Overview of the Floating Production Sector

Presentation by James McCaul at the 18th Annual Floating Production Systems Conference and Exhibition
December 1, 2001
International Maritime Associates, Inc. Washington, DC, USA Tel: 202-333-8501 Fax: 202-333-8504 E-mail: imaassoc@msn.com Website: www.imastudies.com

The Presentation Will . . .

Profile the current inventory of floaters Characterize the current order backlog Identify potential new floater projects Describe the longer term outlook for new floaters

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154 Floating Production Systems Now Available

15 Tension Leg Platforms

38 Production Semis
92 FPSO Vessels

9 Production Spars

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Where Floating Production Systems Are Now Operating

19 12 6 2
P MI O O TL SE PS FS F

1
P MI O O TL SE PS FS F

12 1 5 5 15 1
P MI O O TL SE PS FS F

12 1

9 3

P MI O O TL SE PS FS F

25 12 1 1 1
P MI O E O TL SE PS RG FS F A B O R P

P MI O R O TL SE PS PA FS F S

19 14 1
P MI O O TL SE PS FS F

P MI O O TL SE PS FS F

3
P MI O O TL SE PS FS F

19 10

2
P MI O O TL SE PS FS F
Not shown are 4 FP SOs and 2 sem is that are off-field and stacked. Units in the GOM include 2 FSOs off Mexico and 1 FSO off Colom bia

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Geographic Distribution of Production Floaters Now Operating

West Africa No. Europe No. Europe

FPSOs
Brazil

21% 21% 11% 11% 37%

32%
3% 3% 8% 5%

Semis
West Africa GOM Other Asia/Pac

50%
Other Brazil

Asia/Pac

TLPs
13% 80%
GOM

No. Europe

Spars
GOM

7%
Asia/Pac

100%

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30 Year Growth in Number of Floaters Has Been Impressive

160
154

Spar TLP

Number of Installed Units

120

1993 to 2003 + 267%

Semi

80 FPSO
42

40
16 1

0
74 975 976 977 978 979 980 981 982 983 984 985 986 987 988 989 990 991 992 993 994 995 996 997 998 999 000 001 002 003 9 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 as of year end

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Over the Past 7 Years 101 Floating Production, 30 Storage Systems Have Been Installed
- - - - - Where Installed - - - - 19

7 3 1 1
P MI SO FSO TL SE FP P MI O O TL SE PS FS F P MI SO FSO TL SE FP

9 1

11
P MI SO FSO TL SE FP

1 17 3 7 11 6 3
P MI O O TL SE PS FS F P MI SO FSO TL SE FP

1
P MI SO FSO TL SE FP

P MI O R O TL SE PS PA FS F S

1
P MI SO FSO TL SE FP

P MI SO FSO TL SE FP

The FSO in the GOM is off Mexico

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Production Floater Installations Over Past 7 Years

Area Northern Europe Gulf of Mexico West Africa % of Installations 26% 19% 18% Type 19 FPSOs, 7 semis 9 TLPs, 9 spars, 1 semi 17 FPSOs, 1 semi

Brazil
Asia/Pacific Other
International Maritime Associates, Inc.

17%
16% 5%
-8-

11 FPSOs, 6 semis
15 FPSOs, 1 TLP 5 FPSOs
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Almost 11 MB/D Oil Processing Capacity Now On Floating Production Systems

14.5 mb/d at end 2005 10.8 mb/d + 32% at end 2003 On Order

0.1 mb/d at end 1983

1.3 mb/d at end 1992

83 984 985 986 987 988 989 990 991 992 993 994 995 996 997 998 999 000 001 002 003 004 005 9 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2
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37 Floating Production Systems and 5 Storage Systems are on Order

(as of November 2003)

4 TLPs 2 mini, 2 wellhead

25 FPSO Vessels 12 new, 11 conversions, 2 upgrades

4 Production Semis all new 4 Production Spars all new 5 FSOs 1 new, 4 conversions
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Where Floating Production and Storage Systems on Order are to be Installed

1
TL P I SO EM FSO P S F

1
P MI O O TL SE PS FS F

4
P MI O O TL SE PS FS F

4 2
P TL

2
M SE I R SO PA FP S

10 1 2 2 1 2
P MI O O TL SE PS FS F

P MI O O TL SE PS FS F

P MI O O TL SE PS FS F

P MI O O TL SE PS FS F

P MI O O TL SE PS FS F

Not shown is 1 speculative FPSO hull (Aoka Mizu) that has been completed but not yet assigned to a field.

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Production Floaters Now on Order

(as of November 2003)

Where to be Installed West Africa

Gulf of Mexico Asia/Pacific Brazil Northern Europe Other
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% of Orders 32%
22% 22% 16% 3% 5%

Type

10 FPSOs, 2 well-TLPs
2 TLPs, 2 semis, 4 spars 8 FPSOs 6 FPSOs 1 semi 2 FPSO
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6 Year Trend in Orders for Floating Production Systems

(average order intake per month)

3.00 2.00 1.00 0.00 1.00 1.40 0.75 0.750.75 0.40 1.00 1.50 0.83

2.80 2.00

2.25

1.80 0.50

1.50

76 Month Average 1.3 Units Per Month

0.75 1.00

9 9 8 7 8 9 8 00 '00 '01 '01 '01 '02 l '02 '03 '03 '03 '9 '9 l '9 '9 t '9 '9 '9 ' r r v p n n b p n n b n u c ct u ct a a o e a e e e a u u u J J O J J -S 7-F r-J l-O 8-F ar- g-N 9-M r-S 0-J b-J ul-O - M pr2- 03- 03n u a p 0 0 9 1 9 9 e ' ' J J ' A ' ' M Au A F M l' Ju ct ' '0 g v c b u ct v e u o e J O O o F D A N N

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87 Floating Production Systems are Planned or Under Study

(as of November 2003)

3
Ultra-Deepw ater >5000' Deepw ater 3000'-5000' <3000' w ater depth

10 10

3 3 12 3 5 1 il z ra B 1 6

22% 41% 37%

1 5 4 1 3 1

a ic r f A .

co i ex M f fo l u G

SE

a si A

tr s u A

ia al o. N
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e p ro u E

na i h C

da a an C

r e th

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Projects in the Bidding or Final Design Stage

(as of November 2003)

11 4 3 3

1
na i h C

0
da a an C

0
pe o r u E o. N

1
er h t

.A

ic fr

az r B

il th u So tA s ea

sia us A

al tr

ia ul fM o f

co i ex

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Some Near Term Projects . . .

Akpo Roncador P-54 Marlim Leste Tahiti Merganser/Vortex Peng Lai 2

Agbami
Kizomba C/D Block G Usan/Ukot

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Projects Planned or Under Study

(as of November 2003)

14

12

12

10 6 4 3 3

1
da a an C

ul

fM o f

c xi

o Br

il z a W

.A

i fr

ca

tA s ea h ut o S

sia

pe o ur E o. N

u A

lia a r st

na i h C

er th

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Some Longer Term Projects . . .

Southern Alaminos Canyon FPSO/shuttle tanker or production semi/pipeline? Block 31 Angola large FPSO Bonga Southwest large FPSO, maybe joint development with Aparo Marlim Sul/Roncador 3 or 4 additional large FPSOs or semis Gehem/Ranggas TLP/production barge combo, like West Seno
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The Long Term Outlook for Floater Orders is Very Favorable

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85

Trend in World Oil and Gas Consumption

Natural Gas Consumption Growing 2.2% Annually

2600

Gas -- Billion Cubic Meters

Oil -- Millions of B/D

75

2300

Oil Consumption Growing 1.2 % Annually

65
9 19 2 9 19 3 9 19 4 95 9 1 9 19 6 9 19 7 9 19 8 9 19 9 0 20 0 01 0 2 02 0 2

2000

Source: BP

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Long Term Oil and Gas Demand

IEA expects global energy demand to increase at a rate of 1.7% per year over next 30 years Oil and natural gas to supply 90% of the increased demand

Oil consumption is expected to rise at an annual rate of 1.6%

Gas consumption is expected to double by 2030
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Futures Price of Crude

($ per bbl)
40 $/BBL
Futures Price as of Nov. 10, 2003

30

Spot Price of W TI Crude

20
Futures Price as of Feb. 14, 2003

10

Source: Wall Street Journal

0
6 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 '8 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' c e ec ec ec ec ec ec ec ec ec ec ec ec ec ec ec ec ec ec ec ec ec ec ec D D D D D D D D D D D D D D D D D D D D D D D D

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Our February 2003 Forecast of Requirements for Floating Production Units

High Forecast
280 240 200
Number of Units

270 * 245 *

Low Forecast

160 120 80 40 0
74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 06 08 09 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 as of year end

Actual

Forecast

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This Forecast Would Produce Orders for 62 to 89 FPUs Between 2003-2008

Composition of orders is expected to be - 60% FPSOs - 30% spars or TLPs - 10% production semis These orders would generate $22 to 31 billion capex In February 2004 we will revisit this forecast and extend the forecast period from 2004 to 2009
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