BW Offshore

Capital Markets Day

22 March 2011

Disclaimer
This Presentation has been produced by BW Offshore Limited ( BW Offshore) exclusively for information purposes. This presentation may not be redistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, financial performance and results of BW Offshore and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of BW Offshore or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of BW Offshore or any of its parent or subsidiary undertakings or any such persons officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. BW Offshore assumes no obligation, except as required b l d l t Off h bli ti t i d by law, t update any f to d t forward-looking statements or t conform th d l ki t t t to f these forward-looking statements to f d l ki t t t t our actual results. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither BW Offshore nor any of its parent or subsidiary undertakings or any such persons officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Actual experience may differ, and those differences man be material. By tt di this P B attending thi Presentation you acknowledge that you will b solely responsible f your own assessment of th market and th market position of BW Off h t ti k l d th t ill be l l ibl for t f the k t d the k t iti f Offshore and th t d that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the businesses of BW Offshore. This presentation must be read in conjunction with the recent Financial Information and the disclosures therein. This announcement is not an offer for sale or purchase of securities in the United States or any other country. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act), and may not be sold in the United States absent registration or pursuant to an exemption from registration under the U.S. Securities Act. BW Offshore has not registered and does not intend to register its securities in the United States or to conduct a public offering of its securities in the United States. Any offer for sale or purchase of securities will be made by means of an offer document that may be obtained by certain qualified i lifi d investors f t from BW Off h Offshore. C i of thi P Copies f this Presentation are not b i made and may not b di t ib t d or sent i t th U it d States, Canada, Australia, J t ti t being d d t be distributed t into the United St t C d A t li Japan or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures. In any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any member State, the Prospectus Directive), this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive. This Presentation is only directed at (a) persons who are outside the United Kingdom; or (b) investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order); or (c) persons falling within Article 49(2)(a) to (d) of the Order; or (d) persons to whom any invitation inducement t engage i i i it ti or i d t to in investment activity can b communicated i circumstances where S ti 21(1) of th Fi t t ti it be i t d in i t h Section f the Financial S i i l Services and M k t A t 2000 d d Markets Act does not apply.

22 March 2011

AGENDA
09:00 09:15 09:15 09:35 09:35 10:00 10:00 10:20 10:20 10:40 10:40 11.10 11:10 11:40 BUSINESS AND TEAM, Carl K. Arnet, CEO FINDING THE RIGHT INVESTMENTS, Claude Louis Rouxel, SVP BD WE BUILD, David Sverre, EVP Projects WE OPERATE, Jon Myran, EVP Operations - break WE LEASE, Knut R. Sthre, CFO SUMMARY, Carl K. Arnet, CEO

BUSINESS AND TEAM

Carl K. Arnet, CEO

BW Offshore today y

Global headcount 1,900 Employing 25 nationalities Operations in 14 countries More than 30 projects delivered Operating fleet of 13 FPSOs and 2 FSOs Two FPSOs under construction Two EPC / management projects Market cap USD 1,750 million

Employees onshore and offshore

31 % 69 %

Onshore employees Offshore employees

Onshore - functions
24 % 44 % Administration Engineering/projects Operations

32 %

Onshore geographical
17 % 8% 23 % 52 % Singapore Norway Brazil Other

22 March 2011

BW Offshores background g

LPG market entry

LNG market entry

BW Gas listing as pure gas carrier company

Founded by Sig. Bergesen

Leader in crude and gas shipping markets with over 100 vessels Bergesen listing

Leading owner in the LPG, LNG, VLCC, Product Tanker and Offshore segments BW Gas privatised

Bergese en

Dry bulk market entry

Restructuring and re branding re-branding

1935 1955

1967 1969

1978

1986 1979

1996 1999

2000 2003

2005 2006

2007

2008

2009

2010

World-Wide

Sale of APL Founded by Y.K. Pao Largest independent shipping group in the world: 200 vessels of 20 million dwt

2005
Acquisition of APL q Acquisition of Prosafe

First VLCC: World Chief

Bergesen acquisition and de-listing

BW Offshore listing

Integrated Management Team formed for shipping business

Acquisition of N&T Argonaut

22 March 2011 2011

World energy demand increasing gy g

Energy demand will continue to grow fueled by fast growing emerging markets Oil and gas will remain the key sources for energy No real alternative to oil in transportation. New oil and gas developments must be made to replace current production

Source: ExxonMobil
22 March 2011 7

New fields

New fields are characterized by being

E&P spending growth

Largely nationalised Very political Environmentally sensitive

They are normally located in

Deeper waters Remote areas with limited infrastructure i f t t Harsh environment

Characteristics

More gas less oil Heavy oil Higher pressure and temperature

Source: JP Morgan
22 March 2011 8

BW Offshore in the upstream value chain p

SEISMIC

DRILLING

DEVELOPMENT

PRODUCTION

BUSINESS DEVELOPMENT CONTRACT

ENGINEERING PROCUREMENT

CONSTRUCTION INSTALLATION COMMISSIONING

PRODUCTION

DECOMMISSIONING

22 March 2011

We invest in production assets p

INPUT

FOCUS OC S

PRESENCE

+
COMPETENCE

BUILD
Concept development, engineering, sub-contracting and project management

OPERATE
Produce, maintain, train, safety & environment, manning and g logistics

+
FINANCIAL CAPABILITY

+
BUSINESS PROCESSES

+
SUPPLY CHAIN

LEASE
Business development, equity and lending

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10

Board of Directors

Dr. Helmut Sohmen

Chairman

Carine Smith Ihenacho

Board member - Independent

Chairman since 2005 Law degrees from Austrian and American universities Two honorary doctorates y

Cand.Jur University of Oslo, Norway, LL.M. from Harvard Law School, USA Former board member of Prosafe Production

Ronny J. Langeland
Vice Chairman - Independent

Christophe Pettenati-Auzire
Board member - Independent

A Qualified Accountant and has an MBE from BI, Norway. Runs his own investment and consultancy company Former chairman of Prosafe Production

MBA from INSEAD, Fontainebleau, France Former president of CGG Veritas Services in Paris

Andreas Sohmen-Pao
Board member

Maarten R. Scholten
Board member - Independent

B.A from Oxford University, UK MBA from Harvard Business School, USA CEO of BW Maritime and BW Gas

M.Sc. University of Paris (Sorbonne), France JD Commercial Law from VU Extensive legal and financial experience from the oil service industry

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Highly experienced management g y p g

Carl K. Arnet
Chief Executive Officer M.Sc. from NTNU, Norway MBA f from N Norwegian S h l of i School f Management, Norway 16 years in senior operating positions Norsk Hydro (E&P division) 14 years as CEO of APL/BWO

Knut Sthre
Chief Financial Officer Master in Finance from University of Fribourg Fribourg, Switzerland MBA from NHH, Norway 15 years of top management positions with ABB and Aker Solutions Six years CFO of APL/BWO

David Sverre
EVP Projects Bachelor of Applied Science from UBC, Canada UBC 31 years international construction experience EVP Technip NA and Director on the Board of the Gulf Island Fabrication Group Operations Director of APL

Jon Myran
EVP Operations M.Sc. from NTNU, Norway 11 years of senior experience from Norsk Hydro Project y j 15 years in Operational Management from Hydro/Statoil 3 years in Technology Management in Norsk Hydro

Tom A. Kristiansen
EVP Technology M.Sc. from NTNU, Norway 10 years experience from PP and Read Process Engineering g g Three years as Lead Engineer with ABB Offshore Systems Nine years as head of Technology division Bergesen/BWO

Anders Holm
EVP Engineering M.Sc. from NTNU, Norway Senior Structural Engineer with Skanska and Kvrner One years as Project Manager and Group Engineering Manager for APL CEO of Nexus Floating Production

Claude Louis Rouxel

SVP Business Development

Engineering degree from ECN, France Engineering degree from ENSTA, France D illi engineer f i Drilling from E Exxon 20 years in business development with SBM and Tanker Pacific

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FINDING THE RIGHT INVESTMENTS

Claude Louis Rouxel, SVP Business Development

FPSO the preferred solution p

Floating production units - installed
Others 8 3%

Semi; 42; 17 %

Spar; 18; 8% FPSO; 155; 63 %

Flexible, safe and proven solution Generic and field specific sections Deck space and deck load capacity Storage capacity Self propelled marine unit

TLP ; 22; 9%

Source: IMA
Picture with the courtesy of Petrobras

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Market overview

Annual growth 5-10% Most FPSO contracts are extended into the option period alternatively redeployed on profitable new contracts The complexity and size of new FPSOs are increasing Leased vs owned 50/50

Number of FPSOs globally

Source: ODS Petrodata, Pareto, ABN AMRO

22 March 2011 15

Flexible production solutions p

Operating FPSOs - regions
3% 10 % 3 %1 % 1 % 23 %

Oil production profile of the FPSO fleet (bbl/d)

14 %

23 % 22 % West Africa South America Australia / New Zealand Mediterranean Canada SE Asia / Far East North Sea Non-committed Gulf of Mexico

Source: IMA, Fearnley Offshore

22 March 2011 16

Clients preference p

Proven track record, class-leading production, top safety and environmental operations, technical competence and financial strength Oil companies prefer to initiate dialogue at an early stage of field development Number of active FPSO contractors reduced from ~30 to less than 10 since 30 2008

Actual FPSO contracting capacity limited to a handful players BW Offshore, SBM and Modec represent >60% of actual capacity p p y

18 16 14 12 10 8 6 4 2 0

FPSOs under conversion/construction

FPSOs

Source: Companies, Fearnley

22 March 2011 17

Market opportunities a et oppo tu t es

Brazil

South East Asia

20-30 opportunities Price Limited technology requirements Limited local content issues All types of commercial regimes

30-40 opportunities Local content Size of projects Technology - important Commercially tough

Africa

Gulf of Mexico

30-40 opportunities Local content yes/no All sizes Less technology driven All types of commercial regimes

5-10 opportunities 5 10 opport nities

Northern Europe
20 opportunities No local content Expensive, but reasonable scope Technology is important

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Internal evaluation of prospects p p

Project name Operator Country NorwayNorth Sea UK-North Sea NorwayNorth Sea NorwayNorth Sea UK-North Sea Brazil Status Award Prior relation Reserves Country Technical risk Commercial Portfolio of risk work Score

Draupne- Luno Det NorskeFPSO Lundin Fram FPSO Shell

Hild FSU Bressay Mariner FSU Stella Harrier FPSO Brazilian Blocks FPSO FSO + Export Buoys? Siri FPSO Opportunity FPSOs

Total

Statoil

Ithaca

Petrobras

Petrobras

Brazil

Petrobras

Brazil

Petrobras

Brazil

Internal score card intentially left blank

22 March 2011 19

Preparations for bid p

Project and concept evaluation in cooperation with client

Paid FEED / engineering studies Optimising concept and clarification of demand g Operation input

Basic design and cost estimation Subcontracting plan Contract, legal and commercial considerations Credit quality of operator and partners Risk assessment Review R i
20

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Current opportunities pp

Focus

FSO Bien Dong for PTSC/PetroVietnam FPSO in West Africa

Pursuing 5-10 selected FPSO opportunities Options on existing contracts are normally exercised and often extended past the optional period

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Finding the right investments g g

Solid demand less competition More complex FPSOs Improved terms and conditions p Final negotiations for new contracts

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WE BUILD
David Sverre, EVP Projects

Project division roles j

Business development phase

Engineering concept is fixed E i i t i fi d Work scopes and execution plan are completed Main subcontractors and suppliers are committed Project team participates in all phases of the tender process Project Division commits to deliver on time and budget

Project phase starts from contract signature

Basic engineering is converted to detailed engineering Change control process implemented Quality control in all stages and deliveries Operations staff seconded into project at mechanical completion/commissioning

Operations phase start at preparation for first oil

The EPCI process

FRONT-END ENGINEERING TECHNOLOGY SELECTION BASIC ENGINEERING BID/NEGOTIATIONS DETAILED ENGINEERING PROCUREMENT INSTALLATION FABRICATION CONSTRUCTION COMMISSIONING

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FPSO BW Pioneer accepted for start-up p p

The Bureau of Ocean Energy Management, Regulation and E f R l ti d Enforcement (BOEMRE) t today provided the final approval necessary for Petrobras America, Inc. to begin oil and natural gas production at its Cascade-Chinook project using a Floating Production Storage Offloading (FPSO) facility. This will be the first time this technology is used in the U.S. Gulf of Mexico. [] These regulatory approvals pave the way for safe, new production of oil and gas resources in the Gulf of Mexico, said BOEMRE Director Michael R. Bromwich. They reflect enormous and sustained effort by both BOEMRE and Petrobras personnel and represent the commitment shared by government and industry to the safe production of our countrys offshore energy resources.

BOEMRE press release, 17 March 2011

22 March 2011

25

FPSOs under construction

BW Athena at Drydocks World, Dubai

Extending vessel by 22 meters and including a section for turret Fabrication of disconnectable buoy at fabrication yard in Sweden Progress 51% at end February and in line with plan Ready for operation end Q4 2011

BW Joko Tole at Sembawang Shipyard Singapore Shipyard,

Conversion to handle gas and condensate Progress 42% at end February and in line with plan Spread moored by BW Offshore installation group p y g p north east of Bali Ready for operation early 2012

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26

EPC and management p j g projects

P-63/Papa Terra at COSCO Dalian Shipyard, China

Structural work and steel renewal, piping and mechanical work ongoing Completing ship yard work in December 2011 Brazilian JV partner (QUIP) handling Brazil importation importation, topsides and local content risk Progress 52% at end February and in line with plan

FPSO OSX-1 at Keppel Benoi Singapore OSX 1 Benoi,

Scope limited to project management, engineering and procurement Topside modifications required for OSX-1 use

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Integrating technology g g gy

We understand the marine environment through years of shipping and production offshore We are specialists in process plant optimization We are a technology user an integrator

Effective outsourcing of specialized competence We have experience with a wide range of technologies Strategic alliance for turret and swivel technology

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Execution strategy gy

Outsource saving vs control

Continue to maximize outsourcing to save costs Increased BW Offshore decision makers to control

Implemented gated control processes for execution Formed new engineering division

Standardize technical solutions, processes and planning Maintain substantial core group of experienced engineers

Formed new Quality Assurance team

Through Thro gh inspection sec re q alit secure quality Focus on rapid cycling of project experience

Trust, but verify!

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Supply chain strategy pp y gy

In project critical procurement we use suppliers based on long term relationships, trust and common understanding of quality We focus on efficient competition

World wide sourcing Open process of prequalification Minimum three competitors Consistent bid evaluation process

Dual responsibly to control expenditures

Process of verification and approval

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Yard selection and management g

Invite qualified yards Extensive site visits and documentation to verify capability and capacity. Currently executing conversions in four different yards

Specifically targeted Chinese and Middle East yards to broaden competition

Tight monitoring of physical progress and q quality y Routine executive visits to verify commitment

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Installation

Complete FPSO value chain

Internal installation services to control the full delivery of the FPSO Experience transfer from installation to project to reduce cost

Well planned and executed installation is a profitable business

Attractive service offerings to external clients

Minimize asset deployment risk by chartering all vessels

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Improvements to p j p project completion p

Mechanical completion

Physical check of all components of the system

Commissioning process

Dynamic testing of system

Major learning from past projects

Payments tied to achieving mechanically complete systems Operations leads commissioning - not external consultants Process controlled with document database to ensure current data Close monitoring of physical process Familiarise operations team through commissioning

The goal is a smooth and on-time start up

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We build

Projects performing in line with plan Strengthening all phases of project execution Risk management and p g procurement strategy gy

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WE OPERATE
Jon Myran, EVP Operations

The cash machine

Flare Tower ae o e Turret & Swivel Stack Gas Compression Steam Boilers Process Plants Power Generation Water Injection Accomodation Helideck H lid k

Mooring Lines

Risers and umbilicals

Storage

Offloading Hose

OIL, OIL GAS AND WATER SEPARATION WELL FLUID GAS COMPRESSION

GAS INJECTION/EXPORT WATER INJECTION

OIL STORAGE

MEETERING OFFLOADING

22 March 2011

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Focus areas

Health, Safety, Security, Environment, Quality (HSSEQ) Meet clients expectations Production uptime Asset integrity Crew and competence Efficient local and central support Operational costs and efficiency Operational experience transfer across the fleet

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Global footprint p
Belokamenka

BW Pioneer Endeavor Yum KakNab Ningaloo Vision

BW Cidade de So Vicente

Umuroa Cidade de So Mateus

Polvo Units Offices Crew centers

22 March 2011

Espoir Ivoirien

Berge Helene g

Sendje Berge

Abo

Azurite

Petroleo Nautipa
38

Fleet utilisation
Unit Sendje Berge Berge Helene Yum K'ak'Nab BW Cidade de So Vicente BW Pioneer BW Athena (ex BW Carmen) Umuroa Polvo Abo Espoir Ivorien Petroleo Nautipa (50%) Cidade de Sao Mateus Ningaloo Vision Azurite Belokamenka Endeavour dea ou P-63/Papa Terra OSX-1 BW Ara Takama Type FPSO FPSO FPSO FPSO FPSO FPSO FPSO FPSO FPSO FPSO FPSO FPSO FPSO FDPSO FSO FSO SO FPSO FPSO VLCC VLCC Contract Lease Lease Lease Lease Lease Lease Lease Lease Lease Lease Lease Lease Lease Lease Lease Lease Lease ease EPC/lease EPC 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Addax/Sinopec, Nigeria: 2005-2013 Petronas, Mauritania: 2006-2013 (2021) Pemex, Mexico: 2007-2022 (2025) Petrobras, Brazil: 2009-2019 (2024) Petrobras, US: 2011-2016 (2019) Ithaca, Ithaca UK: 2011-2014 (2019) Kangean, Indonesia: 2012-2022 (2026) AWE, New Zealand: 2007-2015 (2022) Devon, Brazil: 2007-2014 (2022) Agip, Nigeria: 2003-2012 (2013) CNR, Ivory Coast: 2002-2012 (2022) Vaalco, Gabon: 2002-2015 (2017) Petrobras, Brazil: 2009-2018 (2024) Apache, Australia: 2010-2017 (2025) Murphy, Congo: 2009-2016 (2024) Rosneft/Sovcomflot, Russia: 2004-2019 Aban, India: 1997-2011 ( 0 3) ba , d a 99 0 (2013) Petrobras, Brazil: 2013-2016 OSX, Brazil

BW Joko Tole (ex BW Genie) FPSO

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Quality is the basis for efficient operation y p

All units meet requirements from

Bermuda or Panama flag DNV or ABS class National authorities Operator /clients International standards BW Offshore internal standard

BW Offshore has obtained certification towards four Management System standards

ISO 9001 Quality Management ISO 14001 E i Environmental M t l Management t OHSAS18001 Occupational Health and Safety Management ISM Code Safety Management and Pollution prevention

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Performance

Excellent HSE performance

Production uptime
100.0% 100 0% 98.0% 96.0% 94.0% 92.0% 90.0% 2005 2006 2007 2008 2009 2010

Lost time incidents (LTI) < 1.0

Excellent production uptime

2010 uptime 98 7% 98.7% 5 year average uptime 99.0%

BWOffshoreHSEstatistics 2010,(12monthsrolling average) 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 LTIrate TRIrate

Jan 0.38 1.76

Feb 0.41 2.26

Mar 0.36 2.49

Apr 0.39 2.58

May 0.47 2.70

Jun 0.49 2.76

Jul 0.45 2.77

Aug 0.47 3.05

Sep 0.57 3.04

Oct 0.68 2.29

Nov 0.79 2.28

Dec 0.88 2.39

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Asset integrity g y

Ensure integrity of structure and equipment Class and flag requirements Systematic and planned maintenance Condition monitoring and risk based inspection programs

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Global presence and competence p p

World-wide base of offshore personnel

FPSO unit personnel, illustrative

1,300 offshore personnel 25 nationalities 5 international recruitment centers 14 countries of operations ti f ti

Operation support teams in Oslo and Singapore Personnel development and training

Competence Management System In-house competence assessment program and offshore academy Leadership program Cultural awareness program

Offshore personnel
800 600 400 200 0 2004 2005 2006 2007 2008 2009 2010 2011 Expats Nationals

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Operation expenditures p p

Two models fixed or reimbursable Operational rate is adjusted to cover inflation and currency fluctuations Production related consumables and logistics normally covered by client Operational expenditures includes maintenance cost Allowance for planned maintenance

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Reducing costs g

Potential to increase operational efficiency without reducing performance Cost synergies from larger fleet

Crew Local offices Purchase / maintenance cost Insurance I

OPEX cost levels per FPSO, 2010

Internal and external benchmarks

Unit operating expenses p g p Oil production efficiency Gas production efficiency

#1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12

22 March 2011 45

Improvements to operation p p

Streamlining support organisation

HSSEQ Integrity management Guidelines, procedures and systems

Clear definition of role and responsibilities of operational division in projects

Experience transfer to business development and project Increase focus on lif cycle costs I f life l t Commissioning and start-up

Establish internal benchmarking and improvement team to identify and implement best practices

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We operate p

Meeting client requirements Class leading HSSEQ and uptime Operational efficiency programs O ti l ffi i

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Short coffee break

WE LEASE
Knut R. Sthre, CFO

Lease business

Financial capability to fund large FPSO projects allows BW Offshore to offer project specific lease structures and alternatives to clients Optimised solution for financial leverage and focus for field owners Legal structure to fully comply with requirements from authorities and client BW Offshore offers both financial and operational leases

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High and robust cash flow transparency g p y

Order book USD 8.2 billion in re en e 82 revenue USD 5.1 billion in EBITDA
9 8 7 6 5 4 3 2 1 0 Revenues EBITDA 4.6 3.1 2.0 3.6

Robust counterparties

35 % Petrobras
Options Firm

53 %

Other NOCs * Independents **

12 %

EBITDA weighted average contract length 6 years fixed 11 years fixed and options

* e.g.Pemex, Petronas **e.g.Apache, Murphy, Kangean, Ithaca, Devon, AWE, CNR, Agip
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Financial status

Prosafe Production consolidated from and including Q4 2010 APL division presented as discontinuing business from and including Q3 2010 Total assets USD 3.7 billion with an equity ratio 37.5%

USD million Total non-current assets Assets of disposal group held for sale Total T t l current assets t t Total assets Total equity Total non-current liabilities Liabilities of disposal g p held for sale p group Total current liabilities Total liabilities Total equity and liabilities
Reported interest bearing debt * Cash and deposits Non-current deposits * Net interest bearing debt
22 March 2011

31.12.10 3,287.4 7.1 382.8 382 8 3,670.2 1,375.6 337.7 7.1 1,956.9 2,294.6 3,670.2
1728.9 228.2 228 2 99.2 -327.4 1401.5

30.09.09 1,791.0 498.4 689.2 689 2 2,480.2 948.6 1,104.5 134.2 427.1 1,531.6 2,480.2

31.12.09 2,134.8 0.0 258.7 258 7 2,393.5 920.9 1,237.5 0.0 235.1 1,472.6 2,393.5

* Per Q4 2010, USD 99.2 million is related to the CIRR financing scheme; increasing both long term debt and non-current deposits

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New financial foundation

Refinancing of BW Offshore and Prosafe Productions corporate debt Seven year secured loan of USD 2.4 billion Strong interest from existing lending banks g g g Predictable terms and flexibility for both growth and dividend Loan documentation completed
2000 1500

USD million

1000 500 0 -500 -1000 Term loan RCF

Key covenants Equity ratio Leverage Interest coverage ratio Dividend (% of EBITDA)

> 30% < 5.5 > 3.0 < 50%

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Synergies y g

Progress

Singapore organisation integrated and relocated Integration of regional offices started Best practice process initiated Alignment of policies, procedures and tools

Current realised cost synergies USD 20 million per annum

Head-count H d t Office leases Insurance Further synergies of USD 5 million have been identified

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Accretive organic g g growth

Annual investment program of USD 500 million Indicative return for new investments

A typical BW Offshore FPSO project

Unlevered IRR Levered IRR Average FCF yield Increase NAV per share Increase EPS

12-15% 12 15% 24-31% 20-26% NOK 1.10-1.80 NOK 0.21-0.29

Investment of USD 500 million

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Share price and liquidity p q y

Number of shareholders increased from 1,200 to 3,000 BW Group ownership reduced from 67% to 47% Increased interest from investors and analysts Status Singapore Stock Exchange listing

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Dividend payments p p p y proposed

The Board of Directors will propose a new dividend policy to the AGM

20-25% of EBITDA Quarterly payments Planned Q1 2011 dividend payment in June p y

BW Offshore has as an objective to generate competitive long-term total shareholder returns. This return will be achieved through sustainable growth and stable dividend payments. BW Offshore targets a payout ratio of 20-25 per cent of EBITDA over the business cycle. The payments of dividends will be evaluated and paid on a quarterly basis

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We lease

Robust order book Strong financial capabilities Dividend and increased cash yield

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SUMMARY
Carl K. Arnet, CEO

BW Offshores market position p

Presence in all major offshore regions

Competence centers in Oslo and Singapore covering all time zones Global network for recruitment and training of personnel

Established relationship with quality suppliers Well developed management systems and controls Highest standards of HSSEQ Industry leading production uptime 99.0% Robust balance sheet with strong financial capacity
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22 March 2011

Recognized FPSO contractor g

Worlds second largest FPSO company 15 FPSOs & 2 FSOs Proven project execution capabilities performed more than 30 projects since 1982 Technical milestones and achievements

The first FPSO in the US Gulf of Mexico The deepest moored FPSO at 2,500 meters The worlds largest FPSO throughput with 600,000 bbl per day World leading fast-track conversion of 11 months from contract award to first oil The first FPSO with drilling equipment (FDPSO) The first advanced deep water extended well test FPSO

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The investment case

BW Offshore has the resources and capabilities to take on new projects in an expanding market Expect significant improvement in value creation for new projects

Improved contracts ( p (T&Cs) ) Pricing and delivery time from suppliers is stable Improved internal processes and controls

Predictable cash flow from existing assets enables dividend payments

Order book of USD 8.2 billion backed by solid counterparties

Strong fi S financial b i i l basis

BW Group currently owns 47% Flexible and sound financing in place

Competent board and management team

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22 March 2011

Short term game p g plan

Secure run rate EBITDA of USD 500 million on current portfolio Ensure ongoing projects perform in line with plan and cost Finalize integration of Prosafe Production and realize synergies of USD 25 million Annual investment program of USD 500 million with good risk/reward

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Q&A

Picture: Petrobras

Q1 2011: Further information: IR contact:

22 March 2011

24 May 2011 www.bwoffshore.com Kristian Flaten, VP Finance & IR [email protected]

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