DRAFT

0 0

Norshore Company Presentation

February 2013

February 2013

0

DRAFT

1

Background and business idea

• Established April 2007.

• Combining known drilling technology into a new

patented drilling concept.

• Low investment compared to traditional drilling

vessels big savings for oil companies.

• Low operational risk, no hydrocarbons involved.

• First vessel will be delivered from Batamec Shipyard

in Q2 2013.

• Signed Agreement with Shell for first vessel.

• Construction contract for the second vessel, including

three options to be effected soon. A total of 5 vessels

envisaged.

• Listing at Oslo Stock Exchange planned.

• Current equity MUSD 138, convertible loan of MUSD

5 from shareholder. No other debt.

• On delivery financing to be backed by Eksportkreditt

and GIEK.

DRAFT

Ownership structure Norshore Group

Norshore Holding AS

(Norway)

Norshore

Management AS

(Norway)

Norshore Shipping

Ltd.

(Cyprus)

Norshore AS

(Norway)

Norshore Atlantic

BV

(Netherlands)

Norshore Pacific

BV

(Netherlands)

Norwegian crew International crew Onshore

organization

Construction contract

with Otto Marine and

NOV

Will be owner of the

Norshore Atlantic

Vessel

Ownership of the

new Ship Building

Contract

Private Joint Company

Administration (CEO & CFO)

Owner of patent

Owners Equity 138 million USD

100% 100% 100% 100% 100%

2

DRAFT

Shareholders February 2013

3

• All main shareholders, except

Ocean Champion Holding

Ltd., are Norwegian.

• Appr. 30 % of the shares are

owned by Board members

• Total Share Capital; NOK 760

mill (USD 138 mill*).

• Total number of shares;

76 mill

* Exchange rate NOK/USD=5,5

Name (%)

Ocean Champion Holding Ltd

40,3

Ocean Champion, B-shares 10,1

Ability Holding AS (Board Chairman) 12,1

AID Invest AS 9,6

SJA Invest AS (Board Member) 10,0

PIR AS (Board Member) 5,0

Nord-Peko Holding AS 2,9

Ability Holding Invest AS 2,0

Bonanza Holding AS 1,3

THH 1 AS 1,3

Lande Investering AS 1,3

Haugum Invest AS (Board Member) 1,1

Nor-Par Holding AS 0,7

THH AS 0,7

SOCAP AS 0,4

PJ Investering AS 0,4

Others 1,0

Total 100%

DRAFT

Arnstein Hernes

CFO

• B.A., Siviløkonom and with an MBA from IESE Business School, Barcelona

• More than 20 years experience from the oil industry within finance and administration

• Experience from Elf, Norsk Hydro, ENI and Kverneland ASA (Norway and France)

• Last position was CFO with COSL Drilling Europe (former Awilco Offshore ASA)

Petter H. Tomren

President & CEO

• University of Stavanger – BSc / University of Tulsa - MSc in Petroleum Engineering

• More than 30 years experience from the oil industry, mostly in managerial positions

• Mr. Tomren has worked for DNO, ExxonMobile, Statoil, Odfjell and Prosafe. His last

position was President & CEO with COSL Drilling Europe (former Awilco Offshore)

Experienced Senior Management

Trond Haugland

VP Operation/Market

• University of Stavanger – BSc Petroleum Engineering

• Norshore (3y), Drilling Consultant (Statoil/ Hydro) and GM in Norshore

• Norsk Hydro (12y) Drilling Eng. Drilling Superintendent, Drilling Manager Sonangol

• BJ Services (1.5y) – Field Engineer

Olav Lie

VP Project

• Naval Academy / Bergen Maritime College

• Geoshipping AS (8y), Executive Manager / Operations Manager

• Nomadic ASA (2y), Operation / Port Captain

• The Norwegian Navy (16y) submarine, Commanding Officer

Gøran Furland

QHSE Director

• Educated at the Ålesund University College as Ship Master/Captain (Nautical

Science) and at the University of Bergen within Safety and Risk Analysis.

• Sailed as Ship Master and OIM in international waters

• Last position as OIM on J/U Maersk Guardian

4

Michele Steinsland

HR Manager

• Educated at Seton College in Australia.

• Broad international experience from the oil industry, has worked with companies

like; DOF, Seadrill, Total Marine Services, Diamond Offshore

• Last position with Odfjell Drilling responsible for recruitment/training of new crews.

DRAFT

Geir N. Pedersen

Chairman

• Founder of the oil service company AGR (listed on Oslo Stock Exchange 2006)

• Founder and chairman of several other oil service related companies, including an oil

company

• 22 years experience in the oil service industry

Per Inge Remmen

Board member

• Founder of Drilling Production Technology (DPT), acquired by AGR

• More than 22 years experience from the the upstream oil industry

• Key player in the development and use of new drilling technologies in the North Sea

Per Haugum

Board member

• University of Stavanger – MSc Petroleum Engineering

• DPT/AGR (6y), Co-founder of DPT and Engineering Manager

• Norsk Hydro (12 y), Drilling Eng., Drilling Supervisor, Drilling Superintendent

• Aker Drilling (now KCA Deutag) (3 y) – Offshore positions and Drilling Eng.

Board of Directors

5

• Founder of Dalseide & Fløysand Group AS

• 30 years experience in Norway’s leading company supplying surface treatment and fire

proofing (Dalseide & Fløysand Group AS)

• Experience as chairman and board member in several companies

Svein Fløysand

Board member

DRAFT

6 6

Startup (SPUD)

Drilling of 36’’ section

30’’ conductor installed

/ cemented Drilling of 26’’ section

20’’ casing

installed / cemented

Install protection frame (Norwegian requirement)

Frame installed (Norwegian requirement)

Change location

Top Hole Concept Step by Step Water depth capacity 70 – 3,000 meter

6

Very low operational risk, no hydrocarbon exposure

DRAFT

Well intervention vessels are used to

increase the oil recovery from existing

subsea wells

Wireline/tractor/coil tubing riserless well

intervention

Cooperation with third party for subsea

lubricator, X-mas tree control system

However, high complexity of equipment and

increasing market competition

Well Intervention

Increasing oil recovery

Slender well

Saving well costs

The Slender Wells delivers large

production casing or liner size (7”) while

reducing the size of the intermediate and

surface casing strings

Vessel prepared for installation of 8 x 125

kips Riser Tension system and BOP

Water depth between 150 and 1,500

meters or up to 3,000 meters with support

vessel

Norshore will drill the complete well,

saving 35% of well cost

7

Subsea construction

Additional capabilities

Subsea module Installation

X-mas tree installation

Manifold installation

Wet tow (installation of large subsea

constructions – 450 ton lifting capacity)

Geotechnical coring

ROV support - survey

LRP/EDP

6 5/8” DP

Riser

or Riser

ID – 7,25”

Lubric.

Valve

Sec.

Rotatable

Riser

Tension Ring

A True Multi Purpose Vessel

Rotatable

Riser

Tension Ring

Rotatable

Riser

Tension Ring

Rotatable

Riser

Tension Ring At

approximately

50 m. 13 5/8’’

Sub surface

BOP

Seabed

Isolation

device

16’’ High

pressure

casing riser

DRAFT

Shell Agreement, Atlantic

• Global 3 year Agreement, signed 30. November 2011

with Shell Global Solution International B.V., a

subsidiary of Royal Dutch Shell Plc.

• Shell’s intention is to keep Atlantic fully utilized by

themselves, alternatively have farm in from other oil

companies

• Currently, Shell is establishing the work program

based on vessel delivery July 2013

8

DRAFT

Norshore Project organization

9

• Norshore will have

people at yard and

with MT from Contract

effective Date.

• Total of 47 people now

at Batamec for Atlantic

• 30 of the 47 persons

are expats and will

join Norshore Atlantic

or the Pacific Project

team

• Key people from

Atlantic project team

will join the Pacific

project team

DRAFT

10 10

Atlantic on Quay Side

DRAFT

11 11

Bridge Bridge

DRAFT

12 12

ROV

Door

ROV Operation room

Cement Unit Mess Room

DRAFT

13 13

Conference Room Client office

Gymnasium Hospital

DRAFT

14 14

Engine Room

DRAFT

15 15

Thruster Rooms

DRAFT

16 16

Switchboard & Engine Control Room

DRAFT

17 17

Mud Pump Room, Mud Mixing Room, HPU Room

DRAFT

18 18

Drilling Equipment

DRAFT

19 19

Drilling Equipment

DRAFT

20 20

Drilling Equipment

DRAFT

Norshore Pacific

21

DRAFT

Norshore Pacific; One Contract

22

Selected shipyard will be awarded an all

inclusive, fixed price and fixed delivery

contract. Including; vessel design,

engineering, marine systems, drilling

package., installation, interface,

commissioning and final sea trials

National Oilwell Varco is nominated

supplier for the drilling package.

Marin Teknikk is nominated vessel

designer.

Owner will take responsibility for the

functionality of the drilling package

Detailed Technical Specification part of the

Contract

Norshore approved vendor list will apply

Shipbuilding Contract

Shipbuilding Contract

DRAFT

MT 6028 is a bigger vessel compared to Atlantic.

156 m x 28 m (compared to 115m x 22m)

Drilling capacity slightly increased

26 February 2013 23

Norshore Pacific

DRAFT

Norshore Pacific

Specification and Capabilities

Capacities Main particulars

• Length overall: 156,60 m

• Breadth molded: 28,00 m

• Depth main deck: 11,50 m

• Max draft midship: 7,95 m

• Deadweight approx.: 13500 t

• Gross tonnage: 11800 t

• Net tonnage: 4600 t

• Moon pool: 8,0 x 8,0 m

• Speed: 14,5 kts

• Fresh water: 1,000 m3

• Potable water: 800 m3

• Fuel oil: 1,400 m3

• Ballast water: 4,100 m3

• Liquid mud: 2,250 m3

• Anti heeling: 800 m3

• Dry bulk (cement/barite): 500 m3

• Hydrocarbon slop tank: 85 m3

• Methanol: 7 m3

• Work deck: 2,200 m2

Equipment Class notation

• Main engines: RollsRoyce (6pcs) –

20,500 kW

• Thrusters: RollsRoyce – 2x3,500 kW,

4x1,500 kW and 1x880 KW

• Drilling tower: NOV (700t A & P HC)

• Drilling equipment: NOV (including

3x1,600 hp mud pumps)

• Offshore crane: NOV (150t - 3000 m

AHC)

• ROV: TBN (150 hp / 3000 m) option

• LARS: TBN (4,000 m AHC) option

Using the right-sized tool = Significant cost-savings

Main capabilities

As efficient as semis and drillships

NCS regulations, DNV class, Norwegian flag

Improved safety

National Oilwell drilling package

Large mud capacity (2,250m3)

High capacity mud pumps (3x1600 HP)

High capacity derrick and top drive (700 t)

Large pipe deck capacity (2,200 m3)

DP3 capability

Reduced need for support vessels

Prepared for RMR (Riser less Mud Recovery)

DNV *1A1 – Ship-shaped Drilling

Unit - SF – E0 – DYNPOS AUTRO-

DK – Heldk SHF – LFL* – HL(2,8) –

COMF-V(3) - Clean design

DRAFT

25 25

Bringing the future one step closer…

Contacts:

Petter H.Tomren, CEO, Tel.: +47 9321 9215, Email: pt@norshore.no

Arnstein Hernes, CFO, Tel.: +47 9740 6241, Email: ah@norshore.no