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Mosvold Supply Plc.

Confidential. Mosvold Supply Plc. Pareto Oil & Offshore Conference August 30, 2007 CEO John G. Bernander. Confidential. Mosvold Supply business opportunity. Mosvold with opportunistic approach to high-end AHTS market

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Mosvold Supply Plc.

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  1. Confidential Mosvold Supply Plc. Pareto Oil & Offshore Conference August 30, 2007 CEO John G. Bernander

  2. Confidential Mosvold Supply business opportunity • Mosvold with opportunistic approach to high-end AHTS market • Mosvold Supply Plc. (Cyprus) initiated and backed by Mosvold with substantial experience and track record from offshore drilling, supply and shipping • Pure and leveraged play on high-end, large AHTS vessels • Based on attractive turnkey newbuild contracts and proven Vik Sandvik design • 2x AHTS (Vik Sandvik 491 Clean Design) with total USD m 167 all-in delivered price (Oct-09/Jun-10 delivery) vs approx USDm 217 quotes from western European yards • 2x individual options for similar vessels (USD m 82.5/84.5 with calls 19 Sep 2007 and 19 Jan 2008, respectively). Expected delivery late 2010 and mid 2011 • Robust market outlook • High-end AHTS order book balanced by strong demand (rig/FPSO/field developments), stricter safety rules and environmental issues • Attractive payment schedule and contract terms justifying leveraged capital structure • USDm 32 equity and USD m 30 bond secured through Pareto Securities. USD m 112 take-out financing • Financing of optional vessels with optimal capital structure • Significant equity value potential • Equity replacement value approx USD m 75 based on current newbuild quotes • 3-yr historical average AHTS day rates yielding P/E 1.2x and EV/EBITDA 3.9x (2 vessels) • Additional value from 2x attractive newbuild options • Alternative strategies to be actively pursued by Mosvold

  3. Confidential Strong equity return potential • Current asset replacement cost estimated at NOKm 640 per vessel (delivered price) • Implying USDm 217 (2x AHTS) • Ignoring value of 2x Mosvold options • Mosvold equity worth USDm 76 on asset replacement values • + 117% on initial USDm 35 market cap • Mosvold equity worth USDm 106 on asset replacement values incl. 2x options 1) • >USDm 120 equity value potential based on 3-yr average earnings scenario • EBITDA USDm 46 • Assuming target EV/EBITDA 5.5x • Implying P/E 3.8x on target valuation • 3.5x initial equity valuation 1) 1) Options assumed to be USD 15m in the money vs. alternative quotes Source: Pareto Securities ASA

  4. Confidential Mosvold – an experienced shipping and offshore services group • The Mosvold family has continuously been active in shipping since 1910 • First investment in offshore: Part ownership of semi early 80ies • Acquired 3 modern J/Us from Keyes Offshore in 1989 • Mosvold Shipping was IPO‘d on the Oslo Stock Exchange in 1990 • Acquired 100% of Dual Drilling Co in 1990. Dual was a Dallas based worldwide drilling contractor owning 3 J/Us and 10 platform rigs • Through Dual, acquired further 3 J/Us in 1993 combined with raising new equity and listing of Dual on NASDAQ (Mosvold Shipping retained 60% of Dual) • Dual merged with Ensco in 1996 with payment in shares. All shares distributed to Mosvold shareholders • Mosvold initiated a J/U project 1H 2004 to build 2 J/U (with 4 options) at PPL Shipyard and Keppel FELS in Singapore. The entire project sold to Awilco in 2004 and is the now the foundation of Awilco Offshore • Mosvold is managing the construction of two semi-submersible baredecks at the Russian yard Sevmash. Baredecks sold to Saipem and Sea Dragon Offshore with forward delivery • Mosvold founded Mosvold Drilling Ltd. in 2005 (2x Ultra Deep Water Drillships on order with Samsung, acquired by Sea Drill) • Mosvold founded Mosvold Jackup Ltd. in 2006 (2x 300 ft Jackups on order at MIS), sold to Sea Wolf • Mosvold with innovative approach taking advantage of yard market potential, eg. MIS and Sevmash

  5. VS 491 CD: high capacity AHTS - State-of-the art workhorses Main features • Design: Vik Sandvik • Overall length: 91 m • Breadth moulded: 22 m • Deadweight (7.9 m draft): 4,000 t • Speed at 6.0 m draft: 17 knots • Total horsepower: 28,080 • Min. bollard pull: 270 t • DP class: II • Towing/anchor handling winch: 500 t • Crane capacity: 1x 5t, 1x 6t and 1x 10t • Fuel consumption: 13.5 t diesel per day • Accommodation: 60 persons • Prepared for ROV hangar Well reputed equipment suppliers • Diesel engines:MAK • Thrusters: Brunvoll • Towing winches: Hatlapa • DP: Kongsberg

  6. Mosvold to meet future requirements New requirements • MARPOL Annex 1 Reg. 12a requires double hull protection of fuel tanks • Applicable to all vessels/newbuilding with fuel tanks of total capacity of at least 600 m3 which are ordered after Aug 2007 and delivered from Aug 2010 • Oil companies starting to ask for ROV capability during critical anchoring • NOX tax: NOK 15 per kilo emission. Norwegian charterers expected to require modern tonnage with catalyzer, which may reduce emissions with 90-95% • Possible requirement for contingency tension testing of anchors up to 300 tons in the North Sea Mosvold well in advance to meet new requirements • Double hull construction (DnV Clean Design notation) • Safeguarding the environment from possible leakage • Ships prepared for ROV with heave compensator • Vessels with great stability and large towing and pulling capacity • Vessels with light construction work capabilities • Cost efficient fuel economy • Reduces emissions of greenhouse gases • Cost effective solution for charterers • HYBRID propulsion system • Straight shaft technology when steaming • Diesel electric principles when the vessel is holding position ►The industry realized, only to late, that CD and larger vessels would be the consequence of the new requirements Source: R. S. Platou

  7. Large AHTS to be preferred going forward- Meeting new and stricter requirements from clients and authorities Mosvold Supply VS 491 CD • 22 m breadth • 500 t • 7º tilting Conventional / older vessel • 17 m breadth • 400 t • 19º tilting

  8. Mosvold Supply AHTS with high-end specifications Source: Mosvold and Pareto Securities

  9. Mosvold Supply construction program • Favorable payment structure securing commitment from Batamec Shipyard • 20% at contract signing • 10% at key equipment delivery • 70% at final delivery • Turnkey construction contract with parent company Otto Offshore Ltd., Labuan, Malaysia • Contract price USDm 153 • All-in delivered price USDm 167 (incl. project development, supervision & interest) • Refund guarantee from Bangkok Bank (BBB+) USDm 80 - to be adjusted acc. to chg. on critical equipment , callable 15 Sep 2007 with estimated delivery late 2010 USD 82.5m – price adj. to reflect key equipment cost – exercise by mid Sep 07, expected delivery late 2010 USDm 82 - to be adjusted acc. to chg. on critical equipment , callable 30 Jan 2008 with estimated delivery late 2010 / early 2011 USD 84.5m – price adj. to reflect key equipment cost – exercise by mid Jan 08, expected delivery mid 2011

  10. Batamec Shipyard with relevant expertise • PT Batamec Shipyard wholly owned subsidiary of Otto Marine Pte Ltd • Otto Marine Ptd Ltd started operations in 1979 • Principal activities: • Shipbuilding • Ship repair & conversion • Offshore structural engineering • Batamec is strategically located at Batam Island, Indonesia • Management comprises over 45 qualified and experienced engineers, primarily from PPL and Keppel Fels • Total workforce: 2,200 • Certified to ISO 9001:2000 with Lloyds Register Quality Assurance as at 25 April 2005 • 6 vessels successfully delivered since embarking on shipbuilding strategy • Order book of 30 vessels with deliveries until 2010 • Of which 10x 10,000HP AHTS • Major clients: • Tidewater • ESNAAD • Seatrucks • PETRA • RK Offshore • Marine Subsea (Africa Offshore Services)

  11. Large AHTS rates holding up at record levels- avg spot rates YTD 2007 approx USD 95,000/d • 90% spot utilization (80%) • Recent fixtures • Highland Courage $65,000 (Pareto 3Q07E: $65,000)* • Far Sound at $65,000 (Pareto 3Q07E: $65,000)* • Sea Lynx at $55,000 (Pareto 3Q07E: $60,000)* • Olympic Hercules at $76,000 (Pareto 3Q07E: $85,000)* • Far Scout at $66,000 (Pareto 3Q07E: $65,000)* *Term rates and Pareto estimates are effective day rates; total rev./no. of days Source: Johan G. Olsen Shipbrokers, Pareto estimates

  12. Total AHTS fleet is old – 21 years avg age - Larger and more capable vessels will replace older vessels Source: Clarksons / Pareto estimates

  13. Drilling and field development driving AHTS demand- Boost in drilling activity and growing number of FPSO installations going forward- Deepwater field development boosting AHTS vessel usage General floater activity FPSO units # units # units % Annual growth 2000-2005 vs. 2006-2010 Source: ODS Petrodata, Infield, Pareto estimates

  14. Mosvold Supply Plc. Est.: Cyprus, June 2007 Mosvold Supply I Ltd Cyprus Mosvold Supply II Ltd Cyprus Corporate set-up: Mosvold Shipping Holding Ltd. Est.: Cyprus, June 2007 22.9% 100% 100% Company set up • Mosvold Supply Plc. has been established and registered in Cyprus • No direct employees in Mosvold Supply • Corporate governance in accordance with public company guidelines (incl. 30% mandatory offer threshold prior to listing) • No corporate tax (pay only local tonnage tax)

  15. Confidential Board, management and largest shareholders Board of Directors • Roy T. Mosvold – Chairman • Vasilios Trikoupis • Magne Kristiansen • Eleni Georgiades • Irene Sarvvides Management • John G. Bernander – CEO • Per Tønnesen – Technical Director • Marianne Andreassen – Controller

  16. Confidential Pro forma Mosvold Supply key figures (2x AHTS) • EV USDm 176 fully invested • Ignoring value of 2x newbuild options • Post-deal market cap USDm 35 • Incl. pre-money value USDm 3 • Approx 23% Mosvold ownership • P/E 4.0x on current Pareto 09E estimates for similar vessels (NOK 275k/d) • EV/EBITDA 7.1x • P/E 1.2x on 3-yr historical average of NOK 450k/d • EV/EBITDA 3.9x • P/E 0.8x assuming day rates at 2007E levels • EV/EBITDA 3.1x

  17. Consolidation opportunities ahead- Fragmented market creates room for consolidation- New, large AHTS in favor Source: Petrodata / Platou / Farstad

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