Floating Production Systems Presentation at Tulane Energy Week 2010 Jim McCaul – IMA

Outline of Presentation Overview of FPS Technology Current FPS Situation FPS Projects Being Planned Forecast of FPS Orders International Maritime Associates - 2 - www.imastudies.com

Four Basic FPS Solutions FPSO Production Semi Tension Leg Platform Production Spar International Maritime Associates - 3 - www.imastudies.com

FPSO Weathervaning Spread Moored Serpentina FPSO Pazflor FPSO International Maritime Associates - 4 - www.imastudies.com

FPSO PRO Has field storage and can be used in remote locations. Can operate on shallow or ultra-deepwater fields. Less weight sensitive than other types of FPSs. Leasing transfers some risk from field operator to contractor. Assumed residual value a competitive tool in leasing bids. Deck area allows flexibility in process plant layout. Surplus/aging tankers can be used for conversion. Can be modified/redeployed following field depletion. Quick disconnect turrets enable emergency relocation. CON Subsea tiebacks create higher well maintenance costs. Turret/swivel machinery expensive, high maintenance. Redeploying an FPSO not as easy as it may appear. International Maritime Associates - 5 - www.imastudies.com

Production Semi PRO Relatively wide deck space provides good layout footprint for process plant. Can support large number of risers. Has relatively little surface motion. Water depth not a limitation. CON No storage – requires either an FSO or pipeline offtake. Hull weight carrying capacity imposes limitations on deckload. Deck space more limited than large FPSO. Dry tree designs developed, but to date wet trees utilized with production semis. P-51 Production Semi International Maritime Associates - 6 - www.imastudies.com

Tension Leg Platform PRO Surface motion limited by tendon tension, providing stable platform for dry trees. CON Tendon weight grows with water depth and increasingly restricts deck payload capacity. Deepest TLP water depth to date has been Magnolia, in 1430 meters water. TLPs are inherently unstable and will capsize if tendons fail. ETLP Moses TLP Sea Star TLP International Maritime Associates - 7 - www.imastudies.com

Production Spar PRO Can accommodate dry trees. Water depth does not seem to be a limitation – Perdido Host spar is in water depth of 2400 meters. Spars can provide storage but to date no spar has been used in this capacity. Inherently stable, will remain upright if moorings fail. CON Need to utilize heavy lift or floatover for hull/topsides mating – an expensive proposition. Kikeh Spar International Maritime Associates - 8 - www.imastudies.com

Optimum Application Range Source: FloaTEC, Review of Deepwater Floating Structures and Dry Tree Semi Developments, November 2006 International Maritime Associates - 9 - www.imastudies.com

FPS Units in Operation (as of July 2010) 22 tension leg platforms 43 production semis 152 FPSOs 18 production spars 8 production barges 5 FSRUs 95 FSOs International Maritime Associates - 10 - www.imastudies.com

Where FPSs are Operating (as of July 2010) International Maritime Associates - 11 - www.imastudies.com

FPSs Being Built/Converted (as of July 2010) 39 FPSOs (16 new, 23 conversions) 4 production semis (new) 1 TLP (new) 1 FSRU (conversion) 4 FLNGs (new) 3 MOPUs (2 new, 1 conversion) 2 FSOs (1 new, 1 conversion) International Maritime Associates - 12 - www.imastudies.com

Where FPSs Are Being Built (as of July 2010) International Maritime Associates - 13 - www.imastudies.com

FPS Construction Has Shifted to Asia (number of facilities involved in FPS construction/conversion) International Maritime Associates - 14 - www.imastudies.com

Where FPSs Will Be Installed (as of July 2010) International Maritime Associates - 15 - www.imastudies.com

Trend in FPS Order Backlog International Maritime Associates - 16 - www.imastudies.com

FPS Projects Planned/Under Study (as of July 2010) International Maritime Associates - 17 - www.imastudies.com

Forecast of FPSO Orders Over the Next Five Years International Maritime Associates - 18 - www.imastudies.com

Forecast of Production Semi Orders Over the Next Five Years International Maritime Associates - 19 - www.imastudies.com

Forecast of TLP Orders Over the Next Five Years International Maritime Associates - 20 - www.imastudies.com

Forecast of Production Spar Orders Over the Next Five Years International Maritime Associates - 21 - www.imastudies.com

Forecast of FSO Orders Over the Next Five Years International Maritime Associates - 22 - www.imastudies.com

Summary Forecast of FPS Orders Over the Next Five Years Most Likely Scenario Scenario 1 $50-70 Oil Scenario 2 ~$80 Oil Scenario 3 $90-100 Oil Type FPSO No. Units Total Capex (bil of $) Production Floaters FPSOs 95 $56.6 120 $67.1 150 $81.8 Semis 10 $5.6 12 $6.1 14 $6.7 TLPs 3 $2.2 4 $3.2 5 $3.8 Spars $1.5 $1.8 $2.1 All production floaters 111 $65.9 140 $78.2 174 $94.4 Storage Floaters FSOs 25 $2.6 30 35 $3.7 Total Market 136 $68.5 170 $81.4 209 $98.1 International Maritime Associates - 23 - www.imastudies.com

International Maritime Associates, Inc. Website: www.imastudies.com 1250 24th Street, NW — Suite 350 Washington, DC 20037 USA Tel: 202-333-8501 (Washington) Tel: 832-203-5622 (Houston) Fax: 202-333-8504 Email: imaassoc@msn.com Website: www.imastudies.com