Teekay’s LNG Competence Management &Training Program MERPAC Public Meeting Houston, March 13, 2013

A Global Franchise Founded 1973 by the late Torben Karlshoej Transnational company with approximately 6,600 employees worldwide Fleet of approximately 150 vessels Transporter of approximately 10% of the world’s seaborne oil Leading franchises in shuttle tanker and conventional tanker segments One of the top three independent LNG vessel owners in the world Growing presence in the offshore sector Recognized leader in safety, quality, and service Trondheim Stavanger Oslo Glasgow/Aberdeen London Stamford Vancouver Luxembourg Amsterdam Tokyo Hamilton Madrid Shanghai Houston Manila Tenerife Mumbai Hay Point Macaé Singapore Sydney Rio de Janeiro Port Hedland Perth

Vision and Values

Teekay LNG Partners Founded in 2004 Now the third largest independent owner of LNG carriers Fleet of 29 LNG carriers, 27 LPG carriers, with 2 LNG carriers on order Managed 17 LNG newbuilds delivered into the Teekay fleet

Teekay’s Preparation For LNG Operations Due to the relatively low supply of qualified and experienced LNG seafarers in the market, Teekay decided to cross train our tanker officers and ratings to become LNG seafarers Teekay developed it’s own DNV accredited: Competency management system called SCOPE Training and development program Updated Safety Management System to include LNG operations SCOPE – Seafarer Competency for Operational Excellence Centre of Excellence: Training Centre in Glasgow – develops and runs courses, Teekay courses given by partners in India & Philippines and Teekay instructor delivers courses in Philippines

Seafarer Competency for Operational Excellence First competency management system for the shipping industry accredited by DNV, developed by Teekay Conforms to DNV’s Standard for Competence Management Systems 3.101 Goes above and beyond STCW requirements Defines a “Teekay Standard” for each rank: Defined competencies for all ranks Clearly defined job profiles A structured training and mentoring strategy Structured career development and promotion program

Polaris - Teekay’s Safety Management System ACT Corrective Actions Goals review Risk Review Management Review PLAN IGC, IGF codes SIGTTO, OCIMF Port State Class Customers DO Policies Procedures Training Continuous Improvement CHECK Audits Inspections Incident investigation Integrated health, safety, environment, and quality management system Goes beyond accepted compliance and exceeds industry standards in combining the essential elements of various internationally reputable standards: ISM Code ISO 9001, ISO 14001, OHSAS 18001 Maritime Labour Convention (MLC) STCW ISGOTT and SIGTTO recommendations Compliance with International and local regulations Key tool for managing risks and safeguarding all stakeholders during operations

TK LNG Training Plan for Senior Deck Officers International & National Training Scheme for Cargo Personnel on LNG Tankers General qualifications for the shipmaster, deck & engine departments Appropriate shore based fire fighting course Approved basic training for liquefied gas tanker cargo operations At least 3 months approved seagoing service on liquefied gas tankers Basic gas tanker training qualification/certificate TK Senior Tanker Officers start here Complete 3 month tour as supernumerary, following a detailed training plan Experience appropriate duties on liquefied gas tankers The program with vacation time takes approximately 1 year International & National Training Scheme – STCW 78 Convention Voyages should be a minimum of 28 days and include at least 3 loading & 3 discharge operations – TK does 3 months Different flag states may have different requirements i.e. longer sailing times Advanced training for liquefied gas tanker gas cargo operations (IMO Model 1.06) Complete advanced training, plus in-house LNG LCHS Simulator course Qualification/certificate awarded (Dangerous Cargo Endorsement – gas) Receive gas endorsement Sail 3 months as extra rank, completing a training record book Service in positions with immediate responsibility for loading, discharge and care in transit or handling liquefied gas cargoes Sail as officer in rank

Preparing Your Operations for Use of LNG as Fuel Introductory - Essentials of operating with LNG as a fuel In-Depth - LNG technology & related challenges LNG Operations - Safety, hazards, risk assessments, fire fighting, gas detection, maintenance, pre & post dry-dock operations LNG Bunkering - Management & operations - Gas DCE - Specific equipment manufacturer training

Available Teekay Training Tools Computer Based Training developed in conjunction with Seagull AS, Norway. LNG specific CBTs cover Level 1 & 2 training required by STCW. LNG LCHS Simulator training at Teekay’s in-house facility Cargo operations from dry dock to dry dock including construction, equipment, tank cooling, loading, discharging, warming up of tanks, safety and emergency procedures. On-board familiarization – Teekay owns and operates 29 LNG carriers On-board training and familiarization can be arranged on our vessels LNG STS Operations – Teekay is one of very few operators who routinely carry out STS LNG transfer operations STS operations – Teekay is a 50% owner in SPT, Inc. a fully dedicated global ship to ship (STS) cargo transfer company Teekay has the opportunity to use their expertise for training purposes

MERPAC Task 80 - Deliverables Task C. Should mariners with Tankerman PIC (LG), Tankerman Engineer (LG), and/or Tankerman Assistant (LG) endorsements be considered as meeting some or all of the recommended assessment guidelines or experience requirements? Teekay’s Opinion: Mariners with Tankerman PIC (LG), Tankerman Engineer (LG), and/or Tankerman Assistant (LG) endorsements may be considered as meeting most of the recommended assessment guidelines or experience requirements Gap analysis for additional competencies needed for specific Main Engine Maker’s recommendations, and intended bunkering operations should be conducted

The Pacific Northwest LNG Project: Overview