N-Class Harsh Environment Jack-up Drilling Production SKDP N-Class Jack-Up

N-Class Harsh Environment Jack-up Drilling/Production SKDP N-Class Jack-Up Unit Drilling/Production Marketing Presentation Page 1

SKDP CLASS-N JACK-UP UNIT TABLE OF CONTENT 1 Company Background 2 Rig Concept and Design 3 Operations Management 4 QHSE Marketing Presentation Page 2

COMPANY BACKGROUND SKEIE DRILLING & PRODUCTION ASA q Skeie Drilling & Production ASA KDP (SKDP) established September 2006 and located in Kristiansand q 49% Owned by Skeie Group and 5% by Keppel Offshore Ltd, 46% external investors q Administrative services will be hired from Skeie Group AS q Operational Management Agreement with Pro. Corp Offshore Management Services q Signed contract for design and construction of three (3) KFELS Class N Jack-up Unit with delivery March, August and December 2010. q OTC listed in Oslo Marketing Presentation Page 3

COMPANY BACKGROUND COMPANY SET-UP Skeie Drilling & Production ASA 100% Board of Directors • Chairman, Bjarne Skeie • Board member: Anne Breive • Board member: Edmund Mah (KFELS) Management • Birger Skeie, CEO • Willy Tørhaug, COO • Dag Eggan, QHSE Director • Stein Eggan, VP Business Develpoment • Svein Anton Bjørnholmen, CFO Offshore Production Services 100% Pro. Corp Offshore Management Services Management agreement Jackup rig #1 Jackup rig #2 Jackup rig #3 Incorporated: Cyprus Delivery August 2010 Delivery December 2010 Technical operation of rigs after Delivery March 2010 delivery Technical support during construction Skeie Group Management agreement during construction and operations Technical management during construction Marketing Presentation Page 4

COMPANY BACKGROUND PROJECT SCHEDULE – RIG # 1 1) Delivery of unit #2 2) Delivery of unit #3 Marketing Presentation – August 2010 – December 2010 Page 5

COMPANY BACKGROUND KEY COMPANY STRUCTURE Skeie Drilling & Production ASA (Kristiansand, Norway) SKDP Project Management/ Project Supervision Group SKDP Operations Management Group (Onshore) KFELS Shipyard Singapore (Engineering / Construction) Rig Offshore Organisation (Kristiansand, Norway; KFELS Shipyard, Singapore; Sub-Contractor Manufacturer Yards) (Trondheim, Norway + Local Base Office) Sub-Contractor Manufacturer Yards (Engineering / Construction) Marketing Presentation Page 6

COMPANY BACKGROUND SKDP – PROJECT ORGANISATION Marketing Presentation Page 7

SKDP CLASS-N JACK-UP UNIT TABLE OF CONTENT 1 Company Background 2 Rig Concept and Design 3 Operations Management 4 QHSE Marketing Presentation Page 8

RIG CONCEPT AND DESIGN SPECIFICATIONS FOR DRILLING AND PRODUCTION OPERATIONS § Self-Elevating Drilling Unit (KFELS Class N) § Harsh Environment North Sea and Canadian waters § High pressure/high temperature deep well Go. M § Extended reach and transverse skidding of Drill Floor § Combined drilling & production facilities § 10 wells tie back or sub sea completion with production module installed § Subsea well completion with HP riser and dry BOP over large subsea template – 75 ft long x 66 ft wide § Large Subsea X-mas tree (45 mt) handling through Cantilever hatch 5 x 6 m § Operations in 122 meters water depths. Optional 132 meters with 10 m leg extension. § Drilling depth up to 35, 000 ft (10, 667 M) Set Back. § Derrick 1000 tons. § Triangular hull with three (3) triangular truss legs each fitted with a spud can with tip at its lower end. The modified triangular hull is 264 ft. (80. 46 M) long, 289 ft. (88. 09 M) wide, and 35 ft. (10. 67 M) deep at the side. § LQ designed to accommodate 120 persons. § Helicopter deck designed for Sikorsky 61 N and S 92 helicopter. Marketing Presentation Page 9

RIG CONCEPT AND DESIGN COMBINED DRILLING AND PRODUCTION OPERATIONS The Cantilever and Drill Floor can be repositioned 26 ft (7. 92 M) to the Port side of the Vessel, to allow space for installation of a future production process module. Marketing Presentation Limits Area: Height: 12, 918 sq ft (1, 200 M 2) 52. 5 ft (16 M) Page 10

RIG CONCEPT AND DESIGN N-CLASS COMBINED DRILLING / PRODUCTION UNIT WITH STORAGE TANK Marketing Presentation Page 11

RIG CONCEPT AND DESIGN SPECIFICATIONS FOR DRILLING AND PRODUCTION OPERATIONS § Drill Floor located on the substructure above the cantilever. § Cantilever capable of being skidded fore and aft with center line (primary Cantilever position) of rotary up to 75 ft (22. 86 m) aft of stern It can be relocated 26 (7, 92 m) ft to port (secondary Cantilever position) § The Drill Floor can be skidded 20 ft (6. 1 m) port and starboard of the Cantilever centerline both in primary position and in secondary position § Max operation envelop over a preinstalled Jacket/Wellhead Platform: 75 ft aft of Transom, 20 ft to starboard of hull centerline and 46 ft to port of hull centerline. Marketing Presentation Page 12

RIG CONCEPT AND DESIGN SPECIFICATIONS FOR DRILLING AND PRODUCTION OPERATIONS § The Cantilever and Drill Floor can be repositioned 26 ft (7. 92 M) to the Port side of the Vessel, to allow space for installation of a future Production Process Module. 12, 918 ft 2 (1, 200 m 2) in area and 52. 5 ft (16 m) maximum in height. § With the cantilever/drill floor in offset position with 10 wells tie back (1500 ton tension) § Row no. 1 - 5 wells 12 ft aft of transom § Row no. 2 - 5 wells 20 ft aft of transom • With cantilever in secondary position and no production module installed a total of 12, 918 square ft (1200 square m) free main deck area is available in one common space. (Page 16) Marketing Presentation Page 13

RIG CONCEPT AND DESIGN CANTILEVER FOOTPRINTS Marketing Presentation Page 14

RIG CONCEPT AND DESIGN CANTILEVER FOOTPRINTS Marketing Presentation Page 15

RIG CONCEPT AND DESIGN CANTILEVER FOOTPRINTS Marketing Presentation Page 16

RIG CONCEPT AND DESIGN OPERATING CONDITIONS – STANDARD DRILLING MODE Design Operating Conditions Parameter Imperial Design Storm Survival Conditions Parameter SI Imperial SI Leg Length 596. 0 ft 182 m Water Depth 430. 0 ft 131 m Maximum Wave Height 68. 0 ft 20. 72 m Maximum Wave Height 90. 22 ft 27. 5 m Corresponding Wave Period 15 sec Corresponding Wave Period 17. 4 sec Maximum Wind Velocity (1 -minute average) 70. 0 knots 36. 01 m/sec Maximum Wind Velocity (1 -minute average) 88. 31 knots 45. 4 m/sec Current at Surface 1. 940 knots 1. 00 m/sec Current at Surface 2. 624 knots 1. 35 m/sec Current at Mid-Depth 0. 486 knots 0. 25 m/sec Current at Mid-Depth 1. 128 knots 0. 58 m/sec Current at Seabed 0. 486 knots 0. 25 m/sec Current at Seabed 1. 011 knots 0. 52 m/sec Air Gap 69. 0 ft 21. 03 m Penetration 10. 0 ft 3. 05 m 34, 800 kips 15, 785 MT Weights: - Elevated Hull Lightship Weight* 34, 800 kips 15, 785 MT - Elevated Hull Lightship Weight* - Maximum Combined Drilling Load** 3, 000 kips 1, 361 MT - Maximum Combined Drilling Load** 700 kips 318 MT - Maximum Variable Load (Including Combined Drilling Load) 10, 000 kips 4, 535 MT - Maximum Variable Load (Including Combined Drilling Load) 7, 000 kips 3, 175 MT - Total Elevated Load*** 44, 800 kips 20, 320 MT - Total Elevated Load*** 41, 800 kips 18, 959 MT Marketing Presentation Page 17

RIG CONCEPT AND DESIGN TECHNICAL COMPARISON WITH PEERS 1) Enhanced version of the existing CJ-70 design with increased drilling depth, increased variable deck load and 1000 t top drive. Source: Company, ODS Petrodata Marketing Presentation Page 18

RIG CONCEPT AND DESIGN OPTIMISED DRILLING EQUIPMENT q Derrick model SSBN 1100 -40 X 180 q Crown block/Traveling block 1100 sh. Tons 72” diameter 2” groves. q Top Drive Model HPS 1000 -2 E-AC-KT Torque 78450 ft. Lbs. continious q Retractable Dolly for Top Drive q Drawworks 1100 sh. Ton 16 lines 4 XAC GE motors with regenerative braking + disc brakes for parking and emergency brake q 1000 sh Ton Rotary support table 49 ½”, Max 15 rpm / 45000 ft. Lbs. at 5 rpm. Marketing Presentation Page 19

RIG CONCEPT AND DESIGN OPTIMISED DRILLING EQUIPMENT q Dead line anchor 160 kip. Floor mounted Rotary slip q Dual Hydraulic catheads with commen control panel q Pipe. Racker 10 ton lifting capacity. Parallel racking of 90 ft stand. Off line Stand building capability for DP, DC and Casing. q Fingerboard: 35. 000 ft racking capacity. DP- 286 st. of 5 7/8” and 108 st. of 6 5/8”, 10 st. of 9 ½” DC, 22 st. of Casing 9 5/8” or 14 st. of Casing 13 3/8” q Belly Board for 199 stands locking latch for each pipe slot. q Stabbing basket/work basket 250 kg swl. Marketing Presentation Page 20

RIG CONCEPT AND DESIGN OPTIMISED DRILLING EQUIPMENT q Drillers Cabin elevated 2 m with 2 chairs and Cyberbase operation stations. q 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 q Drillfloor Manipulator Arm with remote control from DCR or Drillfloor for DF handling and tail in operations of large tubular q Pipe handling crane Working radius 25 m. SWL 5. 5 Mt. q 3 x 5 t utility winches with remote control, installed in Derrick level at level 4 q 1 x Derrick Man rider winch with remote control, installed in Derrick level at level 4 q Iron Roughneck type Wellquip Marketing Presentation Page 21

RIG CONCEPT AND DESIGN WELL CONTROL EQUIPMENT q Surface 18 ¾” BOP Shaffer 18 -15 M - 1 ea spherical 10 K - 1 ea pipe Ram 15 K - 1 ea. Shear Ram 15 K with Booster for max shearing capacity - 2 ea. Pipe Ram 15 K - 2 ea. 3 1/16” 15 M type DB valve Hydraulic operated - 2 ea 3” 15 M type B valve manually operated q Koomy Hydraulic Power Unit - Remote control of HPU functions from Drillers panel and Tool Pushers panel - Emergency remote operating panel located in central control room - 3000 psi. working pressure - Accumulator capacity to meet API 16 D and PSA requirements Marketing Presentation Page 22

RIG CONCEPT AND DESIGN WELL CONTROL EQUIPMENT Marketing Presentation Page 23

RIG CONCEPT AND DESIGN WELL CONTROL EQUIPMENT q Choke & Kill Manifold 15 K - 2 ea Remote operated chokes from Drillers Cabin - 2 ea. Manual operated choke q 1 ea. Poor boy degasser 12” went line a bow top of derrick q 2 ea. Swaco CD 1400 degasser with blower q Vetco KFDJ-500 49 ½” diverter System 16” diverter lines Marketing Presentation Page 24

RIG CONCEPT AND DESIGN EQUIPMENT IN CANTILEVER q BOP Overhead Crane with 2 x 75 T SWL The two hoist beams are split to operate 75 T of each side of the well centre. For lifting of the BOP or sub sea X-mas Tree, the 2 hoists beams run simultaneously. q 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 q 1 x Cellar deck opening 130 t BOP trolley q 1 x Cellar deck transverse moving and telescopic work basket q 1 x Cellar deck Man rider winch with remote control, installed in cantilever q 2 x 5 t utility winches local control in Cellar deck q Conductor Tensioning System 700 K capacity fold down conductor tensioning platform (centre 20 feet aft of hull) q Riser Tensioning System 700 K capacity – 4 cylinders installed below Drillfloor Marketing Presentation Page 25

RIG CONCEPT AND DESIGN MUD CIRCULATING SYSTEM q 3 x Mud HP pumps 7500 psi. Model NO 14 -P-120. 2200 HP/2 GE AC motors and Centrifugal pumps arranged for charging. q 5 x VSM 300 dual deck Shale Shakers. q 2 x centrifugal mixing pumps arranged with manifold for simultaneous mixing in active pits and reserve pits q Power and piping provided to delegated place for Centrifuge. Marketing Presentation Page 26

RIG CONCEPT AND DESIGN MUD PIT CAPACITIES Length Width Tank Height at Usable Volume Allowance Net Volume in mm in 3 m 3 bbl % m 3 Mud Pit No. 1 216, 0 5486 180, 0 4572 197 5004 186 4724 7231680 118, 5 745 5, 0 112, 6 Mud Pit No. 2 216, 0 5486 180, 0 4572 197 5004 186 4724 7231680 118, 5 745 5, 0 112, 6 Mud Pit No. 3 216, 0 5486 180, 0 4572 197 5004 186 4724 7231680 118, 5 745 5, 0 112, 6 Mud Pit No. 4 216, 0 5486 180, 0 4572 197 5004 186 4724 7231680 118, 5 745 5, 0 112, 6 Mud Pit No. 5 288, 0 7315 180, 0 4572 197 5004 186 4724 9642240 158, 0 994 5, 0 150, 1 Mud Pit No. 6 288, 0 7315 180, 0 4572 197 5004 186 4724 9642240 158, 0 994 5, 0 150, 1 Mud Pit No. 7 288, 0 7315 138, 0 3505 197 5004 186 4724 7392384 121, 1 762 5, 0 115, 1 Mud Pit No. 8 288, 0 7315 138, 0 3505 197 5004 186 4724 7392384 121, 1 762 5, 0 115, 1 Slug Pit 96, 0 2438 84, 0 2134 197 5004 186 4724 1499904 24, 6 155 5, 0 23, 4 Pre-Mix 96, 0 2438 84, 0 2134 197 5004 186 4724 1499904 24, 6 155 5, 0 23, 4 Pill Pit 96, 0 2438 84, 0 2134 197 5004 186 4724 1499904 24, 6 155 5, 0 23, 4 Total 1106, 1 6957 1050, 8 Marketing Presentation Page 27

RIG CONCEPT AND DESIGN BULK TANKS (P TANKS) q Five (5) mud tanks each of 1875 cu ft (50 m 3) and four (4) cement tanks each of 1875 cu ft, (50 m 3). q Operating pressure of 60 psi and bulk material specific gravity 2. 163. q Mud additive system with skid mounted sack cutting unit, big bag unit, liquid additive skid, high rate mixer, HP mud share unit, density control unit and caustic mixing unit. Marketing Presentation Page 28

RIG CONCEPT AND DESIGN TANK CAPACITY Tank Capacity: Total capacity Fuel oil (3 tanks) Base oil tank Brine oil (2 tanks) Mud pit Mud contaminated tank Drillwater (2+8 tanks) Fresh water (2 tanks) 880 m 3 330 m 3 782 m 3 1050 m 3 10 m 3 6094 m 3 831 m 3 Marketing Presentation Page 29

RIG CONCEPT AND DESIGN DECK LOAD PLAN • • • Canteliver Pipe Rack Total setback area Drillfloor working area Drawworks house top Main deck (outside pipe rack) Pipe rack (Main Deck) IWO Production module Quarters deck & plan Loading platform Emergency Generator room • Helideck is to be designed for Sikorsky S 61 and S 92 Helicopters in accordance with CAP 437 Marketing Presentation (800 kips) 363 ton 2637 kg/m 2 (1200 kips) 544 ton 1953 kg/m 2 459 kg/m 2 2075 kg/m 2 2637 kg/m 2 3330 kg/m 2 459 kg/m 2 1318 kg/m 2 459 kg/m 2 Page 30

RIG CONCEPT AND DESIGN RIG CRANES q 1 ea. Electro hydraulic driven Deck crane starboard aft. Certified for Zone 1, compliance with PSA/NMD regulation. SWL 50 Mt @ 36 m SWL 38, 1 Mt. @ 46 m q 2 ea. Diesel engines driven Deck cranes port side and starboard Compliance with PSA/NMD regulations. 1 off SWL 50 Mt @ 36 m / SWL 38, 1 Mt @ 46 m 1 off SWL 50 Mt @ 20 m / SWL 14, 5 Mt @ 46 m Marketing Presentation Page 31

RIG CONCEPT AND DESIGN WELL TESTING PROVISIONS AND AREAS q Well Testing Area assigned starboard aft between aft leg and cantilever (area approx 7, 5 x 9, 0 meters) q Two burner booms will be installed on each side q Piping System ü 3" line, 600 psi(102. 9 bar), HP Gas ü 3" line, 600 psi (102. 9 ar), Main oil ü 2" line, 150 psi(10 bar). Diesel oil ü 4" line, 150 psi (10 bar), Gas vent. ü 4" line, 150 psi (10 bar), Compressed air ü 4" line, 150 psi (10 bar), Sea water (Water curtain from seawater ring line) ü 3/4" line, 150 psi (10 bar), Butane ü 4 connections for temporary air compressors feeding the test plant. Marketing Presentation Page 32

SKDP CLASS-N JACK-UP UNIT TABLE OF CONTENT 1 Company Background 2 Rig Concept and Design 3 Operations Management 4 QHSE Marketing Presentation Page 33

OPERATIONS MANAGEMENT STRUCTURE Skeie Drilling & Production ASA Prod Jack 1 Ltd Pro. Corp Offshore Management Services AS Management Agreement Prod Jack 2 Ltd Prod Jack 3 Ltd Offshore Production Services AS (100% owned by Skeie Technology AS) Marketing Presentation Page 34

OPERATIONS MANAGEMENT OPERATIONAL MANAGEMENT RESPONSIBILITY I. VIII. Execution of Drilling Contract including operational/ admin. interface with Client Development and implementation of total integrated QHSE Management System II. Emergency Preparedness management III. Budget and Cost management / reporting OPERATIONAL MANAGEMENT SERVICES VII. Contract Management VI. Regulatory Compliance/Class-, Flag State- and Coastal Authority management Marketing Presentation IV. Unit insurance management V. Personnel management including recruitment, training, salary, taxation etc. Page 35

OPERATIONS MANAGEMENT MAIN ORGANISATION (PROCORP OFFSHORE MANAGEMENT SERVICES AS) CEO/Managing Director Stein Eggan Finance/Accounting Mng. Heidi Fornes Office Administration Mng. Hilde Traaseth Human Resources Mng. Geir Bjørsvik Marketing (CEO/Managing Director) Operations Director Willy Tørhaug QHSE Director Dag Eggan QHSE Manager Jonny Mourad Drilling Eq. Specialist Kristian Skagemo Contract/Project Base Organisation Marketing Presentation Page 36

OPERATIONS MANAGEMENT RIG BASIS ORGANISATION – UNIT 1, 2 & 3 Unit Owner Operations Director Willy Tørhaug Operations Manager (SKDP Units) Administration/ Document Control Operational/Technical Support Manager ** Wages/Salary Coordinator QHSE Manager ** Supply/Purchasing Manager Rig Accounting * Personnel Co-Ordinator * Technical/ Maintenance Manager E&I Manager Drilling Manager Rig Base Organisation (Ref. next chart) Marine Manager * This function may support several units depending on the area of Operations ** This function shall interface with/be assigned to the Project Organisation/Construction Management group during the Design and Construction Phases. Process Manager (as applicable) Marketing Presentation Page 37

OPERATIONS MANAGEMENT RIG BASE ORGANISATION (PER UNIT) Operations Manager (SKDP Units) Rig Manager QHSE Advisor Technical Superintendent Supply/Purchasing Rig Accountant* Personnel Co. ord. * * This function may be same as for Basis Organisation depending of the area of Operations (i. e. Norway) Rig Organization OIM Marketing Presentation Page 38

OPERATIONS MANAGEMENT Permanent Crew Onboard - # 25 UNIT OFFSHORE ORGANISATION Drilling Mode Crew – # 14 Offshore Installation Manager (OIM) Production Mode Crew - # 7 Pending Activity Crew – # 6 Admin. Camp Boss Medic Total Crew No. Drilling/Production Mode - # 52 Safety Officer Rig Operations Superintendent 1+(1) x Storekeeper* Process Section Leader Technical Section Leader Electrical Section Leader Drilling Section Leader (Toolpusher) Marine / Stability Section Leader Ass. Tech. Sect. Leader 2 x Electricians Tourpusher Stability S. L. II 2 x Process CCR Op. 1 x Electronics 1+(1) x Driller* 2 x Crane Operators 4 x Process Operator 2 x Assistant Driller 3+(3) x Roustabouts* Engine Room Op. Motorman Hydraulic Engineer 2 x Derrickman Rig Mechanic 2 x Pumpman Welder 6 x Roughneck * Number in brackets (#) indicates additional number for full Drilling or combined Drilling/Production mode activity. Marketing Presentation Page 39

OPERATIONS MANAGEMENT MANNING SCHEDULE (as per February 2008) Marketing Presentation Page 40

SKDP CLASS-N JACK-UP UNIT TABLE OF CONTENT 1 Company Background 2 Rig Concept and Design 3 Operations Management 4 QHSE Marketing Presentation Page 41

QHSE SKDP QHSE POLICY Marketing Presentation Page 42

QHSE REGULATORY FRAMEWORK / CERTIFICATION q Designed, constructed, installed, operated and maintained in compliance with relevant and latest Norwegian Continental Shelf requirements as defined by the Petroleum Safety Authority Norway (PSA) q Compliance based on DNV class requirements, the requirements of the Norwegian Maritime Directorate (as applicable) and additional PSA requirements and will generally follow the recommendations as outlined in “Handbook for Application for Acknowledgement of Compliance”. q For Working Environment, NORSOK standard S-002 specifically applies as design specification. q Above Norwegian Coastal State requirements selected as basis to achieve equivalent or higher regulatory framework for world-wide operations including North Sea, Canada and US waters. Marketing Presentation Page 43

QHSE REGULATORY FRAMEWORK / CERTIFICATION q Det Norske Veritas (DNV) Classification with the following class notations: v 1 A 1 Self Elevating Drilling Unit (N) - Drill (N) - HELDK-SH - CRANE q Designed in accordance with the following DNV specifications: – – Marketing Presentation OSS-101 Rules for Classification of Offshore Drilling and Support Units OSS-201 Verification of Compliance with Norwegian Shelf Regulations Page 44

QHSE REGULATORY FRAMEWORK / CERTIFICATION q The vessel shall be registered in the Panama’ Ship Register and comply with the latest and relevant International Rules and Regulations for world-wide operations including: Ø Ø Ø Ø Ø Marketing Presentation Governing maritime regulations for the country the Unit is to be flagged to. The International Maritime Organization’s (IMO) “Code for the Construction of Mobile Offshore Drilling Unit”, 1989 Resolution A. 649(16) (generally known as the 1989 IMO MODU Code) The International Convention for the Safety of Life at Sea (SOLAS) 1974, 1978 Protocol and later amendments where being referred by the IMO MODU Code only. The International Convention for the Prevention of Marine Pollution from Ships 1973, 1978 Protocol and later amendments (MARPOL 73/78). The International Convention on Load Lines 1966, 1988 Protocol. The International Convention of Tonnage Measurement of Ships 1969. International Convention for the Prevention of Collision at Sea. International Telecommunication Union ( ITU) Radio Regulations (1982) ILO 92 and ILO 133 SNAME T&R Bulletin 5 -5 A Site Specific Assessment of Mobile Jackup Units, May 1944/1977 is only for Site Specific Assessment and not applicable for the current assessment. When applicable, the Unit will have to be re-assessed base on the Specific Site environmental and soil conditions. Page 45

QHSE REGULATORY FRAMEWORK / CERTIFICATION Ø Handbook For Application For Acknowledgement of Compliance (Ao. C) as published by the Norwegian Shipowner’s Association Revision 03 dated July 1, 2006 Ø Norwegian Helicopter Deck regulation BSL D-51 issued by the Norwegian Civil Aviation Authority (equal to Regulation of 22 December 1993 No. 1240 concerning helicopter decks on mobile offshore units (NMD)) and CAP 437 issued by UK Civil Aviation Authority. Where discrepancies are identified between BSL D-51 and CAP 437, BSL D-51 shall apply. Ø Regulation and guidelines for potable water system and potable water supply on offshore unit issued by Norwegian Institute for Public Health (NIPH) including : üNIPH “Guidelines for Sufficient, Safe and Good Potable Water Offshore” dated 19 December 2005. ü Regulation of 4 September 1987 No 860 concerning potable water system and potable water supply on mobile offshore units q Electrical standards: ü IEC standards and other relevant standards as defined within the Ao. C Handbook. q The Offshore Deck Cranes shall be designed, installed and tested in accordance with the specific requirements for Offshore Cranes as defined directly by the PSA regulations (not NMD) effective at time of signing of this Contract. Marketing Presentation Page 46

QHSE CONCEPT RISK AND WORKING ENVIRONMENT STUDIES q Concept Risk and Working Environment Studies performed (Workshop) in co-operation with DNV iaw. principles outlined in NORSOK Z-013 including; ü ü Evacuation Review ü Working Environment Review (LQ and Working Areas) ü Marketing Presentation Detailed Hazard Review ü q Pre-screening Hazard Review Environmental System design specification review (Zero Discharge) Performed prior to Contract Agreement for construction, to verify feasibility of concept both against prevailing Regulatory Framework (Norwegian Continental Shelf), ALARP principle for Risk Mitigation and to identify any key cost drivers for the design, construction and operations of the unit. Page 47

QHSE CONCEPT RISK AND WORKING ENVIRONMENT STUDIES q Initial concept analysis summarized in Concept Analysis Report with specific actions for further follow-up both during the detailed design phase and throughout the phases of construction and into Operations, to ensure risk ALARP and meeting the intention of the specified Regulatory Framework. q Concept Analysis further concluded with assistance from DNV in separate reports for reference during the detailed design phases: ü ü Concept Evacuation Study Report ü Concept Risk Analysis Report ü Concept Emergency Preparedness Review report ü Marketing Presentation Concept Working Environment Review report Environmental Design Specification (included in Technical Design Specification) Page 48

QHSE DESIGN/CONSTRUCTION RISK AND WORKING ENVIRONMENT STUDIES (As per principles outlined in NORSOK Z-013) 1. Quantitative Risk Assessment Studies 1. 1 Concept Risk Analysis 1. 2 Design Risk Assessment 1. 3 Construction Risk Assessment 2. Evacuation analysis 2. 1 Concept Evacuation Analysis 3. Emergency Preparedness Analysis 3. 1 Concept Emergency Preparedness Analysis 3. 2 Design Emergency Preparedness Analysis 3. 3 Construction Emergency Preparedness Analysis Marketing Presentation Page 49

QHSE DESIGN/CONSTRUCTION RISK AND WORKING ENVIRONMENT STUDIES (As per principles outlined in NORSOK Z-013) 4 a. FMEAs, Reliability and Vulnerability Studies – Vital Operating Systems 4 a. 1 Ballast System 4 a. 2 DP (Incl. Anchoring and Positioning) 4 a. 3 Electrical Power Supply 4 a. 4 Fuel Oil System 4 a. 5 Drilling System 4 a. 6 Open and Closed Drains 4 a. 7 Machinery Monitoring System 4 a. 8 Ventilation of Electronic Equipment 4 a. 9 Ventilation of Hazardous Areas 4 b. FMEAs, Reliability and Vulnerability Studies – Safety and Emergency Systems 4 b. 1 Alarm Systems 4 b. 2 Emergency Communication Systems 4 b. 3 Well Control System 4 b. 4 ESD System 4 b. 5 Ventilation with Damper System 4 b. 6 Structural Safety Systems, fire partitions etc. 4 b. 7 Fire Pump System and Fixed fire-extinguishing System 4 b. 8 Electrical Emergency Power Supply 4 b. 9 Evacuation System Marketing Presentation Page 50

QHSE DESIGN/CONSTRUCTION RISK AND WORKING ENVIRONMENT STUDIES (As per principles outlined in NORSOK Z-013) 5. Working Environment and Human Factors Studies 5. 1 Kick off meeting and preparation 5. 2 WE Program 5. 3 Experience Transfer Analysis 5. 4 Organisation and Manning Study 5. 5 WE Area Limits (WEAL) and WE Area Chart (WEAC) Input 5. 6 Arrangements/means of access 5. 7 WE Analysis 5. 8 Hazardous Chemicals review 5. 9 WE Design Review 5. 10 Human Factors in work systems 5. 11 Psychosocial preconditions Study 5. 12 Intermediate Status WE Inspections (fabrication phase) 5. 13 As Built Status WE Inspections (commissioning phase) and Non-Conformity Reporting Input 5. 14 Follow-up of vendors 5. 15 Noise and vibration control 5. 16 Constructability 5. 17 Material Handling Study 5. 18 Illumination study 5. 19 Coarse Concept WE Design Review 5. 20 Hazardous Chemicals risk assessment 5. 21 Outdoor operations/cold stress – Wind Chill study 5. 22 Human Factors in crane cabins (per crane cabin) Marketing Presentation Page 51

QHSE DESIGN/CONSTRUCTION RISK AND WORKING ENVIRONMENT STUDIES (As per principles outlined in NORSOK Z-013) 6. Other Studies 6. 1 a Helideck Studies – turbulence modelling 6. 1 b Helideck Studies – temperature gradient assessment 6. 2 Lifeboat concept sensitivity 6. 3 HSE Program 6. 4 Performance Standards for Vital Operating Systems and Safety and Emergency Systems Marketing Presentation Page 52

RISK & WORKING ENVIRONMENT ASSESSMENTS Norwegian PSA Requirements (NORSOK Standard Z-013) UK HSE Safety Case Reg’s + PFEER Regulations Concept Noise & Vibration + Lighting Evaluations Concept Working Environment Evaluation Coarse Concept Safety Evaluation Concept Environmental Evaluation (Zero Discharge Compliance) Noise Prediction Design Study Working Environment Area Charts (Design standard requirements) HAZID Review Layout Review Zero Discharge Assessment Lighting Prediction Design Study Working Environment Assessments vs. Working Environment Area Charts High Level Risk Assessment (Including Fire & Explosion Risk Analysis) Evacuation, Escape & Rescue (EER) Analysis Frequency & Consequence of: • Blow-outs • HC leaks - mud system & well test • Ship collision • Dropped objects • Helicopter crash onboard • Fires & explosions • DP failure • Occupational accidents Quantitative Risk Analysis (QRA) PFEER / Emergency Preparedness Analysis UK Safety Case / Norwegian “Ao. C”/ Certificate of Fitness etc. Rig Design w/DALs Risk Acceptance Criteria QHSE Management System Reliability & vulnerability Analysis (FMEA): • DP system • Emergency power • Ballast system • Fire water/sprinkler • Fire & Gas detection • Control & communication • BOP control system Noise & Vibration Survey (Sea Trials/Operations) Ergonomic/MMI Assessment (Sea Trials/Operations) Ø Input to Operations Manuals/Em. Prep. Manual Ø Input to Emergency Prep. Analysis Ø Input to Maintenance Criticality Analysis Lighting Survey (Sea Trials/Operations) Air Quality Assessment (Sea Trials/Operations) Ø Verify compliance with regulations Ø Verify compliance with Company Risk Acceptance Criteria Environmental HAZOP Review CONCEPT PHASE DETAILED ENG. PHASE OPERATIONS Final Working Environment Area Charts for rig Marketing Presentation ISPS Ship Security Assessment + Ship Security Plan ISPS Code Compliance Page 53

QHSE PERSONNEL TRAINING AND COMPETENCE SYSTEM q Qualification Requirements for all offshore positions is being defined and implemented for guidance and follow-up during recruitment and training process. q Draft Training Matrix including both Regulatory Training (Certification and Safety), Vendor Training and In-House Training has been prepared for the new SKDP Jack-up units. q Link to SKDP Offshore Training Matrix q Specific Competency Development & Assurance Procedure for the SKDP Jack-up operations being prepared by Operations Personnel defining the Rig Specific Competency Development Program to be effective for the SKDP North Sea Operations. This includes development of inhouse QHSE Management System training packages. q Separate Personnel & Competency Administration system OCS (Onsoft Computer Systems) has been installed and implemented, to provide detailed planning tool for the training and competency development activities and further the actual scheduling, execution and documentation of all training activities to be performed. Marketing Presentation Page 54

QHSE MANAGEMENT SYSTEM INTEGRATED QHSE MANAGEMENT SYSTEM MODEL QHSE Management System Key Management System Elements ELEMENT Leadership, communication and commitment Top-down-top commitment and company culture essential to the success of the system. Employee participation is a key factor. Policy and strategic objectives Corporate intentions, principles of action and aspirations with respect to all aspects of the operations Organisation, resources and documentation Organisation and qualifications of people, allocation of responsibility and resources and documentation of sound QHSE performance and Service Quality Evaluation and risk management Identification and evaluation of risks, for activities, products and services, and development of risk reducing measures/barriers Planning the conduct of the work activities, including planning for changes and emergency response Implementation and monitoring Performance and monitoring of activities, and how corrective action is to be taken when necessary Auditing and reviewing Marketing Presentation ADRESSING Periodic assessments of system performance, effectiveness and fundamental suitability as basis for continuous improvement Page 55

QHSE MANAGEMENT SYSTEM SUPPORTING CONTROLLING DOCUMENTATION Corporate Level CORPORATE VISIONS AND POLICIES COMPANY STANDARDS Unit Specific Level 1) CONTRACT SPECIFIC QUALITY PLANS OPERATION MANUALS FOR THE UNIT EMERGENCY PREPAREDNESS MANUAL ONSHORE CONTINGENCY MANUAL SOPEP MANUAL QHSE MANAGEMENT SYSTEM MANUAL SHIP SECURITY PLAN QHSE MANAGEMENT PROCEDURES MANUAL UNIT SAFETY BOOKLET COMPANY CORPORATE FORMS POTABLE WATER MANUAL Above Corporate Documentation will also apply for local Company Entities including Branch- and Base Offices with local adjustments as required in the QHSE Management Procedures Manual and Onshore Contingency Manual. UNIT TECHNICAL SPECIFICATION US CG Lo. I / SAFETY CASE / Ao. C / Co. F (including Key Risk/Working Environment Analysis) YEARLY HES PROGRAM FOR THE UNIT 1) Unit specific “as built” documentation, including P&ID’s, drawings, design philosophies, vendor documentation etc. , is not included in the listing of Unit Specific Documentation. Marketing Presentation Page 56

QHSE MANAGEMENT SYSTEM SUPPORTING CONTROLLING DOCUMENTATION Corporate Level QHSE MANAGEMENT SYSTEM MANUAL QHSE MANAGEMENT PROCEDURES MANUAL ONSHORE CONTINGENCY MANUAL Marketing Presentation Summary of Content Overall description of the processes defined within each element of the integrated QHSE Management System (ref. previous slide). Detailed generic procedures defining the controlled processes established for management of Administration, Finance & Accounting, Personnel (HR), Marketing, Technical Supervision, Operations, Logistics/Supply and general QHSE management. Detailed description of the company’s procedures for management of Emergency Preparedness and Response. Page 57

QHSE MANAGEMENT SYSTEM SUPPORTING CONTROLLING DOCUMENTATION Unit Specific Level CONTRACT SPECIFIC QUALITY PLANS OPERATION MANUALS FOR THE UNIT EMERGENCY PREPAREDNESS MANUAL SOPEP MANUAL SHIP SECURITY PLAN UNIT SAFETY BOOKLET POTABLE WATER MANUAL UNIT TECHNICAL SPECIFICATION US CG Lo. I / SAFETY CASE / Ao. C / Co. F (including Key Risk/Working Environment Analysis) YEARLY HES PROGRAM FOR THE UNIT Marketing Presentation Summary of Content Detailed description of various Bridging procedures between the Company’s established QHSE Management System and the specific contractual requirements with the Client. Detailed unit specific instructions and procedures for the operations of the unit’s systems and equipment including Marine, Jacking Operations, Ballast/Stability, Technical/Electrical, Anchor Handling and Drilling/Production Operations (including Well Control). Detailed procedures and guidelines for the management of Emergency preparedness and response onboard the unit, in line with pre-defined situations of Hazards and Accidents (i. e. DSHA scenarios) Detailed procedures and guidelines for the management of oil/chemical discharge emergency situations onboard the unit (as per IMO and Flag State requirements. Detailed procedures and guidelines for the management of Ship Security (e. g. anti terror measures) including detailed Ship Security Assessment as per IMO and Flag State required ISPS Code. Detailed introduction handbook for offshore employees and visitors, including an abbreviated version of the QHSE Management System and key procedures. Detailed system description and procedures/guidelines for the Potable Water System, including procedures for operations, maintenance and testing of Potable Water. Detailed technical specification and description of the key systems and equipment onboard the unit. Various applications for Regulatory Approval from relevant Coastal Authorities, including description of compliance with local rules and regulations, detailed compliance studies and risk/emergency preparedness and working environment related analysis and assessments. Annual program defining the overall QHSE goals and objectives for the operations, and further detailing QHSE related improvement activities for the upcoming period. Page 58

QHSE MANAGEMENT SYSTEM RIG OPERATIONS MANUAL TABLE OF CONTENT PART 0 GENERAL PART 1. 1 MARINE OPERATIONS PART 1. 2 TECHNICAL / ELECTRICAL PART 1. 3 STABILITY OPERATIONS PART 2 DRILLING OR PRODUCTION OPERATIONS * PART 3 SPECIAL OPERATIONS * (e. g. H 2 S, Sim. Ops, Complex Wells etc. ) PART 1. 4 RIG MOVE OPERATIONS *) Specific manuals containing operational descriptions, instructions and procedures for the operations of the unit’s systems and equipment to be developed and implemented depending on the type of unit (e. g. drilling and/or production unit). Marketing Presentation Page 59

Contact details: Skeie Drilling & Production ASA Tordenskjoldsgate 9 N-4612 Kristiansand Norway Telephone: + 47 38 04 19 40 Fax: + 47 38 04 19 41 Marketing Presentation Page 60