2. Ultra-Deepwater Production and Need for Shuttle Tankers in the Gulf of Mexico International Maritime Associates, Inc. — Washington, DC, USA — Tel: 202-333-8501 Fax: 202-333-8504 — E-mail: imaassoc@msn.com — Website: www.imastudies.com Presentation by Jim McCaul at the 6 th Annual Deepwater Technologies & Development Conference September 11, 2001

3. Ultra-Deepwater Gulf of Mexico Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

4. Ultra-Deepwater Leases in the Gulf of Mexico Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

5. Ultra-Deepwater Sites Producing or Being Developed in the Gulf of Mexico Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

6. Priority Development Sites in Ultra-Deepwater Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

7. Deepwater Oil and Gas Pipelines in the Gulf of Mexico

8. Pipeline Unfriendly Area in the Gulf of Mexico Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

9. Potential Infrastructure Connections for Ultra-Deepwater Fields Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

10. Distance from Infrastructure and Seabed Characteristics of Ultra-Deepwater Development Sites (excludes five host sites) Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

11. Segmentation of Development Sites by Distance to Infrastructure and Seabed Conditions Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

12. Layout of the 108,000 dwt Shuttle Tanker Nordic Savonita Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

13. Characteristics of Four Recently Delivered Shuttle Tankers Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

14. Capex for Recent Shuttle Tankers Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

15. Jones Act Restrictions U.S. law requires that ships used in domestic trade be built in the U.S., crewed by U.S. citizens and owned by U.S. citizens The floating production unit is a point on the U.S. OCS and transportation from that point to another point in the U.S. is domestic trade As a result, shuttle tankers built for use in the Gulf of Mexico will be at least twice the international price

16. U.S. Shipbuilders Capable of Building Shuttle Tankers Primary Contenders Avondale — could be tied up with Navy amphibious ships and Alaskan tankers NASSCO — but busy with Alaskan tankers, several ro/ro ships and a possible order for a new class of 12 Navy ships Kvaerner Philadelphia — new yard, good facilities but inexperienced Alabama Shipyard — tied to Samsung and Conoco for shuttle tankers Bender/Tampa — long shot Could, But Not Interested Ingalls — Navy shipbuilding the core business Newport News — ditto

17. Refinery Restrictions Most refineries on the Gulf Coast are limited to receiving ships with maximum draft of 40 feet Given this constraint, a shuttle tanker with 550,000 to 700,000 barrels can be employed in the trade A larger tanker could be used if LOOP were the discharge point — but designing a ship for LOOP would limit the flexibility of using the ship

18. Characteristics of the Four Fields Selected for Shuttle Tanker vs. Pipeline Cost Comparison Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

19. Transport Options from the Four Fields to the Citgo Refinery in Lake Charles Option 1 — Direct shuttle tanker transport Option 2 — Shuttle tanker via LOOP Option 3 — Delivery by pipeline via existing infrastructure

20. Option 1 — Direct Shuttle Tanker Transport to the Citgo Refinery in Lake Charles Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

21. Option 2 — Shuttle Tanker Via LOOP to the Citgo Refinery in Lake Charles Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

22. Option 3 — Delivery by Pipeline Via Existing Infrastructure to the Citgo Refinery Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

23. Comparative Transport Cost from Atwater Valley 113 to Lake Charles Via Pipeline and Shuttle Tanker Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001 ($ in net present value cost per barrel)

24. Breakeven Distance to Infrastructure Depends On Seabed terrain — rough or smooth Discounts that can be negotiated on connecting pipeline tariffs Shuttle tanker capex Cost of capital

25. Breakeven Distance from Infrastructure Assuming (1) a 60% Discount on Connecting Pipeline Tariff and (2) Shuttle Tanker Capex of $105 Million Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

26. Breakeven Distance from Infrastructure Assuming (1) a 60% Discount on Connecting Pipeline Tariff and (2) Shuttle Tanker Capex of $125 Million Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001

27. Comparison of Shuttle Tanker Financing Options Source: IMA, Shuttle Tankers Required in the Gulf of Mexico Through 2010, Spring 2001