Floating Production SystemsPresentation atTulane Energy Week 2010

Jim McCaul IMA

Outline of PresentationOverview of FPS TechnologyCurrent FPS SituationFPS Projects Being PlannedForecast of FPS Orders International Maritime Associates - * - www.imastudies.com

Four Basic FPS SolutionsFPSOProduction SemiTension Leg PlatformProduction Spar International Maritime Associates - * - www.imastudies.com

FPSO International Maritime Associates - * - www.imastudies.comSerpentina FPSOPazflor FPSO

WeathervaningSpread Moored

FPSO International Maritime Associates - * - www.imastudies.com

PRO Has field storage and can be used in remote locations. Can operate on shallow or ultra-deepwater fields. Less weight sensitive than other types of FPSs. Leasing transfers some risk from field operator to contractor. Assumed residual value a competitive tool in leasing bids.

Deck area allows flexibility in process plant layout. Surplus/aging tankers can be used for conversion. Can be modified/redeployed following field depletion.Quick disconnect turrets enable emergency relocation. CONSubsea tiebacks create higher well maintenance costs. Turret/swivel machinery expensive, high maintenance. Redeploying an FPSO not as easy as it may appear.

Production Semi International Maritime Associates - * - www.imastudies.comP-51 Production Semi

PRORelatively wide deck space provides good layout footprint for process plant.Can support large number of risers. Has relatively little surface motion.Water depth not a limitation. CONNo storage requires either an FSO or pipeline offtake. Hull weight carrying capacity imposes limitations on deckload. Deck space more limited than large FPSO. Dry tree designs developed, but to date wet trees utilized with production semis.

Tension Leg Platform International Maritime Associates - * - www.imastudies.comMoses TLPSea Star TLPETLP

PROSurface motion limited by tendon tension, providing stable platform for dry trees. CONTendon weight grows with water depth and increasingly restricts deck payload capacity. Deepest TLP water depth to date has been Magnolia, in 1430 meters water. TLPs are inherently unstable and will capsize if tendons fail.

Production Spar International Maritime Associates - * - www.imastudies.comKikeh Spar

PROCan accommodate dry trees. Water depth does not seem to be a limitation Perdido Host spar is in water depth of 2400 meters. Spars can provide storage but to date no spar has been used in this capacity. Inherently stable, will remain upright if moorings fail.CONNeed to utilize heavy lift or floatover for hull/topsides mating an expensive proposition.

Optimum Application Range International Maritime Associates - * - www.imastudies.comSource: FloaTEC, Review of Deepwater Floating Structures and Dry Tree Semi Developments, November 2006

FPS Units in Operation(as of July 2010)22 tension leg platforms43 production semis 152 FPSOs18 production spars8 production barges5 FSRUs 95 FSOs

International Maritime Associates - * - www.imastudies.com

Where FPSs are Operating(as of July 2010) International Maritime Associates - * - www.imastudies.com

FPSs Being Built/Converted(as of July 2010)39 FPSOs (16 new, 23 conversions)4 production semis (new) 1 TLP (new)1 FSRU (conversion)4 FLNGs (new)3 MOPUs (2 new, 1 conversion)2 FSOs (1 new, 1 conversion)

International Maritime Associates - * - www.imastudies.com

Where FPSs Are Being Built(as of July 2010) International Maritime Associates - * - www.imastudies.com

FPS Construction Has Shifted to Asia(number of facilities involved in FPS construction/conversion) International Maritime Associates - * - www.imastudies.com

Where FPSs Will Be Installed(as of July 2010) International Maritime Associates - * - www.imastudies.com

Trend in FPS Order Backlog International Maritime Associates - * - www.imastudies.com

FPS Projects Planned/Under Study(as of July 2010) International Maritime Associates - * - www.imastudies.com

Forecast of FPSO OrdersOver the Next Five Years International Maritime Associates - * - www.imastudies.com

Forecast of Production Semi OrdersOver the Next Five Years International Maritime Associates - * - www.imastudies.com

Forecast of TLP OrdersOver the Next Five Years International Maritime Associates - * - www.imastudies.com

Forecast of Production Spar OrdersOver the Next Five Years International Maritime Associates - * - www.imastudies.com

Forecast of FSO OrdersOver the Next Five Years International Maritime Associates - * - www.imastudies.com

Summary Forecast of FPS OrdersOver the Next Five Years International Maritime Associates - * - www.imastudies.comMost Likely Scenario

Scenario 1 $50-70 OilScenario 2 ~$80 OilScenario 3 $90-100 Oil Type FPSONo. UnitsTotal CapexNo. UnitsTotal CapexNo. UnitsTotal Capex(bil of $)(bil of $)(bil of $)Production Floaters FPSOs95$56.6120$67.1150$81.8 Semis10$5.612$6.114$6.7 TLPs3$2.24$3.25$3.8 Spars 3$1.5 4$1.8 5$2.1All production floaters111$65.9140$78.2174$94.4

Storage Floaters FSOs25$2.630$3.235$3.7Total Market136$68.5170$81.4209$98.1

International Maritime Associates, Inc.1250 24th Street, NW Suite 350Washington, DC 20037 USATel: 202-333-8501 (Washington)Tel: 832-203-5622 (Houston)Fax: 202-333-8504Email: imaassoc@msn.comWebsite: www.imastudies.com

**********************