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Sinvest ASA sinvest.no

Sinvest ASA http://sinvest.no. NORSKE FINANSANALYTIKERES FORENING Thursday 10 March, 2005 Bjarne Skeie Agenda : Who we are Current Portfolio Shipyard Contracts Project Status Deep Gas Specification The Investment Case JU - Fleet Replacement Shipyard Constraints Market Developments

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Sinvest ASA sinvest.no

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  1. Sinvest ASAhttp://sinvest.no NORSKE FINANSANALYTIKERES FORENING Thursday 10 March, 2005 Bjarne Skeie Agenda: Who we are Current Portfolio Shipyard Contracts Project Status Deep Gas Specification The Investment Case JU - Fleet Replacement Shipyard Constraints Market Developments Valuation Summary

  2. Structure

  3. DD1 - JV Structure Sinvest ASA (Norway) 100 % SembCorp Marine Ltd. Deep Drilling Invest Pte. Ltd. (Singapore) (Singapore) 100 % 100 % Shareholders Agreement “Put & Call” Sembawang Shipyard (S) Pte. Ltd. Deep Drilling 1 Pte. Ltd. (Singapore) (Singapore) 18 % 82 % Kristiansand Drilling Pte. Ltd. (Singapore) PPL Hull P2006

  4. Overview of Contracts PPL (2 + 1 option) Contract for 2 premium (750 ST) jack-up units entered into January 2004 and February 2005 Rig #1: Contract price USDm 109.8 - Investment USDm 20 during construction period (5x USDm 4) • Downside max USDm 2 plus interest. Sinvest can PUT its share of investment on the yard for USDm 18 (secured by LOC provided by the yard) • Remaining USDm 90 financed by yard for 18 months after delivery at Libor+1.5% plus premium Rig #2: Contract price USDm 119.6 - 30% at contract signing and 70% at delivery • 70% non-recourse take-out financing for 12 + 12 months after delivery available if Sinvest has acquired 100% of Rig #1. Libor + 3.125% Option for a third unit, to be exercised within January 2006 - cash contract ~ USDm 130, with adjustment for currency, equipment and steel prices Keppel FELS (3 + 1 option) Contract for 3 premium (1,000 ST) jack-up units entered into January 2004, July 2004 and February 2005 Rig #1 and 2: Contract price USDm 126 (10% to be paid at start-up & 10% at steel cutting) • Non-recourse take-out financing 80% for at least 18 months after delivery at 7.5% - first unit • Non-recourse take-out financing 80% for at least 18 months after delivery at Libor + 4.5%, 10% LOC - second unit Rig # 3: Contract price USDm 132.8. Cash Contract (10/10/10/20/50) • Take-out financing will be available if financing for the first units are not utilized/refinanced Option for a fourth unit, to be exercised within January 2006 - cash contract USDm ~140, with adjustment for currency, equipment and steel prices

  5. Construction Program Q1/06 Q2/07 Q2/06 Q4/06 Q2/07

  6. Project Status per 31.01.05 PPL - P2006 Engineering: 90 % Procurement: 92 % Construction: 25 %

  7. Current Status KFELS B263 PPL P2006

  8. KFELS Units - Unique Capabilities Mod V B Super developed to enable DDI’s rigs to drill deeper and longer wells compared with Standard and Enhanced Mod V B. Particularly suited for ultra-deep gas wells as well as long demanding horizontal development wells. Specification developed in co-operation with major oil companies. Main capabilities and capacities (beyond Standard & Enhanced Mod V B): • Drilling Depth & BHT 35,000 ft & 500 ºF (260 ºC) • Mud Return temperature 266 ºF (130 ºC) • True Lifting Capacity 1,000 T • Drawworks 4,500 hp • Top Drive 2,300 hp & 78,450 ft-lbs • Mud Pumps 3 * 2,200 hp (prepared for 4th pump) • Main Power 12,740 hp (dimensioned for 4 mud pumps) • Pipe Rack Area Extended & strengthened for heavy CSG loads • Liquid mud active and reserve 5,100 bbl water-based/oil-based 2.2 sg. • Mud bulk storage 15,000 cuft • Skid-off Capable Yes

  9. Project Comparison - Capabilities Source: Fearnley Offshore

  10. Deep Gas Focus Rowan Scooter Yeargain, Tarzan Class Harsh Environment Focus Rowan Bob Palmer Rowan Gorilla 04 Rowan Gorilla 05 Rowan Gorilla 06 Rowan Gorilla 07 Maersk Maersk Innovator Maersk Inspirer KFELS Units - Limited Competition Existing Units with 1,000 T lifting capacity

  11. Fleet Replacement • Average age of the fleet is over 21-years • Only 24 units have been built since 1993 • Only 40 units built in the last 20-years (0.5%/year) • 20 units under construction Source: Fearnley Offshore

  12. Jack-ups > 300 feet: Utilization through 90% in 2H04 Source: ODS-Petrodata & Pareto Research

  13. Further improvement in utilization expected in 2005 Source: ODS-Petrodata, World Rig Forecast March 2005

  14. Strong improvement in dayrates for Jack-ups in 2H04 Note: Graph represents Pareto Securities estimate on average dayrate level for a jack-up less than 5yrs old at the respective dates, thus the graph is not directly comparable to the righthand table, which also includes fixtures for older and less advanced units Source: ODS-Petrodata & Pareto Research

  15. Deep Gas Trends - not only US GoM Source: Fearnley Offshore

  16. Jack-ups under construction Source: ODS-Petrodata & Pareto Research

  17. Valuation Considerations Assets • 5 jack-ups under construction + options for two additional units • Market Value OCR investment USDm 78. 12.9 mill shares @NOK 37.00 & USD/NOK 6.25 (+/- NOK/share 1.00 in OCR = NOK 0.17 per Sinvest Share fully diluted) Financing • 56.2 mill ordinary shares outstanding • 5 years, Senior Secured Convertible Bond • Loan amount NOKm 600 • Bond holders can convert the bond into Sinvest common shares at NOK 29.0 (20.7 mill shares) • 8.25% coupon. Interest payable annually in arrears • The Company has the opportunity to redeem the Bond within 12 months at a price of 130%

  18. Current market: EBITDA USDm 20 – 25 per rig Source: Pareto Securities estimate

  19. Sinvest NAV ~ NOK 24.6 per share, 5 rigs no value options..Incl. NOK 2.7 time to market advantage 1) Project management USDm 6, financing costs USDm 5 and SGA USDm 2 for construction of a rig 2) Value early delivery: (Market rate - newbuild parity)X(delivery time newbuild - delivery time rig) adj. to 95% utilization and discounted by 10% 3) Estimated net external financing need including NOKm 600 convertible bond, no roll over effect cash flow included, 4) USD/NOK 6.25 5) Pareto's estimate for average market rate for the company's units currently and next summer 6) Rate to justify a newbuild 7) Estimated delivery time for a jack up *) Fully diluted Source: Pareto Securites

  20. In Summary • 5 Deep Drilling Jack-Ups 350 ft+ under construction • Option for two additional units • Unique position in ultra-deep gas segment (35,000 ft) with three MOD V Super B - highest specification of current newbuildings • Owner of 15% (~12.9 mill. shares) and NOKm 16.7 in convertible bond (strike price NOK 19) of Ocean Rig ASA - market value of ~USDm 76 • ~8% market share of Jack-Ups 350 ft+ worldwide including current new buildings. • ~25% market share of newbuilding order book • Attractive non-recourse debt financing secured for until 18 months after delivery for the three first units (not achievable in today's market) • Sinvest’s premium jack-ups are well positioned in a booming jack-up market due to early mover advantage • Shipyards closing new deals at a USDm 20+ premium to Sinvest’s three first new-builds and USDm 10 premium to the remaining • Supply & Demand now in balance - recent contract awards for premium jackups indicate EBITDA USDm 20-25 per unit

  21. Appendix - Support Information

  22. Organization Chart - DDI Deep Drilling Invest Managing Director Tomas Norrby Controller/Accounting Siri Solheim Project Manager Tom Mikkelsen Advisor John Rouse Secretary Ine Jahr Moe El/Instr. Danny Griffiths Chief/Mech. Bjørn Andreassen Process Knut Bakke Drilling Martin Knapp KFELS SITE OFFICE HOUSTON OFFICE Site Manager John Campbell Project Adm. Sadiah Ngadio Piping Rosli Bachok Painting Joseph Heng Structure Brian Fu Drilling Les O’Brien Chief/Mech. Douglas Gooch El/Instr Danny Griffiths

  23. Sinvest - Management & Board Company Board Bjarne Skeie (Chairman) Tom Froberg Peter J. Moe Trym Skeie Geir Worum Management Svein Anton Bjørnholmen (General Manager) Tomas Norrby (Managing Director - DDI) Lena Skeie (PR & Marketing Manager)

  24. Sinvest’s Investment Strategy International perspective The activities of the companies within the oil, natural gas and offshore industry are global, and thus the companies active in this field as well as projects (e.g. the construction of offshore rigs) need to have an international perspective. Selective and focused approach Sinvest shall always have the approach of keeping its funds at a manageable size in order not to create the potentially harmful pressure to invest for the sake of investing. This allows Sinvest to make fewer investments and, consequently, to be able to spend more time and effort on the projects and with the management of its portfolio companies and projects. Partnering with dedicated Management Teams Companies or projects that Sinvest invest in shall have dedicated management teams. Sinvest will provide suitable management to projects or companies if such are not in place prior to the investments. Adding value through active ownership Through active ownership Sinvest will supply the project management teams and portfolio company management teams with extensive and international experience to facilitate growth and successful completion of projects. Sound financial structure Sinvest has significant experience in negotiating and structuring attractive equity and debt financing. Minimizing Sinvest´s loss exposure is key factor to its investment decisions.

  25. SinvestMajor shareholders as of 21 February 2005 No. of shares ('000) % Skeie Group AS 20 192 35.9% Credit Suisse First Nominee 6 154 10.9% Frode Teigen 1 750 3.1% Delphi Norge 993 1.8% MP Pensjon 835 1.5% Astrup Fearnley 750 1.3% Ole Teigen 700 1.2% ABG Sundal Collier Norge 614 1.1% Greenwich Land Sec 601 1.1% Skandinaviska Enskilda Clients 570 1.0% Other shareholders 23 082 41.0% Total 56 241 100.0%

  26. Jack-up additions 1998 - 2004 Source: ODS-Petrodata & Pareto Research

  27. KFELS Units - Main Features

  28. KFELS Units - Deck Arrangement

  29. PPL Units - Main Features

  30. PPL Units - Deck Arrangement

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