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Sevan Marine ASAPresentation Q1- 2007

Shippingklubben, Oslo, April 26, 2007

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Contents

• Current Status

• The Sevan Technology

• Business Model

• Market Outlook

• Shareholder Info

• Appendix

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Current status

Sevan Piranema

The Sevan Piranema accepted by Petrobras, and is currently on standby rate

Unit now preparing for field installation

Motion behaviour and transit speed in accordance with model testing and analyses

Installation of mooring system (by Petrobras), drilling of production and injection wells,environmental license – in progress

Newbuilds: Sevan Piranema

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Current status

Sevan HummingbirdOn scheduleArrived Rotterdam on April 13, 2007 after a 36 days sea voyage from ChinaInstallation of topside to commence

Sevan #3On scheduleHull to be completed Q2 ’07

Sevan #4On scheduleKeel-laying milestone achieved Jan ’07Hull to be completed Q4 ’07

Sevan DrillerOn scheduleHull Construction expected to start May ’07

Newbuilds: Hummingbird, Sevan #3-4, Sevan Driller

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Current status

• Two floating production hulls ordered – one Sevan 300 and one Sevan 650

• Additonal yard capacity secured at COSCO - EPCI contract signed for the Sevan Driller

• Options to build 8 more units at Hantong and 2 units at Cosco

• A direct share issue of USD 121m and a bond issue of USD 270m completed

• Kanfa Aragon (www.aragon.no) established – with focus on gas applications- FPSO gas systems, gas compression, offshore LNG, engineering studies, process

packages

• Alternative applications for the Sevan technology under evaluation

• Strong market continues – 15+ prospects under evaluation- order backlog USD 2.3 bn, USD 3.6 bn including options

Other business activities

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Gas Treatment PlantLNG, GTW, LPG, Power Terminal

MODUMobile Offshore Drilling Unit

ACCOMMODATIONService platform

The Sevan Platform- the versatile technology -

FSOFloating Storage

Offloading

FDPSOFloating Drilling Production

Storage Offloading

SICVSubsea Installation

Construction Vessel

FPSOFloating ProductionStorage Offloading

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Global solutions: the Sevan Technology can be applied in all offshore markets

Brazil

US Gulf

North Sea

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Q1 2007 – Financial highlights

• Operating revenues USD 10.3m (USD 12.9m)– Revenues consist of Kanfa’s external sales and standby rate for Sevan

Piranema from mid-March.

• Operating profit USD - 22.1m (USD -4.0m)– The increase in cost is due to pre-operational cost that has been expensed,

and a general increase in activity in the Group

• Net profit USD - 16.6m (USD -4.3m)

• Total assets USD 974m (USD 559m)– Capital assets of USD 605m (USD 183m)– Cash and equivalents of USD 260m (USD 343m)

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Q1 2007 - Balance Sheet & Profit and Loss statement

Balance SheetUSDm 31.03.07 31.03.06Total long term assets 692,6 205,1Total current assets 281,2 353,5Total assets 973,8 558,6

Total shareholders' equity 461,2 368,5Minority Interest 8,1 6,4Total long-term debt 424,7 156,8Total current liabilities 79,8 26,9Total shareholders' equity and liabilitie 973,8 558,6

Profit & Loss accountUSDm Q1 07 Q1 06 2006Operating revenues 10,3 12,9 21,9Operating expenses 32,4 16,9 46,7Operating profit -22,1 -4,0 -24,8

Net financial gain/(loss) 1,3 -1,8 4,3Profit before tax -20,8 -5,7 -20,5Net profit -16,6 -4,3 -15,4

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Sevan Piranema was accepted by Petrobras in March, 2007

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The Sevan Hummingbird arrived Rotterdam, Netherland April ‘07

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Sevan Hummingbird dock-side at Keppel Verolme April ‘07

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Progress at Yantai Raffles, Sevan # 3, April, 2007

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Progress at Hantong Shipyard, Sevan # 4, April, 2007

Block assembly in Hull workshop Block 101 + 201 center shaft block at site.

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Summary: An attractive investment opportunity

• Technological and cost advantages make business case superior

• Sevan Piranema accepted by Petrobras; major milestone achieved

• Five Sevan units on long term contracts; two additional hulls ordered

• New shipyard capacity secured

• Order back log as of April 2007: USD 2.3 bn, USD 3.6 bn incl. options

• Strong market interest – more than 15 prospects under evaluation

• New applications for the Sevan technology – possibilites to createshareholder value

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Contents

• Current Status

• The Sevan Technology

• Business Model

• Market Outlook

• Shareholder Info

• Appendix

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• Drilling equipment (some)

• Deck space• Large no. of risers• Good motions

Pro’s• Storage capacity• Deck space• Deep water• Flexibility (re-use)

• Drilling equipment• Well access• Traditional steel

risers• Track record

• Drilling equipment• Well access• Traditional steel

risers• Deep water

• Limited storage capacity

• Costly risers• Limited well access• Limited deck load

Con’s• Costly risers• Limited no. of risers• No well access

• No storage• Expensive design• Limited depth• Limited deck load

• Limited storage• Not for harsh

environment• Limited no. of risers• Limited deck load

• Limited well access in harsh environment

• Pre-qualified - but no units delivered yet

Semi FPSO TLP Sevan

• Low construction cost• No turret and swivel • Storage capacity• Drilling and well compl.• Large number of risers• High deck load cap.• Good motions• Deep water

Source: Sevan Marine, Enskilda Securities

SPAR

The Sevan platform compared to other floating units

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Simplified cylinder design based on standard ship building principles

Keeping cargocompartments

• Compact design• Turret and swivel arrangements replaced by spread mooring solution• Simple integration between hull and topside• Standard panel and block fabrication and structural members with few

dimensions• Reduced cable and piping, no piping in tanks

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Reduced investments and improved operation

• High deck load capacity and stability reserves

• Any number and type of risers• Excellent motion response• No global bending and reduced

fatigue exposure in hull• Less piping and easy access to all

equipment

Reduced investment cost

Compact design

No turret, No swivel

• 20-25% less steel weight• 50% less piping• 50-70% less engineering cost• Shorter construction time

Improved operation

Reduced maintenanceHigher flexibility

Improved reliability in demanding conditions

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Module based concept offering a wide capacity range

Sevan 300 300.000 55.000 17 60Sevan 600 600.000 110.000 20 75Sevan 850 850.000 140.000 24 84Sevan 1000 1.000.000 165.000 28 84Sevan 1700 1.700.000 278.000 30 106Sevan 2000 2.000.000 305.000 33 106

Production capacity from 20.000 to 200.000 bbl/day

DesignStorage

(bbl)Displacement

(mt)Draft

(m)Diameter

(m)

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The Sevan technology verification process completed

• Sevan has over the last three years invested ~NOK 50 million on the development of the Sevan technology

2001 2002 2003 2004Patent process

Quotations and construction schedules from leading Yards

Co-op with ABB and Schlumberger for the design, fabrication and operation of the process plant

In house hydrostatic and hydrodynamic analysis

Steel design of the hull

Assessment of flexibility, size variation and deck load capacity

Structural design and main scantling drawings

Building of 1st unit at Yantai Raffles Shipyard

Generic model tests at Marintek

DNV review of technical, cost and

schedule risks

Model tests for Haltenbanken, GoM

and Brazil

DNV Concept Risk Analysis

DNV Design Appraisal

Demo/Model testing LABOCEAN, Rio

Pre-qualified by Petrobras

Patent PCT recommendation

Main scantling appr. initiated

Detail eng. and

fabrication drawings

completed

Verification of riser and mooring

configuration at Marintek

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Complete verification by Det Norske VeritasClassification and Statutory Requirement Status

– Rules and Class Notations established (+OI, FPSO)– Main scantling approval– Global design analysis, incl. fatigue assessment– Approval in principal (AIP)– Class approval of construction drawings

Assessment of Construction and Delivery Risk– Following yards have been assessed: Yantai-Raffles, Hyundai,

Samsung, Daewoo, Keppel Fels, Jurong– “No show stoppers. The concept is simple and effective and has many

advantages over other types of Mobile Production Units”

Safety case assessment for UK

Concept Risk Analysis (CRA)– “The risk results are within the defined acceptance criteria for the North

Sea, satisfying NPD requirements”

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Contents

• Current Status

• The Sevan Technology

• Business Model

• Market Outlook

• Shareholder Info

• Appendix

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• Ownership in all units

• Partnerships on a case by case basis

• Proprietary technology• In-house expertise

− Hull − Topside (Kanfa)

Design

Business model: to capture the cost advantage

• Long-term construction capacity secured with key yards

• In-house expertise in project management and execution

• Operation responsibility

• Combines internal and external resources

• Lease contracts – no reservoir exposure

• Full control of own technology

• Higher returns over a longer period

• The core competencies and competitive advantages are within the technology

• Inhouse marine and process expertise provides optimization and flexibility

• Full control through own operation management

• Increased flexibility

FOC

US

RA

TIO

NA

LE

Engineering Construction Ownership Operation

• Construction capacity is a critical success factor

• Extensive construction program in the years ahead requires key competence in execution

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Contents

• Summary

• The Sevan Tecnology

• Business Model

• Market Outlook

• Shareholder Info

• Appendix

28Source: “Deepwater GoM: Americas Emerging Frontier”; MMS 2000-022

Sevan targets the market for floating oil production – challenging existing technology

150 m

3 000 m

Floating production units (FPU)

Seismic Fieldsurvey

Fielddevelopment Exploration Subsea

construction Production Storage Transportation

E.g. shuttle tankers

• Long term contracts (av. 5-7 yrs)• Stable dayrates• Limited building on spec• Usually ~100 % utilization in market

Offshore value chain

Fixed platform

Compliant tower Mini TLP FPSO TLP Spar

The Sevan technology is suited for all depths and conditions

Market characteristics for floating production units

Maximum depth

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Floating production is used for a wide range of oil fields

• Oil fields based on floating production vary considerably in size, depth and conditions

• Typically projects are in locations remote from existing infrastructure

• Other characteristics:– Total reserves > 10 mbbl– Daily production 5.000 – 200.000

bbl/day

• Sevan’s initial focus is on marginal/ small and medium sized oil fields

Sevan 300

Oil reserves:10-25 mbbl

Oil reserves:25-80 mbbl

Marginal / smalloil fields Medium oil fields

Different Sevan units for different sized oil fields

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Key market drivers positive

Macro drivers

• Increased demand for oil and gas1)

• Sustainable higher oil price shift focus to small and medium-sized fields2)

Competition drivers

• Contractors expected to take a larger stake of the fragmented market

• Little available capacity units are extended under existing contracts

• Several new entrants

Market drivers

• Increased exploration activity new floating production projects

– New discoveries further away from existing infrastructure

• Several new oil companies with main focus on smaller fields / tail production

• Constrained shipyard capacity increased building cost

1) India and China key growth drivers2) Require improved and more cost-effective technological solutions

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0

5

10

15

20

25

30

35

40

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Source: Infield – Floating Production Systems Market Update 2005/09

Several opportunities in the focused areas141 floaters currently evaluated with first oil within 5 years

Sevan Marine’s main focus areas

Africa Asia Austral-asia

Europe Latin America

Middle East

North America

FPSO

Other

Marginal fields require improved and more cost-effective technical solutionsThe Sevan platform is an accessible and fast-track solution for these fields

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Contents

• Current Status

• The Sevan Tecnology

• Business Model

• Market Outlook

• Shareholder Info

• Appendix

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Shareholder structure

10 largest shareholders

Shareholder No of shares %Goldman Sachs Intern Equity 28 863 257 17,95Morgan Stanley & Co Client Equity Ac 17 254 766 10,73Bank of New York, Br Bny Gcm 13 178 948 8,20Credit Suisse Securi (Europe) Ltd. 7 253 813 4,51Arne Smedal 3 648 703 2,27Morgan Stanley & Co. 3 230 198 2,01UBS AG, London Branc Equities 3 124 270 1,94Supernova AS 2 943 444 1,83Hallngen AS 2 871 296 1,79Aasen AS 2 804 036 1,74

85 172 731 52,97

10 largest shareholders

Total no of shares: 160 785 765 Foreign ownership: 80%.Free Float: 88%. As of April 17, 2007.

Trade development (SEVAN)

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Outstanding Bonds

Bondholders

Call Option

Issue Price

Coupon

Maturity

Issue Date

Amount

Norwegian and international Institutional Investors

Period 6-12 months after Acceptance Date at 104%(expected Sept. 2009 – March 2010)

20 December 2009 at 103%20 December 2010 at 102%

N.A.

100%100%100%

NIBOR + 5%9,25%9%

7 December 201220 December 201131 March 2008

7 December 200620 December 200631 March 2005

NOK 1,000,000,000USD 140,000,000NOK 670,000,000

SD06Sevan Drilling AS Callable

Bond Issue 2006/2012

SEMA06Sevan Marine ASA Callable

Bond Issue 2006/2011

Sevan01Sevan Marine ASA Senior

Secured Bond Issue 2005/2008

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Contents

• Current Status

• The Sevan technology

• Business Model

• Market Outlook

• Shareholder info

• Appendix

36NEWBUILD PROJECT INCORPORATING THE SEVAN TECHNOLOGY

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Sevan Drilling - Company structure• Sevan Drilling AS is a 100% owned

subsidiary of Sevan Marine ASA

• Project management, engineering, and yard supervision agreements handled under contract with Sevan Marine ASA

• Seasoned management with drilling experience from reputable drillers

– Willy Tørhaug, VP Operations. 37 years experience from the drilling industry. Last 9 years SVP Drilling operations with Ocean Rig. Previously in similar position with Transocean Norway.

– Dan Eggan, VP QHSE, 9 years with Ocean Rig, last 5 years as VP QHSE

Sevan Marine ASA

Sevan Drilling PteLtd (Singapore)

Sevan Drilling AS

100%

100%

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Sevan driller - the next generation drilling rig

• Combines the high deckload capacity of a drillship with the stability of a semi

• Ultra deep water (12,500 ft) and harsh environment capabilities

• High cost efficiency compared to drillship and semis

• Critical contracts for long lead items in place

• NOK 1bn bond in place – USD 250m bank loan under negotiation

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The Sevan management has a proven track-record of creating shareholder value

Commercialized technology:• Navis ASA: Deepwater drill ship

– From concept to delivery in 28 months– Built on time and budget at Samsung

• APL AS: STL and STP technology– More than 15 units in operation on Shuttle

tankers, FSOs and FPSOs– From 0 to NOK 325m in 3 yrs

• MCG AS: Bow loading and offloading systems– More than 60 units in operation world wide on

shuttle tankers and FPSOs– From 0 to NOK 250m in 5 yrs

• Pusnes: Product development, commercialization and internationalization of various products

Transaction & business track-record:• Navis ASA, IPO: Sold to Fred. Olsen Energy

for NOK 1.8bn• Sale/IPO of Anchor Drilling Fluids, NOK 700m

and Prosafe, NOK 800m• Transocean: From NOK 300m to NOK 10bn in

6 yrs, sold to Sonat Offshore• Negotiating and managing 8 contracts worth

USD 850m with Petrobras• Successful build-up and management of

Angola turnkey operations for Petrobras• Senior Management with experience from

FPSO operations

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• A supplier of process equipment, systems and consultancy services, i.e. design, studies and troubleshooting

• An independent company with regard to technology, clients and vendors

Kanfa AS

• Sevan Piranema – Sevan Marine• KMZ Field, Mexixo – Bergesen Offshore• Ormen Lange – Aker Kværner• Gullfaks A/B/C – Statoil• Draugen – Norske Shell• Siri – Dong• Borgen Dolphin/Knock Taggart – Fred Olsen• Balder FPU – Aker/Esso• Valhall – BP• Corocoro FSO, Venezuela – Conoco Phillips

Extensive project experience – selected projects

Kanfa is a Norwegian process design and engineering company owned 100 % by Sevan Marine

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Sevan will strive to make the company share an attractive investment object

• In accordance with generally accepted recommendations

• Proactively follow up of routines

• Available management

• Best practice web site

• Investor presentation in Oslo every quarter

Sound Corporate Governance routinesOpen and proactive IR-work

• OB Match• Strategy and markets conditions

• Important value drivers

• Relevant risk factors

Qualify for OSE-categoriesClarify long term value potential

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Patent status – all proprietary rights owned by Sevan Marine ASA

• Sevan has filed patent applications in Norway in connection with the development of the Sevan Technology

• Further, Sevan has filed patent applications in various countries, under the PCT convention

• Sevan has been advised from Patentstyret that the patent applications satisfy the requirements for patentability and that patents will be granted

• All patents and proprietary rights are the ownership of the parent company Sevan Marine ASA

Sevan has filed for patents in Norway and all other relevant markets

Sevan has been advised that patents will be granted

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• 1997-2001: Vice President Technology of Navis• 1994-1997: Vice President Technology of Advanced Production Loading• 1990-1994: Project Manager of Marine Consulting Group• Holds an MSc in ship construction from NTNU in Trondheim 1973

VP TechnologyKåre Syvertsen

(1951)

• 1998-2001: CFO of Navis • 1996-1998: VP Corporate Planning in Sonat Offshore (Transocean Offshore)• 1991-1996: CFO in Transocean AS• Board member of various companies within offshore, land based industry and finance• Holds an MBA from NHH in Bergen 1985

CEO Jan Erik Tveteraas

(1960)

PresidentSevan Marine Brasil

Gerson Peccioli(1955)

• 2000-2005: Business Development Manager and New Tecnology Manager of Schlumbergerl, Brasil• 1988-2000: General Manager Libya and Angola, operations manager head office for Braspetro• 1980-1988: Various management positions within Petrobras, Brazil• Holds a PMP certificate from Project Management Institute

• 1997-2001: President & CEO of Navis ASA• 1996-1997: Executive Vice President of Hitec ASA• 1989-1996: Founder & President of MCG and APL• Board member of various companies within shipping and electronics• Holds an MSc in hydrodynamics from NTNU in Trondheim 1973

DirectorArne Smedal

(1947)

Senior Management

• 2001-2004: Financial Manager MI SWACO Scandinavia (Smith International)• 1997-2001: Analyst MI Norge AS• 1996-1997: Banking• Board member of various companies and organizations• Holds a BA in Bus. Admin. from Norwegian School of Management and Bishops University Canada

CFOEgil Kvannli

(1972)

VP OperationsErling A. Ronglan

(1969)

• 2001-2005: Operations Manager FPSO Petrojarl I, PGS Production• 1999-2001: Operations Engineer PGS Production• 1997-1999: Customer Service Manager DNV Oslo• Holds an MSc in Marine Technology from NTNU in Trondheim

VP Business DevelopmentFredrik Major

(1950)

• 1995-2005: Vice President Business Development Advanced Production and Loading • 1994-1995: Technical Director Ericsson AS• 1983-1994: Founder and Director of Semafor Data• Holds an BSc in Naval Architecture and an MSc in Computer Science from NTNU in Trondheim in 1976

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Board of directors

Jan Fredrik Wilhelmsen

(1953)Chairman

Jean-Philippe Flament(1968)

Board member

Hilde Drønen(1961)

Board memberArne Smedal

(1947)Vice chairman

Kåre Syvertsen(1951)

Board member

Vibeke Strømme(1964)

Board member

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Board of directors

Jan Fredrik Wilhelmsen (1953)

Chairman

Jean-Philippe Flament(1968)

Board member

Hilde Drønen (1961)

Board member

Arne Smedal(1947)

Vice Chairman

Kåre Syvertsen (1951)

Board member

Vibeke Strømme(1964)

Board member

Mr. Wilhelmsen graduated with a law degree from the University in Oslo in 1979. He was admitted to the Supreme Court Bar in 1992 and is now partner in the law firm BAHR in Oslo. During his law practice he has gained extensive knowledge of the offshore industry.

Mr. Flament holds a BS in Finance and International Business from New York University. Since 2003, Mr. Flament has worked as a Portfolio Manager in Cheyne Capital Management. Mr. Flament has previously served as a Managing Director of Morgan Stanley & Co Intl Ltd (1993-2002) and as Assistant Director of NatWest Financial Products plc (1991-1993).

Mrs. Drønen holds a Business Administration degree from 1986. Mrs Drønen works as CFO of DOF ASA and has, inter alia on this basis, extensive experience from the offshore sector. Mrs. Drønen is represented in several other board of directors, interalia the board of directors of Tide ASA and Subsea ASA.

Mr. Syvertsen graduated with an MSc in ship construction from NTNU in Trondheim in 1973. Mr. Syvertsen was previously Vice President Technology of Navis (1997-2001), Vice President Technology of Advanced Production Loading from 1994 to 1997, Project Manager of Marine Consulting Group from 1990 to 1994 and Professor in marine technology at NTNU, Trondheim from 1976 to 1990.

Mrs. Strømme holds an MSc in petroleum technology engineering and a MBA from IMD, Lausanne. Mrs Strømme is senior Vice President of Mesta AS, and has previously held leading positions in Philips Petroleum Company Norway AS, VikenEnerginett AS and Hafslund ASA. She has also experience as management consultant. Mrs. Strømme has experience from several board of directors.

Mr. Smedal holds an MSc in hydrodynamics from the Norwegian institute of Technology (NTNU) in Trondheim. Mr. Smedal has previous experience as President and CEO of Navis ASA 1997-2001, Executive Vice President of Hitec ASA from 1996-1997, founder and President of Marine Consulting Group and Advanced Production Loading from 1989-1996, as well as various positions, incl. President at Pusnes from 1979 to 1989. Before this, Mr. Smedal worked for Det Norske Veritas from 1974-79. Mr. Smedal has been a board member of various companies within shipping and electronics.