MPF Corp. Ltd. Pareto Conference September 6 th, 2006

Transcription

1 MPF Corp. Ltd. Pareto Conference September 6 th, 2006

2 The Multi Purpose Floater (MPF) Drilling, production, storage and offloading capabilities in one unit 6th generation drilling facility 1 million barrels oil storage Process facility ~ bbls/day Flexible design for deepwater and harsh environments Creating value for oil companies by providing access to the reservoir 30% increased oil recovery compared to traditional subsea solutions

3 Technical overview Length overall L OA Length between perpendiculars L PP Breadth moulded BM Depth moulded DM Draft Light Ship weight Dead weight DW Displacement Oil Storage capacity Total deck load capacity Variable deck load capacity (Drilling) 290 m 275 m 50 m 27 m 18 m 50,000 t 170,000 t 222,000 t 1 Million barrels 35,000 t 25,000 t Available deck space for topsides 10,000 m 2 Water depth 3,500 m Drilling depth 10,000m Propulsion (Thruster Motors) 8x5.500KW

4 A Floating Piece of Real Estate Simplified steel box hull structure Identical bow sections Dynamic positioning DP3 EPC construction contract with Dragados Offshore SA ( Dragados ) for vessel construction Equipment and systems modularized Contract with Aker Kværner MH and Wärtsila Group Dragados responsible for all integration

5 MPF Combining FPSO and Semi/Drillship Capabilities MPF a floating unit that can simultaneously drill, produce, store and offload crude oil offshore

6 The Time is Right for the MPF unit Main driving forces in the oil Industry Record oil prices More projects potentially profitable Need to reach first oil as quickly as possible However still need to choose a development solution that is as optimal as possible Major supply-side bottlenecks Drilling units (Semi/Drillships) Harsh Environment FPSOs Engineering & fabrication capacity Deeper waters and reservoir complexity Most new large fields discovered in deep waters Increased reservoir complexity in shallow and midwater region MPF response to industry challenge Combining drilling, production, storage and offloading into one unit Generates early cash flow at low cost Generates reservoir data improving development decisions MPF ready to drill & produce 1Q 2009 Production tariffs increasing Record day-rate levels for drilling capacity MPF can supply combination at highly attractive cost A response to future field development trends Combined drilling and production already dominating midwater segment Ultra deepwater drilling and production vessel suited for worldwide operations, incl Norwegian sector Oil companies developing more drilling intensive fields

7 The MPF built to Norwegian specifications targeting a worldwide market MPF targeting projects in several regions Norway West Africa Brazil India South East Asia Canada Gulf of Mexico

8 Hurricane damage

9 the solution - quick Demobilisation & Remobilisation Riser buoy free floating, 60m below surface The riser buoy can be released to prevent damage in harsh environment conditions Disconnect modes Emergency disconnect sec. Quick disconnect approx. 15 min. Operational disconnect 4-6 hrs

10 Board of Directors and Management Very experienced board and management team with background from the oil and gas industry and the financial sector Board of Directors Management Wilhelm P. Blystad (55), Chairman Brian Anderson (62) Hans Petter Finne (63) Morten H. Kielland (54) MPF Corp Ltd Wilhelm P. Blystad (55), Chairman and CEO Tore Nedregaard (43), President and COO Christian L. Holst (50) CFO MPF Corp Norway AS Eivind S. Bugge (46), Man. Dir. Espen R. Lied (33), CTO Ingvar Storhaug (52), VP Operations Kjetil Aamodt (47), VP Bus. Dev

11 Shareholders MPF shareholders Shareholder Number of Shares % 1 DEUTSCHE BANK AG LONDON*... 6,290, FID. FUNDS-EUR. SM. COMP./SICAV... 5,500, BEAR STEARNS SECURITIES CORP. *... 4,141, GOLDMAN SACHS INTERNATIONAL*... 3,865, LBPB NOMINEES LIMITED*... 3,054, MORGAN STANLEY & CO. INC. *... 3,039, H.L.MANAGEMENT AND CONSULTANT( ,928, SPENCER ENERGY AS... 2,928, BARCLAYS BANK PLC... 1,931, BANK OF NEW YORK, BRUSSELS BRANCH... 1,460, INSTITUSJONEN FRITT ORD... 1,295, SKANDINAVISKA ENSKILDA BANKEN*... 1,255, STATE STREET BANK & TRUST CO. *... 1,236, STATE STREET BANK & TRUST CO. *... 1,231, GLITNIR BANKI HF EGENHANDELSKONTO*... 1,224, CREDIT SUISSE SECURITIES*... 1,056, UBS AG, LONDON BRANCH , RBC DEXIA INVESTOR SERVICES BANK* , UBS NOMINEES PTY. LTD , OKO OSUUSPANKKIEN KESKUSPANKKI* , Total 20 largest shareholders... 45,842, Other shareholders... 9,157, Total shareholding... 55,000, % MPF had 114 shareholders as of 4 Sept Norwegian investors 51 foreign investors * Registered as nominee shareholder with VPS.

12 Financing Summary Financing required for first unit: USD 640 million Equity Private Placement: 275 Bond financing: 150 External debt financing of 215 Equity offering of USD 275 million Subscription price NOK (USD 5) per share Successfully concluded in May 2006 USD 150 million bond issue Successfully concluded in August 2006 Listing on Oslo Stock Exchange expected by the end of 2006 Shares currently traded on the OTC market Process with OSE started

13 Earning power Stand-alone drilling mode In line with drilling market 6th generation drilling facility Operational advantages through increased deck load capacities and storage Construction and operating costs comparable to conventional 6th generation units Combined mode MPF can offer competitive rates and remain highly profitable Can offer drilling capacity at a discount to current rig rates Can offer highly competitive production tariffs Oil company to make additional savings through early production/fast-track development Increased operating leverage from reduced capex, potentially boosting equity returns

14 Significant Market Support for the MPF Project Booming rig market and booming FPSO market Deepwater (+5000ft) Dayrates in USD Jan Aug 2006 Number of FPSO prospects E E Dayrates in USD jan.00 mai.00 sep.00 jan.01 mai.01 sep.01 jan.02 mai.02 sep.02 jan.03 mai.03 sep.03 jan.04 mai.04 sep.04 jan.05 mai.05 sep.05 jan.06 mai February Infield Current Infield Pareto Drilling deepwater dayrates close to USD500,000/day and scarcity of rigs => forces oil companies to think alternatives Cost and lead time for production facilities, such as FPSOs, have increased significantly over the last 12 months => forces oil companies to think alternatives Potential over-demand next months Source: MPF, Pareto, ODS-Petrodata, Offshore Research, IMA, Infield

15 Key investment considerations Industry trends Strong market outlook for deep water and harsh environment areas Growing E&P activity Current world deepwater floater fleet running at 100% capacity utilisation Increasing day rates in drilling and FPSO markets Excess demand for FPSO s Increased capex MPF Favourable delivery Reduced risk due to targeting two markets: Combining drilling, production, storage and offloading Competitive building cost First class yard and suppliers Private placement and bond issue completed Listing at OSE planned by end 2006

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