ODFJELL INVEST LTD. INVESTOR PRESENTATION - Netfonds -- Aksjehandel

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ODFJELL INVEST LTD. INVESTOR PRESENTATION

Atle Sæbø, Executive Vice PrecidentTerje Iversen VP Finance

London, 4/5 May 2006

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1. About Odfjell Invest2. Corporate strategy / structure3. Contracts and agreements4. Rig specifications5. Market conditions6. Share capital and shareholder matters7. Presentation Odfjell Drilling

ODFJELL INVEST LTD. AGENDA FOR THE PRESENTATION

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ODFJELL INVEST LTD. DEEPSEA ‘RIG’ – OUR RESPONSE

§ Manager with excellent track-record and long operating history

§ Utilising management systems and human resources of the Odfjell Drilling group

§ Taking advantage of market opportunity

§ Limited project risk

§ State of the art drilling rig

§ EPC contract with reputable yard

§ All-in delivered cost of USD 608m

§ Option to build one additional unit

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ODFJELL INVEST LTD. INTRODUCTION

§ Incorporated in Bermuda on 12 January 2006

§ The company shall be a leading supplier of high quality and cost-efficient harsh environment deep water semi-submersible drilling and service units to the offshore oil and gas industry

§ Agreement with Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) in South Korea for the building of a harsh environment deep water semi-submersible drilling unit to be delivered in October 2008

§ Drilling package to be delivered by National Oilwell Norway AS (NOV)

§ Option to order one additional rig to be declared no later than 24 February 2007, with earliest delivery 4Q 2009

§ Odfjell Drilling, through subsidiary Odfjell Offshore AS, undertakes management and operations

§ Odfjell Invest is listed on the OTC list in Norway, and the Company has applied for listing at Oslo Børs (Oslo Stock Exchange) 2Q 2006 with the ticker code OILRIG

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Chartering policy

Vision

Organisation

Business concept

Market

Objective: Maximise shareholder value and return on capital employed

The company shall be a leading supplier of semi-submersible drilling units designed to the highest environmental and safety standards to the offshore oil and gas industry for the deepwater and/or the harsh environment market

Optimise utilization of the fleet through continuously adapting to changes in the market, improving the capabilities of the drilling units and increasing the quality and reliability of services

Focusing on drilling units designed for the world wide ultra deepwater market, including harsh environment, and designed for the most environmental sensitive areas

Over time secure and maintain a balanced portfolio of medium to long-term contracts to ensure a steady cash flow and to reduce exposure to short-term market fluctuations

Securing competitiveness by utilising the management of the mobile and platform drilling operations, the economies of scale and the pool of human resources of the Odfjell Drilling group

ODFJELL INVEST LTD. CORPORATE STRATEGY

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§ Yard construction price of USD 406.5m§ EPC contract price with DSME

§ Projected all-in/delivered construction cost of approx. USD 608m§ Including site team, other projects costs and

financing costs§ Including commissioning, marketing and overhead

costs during construction period§ Including contingencies and spare parts

§ External loan financing of USD 387.5m§ Term sheet signed 21 February 2006§ Loan agreement to be signed 10 May 2006

§ Equity requirement USD 230m § Odfjell Drilling with USD 90m paid-in equity§ Private placement USD 140m

All-in delivered cost USDm

Daewoo EPS contract price 406.5

Drilling package/OFE 132

Direct project costs 10

Supervision 18

Contingencies 12

Spare parts 5

Delivered construction cost 583.5

Capitalised interest costs (net) 11

Marketing, G&A, fees and expenses 14

Working capital/cash at delivery 9

Total funding requirement 617.5

Funding

Equity 230

Bank debt 387.5

Total funding 617.5

ODFJELL INVEST LTD. FULLY FUNDED UNTIL DELIVERY OF THE RIG

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§ Attractive financial leverage yet fully funded incl. post-delivery take-out financing

§ Comfortable break-even incl. debt amortisation

§ USD 285,000 (365d)

§ Significant earnings potential based on current contract drilling rates

§ RoE 30-40%

§ Simulations based on 1 rig only

§ Zero value assigned to 1 rig option

Odfjell Invest Ltd Scenarios Cash B/E fig in USDm $310 000 $450 000 $500 000 $550 000 $600 000Utilisation 95 % 95 % 95 % 95 % 95 %Daily opex incl fixed mgmt fee ($105 250) ($105 250) ($105 250) ($105 250) ($105 250)SG&A ($1,5) ($1,5) ($1,5) ($1,5) ($1,5)Pro forma P&L (yr 1)EBITDA pre incentive fee $68 $116 $133 $151 $168Mgmt EBITDA incentive fee ($3) ($6) ($7) ($8) ($8)EBITDA (post incentive fee) $64 $110 $127 $143 $160Depr (30yr) ($20) ($20) ($20) ($20) ($20)Op profit $44 $90 $106 $123 $139Net financials (6% avg) ($23) ($23) ($23) ($23) ($23)Net Profit $21 $67 $84 $100 $117Cash Earnings $41 $88 $104 $121 $137Maint capex $0 ($5) ($5) ($5) ($5)Free cash flow $41 $83 $99 $116 $132

Equity value (mid range) 240 $240 $240 $240 $240Net debt fully invested 378 $378 $378 $378 $378Enterprise Value 618 $618 $618 $618 $618

EV/EBITDA 9,6 5,6 4,9 4,3 3,9 P/CF 5,8 2,7 2,3 2,0 1,8 P/E 11,4 3,6 2,9 2,4 2,1 RoE (on paid-in equity) 9,1 % 29,2 % 36,4 % 43,5 % 50,7 %Cash flow yield 17 % 34 % 41 % 48 % 55 %

Break-even (1 rig only) Fully invested/09EOpex incl mgmt fee USD/d 105 250G&A " 4 110Depreciation " 54 886Net financials " 63 321Debt amortisation " 112 329

P&L Break-Even " 227 567Cash Break-Even " 285 010

ODFJELL INVEST LTD. BREAK-EVEN ANALYSIS

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§ Engineering, procurement, construction and commissioning (EPC) contract with DSME

§ Drilling package to be delivered by NOV

§ Option agreement for one additional unit

§ Project Management Agreement (Construction Period)

§ Rig Management Agreement (Mgmt + post-delivery operations)

§ Loan financing Term Sheet

ODFJELL INVEST LTD.ALL CONTRACTS AND AGREEMENTS IN PLACE

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§ Designed for the most environmentally sensitive areas

§ Ultra deepwater

§ Harsh environment

§ Prepared for full winterisation

§ Dual drill tower

§ Optimised drilling efficiency

§ Largest deck area and deckload >7500MT

§ High flexibility for DP and anchored operations

ODFJELL INVEST LTD. DEEPSEA ‘RIG’ – HIGHLIGHTS

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§ 'Knuckle boom' cranes for safer lifting operations

§ Active heave compensating drawworks§ No derrick mounted heave compensator avoiding

dropped objects

§ Focus on high maintainability with ease of access

§ Remote operated pipe-handling

§ Single and two-person cabins

DESIGNED TO THE HIGHEST ENVIRONMENTAL AND SAFETY STANDARDS

SAFETY AND WORKING ENVIRONMENT

§ Compliance with rules and regulations for all environmentally sensitive areas

§ Zero discharge with closed drain system

§ Waste management system

§ Low emission engines

§ AC driven main drilling systems, without high-pressure hydraulic oil equipment

'GREEN RIG' CONCEPT

ODFJELL INVEST LTD. DEEPSEA ‘RIG’ – NO COMPROMISES

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ODFJELL INVEST LTD. DEEPSEA ‘RIG’ – HARSH ENVIRONMENT

§ High station keeping capability§ Highest dynamic positioning systems

(DP3)§ Equipped for conventional mooring

with thruster assist

§ Minimised downtime waiting on weather§ Designed for drilling in Beaufort 10

conditions§ Large air-gap for safe and efficient

operations in extreme weather conditions

§ Prepared for full winterisation and enclosure of all sensitive equipment

§ Designed and equipped for operations in all ice-free areas including Barents sea

§EXCELLENT MOTION CHARACTERISTICS FOR HARSH ENVIRONMENT OPERATIONS

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ODFJELL INVEST LTD. – DEEPSEA ‘RIG’ OPTIMISED DRILLING EFFICIENCY§ 20-40% improved operating efficiency

compared to 4th generation units

§ Dual drill tower§ 900mt main centre§ 450mt auxiliary

§ AC driven main drilling systems

§ Dual active heave compensating draw-works

§ Dual tubular handling § Parallel operations

§ Remote tubular operations§ Quadruple drill pipe & Triple casing set

back

§ 4 Mud pumps & Dual mud system

§STATE OF THE ART TECHNOLOGY - MAXIMISING DRILLING EFFICIENCY

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ODFJELL INVEST LTD.RIG COMPARISON – 6TH GENERATION SEMI-SUBMERSIBLES

S61/S92S61/S92S61/S92S61/S92Helideck capacity

160 / 140 (NCS)128158 / 120 (NCS)158 / 128 (NCS)Quarters capacity

YESYESYESYESDNV compl. 100yrs storm

30,00030,00035,00037,500Drilling depth [ft]

Max 3000Max 3000100 - 3000100 - 3000Rated water depth [m]

-20 deg C-20 deg C-20 deg C-20 deg CWinterisation

90 x 70 [m]83 x 73 [m]90 x 78 [m]90 x 78 [m]Upper hull dim [ l x b]

115 x 19 x 9 [m]119 x 16 x 10 [m]109 x 16 x 10 [m]109 x 16 x 10 [m]Pontoon dim [l x b x h]

7700mt6000mt7000mt7500mtVariable deck load

Approx 63000 tonnesApprox 54600 tonnesApprox 51450 tonnesApprox 51450 tonnesOperating displacement

- GENERAL CAPACITIES -

1Q20081Q20082Q20083Q2008Delivery date

Aker Stord/Verdal, NorwaySamsung H. Ind, S. KoreaDaewoo, S. KoreaDaewoo, S. KoreaShipyard

DNVDNVDNVDNVClassification

Aker H6eMOSS CS-50GVA 7500-NGVA 7500-N-EDesign

TBAWest E-DrillSeadrill 12Deepsea Rig (TBN)Rig name

- GENERAL DATA -

AKER DRILLINGEASTERN DRILLINGSEADRILLODFJELL INVEST

S61/S92S61/S92S61/S92S61/S92Helideck capacity

160 / 140 (NCS)128158 / 120 (NCS)158 / 128 (NCS)Quarters capacity

YESYESYESYESDNV compl. 100yrs storm

30,00030,00035,00037,500Drilling depth [ft]

Max 3000Max 3000100 - 3000100 - 3000Rated water depth [m]

-20 deg C-20 deg C-20 deg C-20 deg CWinterisation

90 x 70 [m]83 x 73 [m]90 x 78 [m]90 x 78 [m]Upper hull dim [ l x b]

115 x 19 x 9 [m]119 x 16 x 10 [m]109 x 16 x 10 [m]109 x 16 x 10 [m]Pontoon dim [l x b x h]

7700mt6000mt7000mt7500mtVariable deck load

Approx 63000 tonnesApprox 54600 tonnesApprox 51450 tonnesApprox 51450 tonnesOperating displacement

- GENERAL CAPACITIES -

1Q20081Q20082Q20083Q2008Delivery date

Aker Stord/Verdal, NorwaySamsung H. Ind, S. KoreaDaewoo, S. KoreaDaewoo, S. KoreaShipyard

DNVDNVDNVDNVClassification

Aker H6eMOSS CS-50GVA 7500-NGVA 7500-N-EDesign

TBAWest E-DrillSeadrill 12Deepsea Rig (TBN)Rig name

- GENERAL DATA -


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COMPARISONCONTINUED

[m3]

[m3]

[m3]

[m3]

[m3]


8 X 4.5 MW?? ( Azimuth )8 X 3.3 MW ( Azimuth )8 X 3.5 MW ( Azimuth )8 X 3,8 MW ( Azimuth )Propulsion

42400 kW32000 kW37600 kW44240 kWPower generation

?YES / 76 mm K4 YES / 84 mm K4YES / 84 mm K48 anchor mooring

-YESYESYESPosmoor ATA

DP CLASS 3DP CLASS 3DP CLASS 3DP CLASS 3DP class

- STATION KEEPING -

YES?YES?NOYESDual mud systems

3 + 1 optional3 + 1 optional44Number of mudpumps

- MUD SYSTEMS -

2 x 75 t Knuckleboom?2 x 75 t Conventional2 x 80 t Conventional2 x 85 t KnuckleboomCranes

18 3/4 + 15000 psi18 3/4 + 15000 psi18 3/4 + 15000 psi18 3/4 + 15000 psiBOP

N-Line(Cylinder)tot1450mtN-Line (Cylinder) 1450mtN-Line (Cylinder) 1450mtN-Line (Cylinder) 1450mtRiser tension system

YesYesNoYesDual tubular handling

Hydraulic RamRigHydraulic RamRigStandard Electric Dual Electrical ActiveDrawworks

YES / 900 /450 mtYES / 900 /450 mtNO / 900mtYES / 900 / 450 mtDual derrick/capacity

MHMHMHNationalDrilling equipment supplier

- DRILLING SYSTEMS -

800 / 460840 / 280620 / 280620 / 280Bulk mud/cement

12001000 deck /2200 pontoon950 deck + 1840 pontoon900 deck + 800 columnsLiquid mud

3,1003,1002,6002,600Drill water

TBNTBN600600Base oil

4,4483,1003,0803,080Fuel storage

- STORAGE CAPACITIES -

[m3]

[m3]

[m3]

[m3]

[m3]


8 X 4.5 MW?? ( Azimuth )8 X 3.3 MW ( Azimuth )8 X 3.5 MW ( Azimuth )8 X 3,8 MW ( Azimuth )Propulsion

42400 kW32000 kW37600 kW44240 kWPower generation

?YES / 76 mm K4 YES / 84 mm K4YES / 84 mm K48 anchor mooring

-YESYESYESPosmoor ATA

DP CLASS 3DP CLASS 3DP CLASS 3DP CLASS 3DP class

- STATION KEEPING -

YES?YES?NOYESDual mud systems

3 + 1 optional3 + 1 optional44Number of mudpumps

- MUD SYSTEMS -

2 x 75 t Knuckleboom?2 x 75 t Conventional2 x 80 t Conventional2 x 85 t KnuckleboomCranes

18 3/4 + 15000 psi18 3/4 + 15000 psi18 3/4 + 15000 psi18 3/4 + 15000 psiBOP

N-Line(Cylinder)tot1450mtN-Line (Cylinder) 1450mtN-Line (Cylinder) 1450mtN-Line (Cylinder) 1450mtRiser tension system

YesYesNoYesDual tubular handling

Hydraulic RamRigHydraulic RamRigStandard Electric Dual Electrical ActiveDrawworks

YES / 900 /450 mtYES / 900 /450 mtNO / 900mtYES / 900 / 450 mtDual derrick/capacity

MHMHMHNationalDrilling equipment supplier

- DRILLING SYSTEMS -

800 / 460840 / 280620 / 280620 / 280Bulk mud/cement

12001000 deck /2200 pontoon950 deck + 1840 pontoon900 deck + 800 columnsLiquid mud

3,1003,1002,6002,600Drill water

TBNTBN600600Base oil

4,4483,1003,0803,080Fuel storage

- STORAGE CAPACITIES -

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§ Deepwater* representing main areas of new offshore exploration efforts

§ Deepwater representing main areas for offshore production growth

§ A tripling of deepwater oil & gas production projected by 2010E

§ Deepwater share of offshore oil & gas production from 9% to 21% by 2010E

9% 21%% of total offshore

*) Deepwater: >3,000ft of water (>1,500ft if harsh environment)

Source: CERA (July 2005), IFP

THE MARKET DEEPWATER O&G PRODUCTION TO DOUBLE BY 2010

Deepwater * Oil and Gas Production

0

2

4

6

8

10

12

2001 2004 2007E 2010E

Mboepd

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THE MARKETGROWING HIGH-END RIG SUPPLY SHORTAGE

1) Deepwater: >4,000ft of water depthSource: Pareto

§ Current world fleet running at 100% capacity utilisation

§ Contract rates, length and lead time expanding

§ Existing rigs on average booked to mid-2009 and beyond

§ 20-25 new deepwater/harsh environment floaters by 2010E including current order book

§ Potential supply deficit of 40-50 units by 2010E

Potential Deepwater 1) and Harsh EnvironmentRig Supply vs Demand

0

20

40

60

80

100

120

140

160

180

CurrentFleet

Orderbook PotentialNew Orders

PotentialSupply2010E

Potential2010E

Demand

# F

loate

rs

40-50 units

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THE MARKETLEAD TIME IS INCREASING

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ODFJELL INVEST LTD.THE BASIS FOR LISTING SUCCESS

§ Significant equity upside potential§ Excellent returns at visible contract rates

§ Limited project risk§ EPC contract with recognised yard§ Well-proven technology§ Extensive engineering§ Experienced manager with excellent track-record

§ Part of Odfjell Drilling’s core strategy and growth§ Well positioned to take advantage of market opportunity§ Long operating history

§ Transparent market

§ Publicly listed peers

§ Strong knowledge and competence among investors and research analysts

§ Clear ambition to expand its asset base

§ Expected broad equity research coverage as part of offshore drilling rig peer group in Norway and internationally

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ODFJELL DRILLING THE MANAGER

§ Integrated drilling- and well service supplier

§ Privately owned

§ Focus on growth strategy

§ Based in Norway

§ More than 30 years of international experience

§ Turnover in 2005 of NOK 2,639 million, i.e. USD 422 million

§ Financially strong

§ More than 2,000 employees

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ODFJELL DRILLING CONTACT DETAILS

Tel: +47 55 99 89 00/ 89 22Fax: +47 55 99 89 01 Mobile: +47 932 40 359Email: [email protected]

Terje IversenVP Finance

Contact DetailsName

§ www.odfjellinvest.com

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ODFJELL INVEST LTD. INVESTOR PRESENTATION - Netfonds -- Aksjehandel