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 – R 4 2009 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 – R 4 2009 Page 2

COMPANY BACKGROUND COMPANY INTRODUCTION – SKEIE DRILLING & PRODUCTION q SKDP established September 2006 and located in Kristiansand, Norway. q 31% owned by Skeie Technology AS, 12% by Wideluck Enterprises and 57% by external investors (Post financial restructuring in July 2009). q Signed contract for design and construction of three KFELS Class N Jackup Unit with delivery in 3 Q and 4 Q 2010, and 2 Q 2011. q OTC listed in Oslo. q Operational Management: Skeie Rig Management. Marketing Presentation – R 4 2009 Page 3

COMPANY BACKGROUND COMPANY SET-UP Marketing Presentation – R 4 2009 Page 4

COMPANY BACKGROUND KEY COMPANY STRUCTURE Skeie Drilling & Production ASA (Kristiansand, Norway) SKDP Project Management/ Project Supervision Group Skeie Rig Management Group (Onshore) (Kristiansand, Norway; KFELS Shipyard, Singapore; Sub-Contractor Manufacturer Yards) (Trondheim, Norway + Local Base Office) KFELS Shipyard Singapore (Engineering / Construction) Rig Offshore Organisation Sub-Contractor Manufacturer Yards (Engineering / Construction) Marketing Presentation – R 4 2009 Page 5

COMPANY BACKGROUND SKDP – PROJECT ORGANISATION Oil Company Skeie Drilling & Production SKDP OPERATION Willy Tørhaug Dag Eggan MARKETING & SALES Tomas Norrby Stein Eggan SKDP PROJECT TEAM Tom Mikkelsen HSE ADVISOR Dag Eggan STRUCTURE Arne Tønnessen MARINE/ACCOM. Arnt Henriksen TECHNICAL MANAGER PURCHASE Jens Ugland HULL Arnt Henriksen QA/HSE Jan Brataas DOC. CONTR. /SEC. Beate Austefjord Helge Skeie MACHINERY Stein Anderssen El. /INSTR. Halvor Flatland DRILLING Trond Standal SITE TEAM JACKING SYSTEM Morgan Tønnessen POWER SYSTEM Halvor Flatland DRILLING EQUIP Yngve Kristiansen SITE MANAGER Mark Aitken MACH. SYSTEMS Stein Anderssen COMMUN. / INSTR. Keesoon Woon PRODUCTION MUD SYSTEM Knut Bakke Vetco Aibel AS FSO OSM Offshore AS PIPING TBN Marketing Presentation – R 4 2009 Page 6

COMPANY BACKGROUND PROJECT INTERFACE – RESPONSIBILITY AND MANDATE PROJECT GROUP OPERATIONS GROUP Supervise the engineering, construction, documentation and delivery of the Rig: ü Prepare Operational Documentation ü Fully commissioned ü Prepare Acceptance Criteria ü Documented ü Assist Project and Verify Operability ü Prepare Maintenance Procedures ü Certified (Flag State and Class) • System by system ü Ready for Operations • Area by area üAccept and Operate ü Coastal Authority Certification (PSA) ü Client Interface FORMAL HANDOVER DELIVERY Marketing Presentation – R 4 2009 ACCEPTANCE 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 – R 4 2009 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 131 meters with 30 ft. leg extension. § Drilling depth up to 35, 000 ft (10, 667 M) Set Back. § Derrick 1100 tons. § Triangular hull with three (3) triangular truss legs each fitted with a spud can with tip at its lower end. The 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 – R 4 2009 Page 9

RIG CONCEPT AND DESIGN CONSTRUCTION WORK KEPPEL FELS, SINGAPORE Marketing Presentation – R 4 2009 Page 10

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 – R 4 2009 Limits Area: Height: 12, 918 sq ft (1, 200 M 2) 52. 5 ft (16 M) Page 11

RIG CONCEPT AND DESIGN COMBINED DRILLING / PRODUCTION UNIT WITH STORAGE TANK Marketing Presentation – R 4 2009 Page 12

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 – R 4 2009 Page 13

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 – R 4 2009 Page 14

RIG CONCEPT AND DESIGN CANTILEVER FOOTPRINTS Marketing Presentation – R 4 2009 Page 15

RIG CONCEPT AND DESIGN CANTILEVER FOOTPRINTS Marketing Presentation – R 4 2009 Page 16

RIG CONCEPT AND DESIGN CANTILEVER FOOTPRINTS Marketing Presentation – R 4 2009 Page 17

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 – R 4 2009 Page 18

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 – R 4 2009 Page 19

RIG CONCEPT AND DESIGN TECHNICAL COMPARISON OUTSIDE NORTH SEA SKDP Units Design Typical Premium Unit (1) Typical Premium Unit (2) Typical 116 -C Typical L-780 N-Class (KFELS) MOD V B (KFELS) Pacific Class (BM) Le. Tourneau 116 -C F & G - L-780 Mod II Delivered 2010 2006 to 2009 1979 1982 500 ft + (1) 350 ft 375 ft 350 ft 300 ft 598 ft 480 ft 506 ft 477 ft 340 ft 264/289/35 ft 234/208/25 ft 240/224/28 ft 243/201/26 ft 180/175/25 ft 35, 000 ft 30, 000 ft 25, 000 ft 20, 000 ft 75 ft 66 ft 70 ft 40 ft 47 ft 24 ft 40 ft 25 ft BOP Stack 18 ¾” - 15, 000 psi 18 ¾” - 10, 000 psi 18 ¾” - 15, 000 psi 13 5/8” - 10, 000 psi Mud Pumps 3 x 2, 200 hp (space for 4) 6, 600 bbls 3 x 2, 200 hp 3 x 1, 600 hp 3, 500 bbls 4, 100 bbls 1, 500 bbls 2, 100 bbls 15, 900 cuft 11, 100 cuft 11, 300 cuft 8, 160 cuft 8, 000 cuft Draw works 4, 600 hp 3, 000 hp 2, 000 hp Top Drive - Rating 1, 000 T 750 T 500 T Variable Load (Drilling) 5, 000 T 3, 750 T 3, 900 T 2, 400 T 13, 050 hp 9, 275 hp 10, 750 hp 6, 600 hp 4, 950 hp 120 115 106 98 Operating Water Depth Leg Length Hull Size (L/B/D) Drilling depth Cantilever Outreach Transverse Envelope Liquid mud cap. Bulk capacity Main Power Accommodation (1) Depending on actual location criteria and leg extensions Marketing Presentation – R 4 2009 Page 20

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 – R 4 2009 Page 21

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- 273 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 190 stands locking latch for each pipe slot. q Stabbing basket/work basket 250 kg swl. Marketing Presentation – R 4 2009 Page 22

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 Drill floor 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 Drill floor Manipulator Arm with remote control from DCR or Drill floor 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 (JIM) Marketing Presentation – R 4 2009 Page 23

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 – R 4 2009 Page 24

RIG CONCEPT AND DESIGN WELL CONTROL EQUIPMENT Marketing Presentation – R 4 2009 Page 25

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 to top of derrick and 20’’ U-tube q 2 ea. Swaco CD 1400 degasser with blower q Vetco KFDJ-500 Diverter System q Equipped with 20’ “U-Tube” for HPHT NORSOK D-001 Marketing Presentation – R 4 2009 Page 26

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 with 60 ½” opening through 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 with remote control in Cellar deck q Conductor Tensioning System 318 MT capacity fold down conductor tensioning platform (centre 20 feet aft of hull) q Riser Tensioning System 318 MT capacity – 4 cylinders installed below Drill floor q BOP tensioning system 140 MT capacity – 4 cylinders installed below Drill floor Marketing Presentation – R 4 2009 Page 27

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 – R 4 2009 Page 28

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 – R 4 2009 Page 29

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 – R 4 2009 Page 30

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 – R 4 2009 Page 31

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 designed for Sikorsky S 61 and S 92 Helicopters in accordance with CAP 437 Marketing Presentation – R 4 2009 (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 32

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 – R 4 2009 Page 33

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 1 off 4" line, 10. 000 psi (1700 bar), HP line from DF to well test area ü 1 off 6” line, 1500 psi (260 bar), gas line from well test to each burner boom ü 1 off 4” line, 1500 psi (260 bar), oil line from well test to each burner boom ü 1 off 4” line, cooling water line to each burner boom ü 1 off rig air line each burner boom Marketing Presentation – R 4 2009 Page 34

RIG CONCEPT AND DESIGN PROCESS MODULE FACILITATION - KEY ARRANGEMENTS DONE • Space provision on main deck for Production Process and Utility Module • Fire Water/Deluge System interface to future Process Module; To provide sufficient fire water and deluge capacity for both rig and process module systems, the following arrangements is provided for: v Rig fire ring main to accommodate the full fire water flow based on total required flow rate of 1800 m 3/h v Provide additional guides on legs for three future raw water pumps based on two guide pipes per leg. v Accommodate space for addition self contained future fire water "containers" that also has a generator included to drive the dedicated raw water/seawell pumps for each fire pump unit. There will be space for 3 containers each drawing from a separate leg and tying into the firewater ring main. v Connection points in the fire water ring main for supply and off take of firewater v Space for future piping to fire water pump containers • Structural strength; The hull reinforcements are based on a weight of Production Process and Utility Module of maximum wet weight of 3, 500 MT. The Weight of the Utility Module of 1500 MT and Process Module of 2000 MT were used to define the supports. If there any changes of the Production Module weights, distribution and the Support foot print position, a re-assessment of the hull support interface will be required. • Cooling water supply to production plant; Guides provided for the three additional future raw water pumps for cooling water based on two guide pipes per leg. A seawater cooling line of 20” is installed and based on 2000 m 3/hr flow rate. Marketing Presentation – R 4 2009 Page 35

RIG CONCEPT AND DESIGN KEY ARRANGEMENTS DONE • Rig strengthening for Wellhead Platform for the Production Risers; The hull is designed to support the risers and wellhead platform at the transom. The wellhead platform connection to the transom will be provided at four locations vertically on both sides of the wellhead platform in way of the eight connections. Pin connections are assumed Reinforcement is based on 1500 tonnes Risers load and 300 tonnes Wellhead self-weight. • Arrangements for Drilling Rig ESD system to communicate with the Process Module ESD system; Rig ESD comes with provision to transfer 20 signals via hard wire to Process ESD systems including cabling work. ESD panel is be expandable. • Control Room Integration for Process Module; Four (4) cable tray of 600 mm width, 200 m length is catered for instrument cables coming from the process plant to the Central Control Room. • Space/facility arrangements for Emergency Switchboard Power for Production Unit (e. g. lighting etc. ) based on PROD (N) Requirements; A 100 k. W Power feeder from Emergency Switchboard for Process Module is provided. • Compressed Air/Instrument Air supply to Production Module area using existing rig air system/compressors; One 3” service outlet with shut off valve is provided for next to the future Process Module. • Communications System – PA/GA; Rig PA/GA is provided with following speakers, telephones and stations. – PA/GA Speakers ea 10 – Telephones ea 6 – General Alarm Stations ea 10 Marketing Presentation – R 4 2009 Page 36

RIG CONCEPT AND DESIGN KEY ARRANGEMENTS DONE • Fuel oil supply to process area; A 2” service outlet with shut off valve is provided next to the future Process Module. • Arrangement for service utilities in process area – 230 V / 480 V; 3 X 230 V outlets and 3 X 480 V outlets taken off from the nearest power panel next to the future Process Module are provided. • Arrangements for Fresh/Sea Water supply to process area; 2” FW & SW service outlet with shut off valve are provided next to the future Process Module. • Starboard aft crane is certified for use in Hazardous Area Zone 1 (i. e. over and next to the future Process Module). Marketing Presentation – R 4 2009 Page 37

RIG CONCEPT AND DESIGN BASIS • The process system is generic designed for two types of concepts: – Oil fields which require a one stage separation of liquid and gas before export to an existing oil processing plant. – Oil fields which require a two stage separation to stabilize the oil for export to an oil tanker. • The topside process facility is divided into different module areas: Process Module: – Production Manifold – Oil Separation – Gas Compression – Water Injection – Produced Water Treatment – Chemical Injection – Fuel Gas System – Seawater Filtration Utility Module: – Power Generation – Heating Medium – Nitrogen Generation • Flare KO / Closed Drain Drum Skid – Flare/Closed Drain System • Flare Tower Marketing Presentation – R 4 2009 Page 38

RIG CONCEPT AND DESIGN BASIC PROCESS CAPACITIES N-Class facility Medium Capacity (1) Unit Oil Production 30 000 BPD Total Liquid Production 50 000 BPD Water Production 20 000 BPD Water Injection 20 000 BPD Total Gas Production 50 000 MSCFD 1) Subject field specific evaluation Marketing Presentation – R 4 2009 Page 39

RIG CONCEPT AND DESIGN OVERFALL PRELIMINARY TOP VIEW Marketing Presentation – R 4 2009 Page 40

RIG CONCEPT AND DESIGN OIL STORAGE AND EXPORT SOLUTIONS q Subsea storage tank (steel / concrete) q FSO q Offloading to shuttle tanker Marketing Presentation – R 4 2009 Page 41

SKDP CLASS-N JACK-UP UNIT TABLE OF CONTENT 1 Company Background 2 Rig Concept and Design 3 Operations Management 4 QHSE Marketing Presentation – R 4 2009 Page 42

OPERATIONS MANAGEMENT STRUCTURE • Skeie Rig Management AS (SRM) established in Trondheim in 2008 as a wholly owned SKDP subsidiary. • SRM will be responsible for all rig operations after delivery from yard. • Key onshore and offshore management positions and section leaders already recruited. • Pre-operations activities ongoing – – Training and competency development programs under development QHSE management systems established. Maintenance systems. Logistics (spare parts) Marketing Presentation – R 4 2009 Page 43

OPERATIONS MANAGEMENT SKEIE RIG MANAGEMENT – RECRUITMENT AS PER SEPTEMBER 2009 OWNER / CONTRACT HOLDER SKEIE DRILLING & PRODUCTION CEO/President Tomas Norrby OPERATIONS MANAGEMENT COMPANY SKEIE RIG MANAGEMENT Managing Director Stein Eggan * This function may support several units depending on the area of Operations as reflected in Base Organisation structure. Human Resources Manager Geir Bjørsvik Office Administration Manager Randi Damstuen Finance/Accounting Manager Heidi Fornes IT Support Frank Ådnevik (Enitro) Business Dev. / Marketing Stein Eggan Chief Operating Officer Willy Tørhaug QHSE Director Dag Eggan Operations Manager (SKDP Units) Administration/Doc. Control Randi Damstuen Technical Support Manager TBD Maintenance Manager Terje Lindrupsen QHSE Manager TBD SKDP Rig No. 1 Rig Manager Odd Magnar Johnsen Ass. Rig Manager (PENDING CONTRACT) Drilling Manager TBD Drilling Eq. Specialist Kristian Skagemo Process Manager (As Applicable) Personnel Co-ordinator * Kirsti Jenssen SKDP Rig No. 3 Rig Manager Håvard Skagen Org. Structure as for Rig No. 1 OPERATIONS BASE ORGANISATION E&I Manager Bjørn Lilleeide Marine Manager TBD Accounting/Payroll Manager* Ann-Karin-Dullum SKDP Rig No. 2 Rig Manager TBN Supply/Purchasing Manager Stephen Knight QHSE Advisor TBD Technical Superintendent Per Revheim Supply/Purchasing John Larsen Technical Limit Co-ordinator (PENDING CONTRACT) Personal Co-ordinator * Rig Accountant * TBD Rig Offshore Organisation OIM Marketing Presentation – R 4 2009 Page 44

OPERATIONS MANAGEMENT UNIT OFFSHORE ORGANISATION – AS PER JAN 2009 Offshore Installation Manager (OIM) Atle Fjørtoft (01. 02. 09) Rasmus B. Larsen (01. 12. 08) Permanent Crew Onboard - # 25 Drilling Mode Crew – # 14 Production Mode Crew - # 7 Pending Activity Crew – # 6 Admin. Camp Boss Medic Total Crew No. Drilling/Production Mode - # 52 Safety Officer Rig Operations Superintendent Peder Andreasen Kjell Arne Orvik (01. 02. 09) 1+(1) x Storekeeper* Technical Section Leader Bjørn Glørstad (01. 09) Henrik Birnbaum (01. 12. 08) Drilling Sect. Leader (Toolpusher) Kim V. Sørensen (01. 12. 08) Ass. Tech. Sect. Leader Lead E & I Engineer Engine Room Op. Stability Section Leader Process Section Leader Electrician Stability S. L. II 2 x Process CCR Op. 2 x Crane Operator Tourpusher Alaln Hay (01. 12. 08) Ole Villefrance (01. 12. 08) 4 x Process Operator 1+(1) x Driller* Motorman Electrician 2 x Ass. Crane Operator 2 x Assistant Driller 2+(2) x Roustabouts* Hydraulic Engineer 2 x Derrickman Rig Mechanic Welder 2 x Pumpman 6 x Roughneck * Number in brackets (#) indicates additional number for full Drilling or combined Drilling/Production mode activity. Marketing Presentation – R 4 2009 Page 45

SKDP CLASS-N JACK-UP UNIT TABLE OF CONTENT 1 Company Background 2 Rig Concept and Design 3 Operations Management 4 QHSE Marketing Presentation – R 4 2009 Page 46

QHSE MANAGEMENT SYSTEM FRAMEWORK SKDP QHSE POLICY Marketing Presentation – R 4 2009 Page 47

QHSE MANAGEMENT SYSTEM FRAMEWORK QHSE MANAGEMENT SYSTEM OVERVIEW Marketing Presentation – R 4 2009 Page 48

QHSE MANAGEMENT SYSTEM FRAMEWORK INTEGRATED QHSE MANAGEMET 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 – R 4 2009 ADRESSING Periodic assessments of system performance, effectiveness and fundamental suitability as basis for continuous improvement Page 49

QHSE MANAGEMENT SYSTEM FRAMEWORK SUPPORTING CONTROLLING DOCUMENTATION Corporate & Area Base Level Unit Specific Level 1) CORPORATE VISIONS AND POLICIES CONTRACT SPECIFIC QUALITY PLANS (OR BRIDGING DOCUMENT) COMPANY STANDARDS OPERATION MANUALS FOR THE UNIT (REF. SEPARATE SLIDE) ONSHORE CONTINGENCY MANUAL (3 rd Line Strategic Management) EMERGENCY PREPAREDNESS MANUAL SOPEP MANUAL QHSE MANAGEMENT SYSTEM MANUAL SHIP SECURITY PLAN QHSE MANAGEMENT PROCEDURES MANUAL RIG MOVE MANUAL MAINTENANCE MANAGEMENT MANUAL UNIT SAFETY BOOKLET COMPANY CORPORATE FORMS POTABLE WATER MANUAL PERSONNEL HANDBOOK UNIT TECHNICAL SPECIFICATION OCCUPATIONAL HEALTH & SAFETY SERVICES MANUAL YEARLY HES PROGRAM FOR THE UNIT 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. COASTAL STATE REGULATORY CERTIFICATION Ao. C / UK Safety Case / Co. F / US CG Lo. I (including Key Risk / Working Environment Analysis) 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. 2) Reference is also made to procedure SKDP-QHSE-PRO-001. Marketing Presentation – R 4 2009 Page 50

UNIT SPECIFIC QHSE DOCUMENTATION RIG OPERATIONS MANUALS TABLE OF CONTENT PART 0 RIG DESCRIPTION PART 1 STABILITY BOOK PART 2 RIG EQUIPMENT GUIDELINES & PROCEDURES PART 3 DRAWINGS & DIAGRAMS *) 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 – R 4 2009 Page 51

QHSE MANAGEMENT SYSTEM FRAMEWORK QHSE MANAGEMENT SYSTEM ACCREDITATION Achilles accreditation (Joint Qualification System for the Offshore Industry) achieved for both Sevan Marine and Skeie Drilling & Production based on QHSE Management System framework developed by POMS. Pre-qualification QHSE audit performed by Statoil. Hydro 4 th June 2008 to assess operational set-up and management system framework against Statoil’s qualification requirements (NORSOK S-006) with only a few minor obeservations identified Marketing Presentation – R 4 2009 Page 52

QHSE MANAGEMENT SYSTEM FRAMEWORK 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 – R 4 2009 Page 53

QHSE MANAGEMENT SYSTEM FRAMEWORK 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: – OSS-101 Rules for Classification of Offshore Drilling and Support Units – OSS-201 Verification of Compliance with Norwegian Shelf Regulations Marketing Presentation – R 4 2009 Page 54

QHSE MANAGEMENT SYSTEM FRAMEWORK 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 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. Marketing Presentation – R 4 2009 Page 55

QHSE MANAGEMENT SYSTEM FRAMEWORK 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 – R 4 2009 Page 56

QHSE MANAGEMENT SYSTEM FRAMEWORK 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 Detailed Hazard Review ü Evacuation Review ü Working Environment Review (LQ and Working Areas) 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. Marketing Presentation – R 4 2009 Page 57

QHSE MANAGEMENT SYSTEM FRAMEWORK 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 Concept Working Environment Review report ü Concept Evacuation Study Report ü Concept Risk Analysis Report ü Concept Emergency Preparedness Review report ü Environmental Design Specification (included in Technical Design Specification) Marketing Presentation – R 4 2009 Page 58

QHSE MANAGEMENT SYSTEM FRAMEWORK 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 – R 4 2009 Page 59

QHSE MANAGEMENT SYSTEM FRAMEWORK 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 – R 4 2009 Page 60

QHSE MANAGEMENT SYSTEM FRAMEWORK 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 – R 4 2009 Page 61

QHSE MANAGEMENT SYSTEM FRAMEWORK 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 – R 4 2009 Page 62

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 – R 4 2009 ISPS Ship Security Assessment + Ship Security Plan ISPS Code Compliance Page 63

QHSE MANAGEMENT SYSTEM FRAMEWORK PERSONNEL TRAINING AND COMPETENCE SYSTEM q Qualification Requirements for all offshore positions defined and implemented for guidance and follow-up during recruitment and training process. q 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 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 – R 4 2009 Page 64

Skeie Drilling & Production ASA Skeie Rig Management AS Tordenskjoldsgate 9 4612 Kristiansand NORWAY Havnegata 9, Brattøra P. O. Box 1218, Pirsenteret 7462 Trondheim NORWAY Telephone: + 47 38 04 19 40 Fax: + 47 38 04 19 41 +47 73 83 19 80 +47 73 51 05 01 E-mail: mail@sdkp. no www. skeiedrilling. com Marketing Presentation – R 4 2009 Page 65