FPSOcean – completing Deep Producer 1

FPSOcean – completing Deep Producer 1
Deepwater DP floating production vessel
- A unique asset in a niche market
Company Presentation
22nd January 2009
The information contained herein may be subject to change without prior notice.
1

Disclaimer
‣ This presentation and its enclosure and appendices (hereinafter jointly referred to as the “Presentation” has been prepared by FPSOcean
AS (“FPSOcean” or the “Company”) exclusively for information purposes only in order to give an updated status of the Company. This
Presentation has not been reviewed or registered with any public authority or stock exchange.
‣ This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in the Company.
‣ This Presentation contains certain forward-looking statements relating to our business, financial performance and results and/or the
industry in which we operate. Forward-looking statements concern future circumstances and results and other statements that are not
historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”,
“foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including
assumptions, opinions and our views of the Company or cited from third party sources are solely opinions and forecasts which are subject
to risks, uncertainties and other various factors that may cause actual events to differ materially from any anticipated development. We
discuss these factors, including risks and uncertainties, from time to time in our public filings. We disclaim any duty to update the
information presented here.
‣ The Company or any of our parent or subsidiary undertakings or any such person’s officers or employees provides any assurance that the
assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future
accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. We assume no
obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our
actual results.
‣ No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including
projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or
misstatements contained herein, and, accordingly, we or any of our parent or subsidiary undertakings or any such person’s officers or
employees accepts any liability whatsoever arising directly or indirectly from the use of this Presentation. This Presentation contains
information obtained from third parties. Such information has been accurately reproduced and, as far as we are aware and able to
ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to
be inaccurate or misleading.
‣ The Company's properties and certain financial derivatives are included at fair value in the Company's group account. Changes in fair value
are recorded quarterly in the income statement and, with respect to the properties, are based on third party valuation. Consequently,
adjustment based on changes in fair value may affect the company's income.
‣ By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and
the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of
the potential future performance of the Company’s business.
‣ This Presentation speaks as of 22 January 2009. Neither the delivery of this Presentation nor any further discussions of the Company with
any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company
since such date.
2

Content
1) Executive summary
2) Assets and technology
3) Project status
4) Company and market opportunities
3

FPSOcean – a unique player in a niche market
‣ The FPSOcean business model is to build, own, lease and operate Floating Production Systems
(FPSOs) with focus on
‣ deepwater extended well testing (EWT)
‣ early production (EP)
‣ marginal field production for benign deep water reservoirs and hurricane areas
‣ FPSOcean differentiates from its competitors by using cost effective dynamic positioning systems
and disconnectable buoys with safe, reliable and innovative technology
‣ A generic cost effective vessel and topside design suitable for different areas and field
applications
‣ Strong organizational development
‣ Business critical in-house know how and experience in marine, oil & gas technologies, project management,
design engineering, site management and operations
‣ Marketing and business development presence in target areas
‣ Post-delivery key process and technical competence in place (in-house)
4

Customer value proposition
‣ Attractive schedule for “first oil”
‣ DPP1 can be used for well testing/early production as long as a well has been drilled
‣ DP system avoiding mooring/subsea installations
‣ Focused, cost effective and right sized organization geared to complete the project and operate
the vessel
‣ Changed project management, structure and reporting
‣ Strengthened project team in critical areas
‣ Reduced personnel to be more cost effective and efficient
‣ Operations experiences and partnerships
‣ Cost-efficient solution creating values
‣ Minimum installation cost - no mooring cost
‣ Faster relocation - no mooring allow for simpler and faster hook-up and decommissioning
‣ Flexible topside facility allowing a wide spectra of well fluids to be processed, facilitating
relocation of the FPSO without major process plant modifications
‣ DP and turret solutions
‣ Dis-connectable in less than 45 seconds
‣ Safe and optimized operations for varying weather conditions
5

Investor value proposition
‣ Deep Producer 1 overall project is 91.2 % complete at end of week 52
‣ Substantial verification process completed to confirm revised capex and delivery schedule
‣ Contracts with Dubai Drydocks conversion yard have been renegotiated and key vendors are committed to support
the completion of the FPSO conversion project
‣ Cushion in revised USDm 335 all-in capex (USDm 10 conversion and corporate contingencies)
‣ Re-structured balance sheet implying attractive USDm ~176 asset cost and robust capital structure
‣ USDm 160 reduction from cash cost: Debt reduction (USDm ~115) and reduced pre-money equity value (USDm ~45)
‣ FPSOcean with USDm ~85 of market cap and USDm ~91 of debt post USDm 70 equity issue and re-structuring
‣ Attractive position for near-term employment contracts
‣ Several customers attracted by FPSOcean value proposition including unique DP capabilities
‣ Concrete leads and discussions for multi-year use as well testing/early production vessel
‣ Target contract terms supporting attractive return on re-structured DPP1 asset value
‣ Estimated replacement value of similar FPSO approx USDm 250-300
‣ Re-structured balance sheet and NOK 1 issue price providing excellent investor value proposition
‣ USDm ~160m value reduction in place, subject to pending USDm 70 Private Placement
‣ USDm ~176 implied asset cost vs. USDm 335 projected all-in cash cost
‣ USDm 250 DPP1 value implying ~2x equity value, USDm 335 (cash cost) implying ~3x equity value
‣ Value drivers: Employment contract and/or industrial exit
6

Re-structured pro forma capital structure
Re-structured balance sheet Face value $m Value @ fix $m Recovery % # shares m Ownership % Equity / debt
2. pri bondholders 75 25 33% 27 5% Both
of which continued 2. pri debt 25 8 33% - 0% Debt
of which new convertible debt 1) 39 13 33% - 0% Debt
of which new equity 12 4 33% 27 5% Equity
Senior unsecured debt 30 5 18% 38 6% Equity
Convertible debt 25 3 13% 23 4% Equity
DPO claim 2) 9 1 13% 8 1% Equity
Current DPP1 equity 60 1 2% 8 1% Equity
New DPP1 equity na 70 na 490 82% Equity
Total 199 36 18% 594 100%
NOK/USD 7.0
1) Assuming no conversion
2) Subject to approval
‣ Re-structured FPSOcean capital structure subject to new equity of USDm 70 in place
‣ Debt reduced by USDm ~118 (from USDm ~139 to USDm 21) and equity by USDm ~45 from USDm
60 (original equity down by USDm 59 less USDm ~14 new equity from debt conversion)
‣ Re-structured balance sheet consisting of USDm ~91 of debt, incl. USDm 70 of 1. pri bank debt
‣ Re-structured balance sheet consisting of USDm ~85 of equity, valued at NOK 1.00 per share
‣ Re-structured EV of USDm ~176 vs. cash cost of USDm ~335
‣ New equity from USDm 70 Private Placement with ~82% ownership
7

NOK 1/share value proposition: 2-3x
‣ FPSO equity valued at USDm 85 post rescue (share price NOK 1)
‣ USD 1m pre-money of existing shares and USD 13m market value of debt/equity swap
‣ USD 70m new equity from Private Placement
‣ Re-structured FPSO balance sheet providing attractive upside on new equity
‣ USDm 85 market cap on USDm ~176 Enterprise Value fully invested/fully financed
‣ USDm 159 equity value (~2x) if exit at USDm 250
‣ USDm 244 equity value (~3x) if exit at projected DPP1 USDm 335 cash cost
400
350
FPS Ocean Equity Value Scenarios
335
300
250
250
244
USDm
200
150
176
159
100
85
50
0
Rescue value USD 250m value Cost (USD 335m)
DPP1 value
Equity value
8

Content
1) Executive summary
2) Assets and technology
3) Project status
4) Company and market opportunities
9

Deep Producer 1 – high-end deepwater FPSO
Laurita – DPP 1
‣ Purpose built for ultra deepwater extended
well testing, early production and marginal
field development
‣ Riser systems developed for single well and
multi well applications ranging from 250 to
2,500m water depth
‣ Proven technology and components applied
to meet deepwater field development
challenges
Main spec:
Year built/yard
1981/Tsuneishi
Dwt
68,000 tons
Length
244 m
Breadth
32 m
Storage capacity 1)
400,000 bbls
Process capacity, liquids 60,000 bbls/day
Process capacity, oil 2)
40,000 bbls/day
Maximum gas capacity 40 mmscf/day
No. of risers 5
DP system DP 2
Buoy pull-in winch
350 tons
1) Single sided
2) Oil @30-40 API
10

Disconnectable Riser Buoy (DRB TM )
‣ Multi-riser disconnectable buoy for ultra deep
water DP operation based on proven
equipment
‣ New 5-path high pressure swivel with unique
sealing redundancy qualified for gas service
‣ Technology jointly developed and owned by
FPSOcean and Scana (patent pending)
‣ All shipboard equipment installed on vessel
‣ Swivel qualification and FAT testing
completed
‣ Based on proven technology
‣ Buoy to be installed in vessel after sea trials
‣ DNV classified
11

Buoyancy (green)
WI Riser (yellow)
Umbilical (red)
Polyester Tether (white)
OP Riser (yellow)
1mt/m Chain (blue)
3-inch Chain (green)
Multi-riser and single well systems
Case documented
by FPSOcean / SeaFlex
Pliant wave
Hybrid Mid water arch Catenary
Deep Wave Lazy Wave
0
500
West Africa
Far East
1000
West Africa
1500
2000
West Africa
Brasil
West Africa
2500
Brasil
Brasil Brasil Brasil
12

Process plant
‣ Generic Process plant:
‣ 40,000 bopd @API 35, 20,000 bopd @ API 20
(can be increased to 40,000 bopd with
additional separation train)
‣ 60,000 bpd total fluid
‣ 40 mscfd
‣ Fuel gas compression
‣ Installed on ship in February 2007 and
mechanical complete in October 2008
13

Dynamic Positioning (DP) and Power System
‣ DP system
‣ DNV DYNPOS-AUTR (IMO DP Class 2)
‣ 4 Schottel 3.8 MW azimuth thrusters + existing
main controllable pitch propeller and bow
thruster (delivered)
‣ Kongsberg DP 2 control system
‣ Receptacles and drives installed in ship,
underwater units delivered
‣ M80/90 power and power distribution module
‣ 2 x 17 MW Siemens dual fuel gas turbines
‣ Siemens panels and switch gears
‣ Lifted and installed on ship in Feb 08 and
mechanical complete Sep 08
14

DPP2 – DP Offshore AS liquidation status
‣ As part of the restructuring of FPS Ocean to complete DeeP Producer 1, the DeeP Producer 2
conversion project has been cancelled and its subsidiary DP Offshore is being liquidated
‣ Financiers of MT Semakau has cancelled the bareboat charter with DP Offshore and taken redelivery of the
vessel which is in the process of being sold at a price well below the debt outstanding
‣ DP Offshore is near completion of a cash positive sale of the two Siemens gas turbines
‣ DP Offshore is in dialogue with Schottel with respect to resolving its obligations under the 5 x thruster contract
‣ DP Offshore assets or contract sales will not generate sufficient cash to settle all creditor claims in
full
‣ DP Offshore may, pending receipt of sales proceeds from the turbine sale shortly, seek a voluntary winding up
of its business if agreement and final settlements can be reach with all creditors
‣ FPS Ocean management is seeking to reach agreement with DP Offshore creditors to settle potential
FPS Ocean AS claims through participation in the restructuring plan
‣ Financiers of MT Semakau and Schottel (with potential claims against FPS Ocean AS) have been offered shares
in FPS Ocean AS on terms equal to those terms offered in the restructuring plan to other unsecured creditors to
FPS Ocean AS, in exchange for not making claims against FPS Ocean AS
15

Content
1) Executive summary
2) Assets and technology
3) Project status
4) Company and market opportunities
16

DeeP Producer 1 – pictures November 2008
17

DeeP Producer 1 – Completion plan
- Review initiated in Sep 2008
‣ “De-risking” and reviewing the project
‣ A task force of 9 working groups with 4 very experienced external individuals and 14 FPSOcean employees
‣ Assignments to scrutinize project performance and execution
‣ Reports completed Sept 12th
‣ Overall objectives
‣ Securing final cost and date for completion of DPP1
‣ Cash-flow control and payment schedule management
‣ Creating a credible completion plan and identifying activities to achieve the agreed targets
‣ Actions implemented
‣ Remaining engineering identified and engineering completion coordinated with procurement and conversion
‣ Revised baseline schedule and lump sum completion agreed with Dubai World Drydocks (“DWD”)
‣ Reviewed suppliers and agreed with critical suppliers their continued commitment to complete
‣ Established revised cost estimate and schedule based on task force reviews and verifications
‣ Strengthened Project Team and Site Management,
‣ Revised project structure and reporting
‣ Increased engineering and construction supervision staffing
‣ Increased staff for mechanical completion supervision and commissioning
18

DeeP Producer 1 – Completion plan
- Manage DWD performance
‣ DWD contract renegotiated, signed amendment to contract which includes:
‣ USDm 51 lump sum price for total scope
‣ Including all variation orders (VORs) as of 31st Sep 2008
‣ Revised mechanical completion date 31st Mar 2009
‣ Bonus USDm 3 upon completion on 31st Jan 2009
‣ Bonus to be reduced USD 200,000 per day until 15th Feb 2009 and no bonus thereafter
‣ Penalty scheme approx. USDm 3 or 6% of lump sum
‣ Liquidated damages USD 50,000 per day from 1st Feb 2009 until 31st Mar 2009
‣ Current payment conditions maintained:
‣ 40% 30 days prior to the date the parties reasonably expect the work to be completed
‣ 50% upon completion of the work prior to delivery of the vessel
‣ Scope defined in all agreed drawings and documentation
‣ Agreed principles of defined construction packages and milestones
‣ Revised detailed plan established including follow up mechanisms (planning, daily work lists,
counting/check lists)
‣ Mechanical completion, pre-commissioning and commissioning defined and periods agreed
‣ Impact of delays on mechanical completion and bonus/penalty scheme caused by payment
moratorium is being negotiated. Detailed reviews done, concluding no material impact on
overall project cost
19

Deep Producer 1 - conversion status
‣ By end-Dec 2008 the overall project was 91.2% completed according to new baseline from Oct 08
(1.5% behind schedule)
‣ Conversion progress at 94.2% versus planned 96.4%
‣ Delay caused by late equipment supplies due to payment moratorium and reduced manning at site to preserve cash
‣ Disconnectable riser buoy progress at 90.5% versus planned 92.0%,
‣ Delay caused by required modifications to the buoy (DRB) and later delivery date
‣ Mechanical completion extended to March 2009 and “Sail-away” extended to July 2009
‣ All major equipment delivered except buoy (DRB) and thrusters with expected delivery during
March 2009
‣ Completion of installation work and commissioning/sea trials remaining
Type of work % of total % complete % planned
Topside modules 28.0% 99.7% 100.0%
Disconnectable riser buoy 13.3% 90.5% 92.0%
Vessel systems & conversion 54.4% 94.2% 96.4%
Commissioning 2.0% 0.0% 0.0%
Installation of thrusters, sea trials & buoy testing 2.3% 0.0% 0.0%
Total / average (weighted) 100.0% 91.2% 92.7%
20

Deep Producer 1 - capex and cash status end Nov
‣ USDm 335 overall DPP1 cost
‣ In line with Oct 08 revised
budgets
‣ USDm 273 overall capex
accrued to date
‣ USDm 62 remaining (19%)
‣ USDm 199 paid to date
‣ USDm ~136 remaining (40%)
‣ USDm 202 of financing
raised/funded
‣ Fully funded post rescue
incl. USDm 70 of additional
equity, and USDm 70 of
1.pr bank debt
‣ 1.pr bank loan due 30
September 2009, extension
will depend on employment
contract for DPP1
‣ Strict cash management
and standstill agreements
in place securing cash to
end Jan 09
As of 31 Dec 2008 (figures in USDm)
FPSO DPP1 capex program
Approved
budget (as of
31 Oct 2008)
Total
forecast Committed Paid to date
Unpaid (to
forecast)
Capitalised
to date
Vessel acquisition, dry dock and process plant 16 16 16 16 - 16
Topsides 57 57 55 51 6 57
Disconnectable Riser Buoy 27 31 31 20 11 24
Vessel 111 111 96 38 72 102
Commissioning 4 4 0 0 4 -
Offshore operation 5 5 - - 5 -
Project subtotal (conversion) 203 207 182 109 98 183
Preliminaries (incl engineering, proc., insurance etc) 33 33 26 22 10 22
Project subtotal incl. preliminaries 236 240 208 131 109 205
Contingency 10 5 - - 5 -
Total conversion incl. contingency 246 246 208 131 114 205
Management 13 16 16 12 4 12
Operations during construction 7 7 7 6 1 6
Finance costs 52 44 44 34 10 34
Corporate contingency 2 6 - - 6 -
Total misc. cost 73 73 67 52 21 52
Total project cost 335 335 291 199 135 273
FPSO DPP1 funding
Restructured
Total funding
Committed
funding
Funding
drawn New funding
Equity 84 129 59 59 70
Convertible - 32 32 32 -
New convertible 13
DPO unsecured debt - - - - -
Unsecured - 36 36 36 -
2. pri bonds 8 75 75 75 -
1. pri bank debt 70 70 - - 70
Total financing 176 342 202 202 140
Implied write-down/cash position (159) 7 (89) 3 5
21

DeeP Producer 1 – project progress and cost
‣ Activities to preserve cash until completed refinancing by end January
‣ Reduced staff in Oslo office
‣ Reduced staff at site and prolonged vacations for site personnel in December/January
‣ Implemented voluntary supplier payment moratorium of outstanding invoices by end Nov 08 amounting to
USDm ~14 for payment by mid Feb 09
‣ Reduced forward cash spending to a minimum, but maintaining critical support to allow progress on
conversion project
‣ Agreed with DWD to increase their VOs for critical equipment supply to maintain critical progress on
conversion project
‣ Consequences of cash cost cutting actions
‣ Some engineering and equipment delays with knock-on effect on conversion progress
‣ DWD maintains reasonable progress within their scope
‣ Delay in mechanical completion to March 2009
‣ Delay in ”sail-away” from yard to July 2009
‣ Cost impact modest and well within budget contingencies
‣ Overall: neutral cost impact estimated from schedule delay, debt restructuring and supplier
settlements
‣ Extended schedule adds USDm ~3.5
‣ DRB contract settlement adds USDm ~4.5
‣ Liquidation of DP Offshore adds USDm ~2.5 in increased overhead
‣ Reduced manning and other cost saving actions removes USDm ~1.9
‣ Debt restructuring removes USDm ~8.2 in finance expenses and interest cost
‣ Overall estimated cost increase of USDm ~0.4, maintaining budget contingencies at about USDm 10
22

DeeP Producer 1 - progress curves
‣ About 1.5% behind Oct 08 baseline at cut off week 52, due to slower progress during Dec 08
resulting from payment moratorium and cost saving actions
‣ New funding will accelerate progress, but slow progress in Dec 08 and Jan 09 not likely to be
recovered, leading to estimated 1 - 2 months delay
Incremental % Construction Progress Scurve
Cumulative %
4,00
100,00
23
3,50
90,00
3,00
2,50
New Baseline- 16 March
Planned Incr Act Incr
Plan Cumm Act CUmm
80,00
70,00
60,00
2,00
50,00
1,50
40,00
1,00
30,00
20,00
0,50
10,00
0,00
0,00
5-Jan-08
12-Jan-08
19-Jan-08
26-Jan-08
2-Feb-08
9-Feb-08
16-Feb-08
23-Feb-08
1-Mar-08
8-Mar-08
15-Mar-08
22-Mar-08
29-Mar-08
5-Apr-08
12-Apr-08
19-Apr-08
26-Apr-08
3-May-08
10-May-08
17-May-08
24-May-08
31-May-08
7-Jun-08
14-Jun-08
21-Jun-08
28-Jun-08
5-Jul-08
12-Jul-08
19-Jul-08
26-Jul-08
2-Aug-08
9-Aug-08
16-Aug-08
23-Aug-08
30-Aug-08
6-Sep-08
13-Sep-08
20-Sep-08
27-Sep-08
4-Oct-08
11-Oct-08
18-Oct-08
25-Oct-08
1-Nov-08
8-Nov-08
15-Nov-08
22-Nov-08
29-Nov-08
6-Dec-08
13-Dec-08
20-Dec-08
27-Dec-08
3-Jan-09
10-Jan-09
17-Jan-09
24-Jan-09
31-Jan-09

Deep Producer 1 - remaining work
‣ Major future milestones completion dates
‣ Mechanical completion: March 2009
‣ Disconnectable buoy delivery: March 2009
‣ Thrusters installation: April 2009
‣ Commissioning complete: May/June 2009
‣ Sea trials and testing: June/July 2009
‣ Main activities to completion:
‣ Electrical cable pulling and terminations
‣ Piping installations and hydro test
‣ Completing the living quarter
‣ Mechanical completion checks and tests
‣ Thrusters installation
‣ Commissioning work
24

Content
1) Executive summary
2) Assets and technology
3) Project status
4) Company and market opportunities
25

Highly capable organization with in-house competence
Compliance
Manager
(QA/HSE)
M. Magnussen
CEO
E. Saunes
Project
Manager DPP1
O.F. Jahnsen
Steering Committee DPP1
CEO Einar Saunes (Chairman)
CFO Christian Mowinckel
VP operations Kjetil Bruun-Olsen
VP Business Development Leif Aaker
VP Technology Ola Often
Director Contract Management Owe
Paulsen
Board member Gro Baade-Mathiesen
CFO
C. Mowinckel
Director
Contract
Management
O. W. Paulsen
VP,
Operations
K. Bruun-
Olsen
VP, Bus Dev
L. O. Aaker
Director HR
and
Organisation
H. Strand
VP,
Technology
O. Often
Engineering
Manager
J. Reiersen
Accounting
Manager
K. Eggen
Procurement
Manager
C. Biering
Operation
Manager
E. Brunborg
Sales and
Marketing
S. Bøtker
Office
Manager
M. H. Olsen
Site deputy
Engineering
Manager
B. Bjune
Lead Engineer
Process
J. Collett
Accountant
S. Crancenco
Logistics
Cliff
Rodrigues
Operation
Engineer
N.A Hall
General
Manager Rio
J. L. Phillips
Receptionist
L. Larsen
Lead Engineer
EIT
B. Jenssen
Senior
Engineer S&R
V. Rogn
Finance
Manager
J.E. Bekeng
Project
controller
(temporarily
A.J. Hansen)
General
Manager
Houston
S. Hill
Senior Cost
Controller
A. J. Hansen
Document
Control
S. Sandsdalen
Controller
T. Langerud
Procurement/
adm.
L. Lund
26

Experienced management team
‣ Einar Saunes (1955), acting CEO and Project Director
‣ 25 years extensive management experience from offshore, energy and construction industries
‣ Aibel, Alstom and ABB
‣ Christian Mowinckel (1954), CFO
‣ 25 years financial and project finance experience from offshore, energy, and finance industries
‣ Ocean Rig, Kværner, Elkem and DnB NOR
‣ Kjetil Bruun-Olsen (1956), Vice President, Operations
‣ 12 years offshore and 12 years shipping experience
‣ Fred. Olsen, Star Refer and Neptun
‣ Leif O. Aaker (1951), Vice President, Business Development
‣ 30 years offshore experience
‣ Boa Offshore, Fred. Olsen Energy and Golar-Nor Offshore (Petrojarl)
‣ Ola Often (1956), Vice President, Technology
‣ 25 years offshore engineering experience
‣ Fred. Olsen, PGS and ABB
‣ Owe W. Paulsen (1954), Vice President and Contracts Manager
‣ 25 years of contracting and project management experience from oil & gas and energy industries
‣ Statoil, Saga Petroleum, PGS, Kværner, Statnett
‣ Hege Strand (1968), Director HR and Organization
‣ 15 years experience in HR, organization and legal
‣ Sjøfartsdirektoratet and other public services
27

Board of directors
Substantial experience in founding offshore ventures, running world class shipping
and oil service contractors and performing financial management
‣ Erland P. Bassøe (1957), Co-founder & Chairman
‣ 25 years offshore experience
‣ Seajacks, Floatel Int., Scorpion Offshore, Frontier Drilling, ODS-Petrodata and Bassoe Offshore
‣ Jan R. Næss (1957), Director
‣ 25 years of shipping and offshore market research and investment experience
‣ Northern Navigation Intl, NFC Shipping Funds, R.S.Platou Asset Management and R.S. Platou Research
‣ Tone Wille (1963), Director
‣ 20 years experience from industrial companies
‣ Posten, Norfund, Elkem and Kværner
‣ Felix Tschudi (1960), Director
‣ 20 years experience in shipping and offshore
‣ Tschudi & Eitzen, Tschudi Shipping Company, International Transport Contractors and Estonian Shipping
Company
‣ Gro Baade-Mathisen (1956), Director
‣ 26 years offshore experience
‣ Aibel, ABB, Aker and Kværner
28

Target market areas
‣ Extended well testing
‣ Early production
‣ Deepwater field developments
‣ Field developments in hurricane areas
‣ Marginal field developments
‣ Environmental exposed development
FPSOcean head office
FPSOcean sales offic
29

Strong market fundamentals
‣ Increasing need for extended well testing
‣ Increase understanding of more complex reservoirs including sub salt, heavy oil and high
pressure/high temperature (HPHT) challenges
‣ Optimize development solutions for high cost deepwater developments
‣ Increasing need for early production
‣ Benefit from early cash flow
‣ Improve financial viability of high capex deepwater developments
‣ Gain additional reservoir knowledge during development phase for field life optimization
‣ Meeting challenging deadlines for “first oil” often required by governments
‣ Marginal and hurricane field development
‣ Allowing marginal fields with short life span to be developed
‣ Improving financial feasibility for marginal field development
‣ Increased cost and delivery times for installation and mooring
‣ Vessel dynamic positioning can be amortized over life of vessel, not life of field
‣ Competitive environment positive for FPSOcean
30

Several contract prospects in the pipeline
- FPSOcean in discussions with super-majors
Client ENI ENI Kitan Petrobras Kosmos
Unit DPP 1 DPP 1 DPP 1 DPP 1
Type
Extended well
testing, several fields
Marginal field
development
Extended well testing
or marginal field
Extended well testing
Water depth (meters) 100 – 1,300 350 1,450 – 2,500 1,000 – 2,000
Wells 1 – 2 3 – 6 1 – 3 Not determined
Oil prod. (bbl/day) 15 – 40,000 40,000 40,000 15 – 25,000
Possible LOI/
Contract
commitment
Jan/Feb 2009 April 2009 March 2009 April 2009
Mobilization 3Q 2009 1Q 2010 4Q 2009 4Q 2009
Contract terms
(years)
Customer driver
5 or 10 5 years and 5x1 years
options
Schedule and
disconnect - need
EWT soon
Schedule and
disconnect
5 years and options 1 - 2 years
EWT and field
developments
Reservoir
characteristics and
cash-flow
‣ Indicative rates have been submitted to several customers during 2008, ranging from USD 210,000 to
250,000 per day (generic topside – pre cost base reduction)
‣ Adjusted day rates indicated at +/- 200,000 per day (generic topside – post cost reduction)
‣ EBITDA target: USDm 40–45 per year
31

DPP1 - main market opportunities - long list
‣ Vanco EWT in Ghana with Lukoil as partner
‣ Area: Block Tano 500 m WD
‣ Start-up: Q3 2009
‣ LOI: Q2 2009
‣ ENI EP/FFD
‣ Areas: OYO, Nigeria
‣ Start-up: Q3 2009; 6 months operations prior to other commitments
‣ LOI: Q1 2009
‣ Exxon Mobile EWT/EP
‣ Areas: Angola, Nigeria, Brazil & Indonesia
‣ Start-up: end. 2009/ first half 2010
‣ LOI: Q2 2009
‣ Sonangol EWT/EP Angola
‣ Areas: Several Fields in Angola
‣ Start-up: end. 2009 / first half 2010
‣ LOI: Q3 2009
‣ BP Angola
‣ Area: Various Fields
‣ Start-up: Q2 2010
‣ LOI: Q2/Q3 2009
‣ Anadarko EWT/EP Brazil
‣ Area: Block BM-C30, Field Vahoo ( Sub-salt )
‣ Start-up: 2010
‣ LOI: Q3 2009
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FPSO operations
‣ FPSOcean has developed in house competence to define and provide basic requirements to
contractors, including criterias and KPIs, in order to have overall control of all management and
operational processes
‣ FPSOcean has built up a corporate QHSE management system, including a generic operations
philosophy. The operational Onboard Management System (OMS) is under development, and will
comply with FPSOcean, Class Society and regulatory requirements
‣ FPSOcean has signed a technical, operational and maintenance management agreement with
Bibby Offshore Ltd (BOL), a division of Bibby Line Group Ltd, for integrated services for its FPSO
Deep Producer 1. GreyStar Corporation, based in Houston, USA is working under subcontract to
BOL, providing topside process operations and management and has major activities in GOM and
in several international locations
‣ The BOL management agreement is currently under evaluation, and is bench marked with other
contractor alternatives. A decision on FPSO operational management structure and partners will
be decided after a successful restructuring and capitalization of FPS Ocean
33

2008 Q3 Profit & Loss
Consolidated profit & loss in USD Q3 1.1 – 30.9 1.1 – 31.12
2008 2008 2007
Income 0 0 0
Salary and staff costs 2 453 108 5 640 482 3 520 251
Depreciation and write-downs 50 450 652 50 621 462 197 139
Other operating costs 5 936 834 8 898 711 3 544 604
Operating result -58 840 594 -65 160 655 -7 261 994
Financial income 5 930 717 11 074 654 8 238 075
Financial costs -2 244 374 -7 490 244 -5 417 469
Net financial items 3 686 343 3 584 410 2 820 606
Result before tax -55 154 251 -61 576 245 -4 441 388
Tax 0 43 918 0
Net result -55 154 251 -61 620 163 -4 441 388
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2008 Q3 Balance Sheet
Consolidated balance sheet in USD 30 Sep 31 Dec
2008 2007
ASSETS
Fixed assets
Tangible fixed assets 208 377 371 149 679 996
Intangible fixed assets 216 111 287 577
Pensions 89 209 0
Prepaid investments 24 891 378 16 256 514
Total fixed assets 233 574 069 166 224 087
Current assets
Receivables 4 697 315 1 729 142
Derivative contracts 0 1 894 498
Cash and cash equivalents 15 903 906 65 845 546
Total current assets 20 601 221 69 469 186
Total assets 254 175 290 235 693 273
35

2008 Q3 Balance Sheet (cont’d)
Consolidated balance sheet in USD 30 Sep 31 Dec
2008 2007
EQUITY AND LIABILITES
Shareholders equity
Share capital 2 597 751 2 797 036
Share premium account 93 419 875 100 586 497
Other paid-up capital 3 374 336 536 246
Other reserves -4 302 423 -14 097 929
Retained earnings (accumulated losses) -68 582 642 -6 962 479
Total equity 26 506 897 82 859 371
Long-term liabilities
Bond issue 169 730 445 114 738 194
Pensions and similar commitments 0 26 864
Total long-term liabilities 169 730 445 114 765 058
Short-term liabilities
Supplier and other short-term liabilities 57 894 030 38 068 844
Tax payable 29 524 0
Deferred tax 14 394 0
Total short-term liabilities 57 937 948 38 068 844
Total liabilities 227 668 393 152 833 902
Total equity and liabilities 254 175 290 235 693 273
36