Sevan Marine ASA

Presentation Q1 - 2005 Shippingklubben, Oslo April 28, 2005

Contents
Current Status Sevan Stabilized Platform Business Model and Strategy Market Potential and Competition Organization, Board and Management

Q1 2005 - Status
Operating profit NOK 9m (NOK 3.9m) Provision for cost related to share based incentive plan NOK 2.5 m (NOK 0.5m) Total assets NOK 949m (NOK 34m) Construction in progress SSP 300 FPSO NOK 146m Cash of NOK 759m (NOK 22 m payable in Q2 as bond transaction costs) Bond Loan of net 648m Petrobras board approves contract for SSP 300 FPSO 11 years fixed term Contract value fixed term USD 399m Commencement mid-2006 Consolidation of the SSP 300 FPSO 100% consolidation in Sevan Marine group accounts Etesco 25% minority share of net profit will be classified as financial expenses in income statement, 25% minority share of net assets classified as liabilities in balance sheet Construction project Progress according to plan and within budget 45% of steel has been cut Site team from Sevan and DNV
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Q1 2005 Status, cntd.

Financing activities
Share issue of 6,610,000 shares @ NOK 16.90, gross proceeds NOK 111,7 m Senior Secured Bond Loan 2005/2008 of NOK 670 m, net NOK 648m Bridge loan function

Purchase of Kanfa AS
48% of the shares Process design and engineering specialist Extensive experience nationally and internationally

Outlook
Floating production market remains strong Project opportunities discussed with potential clients

Kanfa AS has extensive process experience

Selected Projects: Ormen Lange Aker Kvrner Gullfaks A/B/C Statoil Draugen Norske Shell Siri Dong Borgen Dolphin/Knock Taggart Fred Olsen Balder FPU Aker/Esso Valhall BP Corocoro FSO, Venezuela Conoco Phillips

Contents
Current Status Sevan Stabilized Platform Business Model and Strategy Market Potential and Competition Organization, Board and Management

SSP compared to other floating units

Semi FPSO TLP SPAR SSP

Pros

Drilling equipment (some) Deck space Large no. of risers Good motions

Storage capacity Deck space Deep water Flexibility (re-use)

Drilling equipment Well access Traditional steel risers Track record

Drilling equipment Well access Traditional steel risers Deep water

Low construction cost No turret and swivel Storage capacity Drilling and well compl. Large number of risers High deck load cap. Good motions Deep water

Cons

Limited storage capacity Costly risers Limited well access Limited deck load

Costly risers Limited no. of risers No well access

No storage Expensive design Limited depth Limited deck load

Limited storage Not for harsh environment Limited no. of risers Limited deck load

Limited well access in harsh environment Pre-qualified - but no units delivered yet

Source: Sevan Marine, Enskilda Securities

Simplified cylinder design based on standard ship building principles

Compact design Turret and swivel arrangements replaced by spread mooring solution Simple integration between hull and topside Standard panel and block fabrication and structural members with few dimensions Reduced cable and piping, no piping in tanks

Keeping cargo compartments

Reduced investments and improved operation

Compact design No turret, No swivel

Reduced investment cost 20-25% less steel weight 50% less piping 50-70% less engineering cost Shorter construction time Improved operation High deck load capacity and stability reserves Any number and type of risers Excellent motion response No global bending and reduced fatigue exposure in hull Less piping and easy access to all equipment

Higher flexibility

Reduced maintenance

Improved reliability in demanding conditions

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Module based concept offering a wide capacity range

SSP FPSO SSP FSO

Storage Design
SSP 300 SSP 600 SSP 850 SSP 1000 SSP 1700 SSP 2000 (bbl) 300.000 600.000 850.000 1.000.000 1.700.000 2.000.000

Displacement
(mt) 55.000 110.000 140.000 165.000 278.000 305.000 17 20 24 28 30 33

Draft
(m) 60 75 84 84 106 106

Diameter
(m)

Production capacity from 20.000 to 200.000 bbl/day

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SSP technology verification process completed

Sevan has over the last three years invested ~NOK 50 million on the development of the SSP technology
Pre-qualified by Petrobras DNV review of technical, cost and schedule risks Generic model tests at Marintek DNV Concept Risk Analysis Model tests for Haltenbanken, GoM and Brazil DNV Design Appraisal Patent PCT recommendation Demo/Model testing LABOCEAN, Rio Detail eng. and fabrication drawings completed Verification of riser and mooring configuration at Marintek

Main scantling appr. initiated

2001

2002
Patent process

2003

2004
Building of 1st unit at Yantai Raffles Shipyard

Quotations and construction schedules from leading Yards Co-op with ABB and Schlumberger for the design, fabrication and operation of the process plant In house hydrostatic and hydrodynamic analysis Steel design of the hull Assessment of flexibility, size variation and deck load capacity Structural design and main scantling drawings

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Complete verification by Det Norske Veritas

Classification and Statutory Requirement Status
Rules and Class Notations established (+OI, FPSO) Main scantling approval Global design analysis, incl. fatigue assessment Approval in principal (AIP) Class approval of construction drawings

Assessment of Construction and Delivery Risk

Following yards have been assessed: Yantai-Raffles, Hyundai, Samsung, Keppel Fels, Jurong No show stoppers. The concept is simple and effective and has many advantages over other types of Mobile Production Units

Safety case assessment for UK Concept Risk Analysis (CRA)

The risk results are within the defined acceptance criteria for the North Sea, satisfying NPD requirements

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Contents
Current Status Sevan Stabilized Platform Business Model and Strategy Market Potential and Competition Organization, Board and Management

13

Business model focuses on core competences

Design

Engineering

Construction

Ownership

Operation

Co-operation with several yards Proprietary technology In-house expertise

May participate Partnerships

Core area

Not a core area

Case by case

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Patent status all proprietary rights owned by Sevan Marine ASA

Sevan has filed for patents in Norway and all other relevant markets

Sevan has been advised that patents will be granted

Sevan has filed patent applications in Norway in connection with the development of the SSP Further, Sevan has filed patent applications in various countries, under the PCT convention

Sevan has been advised from Patentstyret that the patent applications satisfy the requirements for patentability and that patents will be granted All patents and proprietary rights are the ownership of the parent company Sevan Marine ASA

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Long term strategy Maximize long term value creation

Strategic priorities long term Efficient S&M through closeness to primary markets Extensive use of alliances in key areas
Ensure quick market penetration through local presence Evaluate the necessity for more locations on a continually basis

Establish sale alliances/agents Establish R&D alliances Establish project alliances Ensure Sevans share of the cost advantage Continued case by case approach to ownership and operation

Maximize long term value creation

Optimize business model to maximize value creation

Ensure focused organic growth

Ensure necessary actions to attract right competence Assess in-house / outsourcing strategy on a continually basis

Max utilization of own units through close control

Optimize dayrates and contract lengths Take actions to develop best in class operation management

Clarify long term value potential

Ensure that the market value reflects the real company values

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Sevan will strive to make the company share an attractive investment object

Clarify long term value potential Strategy and markets conditions Important value drivers Relevant risk factors

Qualify for OSE-categories OB Match OB Standard OB Nye

Open and proactive IR-work Available management Best practice web site Investor presentation in Oslo every quarter

Sound Corporate Governance routines In accordance to generally accepted recommendations Proactively follow up of routines

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Contents
Summary Sevan Stabilized Platform Business Model and Strategy Market Potential and Competition Organization, Board and Management

18

Important market drivers mostly positive

45

Oil price

Expected development in important market drivers

30

15

Oil price expected to stabilize at a high level (30-35 USD/bbl) Increased energy consumption in Kina Fear of terror in the Middle East and Saudi Arabia
2 0 00 2 0 01 2 0 02 2 0 03 2 0 04

45

R/P ratio

30

15

Stagnation in the World oil reserves-to-production ratio (R/P) Increased oil price in break even estimates for field development Exploration expected to increase
'81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03

Shipyard capacity

Constrained shipyard capacity Significant increase in building cost over the last year

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The FPSO market is growing steadily

Demand for FPUs

200
24 22 22 20 18 16 16

FPUs planned or under study

Sevan Marines main focus areas
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160

No. of units

120
14 12 10 8 7 6 6 4 4 2 4

Acc. growth 45%

80

11

40

0 <90 90 91 92 93 FPSO 94 95 96 97 98 TLP 99 00 01 02 03E 04E 05E SEMI SPAR

0 West Africa Gulf of Mexico Brazil S-E Asia Australia Northern Europe China Canada Other regions

The FPSO market is growing by approx. 10% p.a.

87 floaters currently evaluated with first oil within 5-7 yrs

Source: Enskilda Securities, Infield, FPSO contractors, Oil companies, IMA

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Increasing share of the fragmented FPSO market is controlled by contractors

46% of FPSOs are owned and operated by contractors Contractors share of the market has increased from 30% in 1990 to 46% in 2003

FPSO market end 2003: 88 vessels, distributed on 42 owners Only 10 companies controlling more than 2 FPSOs (5 contractors, 5 oil companies)
Contractors share of FPSOs
120 100 No. of units 80 45% 60
37

FPSO Fleet by ownership - end 2003

100% 90%

52%

80% 70% 60% 50% 40% 30% 20% 10% 0%

Oil companies

47

40 33% 20 0 Asia/Pacific N. Sea West Africa Brazil Other 30%

14 6 18 9 30 51

Contractors

1990

1995 Contractor

2000

2005E

Oil Company

Source: Enskilda Securities, Infield, FPSO contractors, Oil companies, IMA

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SSP FPSO/FSO targets an attractive market Challenging existing technology

Technologies for different depths

Fixed platform Fixed Compliant tower TLP SPAR FPUs FPSO SSP Subsea completion 0 500 1,000 1,500 2,000 2,500 3,000
Water depth (m)

Source: Deepwater GoM; Americas Emerging Frontier; MMS 2000-022

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Promising development in Sevan Marines focused markets

North America

Europe & Eurasia

Still no FPSOs in market Large long term potential

Focused market Rough weather conditions Strict regulations Marginal field growth

South & Central America

Asia Pacific

Focused market Weather conditions suited for SSP Several production contracts will come out the next 3 years Co-op. agreement with Petrobras

Africa

Middle East

Benign weather conditions Mostly turret-less solutions

Currently no focus area

Focused market Weather conditions suited for SSP Medium/ marginal fields Several production contracts Strong growth

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LOI with Petrobras on Piranema

For the use of SSP300 as an FPSO Unit under construction in China to be used Etesco to have a 25% equity interest in FPSO First oil mid-2006 11 year fixed term Contract value fixed term USD 399m Horizon of field 20 years+ Water depth 1,000-1,600m Light oil (40 degrees API) High gas content no water Gas injection of 3.6 million m3 per day 300,000 bbl oil storage 30,000 bbl/d processing capacity Up to 21 risers and umbilicals

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Closure of first agreement may trigger new orders

Unit

Type

Market

Status

Contract award

Signed agreements
SSP SSP FPSO Coop. Agr. LOI S America Brasil Signed Signed 2004/Q3 2005/Q1

Proposals and negotiations for second unit

SSP 300 (3) SSP 1000 SSP 300 FPSO North Sea Negotiating /Bid Bid Tender exp. 2005 2005

FSO FPSO

North Sea S America

2005 2005

SSP 300/600 (5)

F(P)SO

SE Asia Australia

Tender exp. 2005

2005

Other proposals and negotiations

SSP 300-1000 (5) FPSO North Sea/SE Asia/Brasil Proposals 2005

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Contents
Current Status Sevan Stabilized Platform Business Model and Strategy Market Potential and Competition Organization, Board and Management

26

The Sevan management has a proven track-record of creating shareholder value

Commercialized technology: Navis ASA: Deepwater drill ship
From concept to delivery in 28 months Built on time and budget at Samsung

APL AS: STL and STP technology

More than 15 units in operation on Shuttle tankers, FSOs and FPSOs From 0 to NOK 325m in 3 yrs

MCG AS: Bow loading and offloading systems

More than 60 units in operation world wide on shuttle tankers and FPSOs From 0 to NOK 250m in 5 yrs

Transaction & business track-record: Navis ASA, IPO: Sold to Fred. Olsen Energy for NOK 1.8bn Sale/IPO of Anchor Drilling Fluids, NOK 700m and Prosafe, NOK 800m Transocean: From NOK 300m to NOK 10bn in 6 yrs, sold to Sonat Offshore Negotiating and managing 8 contracts worth USD 850m with Petrobras Successful build-up and management of Angola turnkey operations for Petrobras

Pusnes: Product development, commercialization and internationalization of various products

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Organization and legal structure

Board of Directors Sevan Marine ASA Jan-Fr.Wilhelmsen, COB 48% KANFA AS Sevan Marine AS
100% Sevan Marine
Investor relamin. Finance

Management AS
100%

Jan Erik Tveteraas, CEO Henriette Sandvaag

Egil Kvannli, CFO

Sevan Marine do Brasil Ltda Sevan Marine do Brasil Ltda Raul Schmidt

100%

Sevan Production AS

Technology Engineering Construction R&D Kre Syvertsen, MSc

Marketing Conceptual Development Business Development Arne Smedal, Msc

Engineering verification Subcontractors: Marintek DNV Consulting LMG Marine Bdr. Johnsen Marine Tech. Con

Marine Performance Model Tests Environmental Loads Motion Response Hydrostatics Stability Mooring Analysis Riser Analysis

Structural Analysis Lay-out Structural Design FEM Analysis 3-D modeling Detail Engineering Production Ass. Rules & Regulation

Machinery & Systems Piping One line diagrams F&G ESD HVAC Automation Power Management Propulsion

HSE HSE Risk Assessment Risk Analysis

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Board of directors
Jan Fredrik Wilhelmsen (52) Chairman
Mr. Wilhelmsen graduated with a law degree from the University in Oslo in 1979. He was admitted to the Supreme Court Bar in 1992 and is now partner in the law firm Srlie Wilhelmsen in Oslo. During his law practise he has gained extensive knowledge to the offshore industry.

Arne Smedal (57) Board member

Mr Smedal holds an MSc in hydrodynamics from the Norwegian institute of Technology (NTNU) in Trondheim. Mr. Smedal has previous experience as President and CEO of Navis ASA 1997-2001, Executive Vice President of Hitec ASA from 1996-1997, founder and President of Marine Consulting Group and Advanced Production Loading from 1989-1996, as well as various positions, incl. President at Pusnes from 1979 to 1989. Before this, Mr. Smedal worked for Det Norske Veritas from 1974-79. Mr. Smedal has been a board member of various companies within shipping and electronics. Mr. Flament holds a BS in Finance and International Business from New York University. Since 2003, Mr. Flament has worked as a Portfolio Manager in Cheyne Capital Management. Mr. Flament has previously served as a Managing Director of Morgan Stanley & Co Intl Ltd (1993-2002) and as Assistant Director of NatWest Financial Products plc (1993-1991).

Jean-Philippe Flament (36) Board Member

Jon Hatleskog (65) Board Member

Mr. Hatleskog graduated with an MBA from Handelshjskolen in Copenhagen, Denmark in 1964. Mr. Hatleskog manages his own business activities through Jaco Invest AS. He is a co-owner and chairman of Belden Shipping PTE, a shipping company that specializes in the transport of cement and he has various investments in gas carriers operated by Solvang ASA. Previously, Mr Hatleskog was co-owner of Havtor ASA, which was sold to Bergesen in 1996. Mr. Hatleskog is chairman of Gard P&I, Gard Marine & Energy Ltd and Gard AS and is also a board member of Solvang ASA and various gas ship companies operated by Solvang ASA.. Mr. Syvertsen graduated with an MSc in ship construction from NTNU in Trondheim in 1973. Mr. Syvertsen was previous Vice President Technology of Navis (1997-2001); Vice President Technology of Advanced Production Loading from 1994 to 1997; Project Manager of Marine Consulting Group from 1990 to 1994 and Professor in marine technology at NTNU, Trondheim from 1976 to 1990.

Kre Syvertsen (54) Board Member

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Senior management and the board have extensive experience from concept and business development, as well as the capital market
Management
President Jan Erik Tveteraas (44 years) 1998-2001: CFO of Navis 1996-1998: VP Corporate Planning in Sonat Offshore (Transocean Offshore) 1991-1996: CFO in Transocean AS Board member of various companies within offshore, landbased industry and finance Holds an MBA from NHH in Bergen 1985

VP Technology Kre Syvertsen (54 years)

1997-2001: Vice President Technology of Navis 1994-1997: Vice President Technology of Advanced Production Loading 1990-1994: Project Manager of Marine Consulting Group Holds an MSc in ship construction from NTNU in Trondheim 1973 1998-2001: New Business Development Manager of Interoil, Brasil 1994-1998: Safety Manager and Coordinator of Procurement and Contracts of Braspetro Oil Services, Angola 1981-1994: Various management positions within Petrobras, Brazil Holds a BSc in Nautical Sciences from Centro de Instruo Almirante Graa Aranha RJ 1981 1997-2001: President & CEO of Navis ASA 1996-1997: Executive Vice President of Hitec ASA 1989-1996: Founder & President of MCG and APL Board member of various companies within shipping and electronics Holds an MSc in hydrodynamics from NTNU in Trondheim 1973 2001-2004: Financial Manager MI SWACO Scandinavia (Smith International) 1997-2001: Analyst MI Norge AS 1996-1997: Banking Board member of various companies and organizations Holds a BA: Business and Administration from Norwegian School of Management and Bishops University Canada
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Sevan Marine do Brasil Ltda President Raul Schmidt (45 years)

VP Business dvlp Arne Smedal (57 years)

CFO Egil Kvannli (33 years)

Strong shareholder base 28% foreign ownership

Shareholder Arne Smedal Aasen AS Hallingen AS Supernova AS JP Morgan Chase Bank MP Pensjon Statoils Pensjonskasse Morgan Stanley and Clients Safe Custody Ferncliff AS Tycoon Industrier AS Fidelity Funds-Nordic Enskilda Securities Egenhandelskonto Credit Agricole Indo SIS Segaintersettle Normandie Invest AS Statoil Forsikring Jaco Invest AS Bank of New York , Br S/A Equity Tri-Party Whitehorse Investing Waterman Holding Inc 20 largest shareholders Nr of shares 3,605,687 3,114,036 3,114,035 3,114,035 2,942,074 2,555,263 1,994,273 1,925,895 1,899,190 1,797,500 1,464,900 1,322,500 1,266,700 1,129,642 1,100,000 1,022,391 1,000,000 982,396 850 000 839 170 37,039,687 % 4,95 4,28 4,28 4,28 4,04 3,51 2,74 2,65 2,61 2,47 2,01 1,82 1,74 1,55 1,51 1,4 1,37 1,35 1,17 1,15 50.88

Free float 73% Listed at OSE with ticker SEVAN

Total shareholder breakdown

Total no of shares: 72,778,921 Foreign ownership: 28,14 % As of April 22, 2005

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Private

Management

Institutional

Balance sheet & Profit and Loss statement

Sevan Marine ASA accounts as of 31 March, 2005 Balance Sheet NOKm Q1 05 Total long term assets 182,1 Total current assets 767,0 Total assets 949,1 Total shareholders' equity Total long-term debt Total current liabilities Total shareholders' equity and liabilitie Profit & Loss account NOKm Operating revenues Operating expenses Operating profit Net financial items Profit before tax 287,0 648,2 13,9 949,1

Q4 04 127,4 72,1 199,5 182,8 0,3 16,4 199,5

Q1 04 12,2 21,9 34,1 26,3 0,0 7,8 34,1

Q1 05 0,0 8,8 -9,0 0,6 -8,4

Q4 04 0,0 4,9 -5,1 0,3 -4,8

Q1 04 31.12.04 0,9 1,0 4,8 19,4 -3,9 -18,8 0,1 -3,8 1,1 -17,7

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An attractive investment opportunity

Breakthrough FPSO/FSO concept Technological advantages make business case superior Construction underway on time and within budget LOI for first unit signed several opportunites for second unit Co-operation agreements with major industrial players Senior management and board with proven track record of creating shareholder value

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