August 2013

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August 2013

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Biggest contract in DOF history

Travelogue:Skandi Bergen

Featured photo

Multiple contracts in Atlantic & Brazil

5 Years DAFWC free: Skandi Achiever

Conversion:Skandi Captain

Featured Photo:NB-799

EventsPhoto: Skandi Hugen between Ekofisk J and X, by Geir Ertesvåg

Issue #Year 6No. 8

28.08.2013Cover image: A rendering of the 4 PSLVs ordered in

a joint venture by DOF and Technip, read more on Page 2

What do our company values mean to you? “IntegrityRespectTeamworkExcellenceSafe

News August 2013Page 2

12.08.2013 - The joint venture owned by DOF Subsea and Technip was awarded by Petróleo Brasileiro S.A. (Petrobras) four contracts.

These contracts cover the construction of four new pipelay support vessels (PLSVs) and operation in Brazilian waters to install flexible pipes. The combined value of the contracts for the DOF Group is approximately NOK 10 billion for the firm period and NOK 20 billion including options.

This is the biggest contract in the DOF Group’s history.

Two of the PLSVs will have a 300-ton laying tension capacity and will be fabricated in Brazil with a high national content. The other two vessels will be designed to achieve a 650-ton laying tension capacity, thus enabling the installation of large diameter flexible pipes in ultra-deepwater environments, such as the Brazilian pre-salt. Vard Holdings Limited (“VARD”), one of the major global designers and

shipbuilders of offshore and specialized vessels, will be in charge of the design and construction of the four PLSVs.

Under the DOF Subsea/Technip joint venture agreement, Technip will manage flexible pipelay and Norskan will be responsible for marine operations.

Delivery of the PLSVs is scheduled for 2016-2017. Contracts will last eight years from start of operations, and could be renewed for another eight-year period.

Biggest Contract in DOF HistoryFrom Mons Aase, CEO of the DOF Group:

“This is the biggest contract in the history of the DOF Group. On days like these, I feel extra proud of our employees. The contracts confirm that our co-operation with Technip on the Skandi Vitória and Skandi Niterói have been successful, and reinforces our position as a leading provider of offshore vessels to the Brazilian O&G industry. It comes as a result of our long-term focus on the Brazilian market and is an acknowledgment of the expertise of our employees.

“We have worked with these contracts for close to two years in close cooperation with the design team of VARD and the newbuilding team of Technip. I am very pleased with the people that has contributed to this contract award, and I would like to especially thank Arnstein Kløvrud and his newbuilding team, the teams in DOF Subsea Brasil and Norskan and the legal team led by Tore R. Mohn. Finally, I would like to emphasize the contribution and support from the Chairman Helge Møgster. He has been involved from the beginning and been highly involved in the negotiations with Petrobras, VARD and Technip and he has always been convinced that we would obtain the contracts and that the contracts will take the Group to

On days like these, I feel extra proud of our employees.” -Mons Aase, CEO

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Illustration: A rendering of 1 of the 4 PSLVs to be built by VARD.

News August 2013Page 3

In order to have the good readers of DOF News well informed of the status of our new “first lady” Skandi Bergen, which are the latest addition to the DOF fleet. Here are a few words and some shots from our first on hire days on behalf of DOF Subsea, working for the Clients – Teekay & CNR.

Scope of project:

The Banff/Kyle Field is located in Blocks 29/2a and 22/27a in the UK Sector of the Central North Sea some 200 km due east of Aberdeen in approximately 95 m water depth. On the 8th December 2011 the FPSO Petrojarl Banff had a severe mooring failure. During the next few days another 3 mooring lines failed due to extreme weather.

During 2012 the FSU and much field architecture has been removed and refurbished. It is the aim of Teekay to re-commission the field in 2013.

DOF Subsea have been contracted to undertake re-instatement of the FPSO and

associated subsea infrastructure.

Skandi Bergen has now completed the first two phases of the project which are: 1st Phase - Structures Installation 2nd Phase - Flexible Installation

The vessel has performed very well so far. Technically she’s been so reliable and stable- “Touch wood” – we sometimes might have forgotten that we’re on a new build, though there are always minor issues to be dealt with. It’s a true pleasure to welcome all operators, crew & clients onboard such a nice and well done vessel.

Despite the extremely tight building schedule we experienced on (continued...)

Pål R.Stenersen, Captain

Travelogue – M/V Skandi Bergen / New build 776 of Vard Søviknes

The vessel has performed very well so far. Technically she’s been so reliable and stable.”

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“A very happy catering crew gathered up at the provision platform and ready to contribute to get onboard the provision” “2nd Phase Flowline installation”

News August 2013Page 4

this vessel, we can state that we are so far pleased with the quality of the delivered vessel. Thanks to good co-operation between the yard, its subcontractors & Owners, that all contributed to make it happen.

We will hereby raise a great thanks to all the fabulous men & women at the Building Yard – Vard Søviknes , that really gave “all in” - and made their best in order to make this vessel complete and ready upon delivery.

At the time of writing, the second phase is more or less completed and the vessel will, during the month of August, cross over to the Norwegian shelf – and go on hire for Statoil in order to serve for the Tordis project. ¤

Travelogue (continued)

“Sea trials in the most beautiful “postcard” background in the fjords at Sunnmøre”“Blown away in a summer storm – lay spread and umbilical reels on deck – Off we go!”

“Not much can go wrong when you set off to sea

with such marines – the best offshore crew there is. From left: AB-Lucky –

(A.Ignacio) – OS- Eugene Perez & The very famous Bosun –Renato Batuhan“

It’s a true pleasure to welcome all operators, crew & clients on-board such a nice and well done vessel.”

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Rescue@height trainingonboard Skandi Feistein

Photo by Geir Ertesvåg

News August 2013Page 6

DOF Group awared multiple contracts in Atlantic & Brazil

Milestone: Skandi Achiever5-Years DAFWC free06.08.2013 - The Skandi Achiever Team has reached the milestone of 5 years DAFWC free.

This achievement is only been possible with hard work and a continuos commitment to safety by everyone involved. We would also like to thank all the guys in the office for their support and guidance in helping to make this possible.

Best Regards, Jim & Mick Skandi Achiever

DOF Subsea, a subsidiary of DOF ASA has seen a number of contract awards in the Atlantic region and Brazil. The Atlantic region: After successfully completing the 2012 workscope for BritNed offshore UK and the Netherlands, the contract has now been extended for a further 2 years, utilizing either the vessel Geosund or the Geoholm. In the UK work is currently underway on the previously reported Teekay Petrojarl Banff & Kyle FPSO re-installation and there has been a subsequent increase in contract value. Multiple vessels will be engaged on this project throughout the second half of

2013 including the Skandi Skolten and DOF Subsea’s recently delivered Skandi Bergen. The workscope encompasses the tow-out and mooring of the FPSO along with the re-instatement of subsea architecture including structures, risers, flowlines and umbilicals.

Teekay has also awarded DOF Subsea a contract for the mooring pre-Installation, tow-out and hook-up work for its new FPSO, which will be installed on the Knarr field, offshore Norway. The Skandi Skolten and other vessels will be utilized in support of this project. DOF Subsea’s North Sea order book has been further enhanced with the award of a

subsea construction project from a major oil company. The project involves the disconnection of redundant flexible flowlines and tie-in of new flowlines to the wellheads and subsea manifold. Offshore work on this project is scheduled for the third quarter of 2014. Additionally, there has been a contract extension from Technip for the vessel charter of the Geoholm and Statoil has awarded a contract extension for construction support work using the Geosund. Jan-Kristian Haukeland, EVP DOF Subsea Atlantic, stated: “the awards reflect continuing client support for our high quality vessels and

services and the project work scopes reflect the wide ranging capabilities of the DOF Subsea Group” The Brazil region: DOF Subsea has secured a new contract for the the Skandi Salvador with Chevron. The contract starts when the current contract with Chevron ends in September 2013 and has a firm period until the end of 2014. The vessel has already been working for Chevron during the last 5 years. With this new contract Skandi Salvador will continue supporting the production activities across Frade Field performing subsea construction, ROV inspection and Survey services. As per Eirik Tørressen, DOF Brasil Country Manager, the new contract reflects the cooperative relationship that Chevron and DOF has established through the past years in Brazil and the operational excellence achieved by this team working effort. “We are very glad to keep working with first class clients like Chevron, where we can have a high cooperation level and transparent dialogue. We are confident that the new contract will replicate the same excellence in performance and safety records”, said Tørressen. The Skandi Salvador was the first construction vessel built in Brazil. Mons S. Aase, CEO DOF Subsea, stated: “I am very pleased with the contract awards, further adding to the record-high back-log.”

News August 2013Page 7

Skandi Captain has undergone a major over-haul this summer.

The vessel returned from service in Brazil in the middle of July, immediately going to Orskov Shiprepair Yard in Denmark.

The vessel commenced immediately on a 10 year docking, with scheduled work such as : overhaul of all thrusters, box coolers, anodes, new antifouling and paint (hull and superstructure), new wooden deck, overhaul of all cargo stations, methanolsystem, rust blasting/picking and cleaning (see photos on the following page).

The major aim for the conversion was to re-place all of its generator sets (Main engines).

The yard rapidly removed the old engines and lifted in the new ones. Once placed, the challenging work of adjusting the 10 yr old vessel to its new engines could com-mence. The new engines differs from the old ones with respect to RPM count (900 vs 1800), larger physical size, sea water cooling requirement, power management, all which have been given attention during the yard stay.

Also converted were the cargo tanks. An estimated 200 meters of steel pipes has been installed in the vessel to convert its cargo tanks back from freshwater carrier layout to a more regular “North Sea” PSV.

The work has been going on in (continued...)

DOF site team at Orskov Yard, Denmark

The vessel returned from service in Brazil in the middle of July.”

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Skandi Captain conversion

News August 2013Page 8

cargorail, tank top and inside double bot-tom of the vessel. Cargo pumps have been checked, and the integrated automotation system has been rebuilt to fit new tank ca-pacities and engines.

Sea trial and new FMEA will commence at the end of the period to prove the vessels capabilities before commencing regular duty.

Best regards from the DOF site team at Orskov Yard, Denmark. ¤

Conversion (continued)

Overhaul of all thrusters, box coolers, anodes, new antifoul-ing and paint (hull and super-structure), new wooden deck, overhaul of all cargo stations, methanol system, rust blasting /picking and cleaning.”

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NB-799 Sea trials

News August 2013Page 10

Events

27.08.2013 - NB-799, “Skandi Iceman” begins sea trials. The vessel is scheduled for delivery end of September 2013.

NB-799 Sea Trials

Historical financial reports, along with web-casts from these presentations, can be found on the DOF website in the Investor Rela-tions section for DOF ASA: www.dof.no.

22.08.2013 - Mons Aase, CEO of DOF ASA (pictured above) and Hilde Drønen, CFO of DOF ASA, presented the quarterly presen-tation at the “Hordaland på Børs” event in Bergen, Norway. The event consisted of publicly listed com-panies within the Hordaland state of Norway and many presentations were delivered across the day at the SAS Bryggen hotel. Hordaland has 21 companies listed on the Oslo Stock Exchange, including two compa-nies from the LACO Group: DOF ASA and Austevoll Seafood ASA.

DOF ASA Q2 Event

NB-799 Vessel Specification

Overall length: 93.6 mLength between pp: 84.8 mBreadth: 24.0 mDepth main deck: 9.8 mDraft (max): 7.8 mGross tonnage: 8 593 Net tonnage: 2 578

AlfabyggetN-5392, Storebø NORWAY

Thank you for the travelogues and great pictures this month.

Send your photos & story suggestions to : john.burnham@dof.no with the subject: ”DOF News submission”

You can find the latest edition of DOF News on the intranet via the DOF Management homepage. Onshore employees can find the publication on the MyPortal.

Newsletter Info: This is an internal publication from DOF Management. Graphic Design: Corp. Communication Dpt.Editor: John Burnham Current Issue: Year 6, No. 8, Released on 28.08.2013Circulation: Released only in digital copyPublished Monthly: 11 issues, excepting December when a print edition is available, DOF Nytt