DEEPOCEAN GROUP NEWSLETTERQUARTER 2 2014

CONTENTS

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03 Intro

04 HSE update

06 Technology

08 The fleet

10 Operations

12 Events

14 People

16 DeepOcean in pictures

EDITORHilde Solberg

COMMITTEEHilde SolbergStepany DiazMarcelo VicenteNina Marie WathneKatie JohnsonSue HuttJacqueline Chua

DESIGNColours

PHOTO Frontpage, page 2, 3 and backpage byHåkon Nordvik

This newsletter will give you a brief overview of some of our activities from the past few months. I have drawn up some initial highlights.

So far this year, we have welcomed two new vessels to the DeepOcean fleet: The Havila Phoenix (construction, installation and trenching) and REM Ocean (Statoil IRM frame agreement). The latter was christened earlier this spring and is featured in this issue on page 12. In June, there will be a christening ceremony marking yet another vessel joining our fleet, the Deep Helder (survey, IMR and trenching), which will be ready for operations in July this year.

In February, we announced the acquisition of the GMR600 drill rig and entered into a strategic alliance with Geoquip Marine AG to provide geotechnical services in the Greater North Sea area. Entering this market, we further enhance our position as a key supplier with an increasingly growing portfolio of services for the subsea industry.

We have also announced a 7-year charter agreement with Maersk Supply Services, for a new build next generation cable lay vessel. Although this market is not new to us, this agreement opens up new opportunities for the group and will allow us to take on larger and more challenging cable installation projects.

We cannot speak of this year’s development, without mentioning the SURF process. Although the vessel is not anticipated for delivery until 2016, our new Stavanger and Aberdeen offices further enhance our presence in the SURF market. It was only two years ago that DeepOcean had limited exposure to the sector with a two-man-team evaluating the market, proposing a strategy and identifying what kind of vessel would best help DeepOcean penetrate the market. Geir Helge Bachmann, one of the two-man-

team together with Offshore Manager Terje Bentsen, has been interviewed in this issue and explains how the story starts and how the project has developed.

Also, we have featured the latest developments in the DeepOcean HSEQ Qualification programme. As our company grows, new challenges relating to HSE continue to emerge. The “ACT for Safety” programme is our recognised initiative to meet these challenges.

It’s been one year since the Trondheim Branch office opened. They have been focusing on building a complete engineering office, capable of taking on full engineering packages and smaller projects. Trondheim is home to the largest technical university in Norway. We are already attracting new talent to the DeepOcean Group and hope to do so for years to come.

To conclude, I also wish to thank our Data Processor Joanna Marie Smith, Captain on the Northern Wave Alf Gabriel Buch and Medic Sally Jenkins for sharing their inspiring stories in this issue. We truly are fortunate to have such inspirational staff on our team.

The DeepOcean Groups impressive activity so far in 2014 lays the necessary grounds for further exciting projects and market growth in the years to come

Keep up the good work!

Yours truly

Mads Bårdsen

INTRO

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WELCOME

It will soon be June, we are almost half way through 2014. As we closed the books for 2013 we announced 2014 as an exciting year for the DeepOcean Group. I am pleased to confirm that so far, even though we are seeing clear signs of cost focus from our customers and increased competition, we are still on track. For that, I must thank each and every individual for their hard work.

HSE

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ONE TEAMONE GOAL INCIDENT FREE The ACT for safety program is a major initiative highlighting the importance of safety to everyone within the DeepOcean Group.

Since DeepOcean was founded, focus on Health, Safety and Environment has played a vital role in the company. Looking forward 15 years from 1999, who would have thought that the company would grow to be one of the leading subsea companies in the world? Did we believe that this could be achieved without excellence in safety? Probably not.

As DeepOcean group has developed, one big challenge we see from a HSEQ perspective, is how we can communicate our expectations and requirements to our vendors. How can we handle language differences? How can we handle cultural differences? These are also questions which we experience within the DeepOcean Group as well. During the last years the number of vendors has increased with the growth of the company and to achieve our goal of an incident free work place, we need to work as a team.

Last year The DeepOcean HSEQ Qualification Program was developed. Currently, this particular Training is only available in Norway but the long term plan is to introduce it worldwide, to compliment other local systems and procedures. The qualification program embraces topics like “Group Policies, Core values, ACT, Toolbox talks, Safe Job Analysis, and general expectations to personnel joining our fleet and worksites. The qualification program consists of a web based training module of 30 minutes duration. At the end of the module there is a test that must be passed in order to obtain the training certificate. The certificate documents completion of the program and can be exchanged against a sticker on board all vessels. The sticker shall be placed on your hardhat to visually signal that you have completed the qualification program. After a short grace period, all personnel doing business with DeepOcean will have completed the qualification program prior

to doing any work for DeepOcean. In 2013 a total of 1200 individuals completed the training. This shows us to which extent we are using various vendors, and this only in Norway!

Based on the high focus on safety DeepOcean was awarded in 2013 the BP Key Supplier Safety Award at BP’s Strategic Supplier Forum in Aberdeen. The qualification program was one of the key elements to be highlighted.

HSE

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I have been the HSE Coordinator of DeepOcean Brazil since October 2013 and the challenge to everyone in Brazil is to maintain the excellence and commitments with HSE as Deepocean have been doing all over the world.

To achieve the goal of keeping ourselves as a benchmark in HSE for our employees, customers and suppliers, DeepOcean Brazil HSE team keeps focus on processes of continuous improvement in Quality, Health, Safety and Environment.

Participating in the implementation process of the ACT program, has a unique opportunity for my personal and professional development. The Attitude, Courage and Teamwork that the ACT program presents to us, has increasingly transformed relationship behavior within the organization.

Our most recent accomplishment was receiving a percentage of adhesion in HSE in the Petrobras excellence program, known as PEOTRAM, which enables us to participate in new bids.

I am very proud to be part of the DeepOcean family and as a native Brazilian, I would like to invite you all to get to know Brazil and participate in the biggest Soccer party in the world, the 2014 FIFA world cup Brazil!

Welcome!

MARCELO PAES GUIMARAES HSE Coordinator Brazil

MARCELO PAES GUIMARAESHSE COORDINATOR

TECHNOLOGY

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DEEPOCEAN’S SURF INSTALLATION VESSEL

JOHAN ROKSTAD AND MADS BÅRDSEN,

HAUGESUND, NORWAY

What is your role in relation to the delivery of the new vessel?

I started my involvement with the new SURF vessel from day 1 of the project, which kicked off in 2012. For a long time it was managed by a 2-man team, consisting of Offshore Manager Terje Bentsen and myself. We were responsible for evaluating the market, competitors vessels and deciding what kind of vessel concept would be the best to help DeepOcean penetrate the SURF market segment.

Our proposal was approved by the board and the vessel was ordered in 2014.

It has been a long and exciting journey that I have enjoyed been part of. I am still involved with SURF, and my current role is to support and be a part of John Baxter’s SURF team, due to my previous years working with field development projects in Stolt Offshore (now Subsea 7).

What are the key technical features of the vessel?

The key features on the vessel is without doubt the Lay System for flexible products and the Cranes. The rest of the equipment onboard the vessel is designed to support the operation of the main assets.

The lay system consists of a 150Te vertical lay system (VLS) positioned in the moonpool, and a 3000Te carousel positioned below deck. Flexible products can also be mobilized on reels on deck, if this is seen to be more efficient. We have other lay systems in the group, but this will be the only VLS, that gives us capacity to also install dynamic risers and large flexible products.

The crane package onboard consist of a 600Te and a 70Te crane, in addition to smaller handling cranes. We have other cranes in the group, but the 600Te crane gives us the capacity to install large structures and templates.

SURF installation projects typically consist of installation of both dynamic risers and templates, and this vessel gives us the capability to bid and win such projects, taking the company to a new level!

What are the differentiators compared to similar assets in the market?

I personally like the large crane, which is far better and bigger than all other vessel-cranes in this market. It seems like there is a understanding amongst customers that a 400Te crane can only lift templates up to 280Te – but our “next generation” crane (with 400Te in single-fall) can overboard structures close to 400Te, that is a massive improvement, that we need to promote to our clients!

I think also our system on deck for quick mobilization of reels and reel drive systems is a very smart development. This is usually taking many days and a lot of welding, but our system will reduce the required time alongside dramatically, that will be a big differentiator compared to other vessels.

Finally I would like to highlight our green and cost efficient power distribution system Siemens BlueDrive PlusC, that will reduce the annual fuel consumption for the vessel by 15-20%. T-he feedback from our customers when we have been presenting this vessel has been very positive. The vessels green credentials are a strong selling point which will help win projects.

GEIR HELGE BACHMANN Methods and Services Director

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GEIR HELGE BACHMANN METHODS AND SERVICES DIRECTOR

TECHNOLOGY

I personally like the large crane, which is far better and bigger than all other vessel-cranes in this segment.

CONTENTS

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DEEP8 THE FLEET

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NORTHERN WAVE

I have worked at sea for a long period of time, including the Navy and mates/masters school. I have also worked for shipping companies onshore as an operator, charterer and also as a shipping agent. However, from 1992 to date i have sailed on different kinds of offshore vessels.’

I started working on the Northern Wave in 2005, while the vessel was on charter to Statoil. At that time we were working as a supply vessel. The charter with Statoil was very varied as they used it as a substitute when their vessels needed to be classed, dry-docked, repaired etc, so we came across many different places, rigs, platforms etc and also different work operations.

After Statoil, we started a long charter with Dong Energy in Esbjerg in Danish sector. After that we performed a number of shorter charters before it was decided

to rebuild the vessel for subsea work and transfer to DeepOcean UK.

We started the rebuild of the vessel in April 2012, following our last job for Providence in Ireland. Usually we were 12-14 people employed on board while running as a supply vessel. Now we should start by running with more than 50 people on board, and the marine crew has been increased to 19. It was a bit scary at first and I was sceptical about my future on this new vessel. After a while, when I got used to that many people on board, I started to like it a lot more. It was exciting to meet a lot of new people, have new experiences and it also helped that we worked for a DeepOcean company. The job in itself was also very interesting, with work on the seabed, compared to before, always above the sea.

My work now is often much more administration with meetings and office work, although this is very familiar from my previous onshore work. In addition I have an excellent crew that takes care of the operational side of work, and I cannot say it often enough that they make my life so much easier. They are professional, a stable crew that know the vessel which is the most important to keep the vessel fit and in top operational condition. She has never been off-hire since she was built, and not many ships can say that. The crew and I are proud of that. A ship never gets better than its crew!

THE FLEET

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ALF GABRIEL BUCH CAPTAIN NORTHERN WAVE

I started sailing when I was 15 years old, in 1972.

OPERATIONS

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OUR CURRENT OPERATIONS

A NORTHERN WAVEC PRYSMIAN P GT1

A NORTHERN COMMANDERC STATOILP OFFSHORE SUPPORT

A MAERSK RECORDERC STATOILP AASTA HANSTEEN

A NORTHERN SUPPORTERC BPP OFFSHORE SUPPORT

A VOLSTAD SURVEYORC STATOILP SURVEY

A REM OCEANC STATOILP IRM

A HAVILA PHOENIXC BPP VALHALL LOFS

A REM FORZAC VARIOUS CLIENTSP RISER INSTALLATION

A EDDA FAUNAC STATOILP IRM

A DEEP VISIONC BPP SURVEY & INSPECTION

A EDDA FLORAC BPP MUNGO

A EDDA FONNC STATOILP IRM

A ATLANTIC CHALLENGERC DIAVAZ/PEMEXP IRM

A ARBOL GRANDEC DIAVAZ/PEMEXP IRM

A CBO ISABELLAC PETROBRASP IRM

A DEEP ENDEAVORC PETROBRASP IRM

OPERATIONS

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DeepOcean operations continue around the world, with projects since the last newsletter performed in the Gulf of Mexico, Brazil, the Greater North Sea, Africa, Middle East and the Far East. Operations included IRM, Survey, Subsea Installation, Construction and Trenching for a range of customers, including a number of long term contracts.

KEY

A = ASSETC = CLIENTP = PROJECT

Havila Phoenix - Preparing for Valhall LoFS (BP) which commences end of May and moving onto Snorre (Statoil) end of June. (North Sea)

Northern Wave - Preparing for offshore wind farm related trenching project which commences in May and moving onto Snorre (Statoil) in July. (North Sea)

A VOLANTISC SAIPEMP LIWAN

NEW VESSEL JOINING THE DEEPOCEAN FLEET IN 2014:DEEP HELDER - SURVEY, IRM & TRENCHING.

KEY

A = ASSETC = CLIENTP = PROJECT

A VOLANTISC SAIPEMP LIWAN

NEW VESSEL JOINING THE DEEPOCEAN FLEET IN 2014:DEEP HELDER - SURVEY, IRM & TRENCHING.

EVENTS

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The project RemOcean Started in autumn 2012.

In the process of finding a suitable vessel to satisfy ongoing IMR tenders, a charter agreement was signed with Rem Offshore, who were able to deliver a suitable vessel at the right time and the right cost.

To ensure the vessel was built according to DeepOcean’s specific requirements, necessary changes were incorporated in the design phase and implemented during the

construction period.

Construction at Kleven Yard began in May 2013 with sections of the hull arriving by barge. A team of 300 worked onboard the vessel for 10 hectic months and delivered the vessel in early March this year.

Alongside vessel development activity, three ROV systems and a 40Te Modular Handling System (MHS) were ordered and provided by DeepOcean suppliers.

The three ROV systems and MHS were are designed in close cooperation with our highly experienced personnel.

The extensive and complex interface between the vessel and Deep Ocean’s equipment has been challenging and educational for all participants in the project.

The final product is a modern and effective IMR Vessel, a safe and healthy working environment for all onboard, and a reliable platform for providing IMR services.

REM OCEAN - OUR NEW IMR VESSEL On the 14th March this year Statoil IMR signed the, “On Hire” document for the Rem Ocean. We now have a new vessel in our IMR fleet, that has already proven it can perform to and complies with DeepOcean and Statoil’s high expectations and requirements.

The MT6022 design provides excellent stability and station keeping performance, and is a well proven design within the subsea industry.

The selection and design of spread, equipment and workspaces, is all based on the objective to perform safe and efficient subsea operations.

Rem Ocean’s large working deck, low weather limitation (5-5,5m Hs) on MHS and ROV’s, together with the 150 Te offshore crane and De-ice class, results in a vessel that is flexible and fit for challenging offshore operations.

EVENTS

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KEY VESSEL FEATURERS

• 1020 M2 WORKING DECK • 150 TE AHC DECK CRANE • 40 TE MODULE HANDLING SYSTEM W/FLUSH SKIDDING SYSTEM• 2 X SUPPORTER MKII WORK ROV IN HANGARS• 1 X SEA OWL XTI OBSERVATION ROV IN HANGAR• ACCOMMODATION FOR 90 PERSONS • GENERAL WEATHER LIMITATION FOR SPREAD = 5,0 M HS • WEATHER LIMITATION FOR OPERATION OF WROVS = 5,5 M HS

EXHIBITIONS AND CONFERENCES 2014

DeepOcean will be present at various exhibitions and conferences in 2014. We are planning stands at the following events:

Global Offshore Wind, Glasgow, 11th to 12th June

Underwater Technology Conference, Bergen, 18th to 19th June

Offshore Northern Seas, Stavanger, 25th to 28th August

PEOPLE

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TRONDHEIM BRANCH OFFICE Celebrating one year in operation

Starting from scratch, DeepOcean has built up the office to become the first subsea engineering office in the region solely focusing on offshore operations. We have attracted talented engineers, including fresh graduates to the more experienced. From August there will be 18 engineers working here. We will be supporting projects with engineering, structural design and analysis as well as hydrodynamic analysis. We are focusing on building a complete engineering office, capable of taking on full engineering packages and smaller projects. The office is branched under the engineering department in Haugesund, and all development of the office is done in close cooperation with the Haugesund office.

As Trondheim is the home of the main technical university in Norway, our location is ideal to attract new talent to the whole

DeepOcean Group, even before they have graduated. Proof of DeepOcean being an employer of choice among the students is the 215 applications we received in Q4 last year for 6 summer intern positions in 2014. DeepOcean will also benefit in the future from the fact that Trondheim has a strong R&D cluster, as well as a general offshore engineering cluster.

All of us here at the Trondheim office are proud to be part of such a positive, high performing, dynamic and informal yet professional culture. We look to the future with excitement, and are more than happy to apply Deeper Thinking to new and bigger engineering tasks.

On the 2nd of April the Trondheim branch office celebrated its first year in operation. Starting with an empty office, a wobbly camping table, two foldable plastic chairs and with little time to prepare before the official opening, the first month was somewhat hectic.

If you want to have a look at what Trondheim looks like in the early morning hours you follow this link to a movie made by George: http://www.youtube.com/watch?v=WqWqbAZ9CnY

The happy lot in Trondheim: From left Steffen Tjemsland, Svein Halleraker (visiting from Haugesund), Lars Caspar Håkonsen, Martin Hasle, Erlend Denstad Iversen, Kjetil Aursand Andersen, Erlend Growen Lundby, Sveinung Soma (visiting from Haugesund), Andreas Nielsen and Inge Randen. Not present: Liv Alseth, Lars Martin Thuestad, Geir Finnøy, George Seamans and Andreas Bergum.

Cycling is my passion! I am currently training for a charity cycle ride in February 2015 from Vietnam to Cambodia for Care International UK. They are one of the world’s leading aid agencies and in the last year they’ve worked in 84 countries and helped more than 122 million people. I’ve supported their Lend With Care program (www.lendwithcare.org) for almost a year now and it’s through that scheme that I discovered of the cycle challenge. There will be between 20 and 30 of us cycling from Ho Chi Minh City in Vietnam to Siem Reap in Cambodia, a total of 412km or 255 miles. It’s not going to be a holiday by any stretch of the imagination as the average daily temperature will be 28°C and I will be cycling between 40km and 100km a day, often on unpaved roads. Along the way we’ll visit two of Care’s local projects

and see first hand how the money raised makes a difference to people’s lives.I’m sure it will be an amazing experience testing myself both physically and mentally but also to witness the stunning scenery these two extraordinary countries offer. If you would like to visit my JustGiving page and kindly sponsor me I would really appreciate it! www.justgiving.com/josmithchallenge2015

PEOPLE

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I am a staff medic with DOUK. I have a fear of heights and was eventually encouraged to attend the Working at Heights course at Falck Nutec in February of this year.

The course I attended was exclusively attended by DOUK offshore personnel. On the first afternoon, we were required to climb up a ladder inside a “wind turbine” some 20 metres and then descend the ladder. Halfway up the ladder I panicked and had to make my way back down. I was terrified and shaking from head to toe.

I spoke with the course instructors and they told me to come back the following day and if I completed the rest of the course I would still be able to obtain some certification for WAH although not the full certification for the wind turbines. That evening I thought long and hard about whether

I could complete the entire course and made the decision, that despite my fear, I would do my utmost to do so. The following day I explained this to the instructors and my colleagues and they were all very supportive.

We completed the lower level rescue training during the morning and after lunch it was time for the wind turbine climb, following which we had to step out of a hatch at the top of the turbine using a constant descent reel - a drop of some 20 metres - which for someone who is terrified of heights was a massive leap of faith.

With the unswerving support of all the DOUK personnel and the course instructors, I completed the entire exercise. My colleagues let me go first and encouraged me every single step of the way.

I was delighted to have completed the course and I know, without a doubt, that without such encouragement, laughter, joking and seriousness from the team, I could not have done it.

SALLY JENKINSMEDIC

That evening I thought long

and hard about whether I

could complete the entire

course and made the

decision, that despite my

fear, I would do my utmost

to do so.

JOANNA MARIE SMITHDATA PROCESSORCAD Operator Haugesund

THANK YOU TO ALL DEEPOCEAN EMPLOYEES

WHO CONTRIBUTED TO THIS EDITION

THE PHOENIX RISES IN NORWAYAndrew Parkin

DEEP VISION IN STAVANGERColin Buckley

VIEW FROM EDDA FAUNA 1Erlend Iversen

REM OCEANJohnny Andre Spanberg

NEW PT1 LARSNick Elliot

NORTHERN WAVESarah Turner

VIEW FROM THE PHOENIXScott Hearn

SUPPORTER ROVSigbjørn Svendsen

Please send input for consideration to your local HR/Communications team or directly to Hilde Solberg.

www.deepoceangroup.com

VIEW FROM FLIGHT OSLO TO SCHIPHOLAnne Yare