MARKET UPDATE

An overview of the market for E&C services as it has recently developed:

• Some E&C contractors still have strong backlog's - some have suffered and are desperate for work
• Operators are experiencing difficulty in securing qualified E&C contractors to bid in a competitive mode
• Equipment / commodity market prices are easing up, but specialized supplier shop space remains utilized
• Many owners continue to loose people with experience of contracting processes for and managing of large projects
• E&C contractors are expanding their resources to almost any emerging market
• Present market conditions require the adoption of "fit for purpose" contracting strategies