Corr Ocean customers have a technological edge 1

Corr. Ocean customers have a technological edge 1

Corr. Oceans Vision and Business Mission · Corr. Ocean is a World Class provider of Integrity Technology and Services. · We are committed to helping our Customers reduce risk, increase safety, improve environmental performance and enhance profits through the application of innovative technical solutions. 2

Corr. Ocean ASA A leading supplier of technology for Integrity Management, Inspection and Condition Monitoring of pipelines, structures, industrial plants · MOT – Monitoring Technology · AIS – Advanced Integrity Services · Offers protection of capital investments · Offers Safety to Humans and to the Environment 3

Corr. Ocean ASA · Share capital: · Number of shares: 20. 3 million NOK 20. 3 million par value 1 NOK. · Outstanding share options: ~1. 6 million · Number of shareholders: 1, 858. Largest shareholder, Scandia Teknologi owns 9. 6% of the capital, the 10 largest hold 42% · Equity as per 30. 06. 00: 64. 4 million NOK corresponding to 74. 8% of total capital 4

Corr. Ocean Group - Sales and profit in the period 1990 - 1999 5

Corr. Ocean ASA - P/L per 30. 06. 00 · Numbers in Mill NOK per 2. Q-00 · · Revenues Operating profit before RSC Operating profit after RSC Net profit bf tax 54. 1 (5. 0) (3. 9) · Back. Log 70. 6 2. Q-99 1999 53. 2 108. 6 (13, 5) (15. 2) (21. 0) (28. 9) (20. 7) (17. 0) 33. 4 61. 6 RSC= Re-Structuring Costs 6

Corr. Ocean ASA - P/L 2. Q-00 · · · Comments: Operating Costs reduced by 13 mill NOK, compared to 2. Q 1999. Loss per 2. Q-00 of 3. 9 mill NOK is after: · · · A ”one off” cost of 1 mill NOK related to the set up of Corr. Ocean Calgary and acquisition of all shares of Corr. Ocean Inc. , Houston A ”one off” cost of 1 mill related to manufacturing problems and delays in a project for the supply of a new product Costs for technology development of 3. 0 mill: This is mainly FSM IT plus development of a combined SM/Temperature and Pressure Sensor, for subsea production systems for oil and gas, and the next generation of FSM Subsea, suitable also for erosion monitoring 7

Corr. Ocean group - Actual Bookings and backlog last 6 Quarters 8

MOT P/L per 2. Q ’ 00 · NOK Millions · · · 2. Q’ 00 2. Q’ 99 1999 MOT Revenues 21. 4 29. 7 59. 9 Operating Profit (2. 6) (7. 2) (6. 5 ) Net profit bf tax (2. 0) (7. 0) (0. 9) Back. Log 20. 8 18. 8 20. 1 No of employees 60 63 59 ____________________ – Operating costs reduced substantially compared to last year – Low revenues 2 nd Q due to delay and technical problems in manufacturing of new product – this has now been resolved – High activity on development of new technology (3 mill NOK) – One off costs of 1. 5 mill NOK related to setting up office in Canada, plus related to manufacturing delays described above – Backlog increased by 6 mill NOK in 2 nd Q – Expects increase in bookings and revenues in 2 nd half of 2000 9

AIS P/L per 2. Q ’ 00 · NOK Millions · · · 2. Q’ 00 2. Q’ 99 1999 AIS Revenues 32. 7 23. 5 48. 7 Operating Profit (2. 4) (6. 3) (8. 7) Net profit bf tax (1. 9) (6. 2) (3. 1) Back. Log 49. 8 14. 6 41. 5 No of employees 83 74 75 ____________________ – Substantial increase in revenues and a small profit in 2 nd Q – A one off cost of 0. 5 mill NOK in connection with the set up of Corr. Ocean Canada in Calgary, and acquisition of all shares of Corr. Ocean Inc. Houston – Expects increase in revenues and profit in 2 nd half of 2000. 10

CORROCEAN ASA MANAGING DIRECTOR Corr. Ocean Business Areas COMMERCIAL SERVICES • Finance/accounting • Marketing • Human Resources • IT, QA, Office, Misc. Advanced Integrity Services Monitoring Technology Sales : United Kingdom Sales : Middle East and Brazil Sales : North & Latin America Sales : Asia Pacific 11

Corr. Ocean ASA - Companies per 01. 05. 2000 · · · · Corr. Ocean ASA, Trondheim: Corr. Ocean ASA, Billingstad ( Branch office) Corr. Ocean Aberdeen & Norwich Corr. Ocean Perth Corr. Ocean KL (Malaysia) Corr. Ocean Rome Corr. Ocean Houston Corr. Ocean Calgary 12

Corr. Ocean – an International Company Subsidiary Agent 13

Corr. Ocean Products and Services: · MOT - Monitoring Technology · · · Condition Monitoring & Inspection Corrosion & Erosion Monitoring Sand detection in oil and gas wells · AIS - Advanced Integrity Services · · · Integrity Management/Inspection planning Corrosion & Materials engineering services Inspection and Testing 14

MOT - Monitoring Technology · FSM: Instrumentation and Software for Condition Monitoring, for erosion & corrosion monitoring in oil and gas production, in petrochemical and chemical industries, subsea pipelines and flowlines. · FSM - IT: New inspection device for NDT/Inspection. Large Potential within the NDT and Maintenance Markets, a multi billion NOK market in annual sales. · SM: Detection and monitoring of sand erosion in oil and gas piping Utilised topside as well as subsea in oil and gas production · CM – Conventional corrosion monitoring technologies. Limited market 15

FSM - A system for Corrosion Monitoring, Integrity and Condition Monitoring of Pipelines, Vessels, Structures · Present applications: – Subsea pipelines/flowlines – Piping systems, bends, Tees etc on platforms – Pressure vessels and tanks · New applications: – Erosion and corrosion monitoring of subsea production systems – Onshore and offshore (top side) applications for Inspection: “FSM-IT” competing in the NDTmarket, a multi billion NOK market · Growth through partnership/alliancing 16

FSM has a substantial market in condition monitoring of pipelines, flowlines and piping of subsea production systems for oil and gas 17

FSM has a substantial market in condition monitoring of pipelines, flowlines and of production piping for oil and gas 18

Example of readings/data collected with the FSM on a subsea pipeline: 19

Corrosion pittings as detected with the FSM 20

FSM-IT A novel inspection tool based on the FSM technology. * Offers substantial cost savings to plant operators. * Improves data quality and safety in the operations. * Has a multi billion NOK market: * Offshore platforms and structures * Refineries, chemical plants, energy production plants * Onshore & underground pipelines 21

The portable instrument may be utilised with a large number of sensor straps, fitted to process piping, to pipe bends and Tees, to pipelines above and underground 22

RESULTS OF PITTING TEST 1. Start of test 3. After ~ 2 hours 2. After ~ 1 hour 4. After ~ 5 hours 23

FSM-IT Cost Benefits Dramatic inspection cost reduction through: · Reducing the inspection time for a bend, a T- or Y · · · -joint typically from 1 -2 hours (ultrasonics) to 3 -4 min (FSM-IT) Remote operation of FSM-IT (don’t need access) No need for scaffolding No need for dismantling equipment to make access No need for grinding off coatings and recoating No need for cutting away heat insulation, nor refitting Data quickly downloaded and presented on PC 24

System for sand detection and subsea erosion monitoring 25

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The high sensitivity readings of Corr. Oceans SM System are utilised to control the production of oil and gas, to avoid the production of sand to stop any erosion damage to the piping 27

Sand & P+T Sensor: A new product combining a sand detector and erosion sensor with pressure and temperature sensors. Utilised primarely on subsea production systems, but also on platforms topside 28

Data from Corr. Oceans sand probes and a computer model with a data base are utilised in combination to predict and assess erosion damage on actual piping in a plant 29

Coventional Corrosion Monitoring: Multi. Corr portable datalogger 30

Conventional Corrosion Monitoring: The Multi. Log Automatic Logging System 31

AIS - Advanced Integrity Services · Inspection Technology & Services · Integrity Management · Materials/corrosion technology and engineering services 32

Inspection Technology and testing Services: · Video Inspection Services · NDT Services: · Topside & industrial · Subsea · Hydro Electric Power plants · Engineering and Consultancy · Subsea and topside, advanced inspection technologies · Condition Monitoring &services of flexible risers · Response monitoring & services of risers · Advanced subsea NDT · Cp Surveys of pipelines, risers, platforms · Well testing · Smart pigging · Training 33

Inspection & Monitoring of flexible pipes 34

The Corr. Ocean Inspection Pig 35

Video Inspection of piping 36

RIMIS - A Riser Inspection and Management System Offering improved safety and reducing risks substantially for breakdown and downtime of the operations Costs savings may be dramatic Ref. Marketing agreement between Kongsberg gruppen, Seaflex and Corr. Ocean 37

AIS - Integrity Management Services · Corrosion Monitoring & Inspection management · · · Process equipment/ Structures/ pipelines & risers Inspection Planning: Computerized RBI (Risk Based Inspection) Monitoring & Inspection Data Management Operational Support Design of Protection schemes · Maintenance Planning · Using RBI · Using RCM: Reliability Centered maintenance techniques 38

Risk Management 39

Principle Design of A Corr. Ocean Integrity Management System 40

Corpos Computer model used for identification of critical locations in pipelines and piping: 41

AIS - Corrosion & Materials Eng Services · Corrosion and Materials Engineering · Computer Modelling and analysis for: · · Design of Cathodic Protection Prediction of corrosion in pipelines and process piping vs – CO 2 Corrosion – H 2 S corrosion – Erosion caused by sand solids/ particles 42

AIS - Corrosion & materials Eng. Services · Computer models used for optimization of inspection plans · Corrosion Protection through · · · Coatings materials selection Cathodic/ anodic protection chemicals injection, etc RCP anode: Recistor Controlled Cathodic Protection 43

Sea. Corr - Computer Models utilsed in design and optimisation of cathodic protection 44

Corpos – Corrosion prediction 45

Materials Technology Products: RCP · RCP System: · A technology for protection of seawater piping, e. g. piping made in stainless steels, valves, pumps and auxiliary components 46

AIS - Advanced Integrity Services · AIS - Market and strategy: · Inspection and Maintenance planning of oil and gas platforms and plants, also subsea. · Inspection planning for onshore industrial plants, power generation, processing industries · Market penetration dependent upon expert knowledge within materials, corrosion, inspection and monitoring technologies, advanced modelling capabilities. 47