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BW Offshore FPSO seminar - NFF30September 2010

NOT FOR PUBLIC DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, SOUTH AFRICA, AUSTRALIA OR JAPAN

Picture: Petrobras

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

Disclaimer

p g , y“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 person’s 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 by law, to update any forward-looking statements or to conform these forward-looking statements to 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 person’s 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 attending this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of BW Offshore and 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

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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 investors from BW Offshore. Copies of this Presentation are not being made and may not be distributed or sent into the United States, Canada, Australia, 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 or inducement to engage in investment activity can be communicated in circumstances where Section 21(1) of the Financial Services and Markets Act 2000 does not apply.

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BW Offshore status

Fleet of 8 FPSOs and 1 FSO

Strong growth in free cashflow 100 0

Production uptime

Strong growth in free cashflowbased on firm contracts with solid counterparties

Robust balance sheet

Fully funded for all projects

Excellent operational results90,091,092,093,094,095,096,097,098,099,0

100,0

2005 2006 2007 2008 2009 1H'10

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Order book of USD 4.5 billion

Voluntary offer for ProsafeProduction

Sale of APL to National Oilwell Varco for USD 500 million

*Guiding ex APL, ex PROD

MARKET & PROJECTS

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BW Offshore 2010 order intake

USD 1.9 billion contract inflow since beginning of year

BW Offshore’s success is primary a result ofBW Offshore’s success is primary a result of

− Project execution

− Operational excellence

− Financial robustness

Number of FPSO awards, 2010

25

30

S 1

BLT; 1

FPSO awards per year

5

Source: BW Offshore, Pareto,companies

30 September 2010

0

5

10

15

20

2005 2006 2007 2008 2009 2010e 2011e 2012e

Awards New awards

BW Offshore;

4

SBM; 1Modec; 1

Teekay Petrojarl; 2

Bluewater; 1

Sevan; 1

5

Higher returns for BW Offshore’s projects

Positive market outlook− Target good return projects

− Will not agree to undue contractual risk

Expect further improvement in terms and returns on new charter contracts

− Improved contracts

− Lower prices from suppliers

− Improved project delivery process

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FPSO P-63 (Papa Terra)

Project is progressing according to schedule− BW Nisa (ULCC) at COSCO Dalian Shipyard

− Demolition work well under way

− In first dry-dock from 30 July to end September

− Steel renewal and life extension work started

Long lead items successfully contracted− 50% of budget committed

− All long lead items contracted at or below t ti d ithi h d lexpectations and within schedule

JV partners handling Brazil imports and local content

− QUIP / QGOG (Queiroz Galvão Óleo e Gas)

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Contract signed 14 July 2010− Total value of the scope is USD 150 million

FPSO OSX-1

− Completion mid 2011

OSX has engaged BW Offshore to complete the FPSO OSX-1− Topside extensions to operate in the Campos Basin offshore Brazil

− Delivery of a Submerged Turret Production (STP) system from APL

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5

FPSO for Terang Sirasun Batur

Contract signed 15 July 2010− Total contract value USD 875 million

− 10 year fixed contract (up to 14 years

including options)

First gas early 2012− Gas FPSO (340 mmscfd)

Kangean Energy Indonesia (KEI) partners − Energi Mega Persada (50%)

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g g ( )

− Mitsubishi (25%)

− Japex (25%)

Contract signed 8 August 2010− Total contract value USD 450–500 million

FPSO BW Carmen

− 3 year fixed contract (up to 8 years including options)

First oil 2H 2011− Oil processing capacity 28,000 bbls/d

− Crude storage 50,000 bbls

− Regular offloading to shuttle tanker

Athena field owners− Itacha Energy (22.5%, operator)

− Dyas UK (47.5%)

− EWE (20.0%)

− Zeus Petroleum (10.0%)

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Long term contracted cash flow

Unit Type Contract

Sendje Berge FPSO Lease Addax/Sinopec, Nigeria: 2005-2011 (2013)

Berge Helene FPSO Lease Petronas Mauritania: 2006 2013 (2021)

2013 2018 20192009 2020201220112010 20252017201620152014 2021 2022 2023 2024

Berge Helene FPSO Lease Petronas, Mauritania: 2006-2013 (2021)

Yùum K'ak'Náab FPSO Lease Pemex, Mexico: 2007-2022 (2025)

BW Cidade de São Vicente FPSO Lease Petrobras, Brazil: 2009-2019 (2024)

BW Pioneer FPSO Lease Petrobras, US: 2010-2015 (2018)

BW Athena (ex BW Carmen) FPSO Lease Ithaca, UK: 2011-2014 (2019)

Genie for TSB (TBN) FPSO Lease Kangean, Indonesia: 2012-2022 (2026)

Belokamenka FSO Lease Rosneft/Sovcomflot, Russia: 2004-2019

P-63/Papa Terra FPSO EPC/lease Petrobras, Brazil: 2013-2016

OSX-1 FPSO EPC OSX, Brazil

BW Ara VLCC

Operation - fixed period

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Floating production order backlog is USD 4.5 billion• 8 yrs of fixed contracts remaining (weighted average), 12 yrs incl options

• 65% fixed

• 70% with major NOCs

Operation - option period

Construction / EPC

Solid financial position

Growing operational cashflow based on fixed long term contracts

Run-rate EBITDA of BW Offshore to increase from USD 100 million toRun-rate EBITDA of BW Offshore to increase from USD 100 million to USD 300-350 million* based on contracted cashflow

Remaining net cash outflow is USD 400-450 million

Order book of USD 4.5 billion after USD 1.9 billion in new contracts

Unsecured RCF of USD 1,500 million− LIBOR +125 bps to May 2013

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− Utilised USD 843 million per Q2 2010

Unsecured RCF of USD 1,100 million− LIBOR +195 bps to Nov 2011

− To refinance Prosafe Production’s debt

*Guiding ex APL, ex PROD

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FUTURE

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Past and present status of technology

Sendje Berge− Benign water

BW Pioneer− Hurricanes

− Spread moored

− Simple topside

− 140 m WD

− First oil 2005

− Turret moored

− Quick disconnect

− Fluid swivel

− 2,500 m WD

− First oil 2010e

Investment x 6

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Future challenges

Larger and more complex units

- Investment up to USD 1,5 bn

Stricter environmental requirements

Investment up to USD 1,5 bn

Local content requirement

- Supplier selection

- Logistics

Technical challenges

- Deeper/less benign

Pressures and temperatures

- Higher

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APL transaction

Sale of APL to National Oilwell Varco for USD 500 million in cash

Supply agreement between BW Offshore and APL− Securing access at market terms

Non-compete undertaking

Closing expected during Q4 2010

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A pure play FPSO company

World’s second largest FPSO player

16 FPSOs (including two under conversion/construction)16 FPSOs (including two under conversion/construction)

Diversified client base with operations in all key markets

Access to leading turret technology through National Oilwell Varco/APL

Strong balance sheet

Strong long-term contracted cash flow enables a dividend policy

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Leading player

Overview of the FPSO players

25

*

*15 1410 8 6 6 5 4 2 13 3

1

4

3

2

2

0

5

10

15

20

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1829 September, 2010

* Includes TSB and Papa Terra, ex OSX-1 (BW Carmen is counted under FPSOs)

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PR

Mo d PR BW

Blu

ewa

Pet

ro

Mae Sev

Fred

.Ols

Sea

Pr

Ake

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FPSOs FPSOs under conversion / construction

Source: Carnegie, companies

Excludes FSOs and hulls

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10

NorwayRussia

Presence and diversification

Mexico

Nigeria

Latvia

India

France

USA

Scotland

Bermuda China

Philippines

Singapore

Mauritania

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Recruitment centersBW Offshore offices

Brazil

BW Offshore units

PROD units PROD offices

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The new BW Offshore equity

BW Offshore and Prosafe Production to combine

The combination will enable further maximization of shareholderThe combination will enable further maximization of shareholder value by obtaining class leading return on invested capital

Broadened shareholder base and increased free float− Market cap based on current share price is USD 1,100 million

− BW Group Limited will be diluted from 67% to 47%*

Strong cash flow and balance sheetNet interest bearing debt of USD 1 400 million− Net interest bearing debt of USD 1,400 million

− Total assets of USD 3,600 million with an equity ratio of 37.5%

− Dividend capacity

Sale of APL to National Oilwell Varco for USD 500 million in cash

2029 September 2010

* Assuming full acceptance

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Summary

World’s second largest FPSO player

Positive market development - largerPositive market development larger established players with consistent track record best positioned to strengthen market positions

Selectively pursuing contracts with improved terms

Order book of USD 4.5 billion after USD 1.9 billion in new contracts

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Run rate EBITDA of BW Offshore to increase from approx USD 110 million to USD 300-350 million based on contracted cashflow

Strong long-term contracted cash flow enables a dividend policy

*Guiding ex APL, ex PROD

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APPENDIX

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APL turnkey solutions

Production systems Terminal systems

Submerged Turret Production (STP) for FPSO

Submerged Turret Loading (STL) for FSO

External Turret Production (ETP) for FPSO

Submerged Turret Loading (STL) for LNG and Shuttle Tankers

Single Anchor Loading (SAL) for Shuttle Tankers

Buoy Turret Loading (BTL) for Shuttle Tankers

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SAL Yoke System (SYS) for FPSO

BLS and SDS systems for ShuttleTankers

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Sendje Berge, FPSOSinopec, Nigeria

60,000 bopd processing55 mmscfd gas compression

Units on contract

55 mmscfd gas compression2,000,000 bbls storageSpread mooring

Yùum K’ak’Náab, FPSOPemex, Mexico

600,000 bopd handling 200,000 bopd processing2,500,000 bbls storageDisconnectable turret mooring

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Berge Helene, FPSOPetronas, Mauritania

100,000 bpd liquids processing75,000 bopd processing100,000 bpd water injection54 mmscfd gas compression2,000,000 bbls storageTurret mooring

Belokamenka, FSOSovkomflot, Russia

2,400,000 bbls storageCargo heating system

Units on contract

Cargo heating systemSpread mooring

BW Pioneer, FPSOPetrobras, US

80,000 bopd processing25.6 mmscfd gas export600,000 bbls storage capacityDisconnectable turret mooringDouble hull (M/T Sarasota)Picture: Petrobras

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Double hull (M/T Sarasota)

BW Carmen, FPSOIthaca Energy, UK – Letter of Intent

40,000 bpd liquids handling capacity28,000 bopd processing capacity50,000 bbls storage capacityDP

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P-63 (Papa Terra), FPSOPetrobras, Brazil

ULCC (322.000 dwt)2 200 000 bbl t it

Units on contract

2,200,000 bbls storage capacity

BW Nisa - construction contract

BW Cidade de São Vicente, FPSOPetrobras, Brazil

40,000 bopd oil processing1,000,000 bbls storage capacity Prepared for facilities upgrades

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TSB, FPSOKangean Energy Indonesia, Indonesia

340 mmscfd of gas compression and conditioning capacity

Available unitsBW Ara

ULCC (322.000 dwt)2,000,000 bbls storage capacity

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Q3 2010: 30 November 2010

Further information: www.bwoffshore.com

IR contact: Kristian Flaten, VP Finance & IRkristian.flaten@bwoffshore.com