Skeie Drilling & Production ASA (SKDP), established in September 2006, islocatedinKristiansand,Norway.SKDPis49%ownedbySkeieGroupAS,5%byKeppelOffshoreLtd.and46%byexternalinvestors.

SKDP has signed contracts for design and construction of three KFELS N-Class Jack-up Units with delivery first quarter, third quarter and fourth quarter of 2010.

The Jack Ups are designed for both drilling and production. The latest technology available is being applied and the Jack Ups are built according to the most stringent requirements for operation in the Norwegian Sector of the North Sea.

Recommended 04.2008 500

N-Class – The new harsh environmentjack-updrilling/production rig

Designed in compliance with relevant and latest Norwegian Continental Shelf requirements as defined by the Petroleum Safety Authority Norway (PSA) .

Main office:Tordenskjoldsgate 9NO-4612 Kristiansand S NorwayTel +47 38 04 19 40Fax +47 38 04 19 41www.skeiedrilling.commail@skdp.no

Project Office:Rådhusgt. 3, P.O.Box 69NO-4661 Kristiansand SNorwayTel +47 38 04 12 00Fax +47 38 04 12 01www.skeiedrilling.comDoc.controller@skdp.nojackup@skdp.no

Trondheim Branch:Olav Tryggvasons gate 2BNO-7011 TrondheimNorwayTel +47 73 10 84 00Fax +47 73 51 05 01www.skeiedrilling.commail@skdp.no

Cantilever capable of being skidded fore and aft with center line (primary cantilever position) of rotary up to 75 ft (22,86m) aft of stern. It can be relocated 26 (7,92m) ft to port (secondary position).

Skeie Drilling & Production new Jack-Up Drilling Units (Hull B300, B301 and B306) at Keppel FELS Ltd shipyard in Singapore are a significantly upgraded version of the well-proven KFELS Super B Class. The new type is called N-Class, designed to fit the NCS and Norwegian Authority requirements with regard to North Sea environmental data and HSE working conditions.

The Units are designed with drilling capabilities that exceeds those of competing units, and special emphasis has been given to areas that will give future clients concrete benefits as well as reaching targets beyond those of competing units:

• TheUnitsarelaidouttoeffectivelydrillinthedeepandultra-deep(35,000ftand beyond) gas segment. To accomplish this objective the units are fitted with a2,000,000lbsHoistingAssemblyandTopdrive,capacitytorack35,000ftof57/8”Drillpipe,4,600hpDrawworksandwithalargecapacityMudSystem.

• TheHoistingAssemblycapability;togetherwiththelargeMudPumps,LiquidMudand Bulk capacities, ensure that the units can reach remote Oil & Gas Pockets by means of Horizontal Drilling.

• TheWellControlEquipmentisarrangedfor15,000psiandhightemperatureoperations (– HPHT wells).

• TheUnitsarealsoarrangedforbeingeffectivelyusedinproductiondrillingmodefrom new or existing wellhead platforms, or by means of an own carried wellhead module and platform.

• Askiddingsystemenablesthewellcentertobemovedwithina75x40ftenvelopeboth in primary and secondary position of the cantilever.

• Minimizingtimelostduringjackingandpre-loadoperationshasbeenanotherimportant criterion for this type of Unit. The units are designed to allow jacking with full Pre-load in a single stage operation.

DESIGN & CAPABILITIESKFELS Class NWater Depth 430 ft (drilling) 400 ft (drilling & prod.)Drilling Depth 35,000 ftAccommodation 120 persons

CLASSIFICATIONDet Norske Veritas (DNV)DNV DRILL (N)DNV OSS-101/201

PRINCIPAL DIMENSIONSLength 264 ftBreadth 289 ftDepth 35 ftLeg Length 598 ft

LOADING & STORAGE CAPACITIES Variable Load (Drilling) 7,000 kipsLiquid Mud 6,600 bblsBulk Storage 15,892 cuftBase Oil 2,070 bblsBrine 4,900 bblsDrill Water 42,238 bblsSack Store 5,000 sacks

DRILLING EQUIPMENT & SYSTEMSDerrick 180’ x 40’ x 40’. 2,200,000 lbsHook Load 2,000,000 lbsMud Pumps 3 x 2,200 hpSolids Control 2,200 gpmBOP Stack 15k, 18 3/4”, HT, H2S. Two Double + AnnularMain Power 13,050 hpSkidding System 75 ft, +/- 20 ft. With full set-back (545 mt)Jacking System 54 Pinions. Enhanced Monitoring System (EMS) with Rack Phase Differential Monitoring System (RPD) Normal Jacking – 1000 kips/Pinion Emergency Jacking – 1300 kips/Pinion Max holding – 1869 kips/Pinion Jacking Speed – 1.5 Ft./MinFixation System Self-Positioning Fixation System (SPFS), total 9 pair.

Max holding – 21,000 kips/CordMud circulating Mud additive system with skid mounted sack cutting unit, big system bag unit, liquid additive skid, high rate mixer, HP mud share unit,

density control unit and caustic mixing unit.Equipment BOP Overhead Crane with 2x75 T SWL The two hoist beams in cantilever are split to operate 75 T of each side of the well centre. For

lifting of the BOP or subsea X-mas Tree, the 2 hoists beams run simultaneously.

2 x 120 t BOP skid to handle BOP or X-Mas tree from landing area to BOP Crane working area, or onto BOP 130 t trolley

1 x Cellar deck opening 130 t BOP trolley 1 x Cellar deck transverse moving and telescopic work basket Conductor Tensioning System 700K capacity Riser Tensioning System 700K capacity arranged under drill floor.Other Drillers Cabin elevated 3 m with 2 chairs and Cyberbase

operation stations. Catwalk machine with remote control from DCR or Drillfloor and

tail in /out arm for transport of DP, DC and Casing up to 36” OD to rotary, separate pull back winch on Catwalk structure

Drillfloor Manipulator Arm with remote control from DCR or Drillfloor for DF handling and tail in operations of large tubular

Combined drilling & production facilitiesThe KFELS N-Class is designed to do both production and drilling, and is fully prepared for mounting of a production unit.

N-Class Specifications

Drilling/production mode with subsea storage tank and wellhead structureDrilling mode

DRILLING & PRODUCTION MODEProcess module 7,718 kips (3,500 mt)Production riser tension 3,308 kips (1,500 mt)Number of wells 10 wells tie back or sub sea completionWellhead module and platform 662 kips (300 mt)

Drilling/production mode