NOT FOR PUBLIC DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, SOUTH AFRICA, AUSTRALIA OR JAPAN BW Offshore Pareto Oil & Offshore Conference 1 September 2010 Picture: Petrobras
BW Offshore Leading position in a FPSO market set for growth Demonstrated capability to undertake demanding projects Demonstrated cost and execution control Demonstrated operational stability Strong funding provide opportunities…
MARKET & OPERATIONS
Market situation Limited competition South East Asia 2-3 bidders per project (max) 20-30 opportunities Price Limited technology requirements Brazil Limited local content issues 30-40 opportunities All types of commercial regimes…
Industry challenges Effect of recent events GOM disaster (on the offshore oil industry) Barriers to entry will get higher Only proven equipment will be accepted Players will need to be bigger and have track record Capital…
BW Offshore perspective Financial strength and track record increasingly important factors to secure contracts Focus on project robustness, financial return and risk factors Clients favors the large and established players.…
BW Offshore with record order intake USD 1.4 billion contract inflow since January BW Offshores success is primary a result of Project execution Operational excellence Financial robustness FPSO awards 2010 - Lease Number of awards…
Long term contracted cash flow 2007 2010 2015 2020 2025 Sendje Berge Nigeria: Addax/Sinopec 2011 (2013) Berge Helene Mauritania: Petronas 2013 (2021) Yum KakNab Mexico: Pemex 2022 (2025) BW Cidade de So Vicente Brazil: Petrobras…
FPSO BW Pioneer BW Pioneer has passed the inspection on 25th of August Important milestone in completion of project Full compliance with US regulations Onshore and offshore personnel ready for operation Standby day rate (95%) of…
FPSO P-63 (Papa Terra) Project is progressing according to schedule BW Nisa (ULCC) at COSCO Dalian Shipyard Demolition work well under way In first drydock from 30 July to end September Steel renewal and life extension work…
FPSO OSX-1 Contract signed 14 July 2010 Total value of the works USD 150 million Completion mid 2011 OSX has engaged BW Offshore to complete the FPSO OSX-1 Topside extensions to operate in the Campos Basin offshore Brazil Delivery…
FPSO for Terang Sirasun Batur Contract signed 15 July 2010 Total contract value USD 875 million 10 year fixed contract (up to 14 years including options) First gas early 2012 Gas FPSO (340 mmscfd) Kangean Energy Indonesia (KEI)…
FPSO operations Production uptime Production uptime Q2 2010: 99.9% 100.0 5 year average: 99.5% 99.0 98.0 97.0 High HSE level maintained 96.0 95.0 Improving operational efficiency 94.0 93.0 92.0 91.0 90.0 2005 2006 2007 2008…
APL building momentum First evidences of market pick up Order backlog at USD 233 million per end Q2 2010 Gas market activity improving Significant variations in market activity by region New orders signed and in progress…
Solid financial position Growing operational cashflow based on fixed long term contracts USD 156 million in 1H 2010 Run-rate EBITDA on current portfolio is USD 275-325 million* Remaining net cash outflow is USD 300 million*…
Voluntary offer for Prosafe Production The FPSO market is growing and the sector needs larger companies that can meet the increasing requirements from clients and regulators A combined BW Offshore and Prosafe Production will address…
SUMMARY
Higher returns for BW Offshores projects Positive market outlook Target good return projects Will not agree to undue contractual risk Expect further improvement in terms and returns on new charter contracts Improved contracts…
Set for profitable growth Demonstrated operations and project development capabilities Order book of USD 4.2 billion after USD 1.4 billion in new contracts Positive market development - larger established players with consistent…
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APPENDIX
APL turnkey solutions Production systems Terminal systems Submerged Turret Production Submerged Turret Loading (STL) (STP) for FPSO for LNG and Shuttle Tankers Submerged Turret Loading (STL) Single Anchor Loading (SAL) for for…
Units on contract Belokamenka, FSO Sovkomflot, Russia 2,400,000 bbls storage Cargo heating system Spread mooring BW Pioneer, FPSO Petrobras, US 80,000 bopd processing 25.6 mmscfd gas export 600,000 bbls storage capacity…
Units on contract P-63 (Papa Terra), FPSO Petrobras, Brazil ULCC (322.000 dwt) 2,200,000 bbls storage capacity BW Nisa - construction contract BW Cidade de So Vicente, FPSO Petrobras, Brazil 40,000 bopd oil processing…
Available units BW Ara ULCC (322.000 dwt) 2,000,000 bbls storage capacity 1 September 2010 27
Q3 2010: 30 November 2010 Further information: www.bwoffshore.com IR contact: Kristian Flaten, VP Finance & IR kristian.flatenbwoffshore.com 1 September 2010 28
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