london 15 january 2008 - aker floating production – 2006 vetco aibel – senior vp tche and prod....

London 15 January 2008

The FPSO Market according to IMA*.The underlying market fundamentals have never been stronger because floating production is a development option being studied in more than 100 projects in the planning stages.

The lure of $60/bbl crude is drawing capital into the FPSO sector.

Many of the projects coming on line during the next 5 years stem from exploration activity in the late 1990’s as well as the early part of the current energy cycle.

The number of active deepwater drilling rigs is projected to increase substantially during the next 2 years, and the FPSOs are undoubtly the best solution for producing many of the soon to be discovered fields.

We are in the beginning stages of a long lasting FPSO cycle.

* International Maritime Associates Inc. – Washington

3Part of the Aker group

FPSO in the value chain

Exploration

Production

Abandonment

Field Development

Installation

Drilling

Seismic

Platform supply & anchor handling

Engineering

Floatingproduction

Production & Operation

ExplorationDrilling

Decomis-sioning

Products & Technologies

Production Drilling

Assembly

Fabrication/ Construction

Sampling

Heavy Lift

Heavy Lift

Maintenance &Modifications

SubseaConstruction


Increased Worldwide E&P spendingE & P sp e n d i n g v s o i l p r i c e

0

1 0

2 0

3 0

4 0

5 0

6 0

7 0

1 9 6 2 1 9 6 7 1 9 7 2 1 9 7 7 1 9 8 2 1 9 8 7 1 9 9 2 1 9 9 7 2 0 0 2 2 0 0 70

5 0

1 0 0

1 5 0

2 0 0

2 5 0

E & P s p e n d in g (U S D b i l l . ) W TI o i l p ric e (U S D /b a rre l)

S o u rc e : S m it h B a rn e y

There has been an increase in E&P spending the last five years.

The search for new resources has taken the oil industry out to the deepest waters to find unexplored oil reserves - This has the last years given an increased demand for FPSOs.


Aker Floating Production in BriefAker Floating Production`s business is to own, operate, and charter out converted tankers equipped for oil and gas production, storage and offloading (FPSO)Aker Floating Production will compete in the segment for benign waters with medium to small fields. Established 2006Market Cap: NOKm 1,848The company has so far purchased three tankers for conversion to FPSOsAker ASA owns 51,1% of the Aker Floating Production ASA

Credit Strengths:

Contract with Reliance ensures medium term visibilityGood relationship with other companies in the Aker groupStrong current FPSO market

December 2007 6Part of the Aker group

Aker Drilling44.9 %

AkerSeafoods

64.95 %

This is Aker

AkerBioMarine

76.3 %

AkerExploration

54.6 %Aker DOF

Supply

50 %

Aker ownership shown (in %)1 Held by Aker Holding

Aker OilfieldServices

51.7 %

Aker FloatingProduction

51.1 %

Aker Kværner40.8 %1

Aker PhiladelphiaShipyard

50.3 %Aker American

Shipping

53.2 %


AFP Management and Board of Directors

Svein Olsen - CEO

Ivan Borner CFO

Mikkel Martens EVP and Commercial Director

Arne Hygen Tørnkvist EVP and technical Director

Leif-Arne Langøy – Chairman

1998-2006 Bergesen Offshore, MD1994-1997 Fred Olsen Production, MD1992-1994 Offshore Production AS, MD

2005-2006 Aker American Shipping – Consultant in IPO1984-2004 Elkem – Controller/CFO in Norway and USA

2004 – 2006 Vetco Aibel – Senior VP Tche and Prod. Sys1991 – 2004 Project Director and Senior VP, Marine Offshore

1996-2006 Bergesen Offshore, Director of Engineering and Project Management1991-1996 DNV, Oslo and Korea

Chairman and CEO of Aker ASA

Nils Are K. Lysø - Director

Terje Andersen, Director

Head of Aker Capital

Former CEO of Farstad Shipping

Vibeke H. Madsen, DirectorCEO of HSH

Kristin K. Devold, DirectorFormer Minister of Defence


Key Investment ConsiderationsAker Floating Prod has acquired three High class suezmax vessels to be converted at Jurong

Reliance Industries Limited, India - bareboat charters Aker Smart 1 on a 10 year firm contract worth USD billion 1.1

Firm Long Term Contract with

Reliance, India

Low new-build risk

Management with a proven track record

Strong Aker Group

relationship

Jurong to deliver Aker Smart 1 FPSO – Q1 2008,

The yard is a world leading shipyard – with a world know track record

Known for their high experience on FPSO conversions and reliability due to delivery

Conversion of Aker Smart 1 is at > 90%

Aker ASA holds a total of 51,1% share in Aker Floating Production ASATop 5 shareholders hold over 65% of Aker Floating Production ASAManagement has a proven FPSO track record through 24 conversions

Aker Floating Production benefits from close relationship with the other Aker companies.

Aker Floating Production has a favourable access to resources

USD billion 1.1 contract with The Reliance Group exceeds the USDm 650 capex

The AKFP Smart#1 is tailor made for Reliance well – mutual dependant

Contract Bareboat 10 years

Firm Contract Exceeds Capex

Oil price hovers around USD 95/barrel.

High need for new oil producing fields – deeper depths and more harsh environment

Visible FPSO demand outlook the forthcoming years

Strong Market Environment


SHAREHOLDERS & EQUITY STORY PER JANUARY 7, 2008

Listed on OBX

Ticker: AKFP

Share price: NOK 80.50

High since March 2006 NOK 94.50

Low since March 2006 NOK 66.00

Average NOK 82.35

Company Shares %AKER ASA 11,241,806 51.10%UBS AG, LONDON BRANCH 1,794,000 8.15%CITIBANK N.A. LONDON 1,010,000 4.59%MORGAN STANLEY & CO INTL PLC 937,136 4.26%PICTET & CIE BANQUIERS 880,000 4.00%DEUTSCHE BANK AG LONDON 709,732 3.23%UBS AG, LONDON BRANCH 667,400 3.03%JPMORGAN CHASE BANK 587,017 2.67%DEUTSCHE BANK AG LONDON 515,000 2.34%DRESDNER BANK AG LONDON BRANCH 323,400 1.47%JPMORGAN CHASE BANK 263,500 1.20%VERDIPAPIRFOND ODIN NORDEN 245,000 1.11%BORGESTAD ASA 200,000 0.91%CREDIT SUISSE SECURITIES 178,700 0.81%PENSJONSKASSEN STATOILHYDRO 153,741 0.70%VERDIPAPIRFOND ODIN NORGE 149,100 0.68%SKANDINAVISKA ENSKILDA BANKEN 139,400 0.63%NORDEA BANK NORGE ASA MARKETS 120,000 0.55%PUMPØS A/S 119,900 0.55%DEUTSCHE BANK AG LONDON 105,368 0.48%Total 20 largest shareholders 20,340,200 92.46%

Aker Floating Production equity price

Top 20 shareholders

AKFP 5 largest shareholders

AKER ASA

234

5

Other


Benign waters providing significant growth

West Africa

Brazil

SE Asia

MexicoPG / India


FPSO Rate DevelopmentFPSO Lifting Cost per BOPD

1Q 06

Note that several factors influence the day rate level in addition to lease period, area and capacity

Market trends

?Oil

PriceRig

RatesSkilled

resourcesSpare

productioncapacity

FPSO Rates

FPSO Lifting Cost per BOPD

3Q 07

USD 3,00

USD 2,00

USD 4,00

USD 6,00


Aker responding to a growing FPSO demand

Increasing offshore drilling activity

Strong backlog of developmentprojects in benign waters

More mid-size operators

Close to 100% utilisation of FPSO fleet in the middle and upper segment

Limited sector capacity/Scarceresources

Response: Aker Smart FPSOsObservations


AFP’s Position in the Market Place

Harsh Weather

Medium & Independants

Small Independants and Indigenous

SBM, MODEC , Saipem, Prosafe, BWO,

MODEC ,Prosafe, BWO

F.O.P & Aker Floating Production

Sea Production, FPSOcean, Nortech, Bumi

Armada, Tanker Pacific, PetroProd, Oneoffs

Maersk, Petrojarl-Teekay, Bluewater

Benign to Moderate Weather

Majors:

Maersk, Petrojarl-Teekay, Bluewater

- Major growth area based on current drilling programs

- Needs re-fill following Prosafe & BWO movements

- High spec. and volume engineering driven

- There will be more competition

Sevan


FPSO Aker Smart 1, 2 & 3- Facility Description

•Oil Production Capacity 60 - 70.000 bopd - 120.000 bopd optional

•Water Production Capacity 50.000 bwpd - 100.000 bwpd optional

•Liquids Capacity 75.000 blpd - 150.000 blpd optional

•Gas Production Capacity 100 mmscufd - 200 mmscufd optional

•Gas Compression/Export Prepared for - Optional

•Water Injection Prepared for - Optional

•Mooring System Spread Mooring - Turret Mooring optional

•Crude Storage Capacity 1,3 million barrels

•Water Depths Shallow to Ultra Deep.


Aker Smart – Reliance MA FPSO


Customers

Reliance FPSO#1

Customer FPSO#2

Customer FPSO#3

Customer FPSO#4

T/C-rates

HSE and QA Systems track Record. Making use of the best of the maritime and offshore cultures”

Subsea systems and field lay-out

Marine Engineering, Utilitiesand design capabilities

Alliances with key suppliers

Jurong

Conversion yards

AMC

Subsea Systems

Process modules and Engineering Capabilities

Process and E & T

Extensive industrial platform& access to financial resources

Unique access to resources

In-house capabilities External capabilities

GEOReservoir expertise

Installation and hook-up capabilities

Subsea well intervention

http://www.akerkvaerner.com/Internet/

http://www.akerkvaerner.com/Internet/


Conversion at Jurong Shipyard

http://www.jspl.com.sg/

A subsidiary of SembCorp Marine Ltd with a Market Cap of SGD 7.260 million

Track record within repairs, new builds and conversion

The yard is known for their one-stop total service to the oil & offshore industry

Preferred partner in the oil & offshore industry

Jurong Shipyard Pte Ltd, Singapore is one of the world leading shipyards. Since 1975, Jurong Shipyard has

completed 39 FPSO/FSO conversions

Handling new builds, repairs, conversions and offshore engineering

http://www.jspl.com.sg/


Strong counterpart in Reliance Industries Ltd.

• The Reliance Group is India's largest private sector enterprise, with business in the energy and materials value chain. Group`s annual revenues are in excess of US$ 25 billion. The Company is a Fortune Global 500 company.

• The Group`s activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals, textiles and retail.

• Rating: (S&P) BBB• Rating: (Moody's) Baa2

MA6 Development field (D6)• The SMART#1 FPSO will be used in production

on the MA6 Development field• Reliance Industries operates together with Niko

Resources Ltd.• Located in the Bay of Bengal in South East India. • The FPSO will operate on a depth of 1100 –

1400ft.• Discoverer 534 are drilling the wells on the D-6

block

Source: Reliance Ltd/Niko Resources Website


Reliance MA Development – Main Parameters• Operator - Reliance Industries Ltd.

• Water Depth - 1200 meters at FPSO location

• Environment - Typhoon Conditions

• Oil Production Capacity - 60,000 bopd (80,000 blpd)

• Gas Injection Capacity - 100 mmscufd (3 million cbm/d)

• Gas Export Capacity - 300 mmscufd (9 million cbm/d)

• Sub-sea Facilities - Well X-trees & Controls

- Risers & Umbilicals

- Infield Flowlines & Umbilicals

- Subsea Manifolds

• Installations - FPSO & Sub-sea facilities, excl. x-trees

• Production start - April 2008.

• FPSO Contract length - 10 years


Reliance – FPSO Aker Smart 1 – Key Milestones

• Letter of Intent – Order to Proceed January 2007• Charter Contract/Capex Component May 2007• Operation & Maintenance Contract October 2007• Sailaway from Jurong Shipyard March 2008• First Oil April 2008


Power Module 1 – Steam turbines Current StatusDelivery S.pore: 14.11.07


Electrical Distribution Module Current StatusDelivery S.pore: 17.11.07


Power Module 2 – Gas turbines Current StatusDelivery S.pore: 14.11.07


Topside Utility Module Current StatusDelivery S.pore: 17.11.07


HP Separation ModuleCurrent Status

Delivery S.pore: 23.12.07


LP Separation Module Current StatusDelivery S.pore: 02.12.07


Gas compression modules Current StatusDelivery S.pore: 31.01.08


The Manifold Module Current StatusDelivery S.Pore: 26.12.07


Turret and Buoy Current StatusDelivery S.pore: 01.10.07Delivery S.pore: 05.15.07Delivery MA: 06.01.06


Swivel Current StatusDelivery S.pore: 19.01.08


Cranes & Living Quarter Current StatusDelivery S.pore: 07.01.08Delivery S.pore: 19.01.08


• Cost to First Oil USD 650 million• Contract Duration 10 years• Debt Financing 85 – 90%• Debt Paid Down 10 years• Bare Boat Contract 10 years USD 1.1 billion• BB dayrate USD 294,000

Reliance Key Figures


AFP EBITDA Projection

Aker Floating Production EBITDA Projection per.quarter

4th q 07 1st q 08 2nd q 08 3rd q 08 4th q 08 1st q 09 2nd q 09 3rd q 09 4th q 09

Potential boat #2&#3RIL in excess of OBPOriginal Business Plan


Balance Sheet 3 Q 2007

Actual Actual Actual31 Dec

Amounts in USD million 2007 2006 2006Property, plant & equipment 312.5 27.0 39.6 Goodwill 125.9 125.9 125.9 Interest-bearing long-term receivables 5.0 1.9 1.9 Inventory, work in progress, trade and other receivables 31.3 7.8 9.1 Cash and bank deposits 44.3 105.6 96.0 Total assets 519.0 268.3 272.5

Total equity 262.5 267.4 268.7 Pension liabilities 0.2 - 0.2 Interest-bearing loans 35.7 - - Other non current debt 0.0 - - Other current interest-bearing debt 203.0 - - Tax payable and trade and other payables 17.6 0.9 3.6 Total equity and liabilities 519.0 268.3 272.5

30.09


FINANCING STRUCTURE

Aker Smart 1 – Pre-delivery- total Capex USD650 m

Aker Smart 2 – Pre-delivery – total Capex TBD

Aker Smart 3 – Pre-delivery – total Capex TBD

Aker Smart 1 – Post-delivery



MUSD 270 Pre-delivery Financing

MUSD 200 Commercial Paper issue

MUSD 150 9M commercial paper

Secured bank loan MUSD 12.5 (hull)

[New secured bank loan (TBD)]

MUSD 150 9M commercial paper

Secured bank loan MUSD 12.5 (hull)

Secured bank loan USD 583 m

Secured bank loan (TBD)

[New secured bank loan (TBD)] Secured bank loan (TBD)

Equity$150 m

Aker Floating Production ASA has secured post-delivery bank financing of USDm 583,

subject to first oil from Aker Smart 1 (Reliance Project)

Included as short-term

part financing of Aker Smart

1 completion

Post delivery of Aker

Smart 1, proceeds of

Commercial Paper will be

utilised as part financing of

Aker Smart 2

Q1 2008 Q2 2008 Q2 2009

Sources & uses of the new commercial

paper

MUSD 25 Drawn bank debt


Strategy – Way Forward through to 2010

2007 2008 2009 2010

Aker Smart 1 at Jurong - Reliance

At JurongPreparations

At JurongPreparations

Preferably Jurong

Aker Smart 2 -

Aker Smart 3 -

Oil FPSOAker Smart 4 - Option 1

Option 2 LPG FPSO Preferably Jurong

Production Revenue

Production Revenue

Production Revenue

Concluding Remarks:

Aker Floating Production provide an attraction to a growing market through;• Having the broad expertise and resources of the Aker Group at hand in Norway and Internationally.

• Building up a resources basis with a long term view, i.e.; Predictability & Comfort.

• Providing a competitive edge through the ability to include complete sub-sea facilities; - total field development.

• Provides the opportunity for Fast-Track Field development.

london 15 january 2008 - aker floating production – 2006 vetco aibel – senior vp tche and prod....

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