MORE COLLABORATION TO CAPTURE FUTURE OPPORTUNITIES

Bjørn GundersenPori, June 10th, 2015

• Finnish Offshore Industry

• The Norwegian Petroleum Cluster Evolution

• Huge Potential of The Russian Continental Shelf

• Unlocking The Russian Arctic Potential – a Massive Challenge

• Restrictive Measures in Force – EU/Norway

• Historical and Future Oil Prices

• Finnish Maritime Industries

• Position for Future Now – Before It’s Too Late

It is only natural that the Finnish offshore industry turns its eyes to Norway: The Norwegian continental shelf forms currently the world's biggest offshore market.

I am convinced that there is room for Finnish know-how in this market. In many ways our two countries form a "match made in heaven":

Finland has a lot to offer when it comes to knowledge needed in the Arctic conditions, our technological competence, highly educated work force, and our ability to perform and deliver

Maimo Henriksson, Ambassador of Finland to the Kingdom of Norway

Maimo Henriksson, Ambassador of Finland:

(Source: Prizztech/The Finnish Offshore Industry, 2014 )

Setting theCourse for World Markets

(Source: Prizztech/FinOffshore Directory, february 2015)

Finnish maritime industry is grounded on strong tradition. Finns are knownglobally for skills in shipbuilding and the production of marine engines, propulsionsystems, specialized integrated solutionsand Arctic know-how. These productsand services are provided by a groupof core companies – global players intheir segments.

The Finnish offshore industry comprises of approximately 150 active companies. The total exports of the industry in 2014 amounted to 1.7 billion euros, technology being the most important of the industry’s segments. If it is needed reliable partners on shore or offshore, Finland offers a competitive option. Our companies are known for their high level of technological knowhow and uncompromising commitment to safety, the environment and quality

Jan VapaavuoriMinister of Economic Affairs

The strengths of the Finnish offshore companies are high Nordic quality standards, timely deliveries, the Nordicnetwork and cost effectiveness.

The offshore industry employs some five thousand people in Finland, one in four of the whole marine industry.

The main focus of Finnish marine industry research remains to be offshore and Arctic technologies together with luxury cruisers. Remote operations and user experience are one of the emerging fields of the development. Also operations in the harsh and demanding arctic conditions, and for example the winterization challenges, remain to be among the main research topics.

Merja Salmi-LindgrenSecretary General

Finnish Marine Industries

The Norwegian Petroleum Cluster Evolution

…to energy nation Norway

• Systematic further development of the NCS • Systematic focus onrenewable energy where Norway has comparative advantages• Systematic focus onknowledge and competencedevelopment

48,9%

29,1%

The petroleum sector’s share of state revenues

The petroleum sector’s share of total exports

1,51,8

2,9

1,31,0

1970 1980 1990 2000 2010 2015

45

85100

210250

1970 1980 1990 2000 2010 2015

Employees in O&G sector, thous.

Productivity, TOE/worker

…via petroleum…

• Clear framework• International expertise• Advanced offshore andoil-related industry• Restructuring of shipyards and industry• Develop competence

2000

From maritime and industrial nation…

• Shipping• Fisheries• Shipbuilding• Wide maritime expertise• Process industry• Mechanical industry• Hydropower

1970

Huge Potential of the Russian Continental Shelf

Total recoverable resources on NCS

3 bln. TOE (22 bln. bbl)

Total recoverable resources on Russian Shelf

38 bln. TOE (275 bln. bbl)(Source: public data)

Unlocking The Russian Arctic Potential – a Massive Challenge

UnlockingThe Russian Arctic Potential– a Massive Challenge

UnlockingThe Russian Arctic Potential– a Massive Challenge

2003 - 2005 2003 - 2005

2009 - 2012

UnlockingThe Russian Arctic Potential– a Massive Challenge

Freeze asset Sectorial measures Financial restrictions

Targets only listed

persons/entities

All funds and economic

resources belonging to,

owned, held or controlled by

any listed persons/entities

shall be frozen

No funds or economic

resources shall be made

available, directly or

indirectly, to or for the

benefit of listed

persons/entities

Ban on the export of listed

products/items for use in the oil

industry, if the export is destined for

certain categories of oil exploration

and production (deep water, arctic,

shale oil projects)

Restrictions on providing technical

and financial services related to the

listed products/items

Associated services necessary for

deep water oil exploration and

production, arctic oil exploration or

production and shale oil projects in

Russia may not be supplied, for

instance drilling, well testing or

logging services.

Prohibition on certain

financing/investment

transactions with listed Russian

institutions

Restrictions on access to

European capital marked for

listed Russian financial

institutions

5 state owned banks (Sberbank,

VTB Bank, Gazprombank, VEB,

Rosselkhozbank)

Rosneft

Transneft

Gazprom Neft

Restrictive Measures in Force – EU/Norway

(Source: Hjort, law firm )

Historical and Future Oil Prices

(Source: DNB Financial Servises Company, Oil Market Outlook, May 2015 )

World Class Competences and Knowledge

(Source: Finnish Maritime and Offshore Cluster, 2011)

Finnish Maritime Industries

(Source: Finnish Maritime and Offshore Cluster, 2011)

InnovationClusters

Position for Future Now – Before it’s Too Late

By Collaboration and Partnerships better positioned for future Opportunities

Thank you !

and see you in Moscow or Murmansk