Confidential

PT.PERTAMINA / SAMSUNG C&T

Proposal of VLCC CVC Project

August 2014
1. Overview
Project Detail : CVC contract with Purchase Agreement for Two(2) VLCCs

Contract Period : 10 years after Delivery

Project Organizer and Vessel Provider : Samsung C&T

General
CVC owner : competitive VLCC operator(Shipping Company)
Information
arranged by Samsung C&T
CVC Charterer : PT. Pertamina

Shipyard :Korean Shipyard (To be decided later)

Date Action Operation Site

Discussion with PT.Pertamina for business
2014. 8 structure ME - Indonesia
Project Issue of LOI for CVC contract and purchase
2014. 9 agreement of vessel from PT. Pertamina
Timeline
2014. 9 Preparation for Shipbuilding and Financing

2014. 10 Contract Execution

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2. Project Structure
* All contracts arranged by Samsung C&T

Ship Investment
Company in Korea

Loan Principal +
Interest
Shipbuilding
Contract Korean
SPC
(Registered Owner) Shipyard(TBD)

BBCHP or Principal +
BBC+P.A Interest

CVC+P.A
PT. Pertamina VLCC Operator
Freight

• BBC(Bareboat Charter)
• BBCHP(Bareboat Charter Hyper Purchase)
• CVC(Consecutive Voyage Contract)
• P.A (Purchase Agreement)
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3. Work Scope
Partnering among PT. Pertamina, SAMSUNG C&T and Shipping company

Shipping
PT. Pertamina SAMSUNG C&T
Company

1 CVC contract with 1 CVC contract with 1 Bring Shipping com.

Shipping Company PT. Pertamina to execute CVC contract

Provide VLCCs to
2 Puchase Agreement 2 BBCHP contract with 2 Shipping Company
for VLCCs Samsung C&T
based on BBCHP

3 Shipbuilding / Financing
arrangement in Korea

4 Organizing Project
4. Project Work Flow

Conditional
PT. Pertamina’
s LOI SAMSUNG C&T LOI
Shipbuilding
to Samsung C&T to Shipyard
Contract
PT.Pertamina’s Letter of Intention
to Samsung C&T for CVC contract SAMSUNG C&T LOI Conditional
of newly built VLCC. to Co-Investors Financial Lease

SAMSUNG C&T’ s LOI to

Shipyard for Shipbuilding of
VLCC and potential Investors

BBCHP btw
SAMSUNG C&T &
Financing close & Shipping Company
Final contract CVC Contract btw
signing PT. Pertamina &
Based on conditional CVC, SAMSUNG Shipping Company
C&T closes financial lease, shipbuilding
and Financial agreement
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5. Main Information of Proposal
The figures are subject to the propositions and situations

New-building price : To be decided later (Eco-type Vessel /Subject to vessel spec)

Delivery Date: between 4th Q 2016 to1st Q 2017 (Subject to signing date)

CVC Freight Level : From USD 42,000 per day to USD 44,000 per day
General
- Oil Consumption Reduction effect by Eco type : Approx. USD 13,000 per day
Information (Compared to normal ship and Subject to the number of total voyage )
- Freight payment on daily hire basis instead of MT(Metric Ton) basis
- Settlement basis for bunker unit price and port related cost
- Subject to terms & conditions of CVC contract

Purchasing Price : Approx. USD 50 mil (Upon expiry of CVC 10 years)

- Vessel shall be a dedicated Vessel on a hell and high water concept basis
- Any entity have no right to terminate CVC / Purchase agreement contract or to be
Concept released, relieved or discharged from any obligation or liability under the contract
Principle of by any circumstance
CVC with - Termination clause to be put in contract under discussion at the level of normal
Purchase market practice
Agreement - In case of any termination event occurred due to the improper reason out of
Termination Clause of CVC contract , PT. Pertamina shall indemnify total outstanding
amounts to the CVC Owner or its assignees

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6. Main Contracts in Proposal
Consecutive voyage charter is a special type of voyage charter where the vessel is
contracted for several voyages which follow consecutively upon each other. PT. Pertamina
CVC can make a certain number of consecutive voyage instruction orders to CVC owner
(Shipping Company) as per CVC contract for 10 years or can instruct as many voyages as
she may perform during a Charter period of whole time.

For the newly built VLCCs, Samsung will arrange the shipyard under the close cooperation
with us which is the most competitive Korean Shipyard. In this regard, the shipyard shall be
Ship
preferred by VLCC Owners in terms of the vessel quality and new-building price. As per the
Building
Contract demand of PT. PERTAMINA, the specification of vessel can be revised and adjusted through
the spec meeting. The risk from Ship building contract would be hedged by turn-key
contract (fixed price) which will be managed by SAMSUNG C&T Corp.

BBCHP or Bareboat Charter including Purchase Agreement is a kind of financial lease where
the BBC Charterer(Shipping Company) is scheduled to pay the charter Hire from the
BBCHP beginning to the expiry of Charter period, based on Hell or high water. BBC charterer will
(BBC+PA) be the owner of vessel at the end of the charter period as per Purchase Agreement.
Furthermore, the vessel can be transferred to PT. PERTAMINA as per CVC plus P.A with
Shipping company
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