OIL & GAS UPDATE

May 2007

TABLE OF CONTENTS

INDUSTRY ANALYSIS

OVERVIEW

• Gas-Producing Nations Take First Step toward OPEC-Style Group

• Record High Oil and Gas Projects Forecast

• Oil and Gas Manufacturers Benefit from Service-based Approach

   1. AMERICAS

    U.S.

• Atlas America Oil Well Fire in TN Big Mountain Area

• Colorado’s Western Slope Residents offer Own Oil and Gas Plan

• US Announces Clean Air Act Settlement with Two Illinois Oil and Gas Companies

• Colorado Gas Companies Cut Emissions

• Drillers and Producers Learn from Impact of Katrina, Rita

• Marathon Announces Deepwater Gulf of Mexico Discovery

• INTEC Engineering Awarded Contract for Andarko Gulf of Mexico’s Deepwater K2 Project

• Saxon Oil Announces Strategic Alliance with Kansas- based Milestone Energy

• Unicorp Completes South Creole Prospect in South Cameron Parish, LA

• Shell Highest Bidder in MMS Beaufort Sea Oil, Gas Lease Sale

• Reworked Thunder Horse Platform to enter Service in 2008

• Royale Energy, Inc. Engages Halliburton to Manage Its Drilling and Completions Program in Uinta Basin

• Chicago Bridge & Iron Adds $130 Million of Work

• Virginia's Coast Included in Offshore Drilling Proposal

• FMC Technologies to Supply Subsea Systems for Perdido Project

• Eni Acquires Dominion's Gulf of Mexico Assets

    BOLIVIA

• Bolivia's Congress Approves 44 New Oil, Gas Contracts

• Northern Oil and Gas, Inc. Announces Farm-Out Agreement with Rincon Exploration LLC

    BRAZIL

• Brazil’s Petrobras Awards $177 Million in Subsea System Contracts

    CANADA

• Rolls-Royce RB211 Gas Compression Packages Ordered for Canadian Gas Pipeline

    ECUADOR

• CCI Receives $1 Million Order to Supply Globe Valves for Ecuador Pipeline

    TRINIDAD & TOBAGO

• Trinidad and Tobago to Start Fresh Oil and Gas Licensing Round

   2. ASIA

    AUSTRALIA

• Western Australia Releases 13 New Oil and Gas Exploration Sites

    CHINA

• China Starts Drilling Asia's Deepest Oil, Gas Well

    INDIA

• ONGC, OIL to Supply Subsidized Gas to Assam Gas Cracker Project

• India’s Bhel Set to Re-enter Oil Rig Business

• BGFCL Flares Huge Quantity of Natural Gas to Halt Seepage

    INDIA / SYRIA

• India and Syria Identify Projects & Areas of Cooperation in Hydrocarbon Sector

    INDONESIA

• Indonesia Looks to Coal Seams to Boost Gas

    NEW ZEALAND

• New Zealand Gas Well Test Draws Cautious Optimism

    PAKISTAN

• Kuwait Energy Eager to invest $45 Million in Pakistan Oil, Gas Exploration

    SINGAPORE

• OMB Valves for Singapore Shell Ethylene Cracker Set for 2009

    VIETNAM

• Vietnam Okays Major Oil Deal with Malaysian Firm

   3. EUROPE / AFRICA / MIDDLE EAST

    BELGIUM

• Enel Signs Partnership with Duferco for Belgium Combined Cycle Gas Plant and Power Plant

    NORWAY

• Emerson Process Management Wins $2 Million order to Meet Norway Gas Plant’s Strict Noise Regulations

• Dresser-Rand Selected to Provide Equipment for Norway’s Gjoa Offshore Project

• Norwegian Sea’s Ormen Lange field to Get Subsea Compression Station

• Samsung Wins $400 Million Contract to Build FPSO for Norway’s Skarv Field

    ROMANIA

• Aurelian Oil & Gas Spuds Radauti East Well, Romania

    SCOTLAND

• Petrofac Brownfield Concentrates on New Export Pipeline

    SPAIN / ALGERIA

• Gaz de France to Build Undersea Pipeline between Spain and Algeria

    UNITED KINGDOM

• 3M Announces Specialist UK Oil and Gas Team

• Halliburton Enters into Agreement to Acquire PSL Energy Services Limited

• UAE's Taqa Eyes more North Sea Oil, Gas Fields

    EGYPT

• Devon Energy to Sell Egyptian Assets for $375 Million

    LIBYA / MEXICO / KAZAKHSTAN

• Parker Drilling Receives New Contracts for Six Rigs

    NIGERIA

• Niger Delta Unrest Continues to Cost Billions of Dollars in Lost Oil Sales

    SYRIA / ALGERIA / EGYPT

• India Eyes Syria, Algeria and Egypt for Energy Deals

    AZERBAIJAN

• India and Azerbaijan to Cooperate in Oil and Gas Sectors

    RUSSIA

• Russia’s Oil and Gas Reserves Shrinking

• Sakhalin 2 Plans $5 Billion in Environmental Remedies

• Russia's Gazprom formally Takes Control of Sakhalin-2 Oil-and-Gas Project

    TURKMENISTAN

• Turkmenistan Aims to Boost Gas Production 20 Percent, Oil 15 Percent in 2007

    UZBEKISTAN

• China will Deliver $209 Million worth of Equipment to Uzbekistan

    IRAN

• Iran Oil Industry to Witness $250 Billion Projects by 2027

   MIDDLE EAST

• Middle East Considered to be “Hot Market” for Oil and Gas Equipment Particularly the Turbomachinery Industry

• New Strategies for Middle East Oil and Gas Producing Nations

• Development of Middle East Hydrocarbons on an Upward Spiral with New Projects and few Setbacks

• LPG Outlook for the Middle East

    QATAR

• Natonal Petroleum Construction Co. Gets Qatar Submarine Pipeline Contract

• Metso Receives CTJV Valve Order for Qatar Oil and Gas Project

• Alloy625 Valves for J. Ray McDermott Offshore Project for Qatargas 3 and Qatargas 4

    SAUDI ARABIA

• Saudi Aramco and WellDynamics Develop New Well Technologies

• Dredging Contract for Saudi Aramco's Manifa Field Development Signed

    UNITED ARAB EMIRATES

• Big Oil Bids for Giant $10 Billion UAE Gas Project