1. Oslo Aug. 2012 SEI

2. Solstad Offshore ASA Background for initiating environmental programme Solstad Green Operations Climate Neutral Operations Oslo Aug. 2012

3. •Founded in 1964 •1800 employees •50 vessels •3 bill NOK Solstad Offshore ASA Oslo Aug. 2012

4. Background - Solstad Environmental programme •Key drivers: –ISO 14001 (family of standards related to environmental management) –NOx tax (Norway, Nox tax related to energy production) –NOx found (Næringslivet – funding for investments) –Increased focus on fuel consumption from some clients –Increased environmental focus in the general public –Management Oslo Aug. 2012

5. Key goals- Solstad Environmental programme Actively use the NOx-funding arrangement Simplify environmental data reporting systems Involve crew to join in a fleet-wide campaign Participate in environmental related R&D projects More focus operational environmental issues Oslo Aug. 2012

6. NOx-fondet •Søknader til følgende tiltak: –SCR anlegg – NOx rensing –Lav NOx motorteknisk ombygging –Landstrøm –Hybrid fremdift –LNG –Operasjonelle tiltak - Solstad Green Operations •Totalt innvilget støtte:79 mill NOK •Utbetalt per juni 2012:59 mill NOK Oslo Aug. 2012

8. Advanced Offshore vessel design

9. Solstad Green Operations ® (SGO) •Originally 7 key categories (anchoring, reduced speed, green DP …) •An operation that reduce fuel consumption by 500 litres a day •Green Operations are ‘common sense’ operations Oslo Aug. 2012

12. The Solstad Green Operations ® 2011 • 13.000 fuel saving operations done. • 30.000 tons of fuel saved = 150 mill Nkr • Reduced engine hours = 10 mill Nkr • 90.000 tons estimated CO2 reductions = (All cyclists in Copenhagen (200.000) • Rainforest protection 13788000 m2 = 2188 football pitches

14. For every SGO that is submitted, Solstad supports the Rainforest foundation for the protection of 1000 m 2 of rainforest for one year. Oslo Aug. 2012

15. Carbon Footprint 2011: 450.000 tons Co2 Oslo Aug. 2012

16. Climate Neutral Operations Example: Normand Ferking AHTS •Typical monthly fuel consumption:500 m 3 / mth (1,350 t/CO 2 ) •Possible savings with focus on fuel consumption: 10-20 % –Examples: •Reduce transit speed from 11.5 knots to 9.5 knots:30% fuel reduction (or about 6-7 m3 per 200nm). •Use diesel electric mode on standby 40-50% fuel reduction •Switch off deck floodlights during daytime: 0.2% reduction •15% fuel reduction saves (MGO: NOK 5,500/t) :354,000 NOK/mth (and 200 tCO 2 /mth) •Cost for CNO: 1,350 tCO 2 – 15% x 78 NOK/tCO 2 :90,000 NOK/mth •Rainforest protection - typical 20 SGO’s per vessel: 20,000 m 2 /mth Oslo Aug. 2012

17. CDM projects Oslo Aug. 2012

18. The Solstad Green Operations ® - Know how - Communication - Operation - Solstad office - Client - Climate Neutrality Reports Feedback

20. Summary - Solstad SGO & CNO CLIMATE NEUTRAL OPERATIONS •Environmental improvements and cost savings can be achieved only by raising awareness •It is possible to achieve a positive reporting culture •Environmental and energy usage awareness is expected from todays Solstad leaders •Climate Neutral Operations can be self financed Oslo Aug. 2012

22. Thank you for your attention! 