineering services agreement for detailed engineering services for several pipeline projects that will significantly expand Enbridge’s North American crude oil pipeline systems.

Detailed engineering and related services will be provided for the Canadian segments including the Alberta Clipper project (1,070 kmof 36 inch pipeline), the Southern Lights project (290 km of 24 inch pipeline) and Southern Lights pump station modifications. Colt will also provide conceptual and FEED engineering support services for Enbridge’s business development initiatives.

Offices Calgary, Edmonton

of 36 inchpipelines1,070 km

Keephills 3 construction site, located east of TransAlta’s Keephills generating facility.

ChileSantiagoJamaicaMandevilleTrinidad & TobagoPort-of-Spain

United StatesArcadiaChattanoogaChicagoDallasDeer ParkDenver

HoustonLong BeachMartinezMonroviaReadingSacramento

USA & Latin AmericaIvanpah Solar Electric Generating Station

BrightSource Energy will provide 400 MW of renewable power to the California electric grid from three solar central receiver plants on the same desert site near Ivanpah, California. The plants will be the first commercial solar central receiver systems in the USA. The Ivanpah project is the first of several solar power projects that BrightSource is developing to serve the California market. The plants will connect into the California power grid through Southern California Edison’s 115 kV system via a new substation which will be built for the project and will produce electricity for California free of carbon emissions.

Solar central receiver plants use a field of thousands of mirrors that track the sun and reflect solar radiation onto a receiver atop a tall tower. The receiver absorbs the heat to generate superheated steam, which is used in a conventional turbine-generator. The plant will use an air-cooled condenser, eliminating the need for cooling water in the arid desert climate. WorleyParsons is the owner’s engineer for the plant, providing design and permit application support.

Solar central receiver technology promises to significantly lower the cost of power when compared to other solar technologies. Miles of piping is eliminated and the plants operate at a higher steam temperature and pressure, increasing system efficiency. With no cooling water required, water consumption at the plant is virtually eliminated.

This project represents a leap forward in commercialization of advanced solar technology by increasing the plant efficiency, lowering costs and producing clean, carbon-free electricity. These plants will help California eliminate the use of fossil-fired generation and reach the State’s greenhouse gas emission reduction goals.




Business OverviewUSA operations continued to grow in 2007, with market demand remaining strong. The most significant challenge has been resources. However, we continue to staff our projects successfully through the use of creative recruitment and execution strategies including in sourcing and developing alternate resource pools and extensive use of our High Value Engineering centers.

The continued growth of the Infrastructure group has led to the pursuit of additional opportunities and the ability to offer an expanded range of services to our customers.

The acquisition of Sea Engineering and its deepwater capability has delivered many synergies in conjunction with our existing hydrocarbons capability.

Our portfolio of long term alliances continues to expand, as we execute our strategy of focusing on long term relationships with our customers. The widening breadth of our service range is delivering enhanced benefits to our customers.

The demand for air quality control systems for existing coal fired plants has continued to be of high interest for our customers, as they seek solutions to meet changes in environmental regulation and community expectation. Asset services for all types of generating plants, new coal fired generation, power delivery systems plus the new generation of nuclear power plants provided a very strong base for growth of the Power sector. We are seeing a growing demand for services to support the developing renewable energy industry and our extensive capability and experience in this sector positions us well for future participation.

USA & Latin America

East Dubuque Gasification ProjectCustomer: Rentech Energy Midwest Corp. (REMC) Ammonia Plant Feedstock Conversion ProjectLocation: East Dubuque, Illinois, USATimeframe: 2006 – 2010


To counter the increasing cost of burning natural gas as feedstock for its East Dubuque fertilizer facility and to improve the plant’s long term economic viability, REMC has embarked on an innovative and technically demanding project to convert the facility to coal.

The project incorporates a range of technologies into the new plant such as those to convert sulfur in the coal to sulfuric acid and to reduce CO and NOx emissions. The net result is a modified facility that is both economically and environmentally sustainable.

WorleyParsons is engaged to perform an extended FEED for the entire process. This necessitates the integration of technologies from various licensors, such as ConocoPhillips for gasification, Linde for acid gas removal and Haldor Topsoe for sulfuric acid, into a single workable plant. Deliverables include plant layouts and general equipment designs such as detailed datasheets and long lead item specifications.

The project exemplifies WorleyParsons’ ability to integrate complex proprietary processes plus open technologies into a single operating facility that is both profitable for the customer and beneficial to the community and the environment.

Offices Houston, Chicago, Reading, Beijing

tons per day of Illinois coal2,600

Detailed Engineering for the Civil Works of Line 1 East and Track 3 Maipú Line

Customer: METRO S.ALocation: Santiago, ChileTimeframe: 2007 – 2009


Santiago, Chile has grown to a sprawling metropolis of almost six million people. In an effort to modernize and keep pace with the capital’s growth, the transport system has recently been reorganized, leading to plans to double the size of Santiago’s METRO, via a series of projects to extend subway lines and link feeder services.

ARA WorleyParsons is providing detailed engineering and inspection during construction for two of the METRO extension projects. Services include detailed engineering for the station tunnels and intersecting station, interior station facilities, lighting and power to tunnels and stations, station equipment, treatment and surface renewal, traffic modifications, modification to potable water services, sewerage system and coordination with public services.

The winning of the two METRO Extension projects represents a significant milestone in the development of the ARA WorleyParsons business in Chile. The award of this prestigious project is testament to the successful execution of previous METRO projects with METRO S.A and provides a solid foundation for the continued growth of the Chilean infrastructure sector in the light rail infrastructure market.

Office Santiago

of underground METRO extension and five stations7.5 km

PowerHydrocarbons


BHP Billiton Petroleum (Americas) Shenzi ProjectCustomer: BHP Billiton Petroleum (Americas)Location: Gulf of Mexico (GOM), USATimeframe: 2005 – 2008


Shenzi is the largest deepwater GOM project operated by BHP Billiton and its second Tension Leg Platform (TLP). BHP Billiton has been an active non-operating partner on several deepwater fields in the GOM, and the Shenzi development positions BHP Billiton as an operator of a large multi-faceted, deepwater, high profile project in the GOM.

WorleyParsons Sea is providing the complete marine and hull engineering services to MODEC, the prime contractor of the Shenzi TLP project for BHP Billiton. WorleyParsons Sea’s scope of work includes engineering and engineering management for the design of the TLP hull, moorings and deck structure as well as services including technical support for procurement and construction site engineering.

WorleyParsons Sea completed over 200,000 manhours without any lost-time incidents. WorleyParsons Sea was instrumental in re-configuration of the TLP during the project to meet the more stringent hurricane criteria brought about from the severe 2004 and 2005 GOM hurricane seasons.

Sipchem Olefins ComplexCustomer: Saudi International Petrochemical Company (Sipchem)Location: Two sites in Jubail, Kingdom of Saudi ArabiaTimeframe: 2006 – 2012


Sipchem plans to build a world scale petrochemical complex in the Jubail Industrial City, Saudi Arabia. Four of the planned units will be located at Sipchem’s existing site in Jubail Phase 1. The balance of up to 15 process plants will be located on a greenfield site in Jubail Phase 2. This will be the first petrochemical facility in Saudi Arabia to produce finished product, with the manufacture of HDPE pipe, HDPE pallets and both HDPE and LDPE film all planned.

WorleyParsons is providing project management services to the project. These include feasibility studies, process technology evaluation, bid package development, front end engineering, procurement assistance, construction management and start-up, commissioning and operations assistance.

WorleyParsons has completed the definition phase of the project. Major facilities have been specified and a budgetary cost estimate has been prepared. We have also prepared and issued the invitation to bid package for the ethylene cracker, the central facility in the complex.

Office Houston Offices Houston, Saudi Arabia, Beijing

barrels per day oil production100,000

Progress Energy Clean Smokestacks ProgramCustomer: Progress Energy – CarolinasLocation: Arden, North Carolina and Roxboro, North CarolinaTimeframe: 2002 – 2008


The Asheville and Roxboro units were required to significantly reduce airborne emissions to meet the NO

x State

Implementation Plan and to comply with the North Carolina Clean Smokestacks Act.

The project consisted of the retrofit of individual, wet-type flue gas desulfurization systems to each of the six units to achieve 97% removal of sulfur dioxide (SO

2) from the

flue gas leaving the boilers and produce marketable gypsum as a byproduct.

The project also included the retrofit of a Selective Catalytic Reduction (SCR) system to three of the units. The SCR systems were designed for >90% removal of nitrogen oxides (NO

x) from the boiler flue gas.

WorleyParsons is providing engineering, design, material management, site support and start-up services to Progress Energy in the North Carolina Clean Smokestacks Program. This includes the Phase 1 technology evaluation as well as the Phase 2 detailed engineering, design, procurement, site support and start-up implementation phase.

To date Asheville Units 1 and 2 and Roxboro Unit 2 have met the schedule and performance requirements. Roxboro Units 1, 3 and 4 are on schedule for compliance by November 2008. Asheville Units 1 and 2 received 2nd Place honors in Power Engineering Magazine’s 2006 Project of the Year awards program.

Offices Reading, Chicago, Chattanooga, Beijing

removal of SO

297% tonnes per annum ethylene cracker1.3 M


AustraliaAdelaideBell BayBrisbaneBunburyDarwinGeelongGladstoneKalgoorlieKarratha

KwinanaMackayMelbourneNewcastlePerthSingletonSpotswoodSydneyTownsville

New ZealandAucklandChristchurchHastingsNew Plymouth

Australia & New ZealandSydney Water Renewable Energy Generation ProgramWorleyParsons is associated with a truly innovative power generation project with Sydney Water. The project reduces energy costs and the impact on the environment by utilising the gas produced in the wastewater treatment process and harnessing the energy in the gravity fed water and wastewater flows.

In 2002, Sydney Water established an Energy Partnership with WorleyParsons and energy efficiency specialists Energetics. The vision was to be recognized as the benchmark within the water industry for the successful delivery of energy management projects.

In 2007, Sydney Water approved the Renewable Energy Generation Program – a suite of renewable energy power plants to utilize existing energy sources within its water and wastewater systems. The plant types include cogeneration that burn waste gas, produced as a by-product in sewage treatment and hydroelectric, consisting of mini-turbines installed in water and wastewater systems.

With a combined capacity of over 8 MW the facilities will generate over 50 GWh of renewable energy per annum, achieving significant cost savings and an estimated CO2e abatement of over 50,000 tonnes per annum. This represents a 15% reduction in Sydney Water’s reliance on fossil fuel generated electricity and a significant contribution to its commitment to become carbon neutral by 2020.

The Sydney Water Energy Partnership embodies all the core values of WorleyParsons’ EcoNomics™

initiative through the delivery of innovative, environmentally and socially sustainable projects. The outcome is a combination of wider environmental benefits and significant cost savings for Sydney Water, thus delivering profitable sustainability.


Glen Haywood WorleyParsons, Daniel Cooper Sydney Water, Giles Walgenwitz Energetics at Sydney Water’s Malabar Facility. Annual Review WorleyParsons 15


Australia & New ZealandBusiness OverviewThe Australia and New Zealand operation experienced significant growth across all customer sectors during the year. Employee numbers rose to in excess of 5,000 – an increase of some 25%. A significant increase in activity was experienced in the LNG and iron ore sectors. Our involvement on major greenfield developments, including Woodside’s Browse and Pluto LNG projects and the Fortescue Metals Group’s Pilbara Iron Ore and Infrastructure Project, positions us well to support these markets as demand for both commodities continues to grow.

The delivery of brownfield projects and long term sustaining capital contracts – serviced through WorleyParsons Improve – remained a focus area, with significant expansion achieved in the aluminium smelting industry. In addition, our ongoing involvement with BHP Billiton’s massive Olympic Dam development in South Australia provides a solid foundation for further growth in both the Improve business and the minerals & metals customer sector within that state.

The acquisition of TMG Rail provided an important building block within the Infrastructure customer sector. Water is anticipated to be a key future growth area for this sector, both within the region and internationally. Our involvement in major desalination projects in Perth and Melbourne, coupled with establishment of a number of key third party relationships, ensures we are well positioned to meet anticipated demand – both from a resource and capability perspective.

The increasing use of Workshare with other WorleyParsons offices proved to be a successful strategy. Melbourne and Sydney successfully supported international projects in Saudi Arabia, Thailand, India and PNG, while Beijing supported a number of projects from within the region.

The Australia and New Zealand operation also provided the core front end team for the important EcoNomics™ initiative.

Collie Power Station Operation and Maintenance AgreementCustomer: Verve EnergyLocation: Collie, Western Australia, AustraliaTimeframe: 2005 – 2011


Verve Energy is Western Australia’s electricity generation provider. With 340 MWe capacity, Collie Power Station is the largest single generating unit in Verve Energy’s portfolio and one of Australia’s most modern and efficient coal fired power stations.

Since 2005, Verve Energy has contracted the Transfield Worley Power Services joint venture to provide integrated engineering, operations and maintenance support to the facility. The joint venture is committed to reducing operating costs through a process of continuous improvement to maintain Collie power station’s competitive position in the market. The role includes engineering and project management for scheduled and unscheduled plant outages, upgrades and modifications.

Since taking over plant operations in March 2005, Transfield Worley Power Services has maintained high plant availability and reliability as well as having achieved triple certification for quality, safety and environmental performance. Several significant plant outages have been executed, including an upgrade to increase the plant output. In May 2007, Transfield Worley Power Services received a Silver Asset Management Excellence Award from the Asset Management Council & Maintenance Engineering Society of Australia.

Offices Collie, Perth, Sydney

gross output340 MWe

Pilbara Iron Ore and Infrastructure ProjectCustomer: Fortescue Metals Group Ltd (FMG)Location: Pilbara region, Western Australia, AustraliaTimeframe: 2005 – 2008


The FMG Pilbara Iron Ore and Infrastructure Project, in the rugged, resource-rich Pilbara region of Western Australia, has entered the construction phase. The construction of an open-cut mine, 256 km single-track railway, airfield, accommodation camps for a construction workforce and the development of new port facilities at Port Hedland are all underway.

This greenfield development project presents numerous challenges and WorleyParsons is supporting FMG through the capabilities of the Minerals & Metals and Infrastructure customer sector groups. These core capabilities are further supplemented by a range of specialist technical services, such as rail car design, geotechnical and environmental engineering.

FMG is the first company to develop a major iron ore start-up project in Western Australia in decades. The project is characterized by a tight timeframe, logistical challenges of the remote, rugged site and climatic extremes. Despite the impact of severe cyclones early in the construction period and the fierce competition for physical and human resources as a result of the economic boom in Western Australia, the project is progressing well.

Offices Perth, Melbourne, Brisbane, Port Hedland

major iron orestart-up in decades1st

PowerHydrocarbons


North Rankin Redevelopment (NR2)Customer: Woodside Energy LimitedLocation: North West Shelf, Western Australia, AustraliaTimeframe: 2006 – 2007


The NR2 project will unlock low-pressure reserves from the North Rankin and Perseus offshore gas and condensate fields and, hence, ensure gas supply to the North West Shelf onshore liquefied natural gas production facilities. The new platform will be linked to the existing NRA platform and provide gas compression and condensate pumping for the fluids produced from the NRA wells.

The planned platform will consist of one of the world’s largest integrated topsides (installed by the float-over method) and a very large steel substructure.

WorleyParsons is providing the Front End Engineering Design (FEED) including procurement services for long lead time items of equipment and materials for both the new platform (in joint venture with KBR) and also for the significant modifications to NRA (in joint venture with Transfield Services).

The contract with Woodside contains options for one or more of the additional services including detailed engineering, procurement management and construction management services

The FEED for the substructure design was completed on time in order to meet the tight schedule for early steel orders.

Zinifex – ZCM Project PERCentCustomer: Zinifex Century MineLocation: Lawn Hill via Mt Isa, Queensland, AustraliaTimeframe: 2006 – 2007


WorleyParsons’ relationship with Zinifex began in 2005 when we were engaged to deliver a major shutdown for the Port Pirie smelter in South Australia. Since 2005, WorleyParsons has been awarded an engineering alliance for the Rosebery mine and an EPCM contract for the Hobart smelter in Tasmania. Work includes sustainability and expansion projects to support a number of Zinifex’s core objectives.

In 2007, Zinifex also engaged WorleyParsons to upgrade its Century mine, one of the world’s largest producers of zinc concentrates. The upgrade increases zinc recovery from 79% to 82%, equivalent to an additional 20,000 tonnes of zinc metal per annum. With a total installed cost of approximately AU$45 million, the project involves the installation of a second ball mill and flotation circuit surge tank into the existing facility.

To meet the market window, achievement of the project schedule is a priority for Zinifex. This required many detailed design and procurement activities be completed in parallel with the definition phase. The innovative use of a refurbished secondhand ball mill reduced the project schedule by approximately one year compared with the use of new equipment.

Offices Perth, Leatherhead, Beijing Office Melbourne

open water float-over platform of this scale1st

Fonterra Energy Efficiency ProjectCustomer: Fonterra Co-operative Group LimitedLocation: Various manufacturing sites across New ZealandTimeframe: 2003 – present


The Fonterra Energy Efficiency Project set out in 2003 to achieve a 10% reduction in Fonterra’s energy intensity by 2009. Fonterra’s energy efficiency project is possibly the most ambitious and strategically important industrial energy efficiency project ever to be undertaken in New Zealand.

Part of the energy efficiency project included the installation of a heat recovery loop at their Whareroa site. WorleyParsons’ demand response conducted the site-wide process description which was used for the basis of the pinch analysis. The concept developed used a 500 m3 stratified tank, supplied by a number of low-grade heat sources, to heat water from 20°C to 40°C and in turn supply heat to a number of processes. Demand response’s InSite tools provide Fonterra with energy performance monitoring to verify the savings achieved.

Fonterra’s 10% energy efficiency target will be achieved in the 2006/07 season, two years earlier than planned. Demand response’s involvement is continuing into 2008 where that year’s target is a further 3.5% efficiency improvement and future improvements beyond that of 2.5% per annum have been set by Fonterra.

Performance to date has already been recognised with Fonterra receiving two consecutive EECA EnergyWise Awards in 2004 and 2006.

Office Wellington

of energy savings per annum1.8 PJtonnes

additionalzinc metalper annum

20,000


EuropeBelene Nuclear Power PlantWorleyParsons is participating in the European nuclear renaissance in the role of the architect/engineer for the Natsionalna Elektricheska Kompania’s (NEK) Belene Nuclear Power Plant project in Bulgaria. This pioneering project is one of three Generation 3 nuclear power plants currently under construction in Europe. The cost competitive power produced will enable Bulgaria to remain a key supplier to the south European electricity market and reduce environmental impact through the elimination of greenhouse gas emissions.

In 2005, the Bulgarian Council of Ministers decided to construct two 1,000 MWe nuclear units at Belene, located on the River Danube. The project, currently under construction, will provide new electrical capacity to meet future growth in the Bulgarian and southeastern regions of Europe and is one of the largest investment projects in Europe.

The two Belene units will produce a combined output equivalent to 2,000 MWe, helping restore the traditionally high share of nuclear generated power in Bulgaria’s energy mix, which was drastically reduced following the recent closure of two plants. This electricity will be generated without any greenhouse emissions and the plant footprint is smaller than that required to generate similar capacity by other means.

The Belene project is a precise fit with the goals of WorleyParsons’ EcoNomics™ initiative. The feasibility study delivered a holistic assessment of the technical and economic impacts of the facility throughout its entire lifecycle, from initial construction through plant operation, waste disposal, and ultimate disposal or storage of used nuclear fuel. This expanded decision window and full consideration of all aspects of the project lifecycle are key to ensuring projects remain resilient into the future. The outcome is a facility that provides greater environmental benefit at a competitive cost, benefiting not only customers, but the European community.

BulgariaSofiaKazakhstanAlmatyAtyrau

RussiaMoscowSpainMadrid

UnitedKingdomBristolLeedsLondon


Night view over the town of Nessebar, Bulgaria.


Business OverviewWorleyParsons’ European operation comprises approximately 1,600 employees located in principal centres in the UK, Bulgaria and Kazakhstan and other offices in Russia and Spain.

The Kazakhstan operation, comprised of some 350 personnel of whom approximately 65% are Kazakh nationals, is now an established component of the European business. Expansion continues through growth in our Atyrau operation and the opening of a new office in Almaty in late 2006.

Efforts to diversify from the historically predominant Hydrocarbons business have been successful. Award of a project management alliance for the Ferrexpro Poltava iron ore mine in Ukraine represents our first Minerals & Metals project to be executed inside the region. The Infrastructure group is focused on growing our environmental hub, expanding capabilities into other focus sub-sectors and leveraging synergies with other customer sector groups.

The European Power business continues successfully through its roles as architect/owners engineer on the Belene and Kozloduy Nuclear Power Plants (NPP), and the Maritza East 2 thermal power plant in Bulgaria.

Geographic expansion into Central and Eastern Europe is proceeding through our involvement on the Mochovche NPP in Slovakia and a flue gas desulfurization project in Serbia.

The Hydrocarbons business has successfully diversified into the downstream sector through award of ConocoPhillips’ Whitegate front end loading and Tamoil’s Cremona upgrade refinery projects in the UK and Italy respectively. Other significant awards include the South Pars 17/18 FEED, AgipKCO Kashagan follow on design phase and the BG Tunisia Hannibal Sour gas project EP phase.

Europe

Ferrexpo Poltava Mining Iron Ore ExpansionCustomer: Ferrexpo Poltava Mining (FPM) (a subsidiary of Ferrexpo plc)Location: Komsomolsk, UkraineTimeframe: 2007 – 2011


To realize its growth opportunities, FPM is upgrading and developing its iron ore mining and processing facilities in the Poltava region of central Ukraine. The expansion will increase production from 9.5 million tonnes per annum to 16 million tonnes per annum of pellets and provide an additional 4 million tonnes per annum of export concentrate. FPM has an estimated resource of 18 billion tonnes of iron ore (predominantly magnetite) in nine deposits with an average iron content of approximately 30%. Mining is currently undertaken at the Gorishne-Plavninskoe and Lavrikovskoe deposits and development is planned for the Yeristovskoe deposit located just north of existing operations.

WorleyParsons is entering into a project management alliance with FPM to provide program management and technical resources in Workshare centers globally in order to deliver the project. WorleyParsons manages several specialist technology partners and Ukrainian design institutes engaged to assist in the delivery of the project. The alliance team includes a number of FPM staff who will gain valuable project delivery experience through direct involvement in the project.

The alliance uses WorleyParsons’ project delivery methodology, systems and procedures.

Offices London, Sydney, Almaty, Komsomolsk

tonnes per annumof iron ore pellets16 M

Sour Gas Injection/Second Generation ProjectCustomer: TengizchevroilLocation: Tengiz, KazakhstanTimeframe: 2000 – 2008


The Sour Gas Injection and Second Generation Projects (SGI and SGP) will enable Tengizchevroil to expand their oil and gas facilities on the Caspian Sea in Kazakhstan from 13.5 million to above 25 million tonnes per annum. The new facilities include field gathering system, meter stations, crude stabilization, gas sweetening and fractionation, sulfur recovery, power generation, utilities and associated infrastructure, and new product export systems for gas, natural gas liquids, sulfur and crude.

Since 2002, WorleyParsons and its joint venture partner have provided EPCM services to this vast development program, completing in excess of 125 million manhours and 192,000 engineering documents. Current activities are focused on construction management where in excess of 10,000 personnel can be on site. First oil is anticipated by the end of this year with full facilities completion anticipated in 2008.

WorleyParsons’ extensive experience in remote and logistically challenging environments has helped the project to cost effectively move over 100 “out-of-gauge” equipment items from around the world. These items, too large to be transported using conventional methods, range in sizes up to eight meters diameter, 60 meters long and 354 tonnes.

Offices Camberley, Houston, Tengiz

tonnes crude oilper annum11.5 M


PowerHydrocarbons



Integrated Gas Development Project – Habshan 2Customer: Abu Dhabi Gas Industries Ltd (GASCO)Location: Habshan, Abu DhabiTimeframe: 2007


Abu Dhabi National Oil Company (ADNOC) is expanding the offshore gas production from the Umm Shaif super complex. The increased flow will be transferred to a new facility at Habshan. The offshore gas will be mixed with gas from onshore sources and processed at Habshan, where the acid gas will be removed and the sulfur recovered in order to meet stringent gas specification requirements.

WorleyParsons is working closely with GASCO to develop the optimum processing scheme before producing the basic engineering design package for the sulfur recovery and acid gas treating units at Habshan.

A comprehensive understanding of the technologies available for sulfur removal enables WorleyParsons to select solutions that will deliver the best operational and economic outcome for projects. In this case the project selected a special, proprietary, highly selective Flexsorb solvent, which minimized both equipment sizing and energy use.

The Habshan facility will comprise four trains producing a total of 5,200 tonnes of sulfur per day, making this the largest sulfur recovery plant designed by WorleyParsons.

Cremona Upgrading ProgramCustomer: Tamoil Raffinazione S.p.ALocation: Cremona, ItalyTimeframe: 2006 – 2010


Tamoil is finalizing a study to upgrade its oil refinery at Cremona, 100 km southeast of Milan, both in order to increase refinery capacity and to alter their product range to better meet market requirements. The upgrade includes a cogeneration plant to supply electrical power and steam to the refinery and district heating to the local community; major modifications to the existing refinery process units; and new hydrocracker, vacuum distillation and hydrogen generation units.

WorleyParsons is working with Tamoil to develop an overall refinery master plan. This techno-economic study analyzes the path forward in detail for the Cremona refinery, looking at the market situation for next 25 years. Other activities include FEED for the new hydrocracker units and the supervision of the contractor completing FEED for the remainder of the scope.

WorleyParsons has prepared a comprehensive Refinery Master Plan (RMP) for the refinery. Included in the RMP is an economic analysis of the proposed hydrocracker project and linear programming summaries for the base case and 18 different sensitivity cases. The linear programming runs and the economic analysis formed the basis for the justification of the project.

Office LondonOffices Brentford, Sofia, Beijing

sulfur removed from sour gas>99.9%

Sakhalin Energy Detailed Design and Engineering Onshore Processing FacilityCustomer: Sakhalin Energy Investment Company (SEIC)Location: Sakhalin Island, RussiaTimeframe: 2001 – 2008


SEIC is jointly owned by Shell, Mitsui, Mitsubishi and Gazprom with Gazprom acquiring a controlling interest in April 2007. The business outcome sought is the economic development of oil and gas reserves from the Piltun-Astokhskoye and Lunskoye fields, with year round export of oil and liquefied natural gas from the Prigorodnoye export terminal on the remote, environmentally sensitive Sakhalin Island.

WorleyParsons completed definition engineering design and is currently providing detailed engineering and construction support services for the onshore production facility (OPF). Concurrent with the design process, WorleyParsons prepared the technical and economic substantiation of Construction and environmental protection measures used to obtain approval of the onshore production facility project from Russian Federation and regional authorities.

This is a major role executing a frontier engineering and procurement project in Russia and a number of challenges have been overcome that will provide valuable lessons learned for future projects in the region. Experience gained includes detailed knowledge of the Russian approvals process and working with a number of Russian design institutes.

Offices Brentford, Melbourne, New Plymouth, Arcadia

barrels per day of oil155,000 barrels per stream

day Hydrocracker20,000

Middle EastCommon Volatile Organic (VOC) Compounds’ ProjectWorleyParsons assisted Qatar Petroleum achieve its objective of becoming a “leader in sustainable development” through the FEED of a large facility to reduce emissions from tanker loading operations at the Ras Laffan industrial city. This project, unique for Qatar, will capture and destroy VOC which would otherwise be vented to the atmosphere.

Qatar has committed to preserve and protect the environment for the benefit of current and future generations. Increased regulation will reduce allowable emissions from activities such as venting and tanker loading operations. In response, Qatar Petroleum, in conjunction with Qatargas, is developing a multi-user VOC capture and destruction facility for the Ras Laffan port tanker loading berths.

This facility comprises of vapor return arms, detonation arrestors, filters and knockout vessels, vapor blowers, marine combustors and an on-site nitrogen system. The new facilities will be integrated into the existing facilities via a complex control system to meet a broad range of operating scenarios.

On completion the Common VOC project will have the capacity to capture and destroy up to 98% of the captured VOC emissions, which would otherwise be vented to the atmosphere during liquid loading operations.

The Common VOC project exhibits many of the defining characteristics of a WorleyParsons’ EcoNomics™ project. By expanding project boundaries to encompass the emissions from current and potential future operators, Qatar Petroleum has delivered a common solution to multiple problems. The result is more cost effective for the individual operators and a model for the ongoing sustainable development of the Ras Laffan industrial city.

IraqKuwaitAhmadi

OmanMuscatQatarDoha

Saudi ArabiaAl KhobarYanbuUAEAbu Dhabi



Photo courtesy of John Zink


Business OverviewWorleyParsons delivered strong growth in the Middle East this year, with personnel increasing to approximately 1,800. The Hydrocarbons customer sector remains dominant; however, gains are being made in the Infrastructure and Minerals & Metals sectors.

The Abu Dhabi operation consolidated as the regional hub, providing greater support to other offices in the region and continuing our strong growth as an execution centre. This is evidenced by our engagement, in joint venture with SNC Lavalin, as the EPCM contractor on the multi-billion dollar, Al Taweelah aluminium smelter project.

In Saudi Arabia, WorleyParsons Petrocon continues to cement its industry leading position for project management and engineering design. Market leadership in Hydrocarbons increased with the award of the Sipchem petrochemical project, being executed jointly with Houston and a brownfield asset services style contract with Sasref. Diversification into Infrastructure and Minerals & Metals continues to increase as the Ma’aden phosphate and infrastructure developments progress.

WorleyParsons is now the largest in-country service provider in Qatar. Major contracts include a three year contract with Occidental for engineering services for offshore facilities and the front end design for a new sulfur recovery unit for Qatar Petroleum. The Transfield-Worley-Traggs joint venture continues to provide maintenance services to Rasgas for their liquefied natural gas facilities.

In Oman we continue to deliver engineering and maintenance services for Petroleum Development Oman. The office is gaining capability on enhanced oil recovery projects and currently employs in excess of 70 Oman nationals.

In Kuwait our project offices continue to work with Kuwait Oil Company on the installation of 200 km of 20 inch gas oil supply pipeline and with Chevron as part of the integrated infrastructure team for the Kuwait Oil Company facilities in southeast Kuwait.

Middle East

Emirates Aluminium Taweelah Smelter Complex EPCMCustomer: Emirates Aluminium (EMAL)Location: Al Taweelah, Abu Dhabi, United Arab Emirates (UAE)Timeframe: 2007 – 2011


EMAL, a joint venture between Dubal and Mubadala, plans to build the world’s largest single-site aluminium smelter at Al Taweelah in the UAE. This facility, with a capacity of 700,000 tonnes per annum, will showcase the Dubal developed DX smelting technology, providing a highly competitive smelter to position EMAL in the top echelon of aluminium producers.

WorleyParsons and its joint venture partner SNC Lavalin have been awarded the engineering, procurement and construction management contract for this multi-billion dollar project, which also includes a 2,000 MW gas fired power plant and associated facilities at a 500 hectare site. The project timing is fast, with first metal planned for 2010.

The WorleyParsons SNC Lavalin joint venture was selected for its aluminium industry and EPCM project delivery experience, familiarity with the DX smelting technology and resource capability within the UAE. For WorleyParsons, this project provides its first major involvement in a greenfield aluminium smelter project, accelerating growth of the Mineral & Metals customer sector group and providing additional diversification in the Middle East.

Offices Abu Dhabi, Melbourne, Beijing

tonnes per annum capacity700,000

Maintain Production Potential ProgramCustomer: Saudi AramcoLocation: Kingdom of Saudi ArabiaTimeframe: 2003 – 2008


Saudi Aramco’s focus for the Maintain Potential Program (MPP) this year was the completion of the engineering construction packages for the platforms based on the 3S design principles (Standardize, Simplify and make Simultaneous Operations capable) developed by WorleyParsons Petrocon. The work encompassed 12 platforms and substantial tie-ins to existing facilities. WorleyParsons also commenced assisting Saudi Aramco on the refurbishment of the Marjan field ESD/control systems and various studies for the Karan field.

Since commencing work on the MPP project in 2003 our team has delivered 40 new platforms, 85 platform upgrades, 165 km of pipelines, 100 km of submarine power cables, five cranes and over 300 well hook-ups.

This experience, coupled with initiatives like 3S, will ensure WorleyParsons continues to provide cost effective solutions for Saudi Aramco’s challenging development program. Over the next three to five years the program anticipates including approximately 10 platforms in the next work release, potentially followed by the major redevelopments of the Safaniya, Zuluf and Berri fields, with Safaniya alone including the installation of approximately 35 new platforms.

Office Al Khobar

new platforms40

PowerHydrocarbons



Ma’aden ProjectCustomer: Ma’aden PhosphateLocation: Al Jalamid, Ras Az Zawr, Kingdom of Saudi ArabiaTimeframe: 2006 – 2010


Ma’aden Phosphate in Saudi Arabia is set to become one of the world’s largest producers of di-ammonium phosphate, a fertilizer for use on grain and in horticulture. The project involves the development of an industrial city at Ras Az Zawr, comprising four large scale fertilizer plants, a town site, port and a 1,400 km railway from Al Jalamid, in the northwest of Saudi Arabia, to Ras Az Zawr.

WorleyParsons is responsible for the master planning, engineering and project management services for this US$2.5 billion project, including tendering and managing several basic engineering, EPC and equipment supply contracts on behalf of the customer. We also carried out basic and detailed engineering on seawater cooling facilities in Perth and offsites and utilities in Melbourne.

During the past 12 months, significant progress has been made including the award of four major EPC contracts for facilities producing phosphoric acid, di-ammonium phosphate, sulfuric acid and ammonia plants. The contract for the railway, the major infrastructure component on the project, has also been placed.

When completed, the facility will provide over 1,700 full-time jobs for Saudi nationals along with many additional job opportunities in related support.

New Doha International Airport – Utilities CP-13Customer: Bemco Contracting Co.Location: Doha, QatarTimeframe: 2006 – 2007


Qatar is investing US$7 billion in an Airbus 380-ready airport to serve as a hub for one of the region’s fastest growing airlines – Qatar Airways. The New Doha International Airport (NDIA) will have a capacity to service 24 million passengers at 2009, growing up to 54 million by 2015. The cargo capacity is designed to accommodate 750,000 tonnes by 2009, growing up to 2 million tonnes by 2015.

WorleyParsons was engaged by Bemco Contracting Co. to provide detailed engineering and procurement support for the airport’s utility systems. Key components include the central utility plant, power distribution, potable water, high pressure fire water, chilled water and irrigation distribution systems, a wastewater collection system and a 28,000 m3/d wastewater treatment plant.

Through advanced analysis techniques and engineering optimization, WorleyParsons has introduced many cost saving measures to reduce material, equipment and construction costs. This performance has led to WorleyParsons being engaged to provide engineering services for critical systems to a number of other contractors on the NDIA project.

Offices Al Khobar, Melbourne, Perth Offices Qatar, Beijing, Sydney, Melbourne

tonnes per annum3 million

Ma’aden ProjectCustomer: Ma’aden, Power and InfrastructureLocation: Raz Az Zawr, Saudi ArabiaTimeframe: 2006 – 2010


The master planning for the Ma’aden industrial estate, port and cooling water systems requires the efficient integration of infrastructure and cooling water to ensure the successful implementation of the world scale phosphate, aluminium, power and downstream industries.

The volume of cooling water at 1.2 million m3/hr presents significant challenges in view of environmental and design constraints and required innovative modeling to assess and minimize impacts to adjacent marine national parks.

WorleyParsons is responsible for the industrial estate, port and cooling water system, master planning and analysis of the cooling water impacts and efficiencies. WorleyParsons then completed FEED and has been engaged for detailed engineering for Phase 1 of the phosphate cooling water.

WorleyParsons provided an effective and efficient master plan considering the site conditions and significant ecological values associated with the adjacent near coastal ecosystems. The project will support world scale initiatives and the importance of this planning work is critical to the long term success of this key Saudi Government initiative.

Offices Al Khobar, Perth

m3/hrcooling water circuit

1.2 million passengercapacityby 200924 million


BruneiKuala BelaitChinaBeijingNanjingShanghaiTianjin

IndiaHyderabadMumbaiIndonesiaJakartaMalaysiaKertehKuala LumpurKuantanMiri

PhilippinesManilaSingaporeThailandBangkokSriracha

AsiaPT IncoThe unique combination of industry leading capability and specialist technology of WorleyParsons Gas Cleaning assisted PT Inco improve performance from four nickel laterite smelting furnaces in Soroako, Sulawesi, Indonesia. The Electric Smelting Off-Gas Furnace Project completed extensive facility modifications to increase plant throughput, reduce plant emissions and downtime and improve overall plant hygiene.

In late 2003, PT Inco engaged WorleyParsons to study off-gas treatment options for one of four smelting furnaces. A recent expansion had installed an off-gas system on a new fourth furnace which was considered poorly designed and dangerous to operate. In addition, all four furnaces discharged off-gas directly into the atmosphere, with only partial treatment. PT Inco committed to the local community and authorities that it would address the issues using the best available technology.

Over the ensuing three years WorleyParsons developed many innovative solutions to meet the needs of each critical plant area to improve operability and reduce off-gas emissions.

The project demonstrates WorleyParsons’ EcoNomics™ approach. Rigorous evaluation and selection of technology, coupled with attention to detail on installation design, enabled PT Inco to complete the work cost effectively, with minimum impact on production, achieve strong improvements on the visible emissions from the site, thus honoring its commitment to the local community.

PT Inco indicates the project will achieve a positive cash flow in less than two years through operation with more consistent feed rates, reduced downtime and the capture and recycle of approximately 25 tonnes per day of calcine previously lost to the environment.



AsiaBusiness OverviewSubstantial growth continued throughout Asia during this year. Personnel numbers grew beyond 3,000 with over 1,000 personnel currently in both Malaysia and China.

In China we secured our largest EPCM chemicals project to date for Degussa. World-class project systems and connectivity enabled the Beijing High Value Engineering center to Workshare effectively with Australia, New Zealand, Saudi Arabia, United States of America, United Kingdom, Singapore and Malaysia. Upstream hydrocarbons capabilities strengthened and projects were secured with ConocoPhillips and Roc Oil.

In Malaysia, Ranhill WorleyParsons serviced major projects for international customers and local Malaysia operators. Workshare was used extensively to support delivery on projects such as Umm Shaiff for ADMA OPCO and the Rare Earths Project FEED and EPCM for Lynas. An enhanced environmental capability positions us well to service the growing regional environmental markets.

In Singapore we experienced solid growth. Power continued to expand to meet the needs of domestic customers and a growing regional customer base. Using the global-local model the Singapore and Qatar infrastructure groups delivered a combined solution for Keppel’s Qatar Domestic Solid Waste Project. The sub-sea pipelines and downstream hydrocarbons groups grew significantly and looking forwards the prospects for the downstream sector remain good, with a number of major developments planned to proceed next year.

In Indonesia, we extended our position at the high-end of the hydrocarbons market, with ongoing contracts for ConocoPhillips, Amerada Hess and TOTAL. Further diversification into the Minerals & Metals sector was achieved through contracts with PT Inco, using Workshare with WorleyParsons Gas Cleaning in Dallas.

Our Thai operations continued to expand locally and internationally, in particular using Workshare to support our Canadian colleagues in executing oil sands projects and our Brunei colleagues to service long term customers like BSP and BLNG and an increasing workload with TOTAL.

WorleyParsons entered the growing Indian market by the 50% acquisition of Kirpalaney and Associates in Mumbai. WorleyParsons Kirpalaney services the power, chemicals and hydrocarbons sectors in India.

Umm Shaif Gas Injection Facilities projectCustomer: Hyundai Heavy Industries (HHI)/ADMA OPCOLocation: Abu Dhabi, United Arab EmiratesTimeframe: 2006 – 2007


The Umm Shaif Gas Injection Facilities (USGIF) project is the first phase of a major redevelopment of the Umm Shaif Field, located in the Abu Dhabi sector of the Arabian Gulf. The USGIF facilities comprise a compression platform (CP-1), a collector separator platform (CSP-1) and an accommodation platform (UAP). CSP-1 is linked by bridge to the existing Umm Shaif Super Complex. The facilities will receive, dehydrate and re-inject 219 BSCF per annum of gas into the Umm Shaif reservoirs to maintain and enhance existing oil production.

WorleyParsons originally performed the FEED for the USGIF in Perth directly for ADMA OPCO and we were subsequently engaged by HHI to provide detailed engineering for its EPC contract for the facilities. Detailed engineering was executed in various locations with the majority of the work performed in Kuala Lumpur. The brownfield engineering for the “tie-ins” was completed in Abu Dhabi and the pipelines were completed in Singapore using our sub-sea pipeline engineering center of excellence.

The project was successfully delivered against extreme scheduling demands driven by long lead times on procured equipment, which created the critical path for construction programs within the EPC contract.

Offices Kuala Lumpur, Abu Dhabi, Singapore, New Zealand

Qatar Domestic Solid Waste Management ProjectCustomer: Keppel Seghers (Keppel)Location: Doha, QatarTimeframe: 2007 – 2009


Keppel, in line with its strategy of increasing involvement in environmentally friendly developments, is completing a project to construct and operate a solid waste collection and treatment facility in Qatar. The development consists of four new facilities and the integration of one existing transfer station. On completion, the development will set new standards for the treatment of domestic solid waste in the Arabian Gulf region.

Keppel engaged WorleyParsons to complete the FEED and detailed design associated with the development. Responsibilities include civil and structural design, transportation studies, mechanical and electrical building services design, electrical power distribution and transmission and landfill design.

This combination of regional presence and local knowledge provide Keppel with access to management resources in Singapore and specialist engineers in Qatar, with an understanding of the codes, standards and environmental regulations essential for a compliant and cost effective operation in the long term – a significant challenge given the facility must handle, treat and dispose of waste streams that vary in both quality and quantity while operating with maximum reliability and minimal downtime.

Offices Singapore, Qatar

tonnes per day of domestic waste processed1,550 tonnes

of facilities40,000

PowerHydrocarbons


Lynas Malaysia ProjectCustomer: Lynas Malaysia Sdn Bhd.Location: Kemaman, Terengganu State, MalaysiaTimeframe: 2006


Lynas Corporation owns the world’s highest grade rare earths deposit, at Mt Weld in Western Australia. The rare earths are a group of 15 metallic elements that have unique properties that make them indispensable in technological areas, including the electronics, automotive, environmental protection and petrochemical sectors. To meet market demand, Lynas is developing a 10,000 tonnes per annum processing plant at Kemaman, Terengganu State, Malaysia. The facility will be expanded to produce a further 20,000 tonnes in the future.

WorleyParsons is providing EPCM services to Lynas. Our Kuala Lumpur office is acting as the project management home office providing procurement and detail design activities to Malaysian codes and standards. The remainder of the detailed engineering and procurement support is being undertaken in Sydney and Melbourne, Australia, for the concentrate plant and Beijing, China, for the cracking and separation plant. The Kerteh office will perform all regulatory approval works, off-plot detail design and construction management support.

Lynas originally planned to develop the plant in China and WorleyParsons has assisted Lynas in transferring the FEED from the Chinese design institutes to its Kuala Lumpur home office, so that the facility could be relocated to Malaysia.

Offices Kuala Lumpur, Beijing, Sydney, Melbourne, Kerteh

tonnes of rare earths produced per annum

10,000

MaisonWorleyParsons High Value Execution CenterCustomer: WorleyParsonsLocation: Beijing, ChinaTimeframe: 2006 – 2007


The Beijing High Value Engineering center (HVEC) enables WorleyParsons’ international customers to access a highly skilled and cost effective resource base, at a time of unprecedented global demand for personnel, thus assisting them to reduce cost and maintain schedule. The HVEC is an integral part of our successful “full service” Beijing operation, which currently employs in excess of 1,300 personnel and is acknowledged to be China’s leading independent provider of EPCM services to international customers developing projects within China.

Services that can be supported from the HVEC include FEED, detail design, procurement and construction management services.

During the past 12 months the HVEC has performed over 20 Workshare projects with numerous offices, including Houston, Reading, Arcadia, Perth, Brisbane, Melbourne, New Plymouth, London and Kuala Lumpur. The projects supported have spanned a diverse range of industries from offshore and onshore oil and gas, minerals and metals to power and major chemicals projects.

A number of these projects, including the Ma’aden Phosphate & Infrastructure project, the North Rankin Redevelopment project and the Lynas Rare Earth project are profiled within this Annual Review.

Offices Supporting Houston, Reading, Arcadia, Monrovia, Perth, Brisbane, Melbourne, London, Kuala Lumpur, Al Khobar, Qatar, Calgary and Chattanooga

HVE manhours in the past year300,000

International Solar Vehicle ProjectsCustomer: International Solar Car Racing TeamsLocation: SingaporeTimeframe: 2002 – 2007


WorleyParsons Advanced Energy Solutions in Singapore engineers and produces portable energy systems for a wide variety of commercial and industrial applications. One area of specialist expertise is the supply of portable power systems for the solar car community.

Since 2002, WorleyParsons has supported over 40 international university solar car racing teams with high energy lithium polymer rechargeable battery packs for university races. This high tech sport has grown in presence with races across Australia, USA, Turkey and Canada, with a race in Africa planned for 2009. WorleyParsons is proud to work along side passionate students in what has been coined a true brain sport.

The outstanding performance of teams since 2002, and the introduction of this technology into the sport, is testament to the truly versatile engineering capabilities of WorleyParsons and the teams it works with.

The EcoNomics opportunities for the application of this technology are many. Hybrid electric vehicle technologies will play a significant part in the future and through its participation in the solar car community, WorleyParsons is positioned at the leading edge of the development of these technologies.

Office Singapore

solar car teams supported since 2002+40


AfricaGuiding the clean-up of one of the 10 most polluted cities on the planetWorleyParsons is central to the remediation of former mine sites in Zambia’s Copperbelt province and Kabwe city (considered one of the world’s 10 most polluted cities). The project engages key stakeholders in channeling the modest remediation budget to optimize social and environmental benefits, while minimizing expenditure on reclamation. In achieving this outcome, WorleyParsons was integral in facilitating the sustainable privatization of the Zambian mining industry, thus increasing its attractiveness for future investment.

WorleyParsons’ involvement in Zambia’s mining industry started in 2001 through the Copperbelt Environmental Project (CEP) to restore the degraded lands of former state mining company, ZCCM. The CEP confronted numerous environmental, technical, economic and social challenges, including safe closure of over 100 tailings dumps close to areas of dense population. These dumps contaminate water resources and generate toxic dust.

In 2005, the Zambian Ministry of Finance and National Planning engaged WorleyParsons to field an Independent Assessment Team to oversee implementation of the CEP. A principal challenge was to maximize benefits from the modest US$50 million budget, considerably less than prevailing estimates. The team developed an integrated decision support matrix to screen land-use options against economic, environmental and social criteria. Key stakeholders, including affected communities, collaborated to assign evaluation criteria, creating a rational planning process that maximized social and environmental benefits and minimized unnecessary expenditure.

Balancing environmental and social sustainability with economic reality is integral to WorleyParsons’ EcoNomics™ approach. Our engagement on the CEP provides recognition of this capability by the Government of Zambia and institutions such as The World Bank in the areas of environmental human health risk assessment, community engagement and socio-economic analysis.

AngolaLuandaEgyptCairo

NigeriaLagos




AfricaBusiness OverviewWorleyParsons enjoyed significant growth and expansion in Africa this year. DeltaAfrik, WorleyParsons’ Nigerian entity and its largest operation in Africa, grew to around 600 personnel. The growth was underpinned with the award of a major EPCM contract and several other long term contracts. DeltaAfrik is now the largest engineering and project services provider in the Nigerian hydrocarbons sector and is able to offer a uniquely comprehensive range of capabilities and skills to the local industry.

WorleyParsons Angola Limitada has now established itself in the local Angolan market with contracts underway with Esso and Total as well as near term prospects with other local operators. The local business set up is complete and is well placed for future growth as it supports the rapidly expanding hydrocarbons industry in Angola.

In Egypt, WorleyParsons brought together its power and environmental businesses and has added Hydrocarbons capability subsequent to the award of a greenfield refinery PMC contract with Citadel and other local contracts. With all business lines now under common management and utilizing WorleyParsons’ global systems and tools, the Egyptian business is looking forward to good prospects.

In Libya, we are in the final stages of establishing WorleyParsons with a local joint venture partner. Based on the rapidly evolving market with a large number of familiar customers, WorleyParsons looks forward to being at the forefront of this emerging market.

We are undertaking numerous projects across the African continent in addition to our locally established operations. This, together with ongoing assessments of new project and business opportunities, is expected to generate further growth in the region.

Power Sector Support Program IICustomer: Egyptian Electricity Holding Company (EEHC)Location: Various locations, EgyptTimeframe: 1997 – 2007


In response to rapid economic growth, expanding population and market pressures, EEHC embarked on an ambitious electricity generation development plan. EEHC intends to build some of the largest and most advanced facilities in North Africa and the Middle East including power plants and transmission and distribution facilities.

WorleyParsons and joint venture partner PP&L established the Power Sector Support Group (PSSG) to complete EEHC’s Power Sector Support Program. PSSG’s role is as owner’s representative for consulting and construction management services, including project management and integration, preliminary engineering, selection of the design and build contractors and construction supervision.

EEHC has achieved operational benefits from the program. The control system upgrade has significantly improved unit start-up times, increased efficiency by approximately 1.5% and delivered fuel savings of 1.0%. A high level of cooperation between the owners, vendors and USAID also enabled the outage times to be kept to an absolute minimum for the retrofit component project.

Offices Cairo, Reading

10 year

Sub-sea Equipment Supply – Deepwater NigeriaCustomer: FMC TechnologiesLocation: Offshore NigeriaTimeframe: 2005 – 2007


As a means of developing Nigerian in-country capacity in the sub-sea, deepwater environment and in fulfilling the Nigerian Government’s desire to maximize work done in Nigeria and develop local Nigerian engineering and construction capability, FMC awarded an engineering and construction management contract to DeltaAfrik, a joint venture between WorleyParsons and DeltaTek.

The scope of work includes supporting FMC during the detailed engineering and construction management for the suction piles, sub-sea manifolds, topside control and sub-sea distribution systems for a major deepwater development in 1,400 meters of water, offshore Nigeria. A significant portion of the scope involves the training of DeltaAfrik personnel by FMC.

In addition to the benefits of satisfying the local Nigerian content requirements for a specific deepwater project, synergistic advantages to both DeltaAfrik and FMC have emerged. As part of the enhanced relationship, FMC is training additional DeltaAfrik personnel to support upcoming deepwater projects, thus allowing DeltaAfrik to develop enhanced deepwater engineering capability and FMC to access local Nigerian engineering resources.

Offices FMC Houston, FMC Harcourt

manhours ofengineering andconstructionmanagement

75,000 USAID powersector supportprogram

PowerHydrocarbons


Mufulira Smelter Upgrade Phase 2 – Fire Refining and CastingCustomer: Mopani Copper Mines PLCLocation: Mufulira, ZambiaTimeframe: 2006 – 2008


Mopani Copper Mines is upgrading its Mufulira Copper Smelter in three phases to reduce emissions and increase concentrate treatment capacity from 420,000 tpa to 850,000 tpa. On completion Mufulira will be the largest copper smelter in Africa.

WorleyParsons is providing the basic and detail engineering, construction management and commissioning assistance for phase 2 of the smelter upgrade. This phase comprises the installation of a refining and casting plant designed to handle anode copper produced from the treatment of 850,000 tpa concentrate. The key components of phase 2 are two new 400 tonne anode furnaces, a 100 tonne/hour casting plant and an aisle extension, including electrical substation and compressor buildings. Construction is underway with the construction management team comprised of WorleyParsons international staff and locally hired engineers and technicians.

Despite Zambia’s land-locked position and with only limited access to qualified resources, the WorleyParsons construction management team has successfully managed the major safety, quality and performance concerns affecting this complex and logistically challenging project.

Offices Toronto, Mufulira

tonnes per annum capacityupgrade

430,000

Olero Creek Production System Detailed Design, Northern Water Station (NWS)

Customer: Nigeria National Petroleum Company (NNPC)/Chevron Nigeria Limited (CNL) Joint VentureLocation: Olero Creek, Niger Delta, NigeriaTimeframe: 2007 – 2007


In 2006, WorleyParsons completed the FEED phase for the reconstruction of NNPC/CNL’s Olero Creek facilities from our Houston office. Following completion of this phase and in support of the Nigerian Government’s desire to maximize local content through the utilization of Nigerian vendors and contractors, the project was transitioned to our DeltaAfrik joint venture for detailed design.

The work is being conducted under the multi-year EPCM Services Contract. The project entails the detailed design for the reconstruction of two concrete barge platforms and the procurement management for the new and replacement equipment packages.

The project is 50% complete and has successfully utilized a high proportion of Nigerian resources with approximately 65% of the major packaged items, including all long lead equipment, sourced locally.

Inspection support is provided by WorleyParsons from Houston, while post construction support is provided in Nigeria by DeltaAfrik.

Offices DeltaAfrik Lagos, Houston

barrels per day oil production60,000

Copperbelt Environmental ProjectCustomer: Zambian Ministry of Finance and National PlanningLocation: ZambiaTimeframe: 2001 – present


Through the restoration of heavily polluted sites, the Zambian Government and The World Bank wish to facilitate the ongoing privatization of the Zambian mining industry, while maximizing the social and environmental benefits to residents impacted by past mining operations.

The Zambian Government engaged WorleyParsons to oversee the implementation of the Copperbelt Environmental Project, a principal challenge of which is to maximize benefits to local communities from within the available funds. To achieve this, WorleyParsons developed an integrated decision support matrix, a tool to screen pre and post closure land use options against economic, environmental and social criteria.

Through the application of this technique WorleyParsons enabled all key stakeholders, including the affected communities, to participate in a rational planning process that balanced economic, social and environmental welfare in a transparent and informed manner.

Office Calgary

toxic tailings dumps100


Committed, empowered and

technically capable people

Industry leadership in health, safety and environmental performance

Outstanding operational and

corporate performance

Focus on long term contracts and asset-based services

Success in project delivery –

large and small

Comprehensive geographic presence

EcoNomics™ – Delivering profitable sustainability

Our Differentiators

Designed and Produced by walterwakefield.com.au

This report is printed on Monza Satin, an FSC certified mixed source paper.

Cert no. SCS-COC-00858

This year we have added to our differentiators to emphasize the importance we place on profitable sustainability – for our customers and in our own business. EcoNomics™ brings together and extends our range of services in environmental, social and financial sustainability.

It is our plan that these services will be embedded into all aspects of project delivery, across the asset lifecycle. In this we are focused on the green and on the black and we see enormous potential for optimizing existing assets, solving customer problems and developing new solutions.John GrillChief Executive Officer

Differentiators WorleyParsons 1

Chief Executive Officer’s Committee

The Chief Executive Officer’s Committee comprises the leaders of our regions, customer sector groups and key functional areas. One of its core responsibilities is to be the custodian of the differentiators, setting and ensuring delivery against strategic objectives and key performance indicators.

Iain RossMark SoutheyHarry Sauer

Peter MeursStuart BradieAndrew Wood

2 WorleyParsons Differentiators

John GrillBill HallDavid Housego

David SteeleRobert EdwardesGreg Clinnick

Edd PaganoJeff OsbourneLarry Benke



Differentiator 3EcoNomics™ – Delivering profitable sustainability

Differentiator 1Committed, empowered and technically capable people

WorleyParsons has built a world-class company through the commitment and talent of our personnel – their skill, efficiency and innovative thinking differentiate us.

WorleyParsons has implemented a number of initiatives to provide a work environment that rewards people for their commitment and performance and encourages a healthy balance between work and lifestyle. Our aim is to recruit, develop and, most importantly, retain the people who share our vision and strategy.

This year our staff continued to grow rapidly via merger, acquisition and direct hire, adding 9,000 people, or over 60%, to our number of employees. The quality of the opportunities at WorleyParsons and the caliber of our existing staff are major draw cards to prospective employees. We continue to search for excellent and committed staff who are specialists in their fields and who seek challenge, fair treatment and rewards for success.

Strong growth continues to characterize our performance – through the organic development of our business in each country and through strategic, targeted acquisition. Both are possible because we strive to create a structure and a culture that is sensitively in tune with local markets and our customers. Equally, it is possible because we encourage our people to create and capitalize on opportunities and we provide strong knowledge management systems for every project and office to access best practice and world-class expertise.

In driving this growth we stay focused on our core values. Crucial among these are systems, procedures and management that identify, measure and control financial and non-financial risk throughout our global operation. Our focus includes the optimization of capital, strong corporate governance and operational profitability.

Differentiator 2Industry leadership in health, safety and environmental performance

What differentiates WorleyParsons

Differentiator 4Outstanding operational and corporate performance

At WorleyParsons we strive for the perfect day, every day, as the means of achieving our vision of Zero Harm to people, assets and the environment. Our Health, Safety and Environmental (HSE) expectations are vital and integral elements of our business and are embedded into our supporting management systems and processes and influence everything that we do.

During last year we undertook a fundamental review of our existing health, safety and environmental management systems and assessed them against our current and anticipated future needs. As a result of this review we will progressively implement an innovative, global, behavior based HSE management framework, called OneWay. The new framework will enhance our leadership, governance and reporting capabilities as well as providing increased focus on leading – rather than lagging-performance measures.

EcoNomics™ is our range of services and technologies that profitably embed environmental, social and economic sustainability into project delivery, across the asset lifecycle.

This year we have developed our strategy to embrace the material challenges facing our business and our customers in responding to the changing operating environment and the ongoing demand for environmentally, socially and financially sustainable solutions.

Our implementation of this strategy commenced with identifying and drawing together our substantial, impressive array of capabilities embedded throughout our global business as well as in WorleyParsons Environmental group. We have established a strong set of capabilities in four key areas of Assessment, Efficiency, Treatment & Mitigation.

In defining and implementing EcoNomics™ we have worked closely with customers with whom we have relationships to understand their needs and develop solutions in tandem. At the same time we have undertaken a review to reduce our own footprint. In both areas we have defined clear short and long term metrics for performance.


Differentiator 5Focus on long term contracts and asset-based services

The continuous improvement of complex processing and energy facilities around the world requires sustained commitment and focus. WorleyParsons’ Improve is a core service for brownfield operations focused on the delivery of major projects, upgrade, de-bottlenecking and maintenance projects, project portfolio management and support services to sustain assets and improve business performance.

WorleyParsons’ Improve has been entrusted by over 70 customers to deliver a step change in the performance of their assets. Working in close alignment with customers, achievable cost and risk reduction measures are developed and implemented to drive toward globally recognized first quartile performance indicators.

The past 12 months have seen the continuation of many key long term Improve contracts with customers including Saudi Aramco, the Tennessee Valley Authority, Syncrude and Woodside Energy, as well as the award of new long term contracts with Occidental Qatar, SASREF in Saudi Arabia and DuPont in China.

Differentiator 6Success in project delivery – large and small

Tailored solutions to meet individual customer needs are the hallmark of our approach to project delivery.

The continuation of favorable resource commodity prices and strong global demand is reflected in the magnitude and diversity of the greenfield mega-projects in progress within WorleyParsons’ Hydrocarbons, Power, Minerals & Metals and Infrastructure customer sector groups. We are one of the few companies in the world with the resources & energy to undertake projects of this scale across such a diverse range of industries.

Every complex process and industrial facility requires ongoing capital expenditure. Our execution methodologies deliver improvements in integrity and business performance for our customers throughout the asset lifecycle and are tailored to the specific needs of the project. This is a key differentiator for WorleyParsons in many markets, enabling customers to maximize opportunities.

Our project delivery capability is underpinned by the unique WorleyParsons Project Management Process (WPMP). The WPMP is a key feature of our Enterprise Management System (EMS) which, along with sophisticated communication infrastructure, is deployed globally to enable our operation to collaborate efficiently and effectively on projects large and small.

Differentiator 7Comprehensive geographic presence

Our comprehensive network of offices and operations around the world exists to ensure that our customers have immediate access to our expertise wherever they need it. WorleyParsons now has 84 operating centers in 29 countries.

The investment that we have made in our network enables us to provide our customers with the benefit of world-class skills combined with deep local knowledge. This balance of global and local expertise is an essential prerequisite as customers deal with increasing complexities and pressure on performance that characterize the complex process industries and the resources & energy sectors in particular.

Balanced with this we continue with our strategy of developing a number of hubs that include High Value Engineering Centers, such as Bangkok, Beijing and Kuala Lumpur, and large resource execution centers, such as Abu Dhabi, Reading, Calgary, Houston, Kuala Lumpur, London, Melbourne and Perth which are capable of executing projects of any size.


Environmental and social imperatives now affect the bottom line for all major corporations and projects globally. This is particularly challenging in the resources & energy sectors. All businesses need to understand and undertake to efficiently optimize their operations in the context of ecology and society in addition to their obligations of profitable operation.

Our business has been built on long term relationships, anticipating customer needs and delivering solutions. Today we are committed to working with our customers to create solutions to meet the green challenge while staying in the black. EcoNomics™ is our range of tailored, expert services and proprietary technologies that profitably embed environmental, social and financial sustainability into project delivery, across the asset lifecycle.

To meet the challenge, some of the ways we are helping customers are to:

– Build in business resilience– Modify facilities– Increase efficiency– Reduce energy consumption– Reduce emissions and create

cleaner operations– Engage stakeholders

WorleyParsons is uniquely positioned to work both globally and locally with our customers to deliver on the value of EcoNomics™. Our leadership role in resources & energy, together with our global network of experts, allow us to tailor solutions for projects and operations – large and small. We have a range of technologies, processes and systems built for application to even the most complex of these problems and a team of experts in all of our regions with practical in-market experience. We also bring our culture of results and innovation to help customers meet the challenge of sustainability.

EcoNomics™ includes all of the customer sector areas and a very broad range of the technical capabilities of WorleyParsons. It delivers four types of services and solutions:

– Assessment– Efficiency– Treatment– Mitigation

We have formed global, strategic relationships with Baker & McKenzie and Schlumberger to support the EcoNomics™ initiative. Baker & McKenzie will provide access for our customers and ourselves to international carbon trading instruments that can enhance the viability of projects motivated by the need to mitigate the effects of climate change. Schlumberger is a leader in carbon sequestration sites and associated well facilities. The association with Schlumberger will allow us to offer a complete carbon sequestration solution.

As part of this endeavor, WorleyParsons continues to review its own worldwide operations. While we believe that our biggest contribution to solving these global challenges will come through helping our customers, we will implement a plan in our business that can make a serious contribution to climate change mitigation. We will also be reviewing our already active social and community programs.

Our range of services and technologies that profitably embed environmental, social and financial sustainability into project delivery, across the asset lifecycle.

Delivering profitable sustainability


WorleyParsons’ commitment to working with our customers to solve complex problems positions us uniquely to deliver on the promise of EcoNomics™.Peter MeursManaging Director and leader of our global EcoNomics™ initiative

Peter has been a major contributor to the growth & development of WorleyParsons since 1988. The approach that we have adopted for EcoNomics™

mirrors Peter’s experiences in delivering enhanced performance and creating value in partnerships, alliances and sharing risk & reward with our customers. Peter has a Bachelor of Mechanical Engineering (Hons), Monash University, Melbourne and his long involvement and expertise in complex process businesses enable him to understand and incorporate customers’ needs into our EcoNomics™ solutions.

Assessment– Strategic environmental

& EcoNomics™ analysis

– Social & community impact modeling

– Risk & sensitivity assessment

– Complex marine systems analysis

Efficiency– Energy efficiency

– Water efficiency

– Sustainable building design

– Rail efficiency

– Advanced systems modeling

– Logistics modeling

Treatment– Gas cleaning

– Clean coal

– Recycling

– Mining tailings management

– Water treatment

Mitigation– Carbon credits and trading

– Desalination

– Renewable energy

– Carbon capture and storage

EcoNomics™ CapabilitiesEcoNomics™ will be delivered as a seamless extension of our established project delivery capability


One of the key characteristics of EcoNomics™ is the ability to widen the perspective on business decisions – giving a broader and longer term view.Paul HardistyServices Director – EcoNomics™

Eco: A prefix meaning “concerned with living things in relation to their environment”

From the Greek “oikos” meaning “house”

Used in ecology, ecosystems...Eco

Paul brings over 20 years’ environmental experience to the EcoNomics™ team, throughout which he has focused on large, multi-disciplinary projects, especially for resources & energy customers. He specializes in strategic environmental and economic analysis, environmental impact, risk analysis & management, remediation of contaminated sites & groundwater and environmental hydrology. His skills in advising on environmental decision making and strategic, economic analysis enable our customers to incorporate sustainability considerations into the financial assessments of their projects.

His roles as Adjunct Professor in Environmental Engineering at the University of Western Australia and Visiting Professor at Imperial College, London, as well as authorship of over 100 publications, ensure that we are in touch with the latest research and thinking on sustainability. Paul has a PhD in Environmental Engineering from the University of London and an MSC in Environmental Hydrology from Imperial College, London. He is a passionate supporter of the environment.



Our customers recognize that they are operating in rapidly changing business environments where considerations of sustainability, climate change, resource limitations and social responsibility are of increasing importance in defining overall project economics. The green challenges are numerous and continue to unfold. Some of these include:

– Rising population– Stress on the natural world– Growing resource demands– Changing climate– Food and water security– Greenhouse gas emissions– Species extinctions

These challenges impact on all businesses and their operations but are especially salient for resources & energy. Businesses need to operate existing facilities more efficiently and develop new, more resilient solutions to future developments. As well as challenges, the rapid change is creating new business opportunities. WorleyParsons has developed EcoNomics™ to deliver environmentally, socially and financially sustainable projects for our customers.

One of the key characteristics of EcoNomics™

is our capacity to widen the perspective in the Identify and Select phases of project development, expanding the decision window materially in terms of the range of issues, impacts and timeframes considered. WorleyParsons’ experts and technologies accommodate this. EcoNomics™ is underpinned by robust economic and financial analysis that reflects all of the wider issues facing businesses and project delivery, across a broad timeframe.

EcoNomics™ enables businesses to properly consider the social, ecological and community impacts of existing and proposed assets. As our customers deal with rapidly changing and variable legislative and regulatory requirements around the world, overlaid by requirements and preferences dictated by their own key stakeholders, compliance becomes increasingly complex but also increasingly important.

We believe that the key to long term profitability for projects is going to depend increasingly on ensuring that these issues are considered in the planning phase and embedded into the substance of the project. WorleyParsons has developed a suite of proprietary technologies to assist with this covering:

– Non-financial risk assessment– Economic cost benefit analysis– Sensitivity analysis

EcoNomics™ enables clear focus on the balance between green and black, augmenting the alignment between social & environmental requirements and optimal financial performance.



The changes will require new solutions and new technologies. It is our absolute conviction that these changes can be positive. EcoNomics™ delivers on that conviction.David MofflinTechnology Director – EcoNomics™

Nomics: “The laws of logic and nature”

From the Greek “nomikos” meaning “law”

Nomic is also a game in which the rules may

be changed but this counts as a move.

Our customers have a fundamental commitment and responsibility to stakeholders to deliver profitable operation. Today, they recognize that a number of key drivers of their cost base are linked to a proper engagement with sustainability. These include:

– Increasing energy costs– Increasing resource costs, especially of water– Changing legislation worldwide– Changing community attitudes– Increased costs and obligations of

environmental and social compliance– Volatility in markets and politico-economic

conditions in some regions

One of the cornerstones of the long term success of WorleyParsons has been our successful approach to partnering with customers, including in alliances and joint ventures, enabling appropriate investment and collaboration in order to solve complex business problems and create opportunities. EcoNomics™ is no exception.

We launch EcoNomics™ with a very strong portfolio of services, deep experience around the world and some important proprietary technologies. Yet we realize that many of the solutions and much of the opportunity will be developed through working with our customers to provide tailored responses to unfolding situations.

EcoNomics™ is a careful balance of green and black. However, it is clear that driving efficiency, reducing impact and creating sustainable assets is good for business and good for the environment. In this sense green IS black.

WorleyParsons has a substantial, proven track record of achievement in providing services and developing technologies to aid energy efficiency and cleaner asset operation across the complex process industries. Through our EcoNomics™ initiative we have brought together all of our capabilities and have developed fully integrated teams around the world targeted towards improving sustainability and performance.

Through links with leading research institutions, scientific organizations and industry groups, we are able to overlay our internal capabilities with access to emerging technologies and link to the latest thinking supporting sustainable developments. One example of such a link is our sponsorship of the WorleyParsons lectureship in Environmental Engineering and Climate Change at Imperial College, London.

The future for our business will be impacted deeply by these changes, as it will be for our customers’. It is our absolute conviction that these impacts can be positive – creating opportunities for innovation, efficiency and improvement in both the financial and ecological performance of business.

Nomics



David has been a key player in supporting the growth of new initiatives at WorleyParsons for over 20 years. He brings extensive understanding of both the business and technology drivers of projects to the EcoNomics™ team. This ensures that we can deliver new capabilities and solutions to customers that are both groundbreaking and realistic. David has a PhD, Cambridge and a First Class Honors Degree in Civil Engineering. David leads the technologies’ commercialisation initiative for WorleyParsons and will extend this role to support our customers as they create their own technologies in response to the challenges of sustainability.



CANADAPaul BaumanThe December 2004 Southeast Asian earthquake and tsunami destroyed the primary water supply infrastructure in Aceh Province, Indonesia. Over 200,000 shallow, hand dug wells, which were the primary water supply, were also salinized and/or destroyed.

As part of long term reconstruction, WorleyParsons, led by Paul Bauman, was asked by UNICEF to carry out a preliminary assessment of groundwater resources in Aceh. This six month assessment included importing highly portable drilling rigs, training local crews, initial test drilling, carrying out a broad groundwater sampling program, creating an easily transferable groundwater database and recommending solutions and actions.

UNITED STATES AND LATIN AMERICASantee Cooper TeamSuccessful projects are usually the result of the combined talents of a team rather than the contribution of a single individual. The Cross Santee Cooper team has a well deserved reputation for being very passionate about their work.

Their performance on Cross Unit 1, completed in 1994, assisted WorleyParsons to secure the Unit 3 Project in 2002. Their continued success and “can do” spirit allowed Santee Cooper to exclusively award Unit 4 to WorleyParsons. By finding innovative ways to complete the work they overcame a two-month delay in the schedule for Cross 3, in spite of major vendor issues, craft shortages and cement shortages.

.

EUROPERobert CrickmoreRob Crickmore is one of the unsung key players in our business development group. Starting with the organization in Pasadena, California, USA, 19 years ago and continuing through his current assignment as the manager of proposals prepared out of the London office, Rob has always performed above and beyond the call of duty in very high-pressure situations to bring together complex elements from contributors throughout the organization. He combines a strong dedication to quality with clear focus on our business development objectives and customer requirements.

MIDDLE EASTAzmi AbousalehAzmi Abousaleh led the WorleyParsons Petrocon Pipeline group to industry leadership status in Saudi Arabia and the Middle East region. He built an engineering and design team of significant competence into the enviable position as contractor of choice for both the main operator Aramco and all other prime contractors in Saudi Arabia. Azmi’s success even extends to Qatar where work is being performed currently for Qatar Petroleum.

AUSTRALIA AND NEW ZEALANDMatt GavinOn the New Zealand Refining Company Point Forward project, Matt Gavin, the Transfield Worley New Zealand team in Auckland and the West Coast team based in Monrovia, designed an execution solution involving the local knowledge of Transfield Worley in New Plymouth, NZ, the internationally recognized sulfur management and refining team in California, USA and the high value engineering center in Beijing, China. Matt Gavin’s effort to marshal the global capability of the organization to meet the need of his local customer is a testament to his leadership.

The 2006 Grill Award

In 2000 WorleyParsons initiated the Grill Award to identify and reward individuals and groups whose efforts emulate the values and business approach of the Company’s founder, John Grill.

OVERALL GRILL AWARD WINNER AND ASIA REGIONAL AWARD John GrzanBased in Singapore, John Grzan has rapidly developed a niche power business. John restructured our high density battery division, Worley Energy Cells, into a three-part business consisting of purpose-designed portable energy products, integrated OEM portable energy solutions and a crossover advanced energy consulting service (Advanced Energy Solutions – AES) tying it back to WorleyParsons’ Power customer sector group.

John’s enthusiasm, innovation and entrepreneurial flair led to a material change in the business created by the Spinmaster project. This more than quadrupled the revenue base, which will exceed US$8 million, from a group of seven employees.

John Grill believes that individuals and teams, when given the opportunity, will display an entrepreneurial flair and business focus that results in exceptional outcomes for both customers and WorleyParsons.

His trust in his colleagues to display the following characteristics has always been rewarded – innovative solutions to problems, strong customer focus, teamwork, efficiency, financial acuity and willingness to contribute to and share in our customers’ successes.


WINNERS – PLATINUM CATEGORYTomago WorleyParsons Alliance TeamWorleyParsons’ Tomago alliance team has been instrumental in assisting Tomago Aluminium to improve the HSE performance of its smelter in Australia. Tomago and WorleyParsons undertook a comprehensive program to engage contractors in the re-examination of all work procedures and practices at the site. As part of this program a new initiative called Man Machine Interface was created. This initiative has been responsible for the reduction or elimination of more than 300 high risk activities. The Tomago alliance team has now achieved two years Lost Time Injury (LTI), free during a period of potentially high risk project work and was recently recommended for OSHAS 18001 certification.

Chris WalshChris Walsh, the Constructions and Completions Manager for Transfield Worley joint venture supporting Woodside NWS gas assets, led his team to achieve a new standard in HSE performance. Chris recognized the need to change people’s behavior in order to both maintain and further improve HSE performance, and developed the OneWay behavioral based health safety and environmental management system. Chris’ personal enthusiasm and commitment to the OneWay initiative has been a significant driver towards its success.

Alan SnellAlan Snell has been responsible for a significant step change in HSE culture and awareness among the Brisbane, Townsville, Gladstone and Mackay offices in Queensland, Australia. These offices support our personnel engaged at major industrial and mining sites. His development and roll out of a range of procedures and Safety Management Plan templates has been valued by all his colleagues. Additionally, Alan has worked diligently with customers to develop, upgrade and implement their own in-house systems through workshops and training sessions.

Graeme StevensonGraeme Stevenson was the construction manager on the DCP Worsley Alumina project in Perth, Australia. WorleyParsons supported Worsley Alumina on a major upgrade of its fully operational alumina facility. At its peak the DCP team had 65 work fronts within the operating plant. Graeme’s efforts to embed effective construction HSE thinking into the project planning and review process were exemplary. Graeme assembled a team of construction professionals who assisted Worsley Alumina to undertake a range of initiatives to increase the dialogue between the customer, project team, operations and external professionals.

The 2006 Chairman’s Health, Safety & Environmental Award

The Chairman’s Health, Safety & Environmental (HSE) Award is awarded to one or more individuals who have made an outstanding contribution toward improving the HSE performance within the WorleyParsons’ enterprise. This 2006 Award is the inaugural award.

WINNER – CHAMPION CATEGORYDon DismukesDon Dismukes has been the site manager at Colbert Fossil Plant in Alabama, USA, for almost 12 years. This plant is one of the assets managed through the GUMBK partnership under the long term Tennessee Valley Authority (TVA) power alliance. Don is responsible for the implementation of the safety program and personally conducts site safety orientations with employees. Don’s dedication to providing employees with a safe workplace is reflected in the safety performance of the plant, which has not seen a last lost time accident since December 1994. The GUMBK partnership recently received an award from TVA’s workers compensation insurer for outstanding achievement.

The Chairman’s HSE Award recognizes and rewards exceptional HSE performance improvement from among our employees. It serves as a tangible reminder of the significance of HSE for WorleyParsons and provides a platform for employees to significantly contribute to the corporate vision of Zero Harm. The awards comprise two levels – Platinum and Champion.

OneWay is a major step in our global approach to safety – reinforcing safe behavior at the core of our operation.Larry BenkeManaging Director – Canada

1. Leadership

2. Selection & Competency

3. Working with Contractors & Suppliers

4. Field Execution

5. Incident & Behavior Analysis

6. Risk Management

7. Management of Change

8. Caring for People

9. Crisis & Emergency Management

10. Engineering

11. Working with Customers

12. Assessment & Improvement

The OneWay program contains 12 key elements


CATEGORY GLOBAL DATA YTD

Lost Time Case Rates 0.02Total Recordable Case Rates 0.11Fatalities 0Environmental Incidents 0

Notes:1. Frequency rates are in accordance with US OSHA per 200,000 manhours.2. Calculations are based on WorleyParsons’ employee numbers.

During the year we recognized that although our Health, Safety and Environmental (HSE) performance compared favorably with international best practice, our continued expansion both in personnel numbers and geographic presence would make further improvement within our existing HSE management system a challenge.

In response to this challenge we have embarked on an exciting new initiative, known as OneWay. This initiative will enable us to align and consolidate our global systems and procedures further and work with our staff, to reinforce a culture that underpins our goal of industry leadership in HSE performance.

The OneWay initiative will:

– provide global leadership, governance and areporting structure

– develop the behavior and culture that commit to the achievement of Zero Harm

– facilitate the rapid transfer of HSE practice throughout the organization

– build on the existing business processes within our Enterprise Management System

– provide a global mechanism for assessment, feedback and continuous improvement

The implementation of OneWay is a long term strategic objective. Over time the program will be the catalyst for the continuous improvement to all of our systems and procedures and the basis for a reporting and assurance process to demonstrate we are moving towards our vision of Zero Harm.

The OneWay program contains 12 key elements, each with a defined set of expectations that span all facets of our operation.

In the coming months we will progressively engage employees, contractors and customers to explain why we are implementing the new framework and how it benefits both our customers and our staff.


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