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March 9th, 2010

Money Marine Conference

Mustapha BoussaidDirector - Maritime Investments

7th Annual Gulf Ship Finance Forum Dubai, UAE

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Waha Capital at a glance…

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Factors influencing oil price…

What are the factors driving the oil price?

OPEC • Behaviour of the Organization of Petroleum Exporting Countries..

Economy • The overall economic growth and recovery..

Natural Disasters • Hurricanes, tornados, tsunamis..

Geo-political events • Wars, tensions, political boycotts between countries in the oil industry…

Forecasting oil price helps in determining future demand for offshore rigs

Forecasting offshore rig activities will predict the demand for offshore support vessels

Oil prices are estimated to remain around $80/ barrel for the coming years

The base case scenario is derived from an average of 30 consecutive trading days of the NYMEX price for oil futures

Researchers believe oil prices will remain at around $80/ barrel for the coming years

1Q00

1Q02

1Q04

1Q06

1Q08

1Q10

1Q12

1Q14

1Q16

1Q18

$0

$20

$40

$60

$80

$100

$120

$140

Oil Price Scenarios2000 to 2018

US

Ligh

t Sw

eet C

rude

-(Q1

2010

USD

/bbl

)

Historical Base Case

Source: ODS-Petrodata Ltd

Iraq WarAsian GrowthWeaker Dollar

Recession

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Oil price: a driving force behind offshore activities…

Rig activity is strongly tied to the domestic price of oil

Research forecasts a net 67-rig increase in global demand for mobile offshore drilling units throughout the year 2011, which indicates potential growth in the world’s offshore market

The Asia Pacific region accounts for more than 35% of the total 743 outstanding offshore rig requirements

In the Middle East, the growth will be focused more on the jackup segment due to the shallower water environment

Oil prices Offshore rigs activity Offshore support vessels

Offshore & Onshore Active rigs

Regions with the highest outstanding drilling rig

requirementRegion # of ReqNW Europe 140S.E Asia 134West Africa 100Australia/N.Z 65Middle East 62Indian Ocean 48Others 194Total 743

Source: Baker-Hughes, Energy Information Administration (DOE)

Source: ODS-Petrodata Ltd

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The Middle East field developments

Key projects overview

Project Country Field Cost (USD)

Capacity in barrels a day

(b/d) or cubic feet a day (cf/d)

Scheduled Completion

Zakum full field development UAE Uppper Zakum $15bn 250,000 b/d 2015

Satah full field development UAE Satah $600m 25000 b/d 2013

Umm al-Dalkh full field development UAE Umm al-Dalkh $600m 25,000 b/d 2013

Nasr full-field development UAE Nasr $3bn 100,000 b/d 2013

Sath al-Rasboot (sarb) full field development UAE Sarb $1.5bn 110,000 b/d 2015

Umm al-Lulu full field development UAE Umm al-Lulu $1.5bn 100,000 b/d 2013

Al-Shaheen oil development Qatar Al-Shaheen $500m 330,000 b/d 2011

Manifa oil field Saudi Arabia Manifa $15bn 900,000 b/d 2015

Karan gas development Saudi Arabia Karan $5bn 1.8 bn cf/d 2012

Arabiyah-Hasbah development Saudi Arabia Arabiyah-Hasbah $4bn 750 m cf/d 2014

Key offshore projects in the Arabian Gulf produce 4.4 million b/d for a cost of $46.7 billion

Source: MEED projects

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Overview on the Middle East Offshore Market

118 rigs- 75.4% Utilization rate 366 OSV’s- 77% Utilization rate

The formula is : 1 rig = 3.1 OSV

4% 5%

87%

5%

Middle East OSV breakdown- 2010/2011

AHTS 15,000+bhp

AHTS 10,000-14,999 bhp

AHTS <10,000 bhp

PSV 3,000 +dwt

The Middle East holds 15% of worldwide mobile offshore drilling units

87% of the OSVs in the Middle East come from AHTS < 10,000 bhp

Based on ODS-Petrodata estimates, only 2 vessels are expected to be delivered in the M.E by 2012 which is good news for: - Utilization rate to remain high - Charter rate to remain constant

2007 2008 2009 2010 2011 20120

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Global Average 12 Month TC

AHTS (80t BP)AHTS (120t BP)AHTS (200t BP)AHTS (240t BP)PSV (3,200 dwt)PSV (4,000 dwt)US

D pe

r day

Source: ODS-Petrodata Ltd Source: CISL estimates, Clarkson

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Fleet Statistics

Geographic distribution of Global AHTS and PSV

Northwest Europe34%

West Africa10%

Asia-Pacific 19%

Latin America22%

Mediter-ranean/Middle

East7%

North America8%

Global Geographic Distribution- AHTS 15,000+ bhp fleet

Northwest Eu-rope9%

West Africa13%

Asia Pacific45%

Latin America17%

Mediter-ranean/

Middle East7%

North America9%

Global Geographic Distribution- AHTS 10,000-14,999 bhp fleet

Northwest Europe

5%

West Africa 15%

Asia-Pacific41%

Latin America6%

Mediter-ranean/

Middle East31%

North Amer-ica2%

Global Geographic Distribution- AHTS < 10,000 bhp fleet

Northwest Europe

36%

West Africa13%

Asia -Pacific13%

Latin America20%

Mediter-ranean/

Middle East3%

North Amer-ica

15%

Global Geographic Distribution- PSV 3,000 dwt fleet

Asia-Pacific still dominating the mid and light fleet segment ( < 14,999 bhp)

Middle East dominates the light fleet segment after Asia-Pacific ( < 10,000 bhp)

Source: ODS-Petrodata Ltd

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Fleet & Newbuilds

2005 2006 2007 2008 2009 2010 2011 2012 20130

255075

100125150175200225250275

Global AHTS 15,000+ bhpFleet & newbuilds 2005-2013

NewbuildsFleet

2005 2006 2007 2008 2009 2010 2011 2012 20130

255075

100125150175200225250275300

Global AHTS 10,000-14,999 bhpFleet & newbuilds 2005-2013

NewbuildsFleet

2005 2006 2007 2008 2009 2010 2011 2012 20130

100200300400500600700800900

100011001200

Global AHTS < 10,000 bhpFleet & newbuilds 2005-2013

NewbuildsFleet

2005 2006 2007 2008 2009 2010 2011 2012 20130

100

200

300

400

500

600

700

Global PSV 3,000+ dwtFleet & newbuilds 2005-2013

NewbuildsFleet

Decrease in newbuilds for AHTS less than 10,000 bhp will keep utilization rates robust for the coming years..

Source: ODS-Petrodata Ltd

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Fleet Age

0-5 6-10 11-15 16-20 21-25 26+ years0

20

40

60

80

100

Global AHTS 15,000+ bhp fleet ageSeptember 2010-188 vessels

Num

ber o

f ves

sels

0-5 6-10 11-15 16-20 21-25 26-30 > 30 years

020406080

100120140

Global AHTS 10,000-14,999 bhp fleet ageSeptember 2010- 239 vessels

Num

ber o

f ves

sels

0-5 6-10 11-15 16-20 21-25 26-30 > 30 years

0

100

200

300

400

500

Global AHTS < 10,000 bhp fleet ageSeptember 2010- 1034 vessels

Num

ber o

f ves

sels

0-5 6-10 11-15 16-20 21-25 26-30 > 30 years

050

100150200250300350

Global PSV 3,000+ dwt fleet ageSeptember 2010- 503 vessels

Globally, the market is dealing with young fleets: 48% of AHTS vessels are less than 5 years old

Most of AHTS < 10,000 bhp fleet is shaped of very young and very old vessels

Most of AHTS > 15,000+ bhp fleet is less than 10 years of age

Source: ODS-Petrodata Ltd

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Conclusion….

Oil prices will remain at approximately $80/barrel for the coming years

Oil prices and demand for offshore support vessels are positively correlated

Middle East is placed 6 in the global drilling rig requirement, holds 15% of offshore rigs

Global TC rates to decrease in the coming two years as supply continues to increase

On average, 1 rig will require 3 OSVs

The utilization rates in the shallow water regions will be kept robust in the coming years

Globally, 48% of AHTS vessels are less than 5 years old

Key projects in the Arabian Gulf produce 4.4million b/d for a cost of $46.7 billion

Thank you!

Mustapha BoussaidDirector- Maritime Investment