The North Sea AHTS market

15th of May

Rigg-Flytt i praksis, Bergen

North Sea AHTS spot-rates

2

Weekly Annual averages

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

GBP '000

16,000+ BHP 10-15,999 BHP

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140

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1 6 11 16 21 26 31 36 41 46 51

GBP'000

Thou

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GBP '000

2011 2012 2013

North-Sea term rates: AHTS and PSV

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45

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GBP '000GBP '000

10-15,999 BHP 16-19,999 BHP 20,000+ BHP

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98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 (Mar)

Utilis

ation

Rat

e

Vess

els

Demand Supply Utilisation

Total North Sea AHTS utilisation currently at low levels

4

Supply, demand and utilisation rate: AHTS

Smaller vessels have been squeezed out of the North Sea market

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AHTS demand by size category (bhp)

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Vess

els

Demand >=16,000 bhp Demand 12-15,999 bhp Demand <12000 bhp

Only vessels >12,000 bhp included

CONSTRUCTION19%

RM/CR37%

CONTINGENCY40%

OTHER4%

Servicing rigs main driver of AHTS demand – North Sea (2011-12)

6

Term work (2011-12) Spot work (1496 fixtures)

OTHER2%

MOORING2% TOW

3%PRELAY

4%CONSTRUCTION

4%

MISC FPSO6%

CR8%

RM71%

Dayrates correlated with size and work type (>12,000bhp)

7

Average spot rate (2011-12) by work type

Average of GBP BP SizeMain Scope <180 180-219 220-329 >=330 AverageCR 13,886 13,292 15,176 18,339 14,522 TOW 11,263 18,012 32,302 19,845 MOORING 14,136 28,249 14,199 23,132 MISC FPSO 19,140 14,668 28,001 24,534 CONSTRUCTION 17,460 15,534 39,023 26,409 RM 20,356 22,710 30,499 32,362 26,867 PRELAY 33,502 39,864 36,719 Average 18,910 20,751 28,924 33,697 25,429

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2007-1 2008-1 2009-1 2010-1 2011-1 2012-1

Vess

els

Fixt

ures

RM OTHER CR Spot work

North-Sea: Rig moves driving spot work

8

Spot fixtures vs spot work

Only vessels >12,000 bhp included

40%

60%

80%

100%

120%

140%

160%

180%

200%

220%

240%

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99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Utiliz

ation

Jack

ups

Demand Active supply Total supply Active utilization

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200%

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99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Utiliz

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Jack

ups

Demand Active supply Total supply Active utilization

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200%

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35

99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Utiliz

ation

Floa

ters

Demand Active supply Total supply Active utilization

60%

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120%

140%

160%

180%

200%

0

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99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Utiliz

ation

Floa

ters

Demand Active supply Total supply Active utilization

North-Sea rigs: Supply, demand and utilization

9

Norway - Jackup Other North-Sea - Jackup

Norway - Floater Other North-Sea: Floater

Market Drivers – Jackup Activity Norway

10

IN NORWAY ENTERING INTO A CONTRACT IN NORWAY AVAILABLE AoC RIG

• Mostly large jackups (~CJ70) contribute to growth• Large jackups require also larger AHTS vessels

2013 2014 2015

16 MAERSK XL ENHANCED 3 - 2Q (STATOIL) 1615 MAERSK INTERCEPTOR - Q4 (DET NORSKE) MAERSK INTERCEPTOR 1514 MAERSK INTREPID - 3Q (TOTAL) MAERSK INTREPID 1413 ROWAN STAVANGER - 3Q (LUNDIN) ROWAN STAVANGER 1312 WEST LINUS - 1Q (CONOCOPHILLIPS) WEST LINUS 1211 ROWAN VIKING - 3Q (LUNDIN) ROWAN VIKING 1110 ROWAN GORILLA 6 - 4Q (CONOCOPHILLIPS) ROWAN GORILLA 6 ROWAN GORILLA 7 109 ROWAN NORWAY - CONOCOPHILLIPS ROWAN NORWA ROWAN NORWA 98 MAERSK GIANT - DONG/TALISMAN/DET NORSKE/REPSOL/CENTRICA MAERSK GIANT MAERSK GIANT 87 MAERSK GUARDIAN - LUNDIN MAERSK GUARDIAN MAERSK GUARDIAN 76 MAERSK REACHER - BP MAERSK REACHER MAERSK REACHER 65 WEST EPSILON - STATOIL WEST EPSILON WEST EPSILON 54 MAERSK INSPIRER - STATOIL MAERSK INSPIRER MAERSK INSPIRER 43 MAERSK GALLANT - CONOCOPHILLIPS MAERSK GALLANT MAERSK GALLANT 32 WEST ELARA - STATOIL WEST ELARA WEST ELARA 21 MAERSK INNOVATOR - CONOCOPHILLIPS MAERSK INNOVATOR MAERSK INNOVATOR 1

Market Drivers – Floater Activity Norway

11

IN NORWAY ENTERING INTO A CONTRACT IN NORWAY AVAILABLE AoC RIG

• Only newbuilds and modern units are entering the NCS• The majority of these semi-submersibles are both CM and DP

2013 2014 2015

37 SS WEST PHOENIX - DP - POTENTIAL 2Q 3736 SS WEST RIGEL - DP/CM - POTENTIAL 1Q 3635 SS COSLPROSPECTOR - DP/CM - POTENTIAL 1Q 3534 SS HENRY GOODRICH - CM - POTENTIAL 3433 SS EIRIK RAUDE - DP/CM - POTENTIAL 3332 SS SONGA ENABLER - DP/CM - 3Q (STATOIL) 3231 SS HENRY GOODRICH - CM - POTENTIAL 3Q SS SONGA EENCOURAGE - DP/CM - 2Q (STATOIL) 3130 SS EIRIK RAUDE - DP/CM - POTENTIAL SS SONGA ENDURANCE - DP/CM - 1Q (STATOIL) 3029 SS EIRIK RAUDE - DP/CM - POTENTIAL 4Q – NEXT WEST AFRICA 1 YEAR SS SONGA EQUINOX - DP/CM - JULY (STATOIL) SS SONGA EQUINOX - DP/CM 2928 SS ISLAND INNOVATOR - DP/CM - 2Q (LUNDIN) SS ISLAND INNOVATOR - DP/CM SS ISLAND INNOVATOR - DP/CM 2827 SS LEIV EIRIKSSON - DP/CM - 1Q (RIG MGT. NORWAY) SS LEIV EIRIKSSON - DP/CM SS LEIV EIRIKSSON - DP/CM 2726 SS COSLINNOVATOR - DP/CM - STATOIL SS COSLINNOVATOR -DP/CM SS COSLINNOVATOR -DP/CM 2625 SS COSLPROMOTER -DP/CM - STATOIL SS COSLPROMOTER -DP/CM SS COSLPROMOTER -DP/CM 2524 SS WEST HERCULES - DP/CM - STATOIL SS WEST HERCULES - DP/CM SS WEST HERCULES - DP/CM 2423 DS WEST NAVIGATOR - DP/CM - SHELL DS WEST NAVIGATOR - DP/CM DS WEST NAVIGATOR - DP/CM 2322 SS COSL PIONEER - DP/CM - STATOIL SS COSL PIONEER - DP/CM SS COSL PIONEER - DP/CM 2221 SS OCEAN VANGUARD - CM - STATOIL SS OCEAN VANGUARD - CM SS OCEAN VANGUARD - CM 2120 SS DS BREDFORD DOLPHIN - CM - LUNDIN SS DS BREDFORD DOLPHIN - CM - AGR GROUP SS DS BREDFORD DOLPHIN - CM 2019 SS TRANSOCEAN WINNER - CM - LUNDIN/MARATHON SS TRANSOCEAN WINNER - CM - MARATHON SS TRANSOCEAN WINNER - CM 1918 SS STENA DON - DP - STATOIL SS STENA DON - DP SS STENA DON - DP 1817 SS BORGLAND DOLPHIN - CM - RIG MGT NORWAY/STATOIL SS BORGLAND DOLPHIN - CM SS BORGLAND DOLPHIN - CM 1716 SS BIDEFORD DOLPHIN - CM - STATOIL SS BIDEFORD DOLPHIN - CM SS BIDEFORD DOLPHIN - CM 1615 SS POLAR PIONEER - CM - BP SS POLAR PIONEER - CM - STATOIL SS POLAR PIONEER - CM 1514 SS SCARABEO 5 - DP/CM - STATOIL SS SCARABEO 5 - DP/CM SS SCARABEO 5 - DP/CM 1413 SS TRANSOCEAN ARCTIC - CM - RIG MGT NORWAY SS TRANSOCEAN ARCTIC - CM SS TRANSOCEAN ARCTIC - CM 1312 SS TRANSOCEAN SEARCHER - CM - STATOIL/BG SS TRANSOCEAN SEARCHER - CM - BG SS TRANSOCEAN SEARCHER - CM 1211 SS TRANSOCEAN BARENTS - DP/CM - DET NORSKE SS TRANSOCEAN BARENTS - DP/CM SS TRANSOCEAN BARENTS - DP/CM 1110 SS DEEPSEA ATLANTIC - DP/CM - STATOIL SS DEEPSEA ATLANTIC - DP/CM SS DEEPSEA ATLANTIC - DP/CM 109 SS WEST ALPHA - CM - STATOIL/EXXONMOBIL SS WEST ALPHA - CM - EXXONMOBIL SS WEST ALPHA - CM 98 SS TRANSOCEAN LEADER - CM - STATOIL SS TRANSOCEAN LEADER - CM SS TRANSOCEAN LEADER - CM 87 SS TRANSOCEAN SPITSBERGEN - DP/CM - STATOIL SS TRANSOCEAN SPITSBERGEN - DP/CM SS TRANSOCEAN SPITSBERGEN - DP/CM 76 SS DEEPSEA BERGEN - CM - STATOIL SS DEEPSEA BERGEN - CM SS DEEPSEA BERGEN - CM 65 SS WEST VENTURE - DP/CM - STATOIL SS WEST VENTURE - DP/CM SS WEST VENTURE - DP/CM 54 SS SONGA TRYM - CM - STATOIL SS SONGA TRYM - CM SS SONGA TRYM - CM 43 SS SONGA DELTA - CM - STATOIL SS SONGA DELTA - CM SS SONGA DELTA - CM 32 SS SONGA DEE - CM - STATOIL SS SONGA DEE - CM SS SONGA DEE - CM 21 SS SCARABEO 8 - DP/CM - ENI SS SCARABEO 8 - DP/CM SS SCARABEO 8 - DP/CM 1

Other demand – Prelay, Mooring, Floating Production, etc

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2007-1 2008-1 2009-1 2010-1 2011-1 2012-1

Days

PRELAY CONSTRUCTION MOORING MISC FPSO

TRENCHING TOW OTHER 4Q MA

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86 88 90 92 94 96 98 00 02 04 06 08 10 12 14

Platf

orm

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Fixed Floating

Other demand (based on spot fixtures) Platforms (existing and expected)

Source:Infield

Large untapped potential in Arctic/Harsh Environment areas

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BNBB

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Undiscovered

Discovered, not Onstream

Onstream

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TCF

Oil reserves Gas reserves

Wells Drilled North Sea (UK and Norway)Wells

Exploration 3249Appraisal 1907Development 8332Total 13488

Source:Infield, USGS, NPD, DE&C, RS Platou

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99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

Vess

els

Estimated Core demand Greenland + Other CR Actual demand Core demand

North-Sea AHTS Vessel Demand Drivers (12,000+bhp) - Summary

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Ordering activity of AHTS vessels (>12,000bhp)

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by size category by region of build

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Vess

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<180 180-219 220-329 >=330

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Vess

els

Europe Asia Other

Existing fleet and orderbook

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8128

Indonesia15190

India Malaysia000000

Others80411

14

United States0014

Norway

0055

Singapore Total864211613140

019

16

00

AHTS 4-7,999 BHP 0 55

025

Brazil China

AHTS Total 3 65AHTS 20,000+ BHP

0 5AHTS 8-9,999 BHP 0 1

010023

3 1AHTS 16-19,999 BHP 0 3AHTS 10-15,999 BHP

April 2013

• AHTS vessels on order in % of existing fleet (worldwide) is higher in the larger AHTS categories.• Many of the units in the >16,000 bhp size category are built in Asia.

Delivered ON ORDER IN %UNITS EXIST.FLEET ON ORDER 2013 2013 2014 2015+ OF EXIST.FLEET

AHTS (BHP) 4-7,999 1,145 89 12 67 22 0 7.88-9,999 214 6 1 5 1 0 2.8

10-15,999 320 21 5 15 4 2 6.616-19,999 117 14 5 10 4 0 12.020,000+ 68 12 2 7 5 0 17.6TOTAL 1,864 142 25 104 36 2 7.6

4 1 2 2 0Norway orderbook

The North Sea AHTS fleet – in service vessels

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Age profile by country of build: Norwegian Continental Shelf

Only vessels >12,000 bhp included, March 2013

Age profile by country of build: Other North-Sea

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82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12

Vess

els

Norway Spain Chile

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82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12

Vess

els

Norway Spain Denmark Germany UK Netherlands Vietnam

Can “North Sea” AHTS vessels return home?

1818

?

North-Sea AHTS fleet changes Location of Norwegian built tonnage (blt >2000)

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N. AMERICA FAR EAST MED S&W AFRICA AUSTRALASIA S. AMERICA NORTH SEA

Vess

els

>=330

220-329

180-219

<180

North Sea AHTS fleet: Supply, demand and utilization rate

19

Supply, demand, utilization rate Utilization rate vs spot-rates*

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10,000

20,000

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60% 65% 70% 75% 80% 85% 90%GB

P

06

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1009

0807

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*Spot-rates – as quoted in Platou Supply Monthly for 16,000+bhp

Only vessels >12,000 bhp included

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98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

Vess

els

Supply (>12,000bhp) Core demand + Other* Util. core demand + Other*

Conclusions/Summary

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• AHTS demand in the North-Sea is currently growing as a consequence of higher offshore activity as a result of more lenient taxes on the NCS (since 2005), new basins opening for exploration and development, significant discoveries in even mature basins and a generally favourable investment climate in the oil and gas industry (oil prices are still very much elevated).

• Large AHTS demand is largely driven by rig activity and especially the floaters. There has been extensive discussions whether the new floaters, which generally have both DP and Conventionally Mooring, will require the same AHTS intensity. Generally speaking we see that conventionally moored floaters use 3-4 vessels, while DP/CM units require 2-3 vessels.

• North-Sea AHTS vessels are likely to receive a significant boost in demand from new basins opening up in the Arctic. Exploration, development and production has already started in the Barents Sea and exploration has started in Greenland. The Greenland campaign of Cairn gave a significant boost to demand in 2010/11 and this is likely to continue in 2014+ when Cairn returns with Statoil and other oil companies follow in their footsteps.

• Very few orders of North-Sea specified AHTS tonnage have been made in recent years. Earnings have been moderate and capital increasingly difficult to get hold of, thus restraining investments. This will lead to very little supply growth the next years.

• The North-Sea fleet utilization is therefore likely to have passed its cyclical low (although 2013 is still expected to be a challenging year) and will start to climb in 2014/15. Spot-rates/Term-rates are likely to follow.

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