BW CATCHER BW OFFSHORES FIRST NEWBUILT FPSO Pioneering

BW CATCHER BW OFFSHORE’S FIRST NEW-BUILT FPSO Pioneering the new Nordic Plan construction-all-risks clauses for MOUs 9 April 2015 Jasper Neuteboom, Head of Insurance BW Offshore

FPSO Cidade de São Mateus 11 February 2015 April 2015 2

Disclaimer 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 “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 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 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. April 2015 3

OVERVIEW

Global footprint Belokamenka BW Athena BW Opal (sold with BB option) BW Pioneer Yùum K’ak’Náab Catcher (UC) BW Cidade de Sáo Vicente BW Joko Tole Cidade de São Mateus Umuroa Polvo P-63* Peregrino* April 2015 Units Offices Crew centers Espoir Ivoirien Berge Helene Sendje Berge Abo Azurite Petroleo Nautipa * Operation & Maintenance 5

BW CATCHER

Increased complexity FPSO: BWO action ■ ■ ■ Redundancy: (n + 1) Safety Culture: analysis/statistics New-Built vs Conversions: client decides but options (pool & market) E+P+C: keep the risk in-house Lessons learned culture: offshore and onshore convene Core staff: lesser contractor dominated project teams April 2015 7

Front-end loading ■ Catcher front end engineering (FEED) Preparations and project schedule – 2014 vs 2008 phase January 2013 – August 2013 ■ Subsequent value engineering and optimization September 2013 – April 2014 BW Offshore 2014 project ■ Quotations obtained for major subcontracts (hull, turret & mooring, topsides module fabrication, topsides engineering support) Award Typical 2008 project ■ Much higher level of definition achieved for BW Catcher than any previous BWO FPSO project 0 Tender FEED 10 20 Negotiation 30 40 50 60 Project execution ■ Reflected in the level of investment in the FEED ~ USD 15 million and more than 50, 000 man-hours April 2015 8

Catcher Area Development § § § Location: Block 28/9 UK Continental Shelf 4 reservoirs: Catcher (Aug 2010), Varadero (Jan 2011), Burgman (Mar 2011), Carnaby (Jun 2012) - Carnaby is not part of the current initial development Ownership: 50% Premier Oil, 30% Cairn Energy, 20% MOL Water depth ~90 m

Catcher Area Schematic The Catcher Development comprises of 3 subsea manifolds, one located on each of the fields that form part of the initial development (Catcher, Burgman and Varadero), all with multi-phase metering which are tied back to the FPSO. The FPSO will process oil, gas and water in accordance with the Statement of Requirements. Oil will be stored in the FPSO with oil export from there via shuttle tanker and gas export via pipeline, and all produced water will be re-injected. Provisions will also be made to lift, treat and inject seawater. The subsea manifolds, in field flowlines, mid water arches, flexible risers and gas export pipeline (which forms part of the Fixed Facilities) will be designed and installed by the Fixed Facilities Contractor (not part of BWO scope)

BW Catcher Overview § Hull: § Water Depth: § Design Life: docking § Mooring: § Production: export/import) § Offtake: hours § Topsides: GDU § Topsides: § Water Injection: § Power: § Weight: § POB: New-Built Hull classed by DNV 299 feet (91 meters) 20 years (North Sea environment) without dry. Turret mooring required (STP) 95% uptime availability requirement 60, 000 bbls Oil per day 60 MMscfd gas compression (gas lift + 650, 000 bbls export parcel, offloading within 24 Gas treatment - CO 2 removal membranes + TEG Seawater sulfate removal unit 125, 000 bbls per day (seawater + produced water) 3 x 15 MW GTG power generation Approx. 10, 000 tonnes topsides 120

Catcher Project Scope & Life Cycle § § § Topsides Engineering in Singapore Hull EPC by IHI in Japan Topsides E+P+C by BWO with fabrication in Singapore Turret Mooring System EPC by APL Integration, MC and inshore commissioning in Singapore Turret Mooring System pre-installation Transit voyage Hook-up and commissioning Start-up, testing and acceptance Lease and Operate for 7 Years plus options up to 15 years (7 + 8 x 1) De-commissioning at the end of field life

Model Testing

Subcontract Strategy Objective: to achieve right level of control where BWO’s experience and expertise can best add value and manage the risk and use the right subcontractors that fit the requirements of the project April 2015

FPSO General Arrangement (as developed during FEED phase) April 2015

STB Buoy & Mooring System Integration Philosophy Platform to be provided in Hull yard for welding top structure in the integration yard 1. IHI HULL YARD, JAPAN STP Compartment (incl Turret Monorail & foundation for the main pull-in winch) with arrangement for temp top structure c/w welding platform for later full welding at Integration Yard, Shipside decks & platforms with structural outfitting, STP ventilation system, stairways, MCM, Mating Cone, Turret Buoy Locking Devices, STP Control System & HPUs in STP Utility Room etc. 2. INTEGRATION YARD, SINGAPORE Temporary Welding location around the circumference of the STP Cylinder- to be provided in Hull yard Swivel Pedestal with integrated manifold decks c/w outfitting, geo-stationary Process Piping & Integration of piping and utilities, Swivel Stack, Pull-in Winch, Dummy Buoy Top, Chemical & Hydraulic Distribution Panels (TBC), TUTUs, EJBs, OJBs, Subsea HPU, EPU & MCS etc. 3. OFFSHORE ON LOCATION STP Buoy and Risers/Umbilicals April 2015

BW Catcher: Global Project P 63*Vendors Fabrication Yards Integration Yard Operations Site April 2015 17

BW Catcher Insurance: considerations § 5 locations of construction: § BWO’s first new-built: construction-all-risks required buy-in from existing hull underwriters desired § BWO’s contracts have average 10 -year duration: cradle-to-grave approach desired § Lessons learned: seamless transition from project to operations § Consistency in conditions: what connects to BWO’s operations programme? § Loss exposure is same: construction vs. operations April 2015 18

BW Catcher Insurance: conditions Thought Process - Options available: 1. Bespoke 2. BWO’s BRI conditions (when hull is owned) 3. Welcar 4. Other options? 1. Bespoke: global market buy-in problem 2. BWO BRI conditions: would require separate CAR in any risk of transits, lifts, etc. /costs event/gap considerations April 2015 19

BW Catcher Insurance: Welcar? § Designed for Field Developers: § Top-to-bottom insurance: not § Schedule B: Scope confined to FPSO and mooring Recoup losses from subcontractors as project integrated for BWO’s exposure, redefine subcontracts Main worry is loss to project, not where damage sits § Schedule B uncertainty: parts or scope? § Warranties + English Law : certainty whilst executing project required § Welcar undesirables: sublimits § Welcar: April 2015 sue & labour limitations, defective parts uncertainty, warranties, fundamentally different from operations policy 20

BW Catcher Insurance: other options? § Nordic Plan 2016 revision: Access to Cefor Working Group. BWO could convey concerns/wants § Plan: Contractual certainty for underwriters and owners Codified conditions Agreed document Intent based § Cefor Form: § BWO: reflects April 2015 Integral part of Plan (2016) Nordic Plan in hull operations - know the clauses Cefor Form with special conditions BWO’s operations programme to link construction and operations 21

BW Catcher Insurance: options score WELCAR PLAN BESPO KE BWO BRI × buy-in from BWO’s existing hull underwriters ? ? ? cradle-to-grave approach desired × ? - seamless transition from project to operations ? - what connects to BWO’s operations programme? × construction-all-risks required April 2015 22

Cefor Form: considerations § FPSO: § BWO: long Not getting any cheaper or simpler Increased exposure & high FPSO demand; contracts § Need: Conditions that reflects FPSO construction/ conversion as rounded project § New-Built: § Cefor Form : No good ‘sailing steel’ Plan Reflects BWO’s need and input Recognisable and intent conveying: how the has worked in operations Shipowner with broker involvement, creating a product! April 2015 23

Cefor Form: marketability § Conditions: Nordic conditions have traction at Lloyd’s § BWO: § Cefor-Plan: London 50% on hull Norwegian Law - Norwegian claims lead § Lloyd’s community – Joint Rig Committee: April 2015 time to listen to assureds? 24

BW Catcher Insurance: placement § § § Gard to lead off: claims lead with NHC on BWO fleet Declarations made: FEED & project structure Finalise Special Conditions: Cradle-to-grave, as operating FPSO Roadshow: Visited all hull slip underwriters ‘Business as usual’: Existing underwriters have first right of refusal § Consultation round: § Timing: Q&A - clarifications § Success: 90% of slip underwriters signed up April 2015 1 year = concept (brokers), declarations, Claims leader consults, Cefor Form, (special) conditions, pitching, Q&A, placement 25

Thank you Cefor!

April 2015 27