Company profile investor presentation Offering Deepwater Floating

Company profile – investor presentation Offering Deepwater Floating Production Systems 1 www. fpsocean. com

Disclaimer – forward looking statements Ø This presentation has been prepared by FPS Ocean AS (“FPS Ocean” or the “Company”) solely for the Company’s use in presenting its business or marketing its services to prospective business partners, clients, investors or any other party. Ø The Company will not be making any representation or warranty, expressed or implied, or assurance of any kind as to the accuracy, reliability or completeness of the Presentation. Neither the Company nor any of their respective directors, officers or employees will thus have any liability or responsibility to the recipients of the Presentation or any other persons resulting from their use of the Presentation. Ø The content of this Presentation includes and is based, inter alia, upon forward-looking information and statements that are subject to risks and uncertainties. These statements are based on current expectations, estimates and projections about global economic conditions and the economic conditions of the regions and industries that represent major markets for the Company. Important factors that could cause actual results to differ materially from those expectations include, among others, macro economic fluctuations, interest rates, oil prices and such other factors as may be discussed from time to time in the Presentation. No assurance can be given that those expectations will be achieved or that future results will be as set out in the Presentation. This Presentation represents our initial views and we reserve the right (but shall not be obliged) to revise, update or replace any statement herein. Ø By relying on this Presentation you acknowledge that you will be solely responsible for your own assessment of the information contained herein and that you will conduct your own analysis and be solely responsible forming your own view of the potential future performance of the Company’s business. Ø In addition, this Presentation and the analyses set out herein are not and do not purport to be an appraisal or valuation of any of the securities, assets or businesses of the Company. Ø This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of the Norwegian courts. 2

Company introduction Ø Ø The FPS Ocean vision is to become a significant niche player in the global market for floating production systems in deep to ultra deep waters Ø Our business model is to build, own and operate Floating Production Systems Ø FPSOcean is offering FPSO solutions for expedient development of deepwater reservoirs using cost effective Dynamic Positioning systems with safe, reliable and innovative technology Ø We are currently converting a shuttle tanker to a Dynamic Positioning FPSO for extended well testing, early production and/or deepwater field developments and has acquired vessel number 2 and also long lead items Ø The company has a goal of developing a fleet of 4 -5 units over the next 4 -6 years Ø 3 FPS Ocean was established in 2005 by individuals with substantial experience in founding and running world class oil service contractors Main office in Oslo, sales offices in Rio de Janeiro and Houston

Company management Substantial experience in founding & running world class oil service contractors Ø Erland P. Bassøe (1957), Co-founder & Chairman Ø 25 years offshore experience Ø Seajacks, Floatel International, Scorpion Offshore, Frontier Drilling, ODS-Petrodata, Bassoe Offshore Ø Georg Sverdrup Onsrud (1955), Co-founder & Chief Executive Officer Ø 25 years offshore experience Ø Fred. Olsen Production, Aker, Stolt, Kværner Ø Christian Mowinckel (1954), Chief Financial Officer Ø 27 years senior management experience in industry and offshore Ø Ocean Rig, Kvaerner, Elkem, Dn. B NOR Ø Kjetil Bruun-Olsen (1956), Vice President, Projects & Operations Ø 12 years offshore, 12 years shipping experience Ø Fred. Olsen, Star Refer, Neptun Ø Leif O. Aaker (1951), Vice President, Business Development Ø 30 years offshore experience Ø Boa Offshore, Fred. Olsen Energy, Golar-Nor Offshore (Petrojarl) Ø Ola Often (1956), Vice President, Technology Ø 25 years offshore engineering Ø Fred. Olsen, PGS, ABB 4 More details in appendix

Company management Corporate structure FPS Ocean AS Norway FPSO Management AS Norway Management personnel FPSO Operations Ltd. TBN Operational personnel FPSOcean do Brazil Ltda. Rio, Brazil Marketing office DP Producer AS Norway ”Dee. P Producer 1” 5 DP Offshore AS Norway ”Dee. P Producer 2” DP Floater AS TBN ”Dee. P Producer 3”

Projects FPSO conversion ongoing, deepwater technology being developed Ø “Dee. P Producer 1” (DPP 1); Panamax shuttle tanker “Nordic Laurita”, built Tsuneishi Japan 1981, delivered in July 2006, drydocked and classed August 2006, entered Dubai Drydocks May 2007 for conversion to Dynamic Positioning FPSO. Ready for “First Oil” 3 Q 2008. Ø “Dee. P Producer 2” (DPP 2); Double sided Aframax tanker “Semakau Spirit”, built Koyo Japan 1988, purchased for delivery July 2008. Slots secured with Dubai Drydocks for conversion August 2008, ready for “First Oil” 1 Q 2010. Long lead items secured. 6

Technology Key components securing operational versatility in deep waters Ø Ø 2 x 17 MW Dual Fuel Gas Turbines (Siemens SGT-500) Ø 4 x 3. 8 MW Azimuth Thrusters (Schottel SRP 4040 LSU) Ø 7 Disconnect-able Riser Buoy (proprietary technology jointly owned with Scana Industrier) Kongsberg DP system (DP-2)

Technology Disconnectable Riser Buoy (DRB TM) Ø Ø An internal turret with an active turning drive controled by the vessel ICS/heading control. Ø A multipath riser connector with built-in ESD ball valves. Ø A 5 -path fluid toroid swivel + multipath hydraulic swivel and electric swivel. Ø Buoyancy to carry riser weight, self weight and clump weight. (Weight 230 tonnes, maximum buoyancy 500 tonnes) Ø Quick dis-connect for operational safety (< 45 seconds) Ø Controlled dis-connect for Hurricane escape Ø Dis-connected DRBTM stabilised in 40 -70 m below surface Ø 8 The DRBTM (patent pending NO, PCT and US) is developed & owned jointly by FPSOcean & Scana has system responsibility and is currently performing full qualification testing Ø Certification by Dn. V

Operations Partnership in place with reputable offshore ship managers Ø FPSOcean has established operating partnership with highly credible offshore FPS operators in order to serve oil companies world-wide ü Bibby Offshore Limited, Aberdeen ü Greystar Corporation, Houston Ø Both companies have long standing operating relationships with key clients www. greystar-corp. com 9 www. bibbygroup. co. uk

Shareholders 20 largest shareholders March 2008 Investor % of total Type Country BEAR STEARNS SECURITIES CORP. 1, 217, 082 16. 08% Nom. USA SUNDT AS 820, 000 10. 84% Comp. NOR BASS INVEST AS 525, 193 6. 94% Comp. NOR FAIRBANKS JONATHAN BARCROFT 412, 792 5. 45% Priv. USA DEUTSCHE BANK (SUISSE) S. A. 371, 520 4. 91% Comp. CHE TITLIS AS 271, 066 3. 58% Comp. NORTHERN NAVIGATION INT. 270, 666 3. 58% Comp. LBR NEXUS CAPITAL AS 270, 022 3. 57% Comp. NOR MORGAN STANLEY & CO INTL PLC 258, 200 3. 41% Nom. GBR KLAVENESS INVEST AS 246, 500 3. 26% Comp. NOR BANK OF NEW YORK, BRUSSELS BRANCH 244, 700 3. 23% Comp. GBR GOLDMAN SACHS INT. - EQUITY - 204, 000 2. 70% Nom. GBR Erland Bassøe, Chairman* CANICA AS 203, 600 2. 69% Comp. NOR Felix H. Tschudi** ODIN OFFSHORE 201, 000 2. 66% Comp. NOR Jan R. Næss*** LEHMAN BROTHERS INTERNATL. EUROPE 177, 316 2. 34% Nom. GBR Tone Wille GOLDMAN SACHS & CO - EQUITY 172, 400 2. 28% Nom. USA BANK OF NEW YORK, BRUSSELS BRANCH 107, 100 1. 42% Comp. GBR KREDIETBANK S. A. LUXEMBOURGEOISE 100, 000 1. 32% Comp. LUX ING. ONSRUD AS 97, 478 1. 29% Comp. NOR R AND S FAIRBANKS IRREVOCABLE TR 88, 658 1. 17% Comp. USA Total number owned by top 20 6, 259, 293 82. 71% Total number of shares 10 Number of shares 7, 567, 381 100% Source: Manamind GBR NOR USA Board of Directors: Gro Baade-Mathiesen FPS Ocean AS shares quoted at OTC, Oslo under “FPSO” ticker

Finance – funding in place Total funding raised approx. NOK 1. 7 billion (about USD 300 million) Ø Equity Ø NOKM 560 (approx. USD 90 mill) from equity issues (Feb, Jun, Dec 06) Ø NOK 332 (approx USD 57 mill allocated to DP Producer AS (Dee. P Producer 1) Ø NOK 200 mill (approx USD 33 mill) allocated to DP Offshore AS (Dee. P producer 2) Ø Debt Ø NOKM 210 (approx. USD 33 mill), unsecured 2 year bond w/call option (Jul 07) Ø USDM 75, 2 nd priority 5 year bond w/ call option (Dec 06) Ø USDM 50, 1 st prirority bank construction loan incl USD 5 mill post completion working capital (Aug 07) Ø NOKM 175 (approx USDM 32), unsecured 3 year convertible bond (Feb 08) Ø Strike price at NOK 72 per share 11

Finance – uses and sources DPP 1 fully funded 12 Q 4 preliminaries in appendix

FPSO market drivers Increased demand for deepwater field development Ø High level of deepwater drilling activity Ø High ratio of deepwater discoveries Ø Deepwater production to follow the deepwater drilling surge Ø Traditional mooring systems very expensive in deep water Ø Need for innovative solutions More details in appendix 13

FPSO market drivers Increased demand for Extended Well Testing (EWT) Ø Significant numbers of new deepwater reservoirs are characterized by : Ø Ø Ø Sub-salt plays Heavy oil plays High pressure and temperature plays Ø The general knowledge about the geology in the new deepwater frontiers are low and there is few references Ø Costs of new deepwater developments are expensive and optimized solutions are therefore required . . . . and Early Production (EP) Ø Independent oil companies show increased interest in deep water developments Ø Ø Ø 14 Need production before they can account for the reservoirs in their balance sheets Due to the high cost and long schedule of full field deepwater developments cash flow is a significant issue Many licenses has a required “first oil” date, which due to the very heated market can be difficult to comply with for a full field development, hence early production may be a suitable solution

FPSO market drivers - the DP FPSO The Dynamic Positioning FPSO – a versatile response to new requirements Ø Dynamic Positioning (DP) systems have proved very favourable in subsea construction, drilling and shuttle tanker segments Ø 20 years successful experience with Seillean DP FPSO in UK and Brazil Ø DP FPSO requires ability to disconnect risers in case of DP failure/power black-out Ø The same technology is valid for shut down and demobilisation in hurricane areas 15

Target markets for FPS Ocean Deepwater and/or hurricane areas 16

Dee. P Producer 1 - design specification Ø Dn. V class notation 1 A 1 Ship Shaped Oil Production and Storage Unit, DYNPOS-AUTR (DP-2), PROD Ø 400, 000 barrels storage (98% ex. slops); 323, 000 with double sides Ø Production capacity 60, 000 bpd, 40, 000 bopd Ø Prepared for Water Injection and Gas Injection Ø Operational envelope ~ 6. 0 meters significant wave height Ø Moon-pool area for Riser inlet; Disconnect-able Riser Buoy ü 3 off 8” production risers, 5000 psi ü 1 off 8” water injection riser, 5000 psi ü 1 off 8” gas lift/service riser, 5000 psi ü 5 off control/service umbilicals/misc lines Ø 2 x 17 MW Dual Fuel Gas Turbine Power gen Ø 4 x 3. 8 MW Azimuth thrusters Ø Bow tunnel thruster Ø CPP propulsion on main engine (existing system) Ø Accommodation 56 pob 17

Dee. P Producer 1 – generic configuration 18

Dee. P Producer 1 – full field development M 10 Gas injection M 21 Process er at W c je in n& latio ircu tion 0 C injec M 3 sea sub n tio 70 M 19

DPP 1 project execution – main contracts Power Module (Gas Turbines) ü Gas Turbines by Siemens, Sweden ü Electrical Distribution System by Siemens, Norway ü Power Module Design by Inocean ü Fabrication and Assembly by Lamprell Offloading System: ü Hawser Winch and Offloading Reel by Scana ü Offloading Hose by Trelleborg Disconnectable Riser Buoy (DRB): ü Engineering, Procurement and Construction (EPC) by Scana ü Structural parts sub-contracted to DDD and LEL Process Module: ü Engineering / Procurement Assistance by Expro/SPS ü Procurement by FPSOcean ü Fabrication by Lamprell Vessel Conversion: ü Structrual and Marine Systems Engineering by Inocean / Maritec ü Detailed Deck Arrangement by Icepronav ü EIT Engineering, Power Distribution and Control System by Siemens, Norway ü Procurement of equipment by FPSOcean ü Vessel Conversion by Dubai Drydocks 20 Thrusters ü Thrusters by Schottel, Germany ü Thruster Drives by Siemens, Norway ü Thruster Control System by Kongsberg Maritime

Construction hub Dubai Conversion Dubai Drydocks; Process plant construction Lamprell Dubai Drydocks, Conversion references: Ø Saipem Golfinho FPSO VITORIA LEL DDD Ø Fred. Olsen Production FPSO Knock Adoon, FSO Knock Nevis Ø BW Offshore (Bergesen) FSO Berge Pioneer Ø SBM FPSO Mystras, FPSO Xikomba Ø Woodside FPSO Cossack Pioneer Lamprell, Process construction references: Ø Saipem Golfinho FPSO VITORIA process modules Ø BW Offshore KMZ process modules Ø SBM Xikomba FPSO Atlantic process modules Ø SBM Zafiro FPSO Eagle process modules Ø SBM Turret Mooring Buoys 21

Dee. P Producer 1 - project status Hull conversion at Dubai Dry Docks Hull Conversion August 2007 22 Hull Conversion January 2008

DPP 1 - project status February 2008 Status delivery various equipment & modules Firewater Pumps, Seawater Cooling Pumps, Bilge Pumps Delta-P, Norway Delivered Valves for the Marine Systems Drødrene Dahl AS, Norway Partly delivered, procurement ongoing Diesel Fuel Separators Alfalaval, Norway Delivered Heat Exchangers APV, Denmark Delivered Lifeboats, Workboat Nordsafe, Norway Delivered Ordered, fabrication ongoing Emergency Generator Module Electrical and Instrument Cables 90% delivered Fresh Water Maker Nordtech, Denmark Delivered Air Compressors and Dryers TMC, Norway Delivered Surface Protection (Paint & Anodes) Jotun & Seven. Seas Frame agreements placed Fiscal Metering System Krohne, Netherlands Delivered Extension to Accommodation Lamprell Delivered Pedestal Crane Acta, Denmark Delivered Sewage Treatment Hamworthy, UK Delivered Marine System Instruments 24 Draka, Norway Autek, Norway PO placed HVAC for Thruster Rooms, Moon-Pool and Mid-ship Pump Room AC Marine, Norway PO placed

DPP 1 - project status February 2008 Lifting of Process Module M 20 from barge onto “Dee. P Producer 1” 24

DPP 1 - project status February 2008 Landing/Hooking up Process Module M 20 25

DPP 1 - project status February 2008 Lifting of Power Module M 80/90 26

DPP 1 - project status M 20 and M 80/90 modules successfully mounted onto “Dee. P Producer 1” 27

Semakau Spirit - Dee. P Producer 2 (DPP 2) 28

DPP 2 – outline design basis Double sided CAPI rated Aframax built Japan 1988, delivery July 2008 Ø Dn. V class notation 1 A 1 Ship Shaped Oil Production and Storage Unit, PROD, DYNPOS-AUTR Ø Operational envelope > 6. 0 meters significant wave height, ULS 10 meters significant Ø Production capacity 90, 000 bpd total fluid, 60, 000 bopd API 15 to 40 Ø Prepared for Water Injection and Gas Lift/Gas Injection Ø Storage capacity: 600, 000 barrels Ø 2 off 17 MW Dual Fuel Gas Turbine Power generation Ø 5 off 3. 8 MW Azimuth thrusters Ø Operating water depth 150 to 3000 meters Ø Risers: Ø 5 off 8” production or injection risers Ø Up to 5 service lines Ø Total riser weight capacity 250 t 29

DPP 2 - general arrangement Similar to Dee. P Producer 1: Hydrocarbons forward, non-hazardous areas aft From forward: Flare tower KO drum M 10 – future gas export/reinjection/GTL M 20 – Process and gas fuel module M 30 – Field specific subsea/chemical injection module M 40 – Inlet manifold M 50 – Turret area M 60 – Future water injection M 70 – Boiler module M 80 – Power generation module M 90 – Switchboard module Accommodation with safe area/lifeboats Aft deck with emergency generator and offloading system 30 Helideck

DPP 2 – project status February 2008 Long lead items secured – targeting “First Oil” by 1 Q 2010 Ø “Semakau Spirit” purchased for delivery July/August 2008 Ø Yard slot secured with Dubai Drydocks Ø 2 Dual Fuel Gas Turbines purchased from Siemens Ø 5 azimuth thrusters purchased from Schottel Ø Project definition, engineering and vendor bidding ongoing Ø Dialogue with oil companies, several prospects identified 31

Summary Ø Unique business plan differentiated by deepwater technology Ø “Dee. P Producer 1” is under conversion and available for “First Oil” Q 3 2008 Ø “Dee. P Producer 1” conversion project fully funded Ø Vessel for “Dee. P Producer 2” has been purchased and yard slot and long lead items secured Ø FPS Ocean is in the process of establishing an organisation to ensure safe and timely operations of two FPSOs Ø Strong shareholder base 32

Appendices Ø Organization ØMarket drivers ØQ 4 (preliminary) financials 33

Company management Management structure CEO G. S. Onsrud CFO C. Mowinckel VP. Technology Ola Often Compliance Manager / QA Manager HR Manager VP. Bus Dev L. O. Aaker VP Projects & Ops K. Bruun-Olsen Sales & Marketing Oslo Dee. P Producer 1 Sales Office Rio de Janeiro Dee. P Producer 2 Project Execution Operation Sales Office Houston Total about 55 staff of which about 30 in Oslo and about 25 in Dubai 34 Bibby Offshore Ltd Grey. Star Corp.

Company management Management structure CEO G. S. Onsrud CFO C. Mowinckel VP. Technology Ola Often Compliance Manager / QA Manager HR Manager VP. Bus Dev L. O. Aaker VP Projects & Ops K. Bruun-Olsen Sales & Marketing Oslo Dee. P Producer 1 Sales Office Rio de Janeiro Dee. P Producer 2 Sales Office Houston Total about 55 staff of which about 30 in Oslo and about 25 in Dubai 35

Company management Site team organization CONSTRUCTION MNGR Ove Jahnsen PR CONTROL MNGR Project Engineer Project Site Secretary HSE Inspector Planner Quantity Surveyor – LEL Quantity Surveyor – DDD Logistics Coordinator Document Controller SITE MANAGER LEL Clerk/ doc controller SITE MANAGER DDD Marine Superintendent Technical Superintendent EI&T Lead EI&T Inspector Surface Treatment Jotun Struc/Piping/Mech Structural Inspector Surface Treatment Jotun Structural Inspector EI&T Lead 9 9 9 Mechanical/piping Lead MC/COMM. MANAGER Commissioning team

FPSO market drivers Significant increase in deepwater drilling 37

FPSO market drivers 70% of floating production spend to be in deepwater 38

Financials – Q 4 financial statements Ø Unaudited preliminary accounts Ø DPP 1 and 2 project costs (incl. finance cost) capitalized in balance sheet 39

Financials – Q 4 financial statements Ø Unaudited preliminary accounts Ø Robust balance sheet with 28% cash and 35% equity ratio 40