Project execution in Russiaand lessons learned by a Norwegian:

Tendering, Pre-qualification, Winning Strategy, Execution and Deliverywith a flavor of Russian/Norwegian Culture

By Erik Gulbrandsen

CEO and Managing Director

Norwegian Management Solutions AS

St. Petersburg 11.04.2018

2011

NRCC

1

As part of the NRCC “Doing Business in Russia” six days training program in Murmansk and St. Petersburg.

Content of Presentation

• Introduction

• Project Execution

• Fabrication opportunities in Russia

• Pre-qualification

• Tendering

• Winning Strategy

• Russian Regulatory navigation

• Russian vs Norway – statistical comparison

• Cross Cultural alignment and cooperation

• Closing remarks with Q & A

• Bonus, if time allows

NorManSolutions

“Cooperation on Top of the World”

2

IntroductionPresentation performance strategy

22 slides leaves average ca. 3 min per slide + 4 Intro/End presentation + 7 Pictures.

Pluss 17 picture slides from Sakhalin 1 and 2 construction period.

Please forward questions as we go along and/or at the presentation.

+ Bonus: A 4 min relaxing, sound Movie of 40 years of working with the O&G Business in Norway and Russia

Purpose of Presentation

• Give you a “snap-shot” of 2 successful Oil &Gas Projects completed in Russia.

• Make sure that you see Russian and Norwegian opportunities in your way forward.

Objectives of Presentation

• Increasing your understanding of our neighbouring countries, Russia and Norway, by at least 50%.

• In such a way that you want to: • Investigate further cooperation with Russian and Norwegian Companies.

• Exchange technological and cultural cross boarder

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Barents, Kara and Sea of Okhotsk + Caspian Sea potentials

4

The size of North Sea: Norwegian and UK Sector

Source TU

Meaning: 1 installation in place per month in 30 years !

The size of North Sea: Norwegian and UK Sector

Size of North Sea: Norwegian + UK Sector

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In operationTopside Float-over

Tow out of dock

Installation

Dry Dock Slipforming in Dock

Proven execution methods for shallow-water platformsSakhalin 1 and 2: Water Depth 30-45 m.One construction site: In Dry Dock

Towing to the field

5

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Fabrication opportunities in Russian Ship yards

6

Vyborg

Sevmash &Zvezhdoskha

KraznaiaKuznitca

Nikolayevsk-na-Amur

Yakor Sovgavan

Yard 35

Amur Ship Building Plant

Yard 82

Zvezda Yard

Nakhodka Ship Repair Yard

MurmanskYard

MurmanskShiprepeair Yard

Ex. – ReinertsenYard

Dalzavod Yard

Slavyanka Yard

Vostok Yard

In progress In Operation Need Upgrade In Upgrading

Kalingrad

To be investigated in Astrakan:- Korabel- 3-International- Lotus- Krasnye Barricady

To be investigated:- Izhorsky Zavod- Admiralty Ship yard- Baltiysky Zavod- Severnaya Verf

SDP-1997, 2004,2006 & 2014

SDP-2005

SDP-1997, 2003, & 2008

SDP-Supplier Development Program performed by Kvaerner

Colour Legend:

Consolidated overview of all Yards visited in the time span: 1997 - 2014

Opportunities Steel Mills Survey

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Novatek MurmanskYard

1

Visiting program 2015

7

Vyborg Yard

Vyborg

21/22.09.15

Severnaya Verf

StPtersburg

23.09.15

Batiyski Zavod

StPetersburg

24.09.15

Admiralteiskiye Verf

StPetersburg

25.09.15 & 25.11.15

Kliver Verf

Kaliningrad

05/06.10.2015

Yantar Verf

Kaliningrad

06.10.15

Zvyezdochka Yard

Severodvinsk

26.10.15

Krasnaya Kuznitsa Yard

Arkhangelsk

27.11.15

ZiO Mechanical Workshop

Podolsk

26.11.15

Petrozavodsmarsh

Mechanical Workshop

Petrozavodsk

30.11.15

Atommash

Volgodonsk

03.12.15

Izorskey Zavod

StPetersburg

10.12.15

Shortlisted Shipyards

For Module assembly

Mechanical Workshops

as Sub-Suppliers & TKC

Color Legend:

1

2

3

3

5

4

6

8

Kliver Verf

Kaliningrad

15.11.2016

Fabrication locations in North West Russia NorManSolutions

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The Pre-qualification Process

How to qualify as a Contractor and a Supplier

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Client preparations and actions:1. Screening Process: Desk Top study > Long List > Short List > “Statement of Interest”- letter.2. Visit Contractors/Suppliers facilities. 3. Assessment of incoming Pre-Qualification Questionnaire > make final Short List of Bidders.

Contractor/Supplier preparations and actions:1. Establish Business Development plan and concentrate on Target Project.2. Start making THE Winning Strategy and evaluate the Risk.3. Keep your Internet page up to date on a monthly basis.4. Make contact with the Target Project Client.5. Complete the Pre-Qualification Questionnaire.

1. Minimum Attachments:1. Yard/Shop Layout incl. pictures.2. Sequence of Fabrication incl. pictures.3. Major Projects of similar nature.4. If requested, submit: Company Standard Sales Brochures. (E-mail or by Courier)

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The Tendering Process

Winning strategy and risk evaluations.

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WINNING STRATEGY

1. Product and Technology 2. Client Relations 3. Country Relations (export)4. Sales Capability (tendering) 5. Project Execution (capacity)6. Capability / Partners7. Profit Expectations8. Resources / Capabilities9. Additional Strategic Value

RISK EVALUATION1. Establish Risk Register2. Contractor’s Risk (your own) 3. Your Sub Contractor's Risk4. Engineering Risk5. Procurement Risk6. Labour Productivity Risk7. Schedule Risk8. Quality Risk9. Extra Work Risk

“Never take a RISK that you can NOT handle”

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Customer gives Tender documents to be compared with Mandatory Contractor’s legal Business Norms

Items in Tender documents

Description of Customer Tender documents

Description of Contractor Business Norms

Gap Analyses withcomments and proposals

Terms & Conditions Legal framework for the Contract

A: Scope of work What to deliver

B: Compensation How to get paid for Scope of Work

C: Contract Schedule When to deliver Scope of Work

D: Administration requirements How to handle the Contract

E: Technical requirements/Specifications Standards, Norms and Quality of Work

F: Drawings and Technical Documents Drawings for Scope of work

G: Purchased Provided Items Company Provided and LLI

H: Agreed/Nominated suppliers By Company and Contractor

I: Procurement and Material Procurement and Material

J: Standard performance guarantee By Contractor and Subcontractors

K: Insurances Min requirement. Contractor propose

L: Supplier’s proprietary information NDA and Patents

M: Bank Guaranty/Parent company guarantee Company requirements

Establish a Risk Register during the Tendering Process

What Risk can

Contractor ACCEPT and NOT ACCEPT?

The difference between ACCEPT and NOT ACCEPT

and proposed

SOLUTIONS!

1. INTRODUCTION TO THE PROJECT1. High level

2. BUSINESS OPPORTUNITY

3. VALUE – commercial and product

4. SUCCESS CRITERIA TO WIN

5. WINNING STRATEGY < 1st issue in Pre-qualification period >

1. Product and Technology 2. Client Relations 3. Country Relations (export)4. Sales Capability (tendering) 5. Project Execution (capacity)6. Capability / Partners7. Profit Expectations8. Resources / Capabilities9. Additional Strategic Value

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6. ACTION PLAN – for Tendering

7. PROJECT INFORMATION1. Description of Project in Detail2. Previous work performed to Field/Client

8. COMPETITOR ANALYSES1. SWOT analyses

(Strength/Weakness/Opportunities/Threats)

9. RECOMMENDATIONS: Go/No go1. Based on TOA analyses

(Initial 1st TOA - Target Opportunity Assessment)

10. Short version for Upper Management1. Some 5-10 PPT slides

Establis a Winning Strategy prior to the Tendering Process

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Russian Regulatory navigation NorManSolutions

“Never take a RISK that you can NOT handle”

10%

12

Russia and Norway is organized differentlyin the Oil & Gas Industry

13

Norwegian O&G Company

Russian O&G Company

Norwegian Engineering

CompanyIndependent

ShipyardsRussian Design Institute (RDI)

Shipyards

No ownership

NORWAY RUSSIA

Constructabilityincluded in design

Ownership

Russian Design Institute (RDI)Independent

Supply chain

Engineering Company

+

Norwegian EPC Company

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Regulatory Issues

Overall Russian power System

Legislative Executive Judicial

Federal

AssemblyPrime Minister and

Government

System of

Courts

Head of the region and

regional government

Legislative

body of

subject of RF

Regional

courts

Federa

l le

vel

Regio

nal le

vel

Independent branches

State

PowerState Power

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RF government and Regulatory authorities (Updated Nov 2014)

RF President

RF President Administration

Prime Minister

First Deputy PM

Accounting Chamber

Reporting to Federal Assembly

PM Administration

Deputy PM Deputy PM Deputy PM Deputy PM Deputy PMDeputy PM

Healthcare FinanceEnergy Industry and Trade

Economic Development

Construction AgricultureNatural Resources and

Environmental

Transport

Federal Service for Supervision of Natural

Resources (RosPrirodNadzor)

RPN

Federal Agency for Water Resources

Federal Agency for

Fishery

Federal Agency for Technical

Regulation and Metrology

(RosStandard)

Federal Agency for Mineral Resources

Federal Agency for Hydrometeorology and

Environmental Monitoring

Federal Custom Service

Federal Taxation Service

Foreign Afairs

Defence

Internal Afairs

Justice

Civil Defence

Ministries and Services Reporting to RF President

Foreign Intellig. Service

Federal Security Service

Federal Forestry Agency

Federal Protection Service

Federal Service for Ecological,

Technological and Nuclear Supervision

(RosTekhNadzor)

RTN

Federal Agency for Sea and

Inland water transport

Federal Autonomous Institution “Main

Department of State Expertize

(GlavGosExpertiza)

GGE

Federal Autonomous Institution “Russian Maritime Register of

Shipping”

RMRS

Federal service for technical and export

control

Federal Service for State Property Management

(RosImushestvo)

Federal Agency on Consumer Rights

Protection and Human Welfare

(RosPotrebNadzor)

Federal Service for Transport

Supervision(RosTransNadzor)

Regional Offices

Regional Offices

SelfRegulating

Organisations

SRO

Regional offices

Regional Offices

Regional Offices

Regional Offices

Ministries

Agencies and

Services

Local offices

RegulatoryResponsibility

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Federal Law

«On technical regulation»

Technical Regulations in form of

Federal Laws

Federal Laws

RF President Orders

RF Governmental Decrees

International Standards

ISO, ISO/IEC, etc..

Rules for Classification

DNV, LR, GL, ABS, BV

Russian (National) Standards

GOST, GOST R (ref. Government Decree No.1047-р)

Rules, Local Standards, Company Standards

RMRS, ВРД, СТО Gazprom, Р Gazprom, Interim Codes, СТП

Codes

SNiP (ref. Government Decree No.1047-р)

(Foreign) National StandardsAPI, BS, EN, NORSOK, ASME, ASTM и др.

Constitution of RF

(Project) Specific Technical Specification

PSTS (ref.. Minregion Order No. 36)

Hierarchy of Regulatory design norms

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PSTS (Project Specific Technical Specifications) evaluation

Russian Standards:

SNiP’sand

Gost’s

NS 3473PSDC

ISO 19903Clo

se G

ap

Gap Analyses

Technical Assignment = how to close the GapsExplanatory Notes = Justifies the difference

PSTS = describes the Gap and how to close it

Note: All import of foreign material, goods and equipment must have Gost R – Certificate available prior to crossing the Russian boarder.

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“Proekt” Approvals Process Overview

06/09 06/10

DraftIntegrated

ProektBased onDecree 87

PSTS’s App’d

SEER

App’d

App’d

FinalIntegratedProekt

App’d

1-3 months

3 months

3-6 months

3 months

PSTS approvalMinregion RF

Industrial SafetyLicensed org-s

San-EpidState org-s

Labor Cond’sLabor Service

Hist-CultureState org-s

App’d

App’d

App’d

Fed & RegConcurrences

App’d

MChS App’d

03/09 07/09 12/0904/09

Sakhalin 1 Timespan

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SER

State Expert Environmental Review (RPN)

State Expert Review (GGE)

Marine Operation with Tow Planapproved by RMRS (Russian Maritime Register of Shipping)

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• Typical Marine operations:• Towing (RMRS)

• Inshore towing• Offshore towing

• Other types of Marine Operations (RMRS is involved in case of classification only) • Float out • Offshore installation• Inshore mating

• Why RMRS: • Russian Maritime Authorities, Harbour Master require:

• Tow Plan• Tow Plan is a basis for HM consideration of Sail Permit• Concurrence by RMRS

• is an Assurance of ship/structure conformity to Russian/International towage requirements• Is the basis for RMRS inspections prior to towing

• Single Passage Certificate by RMRS• Is a technical basis for Harbour authorities to conclude ship/structure readiness for towage

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Platform GBS Export & Customs Regime

By Erik Gulbrandsen T&C Manager

15.01.2012

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16.04.2018 © Kvaerner 2011 21

GBS multi border crossings

1

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1st Crossing:

From inside to outside 12nm zone

2nd Crossing:

From outside to inside 12nm zone

3rd Crossing:

From inside to outside 12nm zone

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Definitions and abbreviations

1. BoL - Bill of Lading (B/L or BoL): document issued by a carrier (or his agent) to acknowledge receipt of cargo for shipment. Relates to ship transport, only.

2. NC Nakhodka Customs

3. VCP Vostochny Customs Post

4. SC Sakhalin Customs

5. DVTU Far East Customs in Vladivostok

6. FTS Federal Customs in Moscow

7. Temporary Re-export regime 1. For the Goods released into free circulation

8. Re-export regime1. For conditionally released Goods

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Forward Steps with Customs to tow and place GBS at the Offshore location

▪ Step 1: Clarification with Nakhodka and Far East Customs various customs regimes.▪ Temporary re-export for Goods released into free circulation

▪ Re-export for conditionally released Goods

▪ Step 2: Clarification with Vostochny Port Customs the content of the Application package for GBS Customs Clearance.

▪ Step 3: Apply for confirmation of Customs Regime to Federal Customs (FTS) in intermediate steps:▪ Step 3.1: Prepare Application Package

▪ Step 3.2: Send package to Federal Customs by ENL

▪ Step 3.3: Arrange meeting FTS by ENL

▪ Step 3.4: Get confirmation of Customs Regime from FTS

▪ Step 4: Apply for Customs Clearance to Vostochny Port Customs

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Customs Organisation

Far East

Customs (DVTU)

Vostochny Post

Customs (VPC)

Vladivostok

Customs

Sakhalin

Customs (SC)

Korsakov Post

Customs

Federal Customs

(FTS) Moscow

Nakhodka

Customs (NC)

NorManSolutions

An introduction to Culture in our neighbouring countries:

Norway and Russia

Business and Daily Life

as seen by Erik Gulbrandsen in 2014

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Russia vs Norway (Ref. data from The Economist: “Pocket World of Figures”)

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Year Russia Norway

Indicators 1997 2017 1997 2017

Area (km²) 17.075.400 (520)

323.878

Population 148.400.000(35)

4.300.000

Population growing rate (%) (average. 1985-94) + 0,5 + 0,4

Total fertility rate (children per woman) 1,5 2,0

Life expectancy – years (Male) 62 74

Life expectancy – years (Female) 74 81

No. Men per 100 women 88,3 98,0

Aver. Annual inflation (%)(1991-95 & 2010-15) 222,1 (only 1997) 2,9

GNP Total country ($) 392 bn 114 bn

GNP per person ($) 2.645 26.477

Cost of living (Dec. 1995 and 2015. New York 100) 115 147

Average no. of person/household 2,9 2,4

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Russia vs Norway (Ref. data from The Economist: “Pocket World of Figures”)

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Year Russia Norway

Indicators 1997 2017 1997 2017

Area (km²) 17.075.400 17.098.246 323.878 323.787

Population 148.400.000 142.500.000 4.300.000 5.100.000

Population growing rate (%) (average. 1985-94) + 0,5 - 0,1 + 0,4 1,1

Total fertility rate (children per woman) 1,5 1,7 2,0 1,8

Life expectancy – year (Male) 6265

pension 60 74

80 pension 62/67

Life expectancy - year (Female)74 76

pension 55 81 84

pension 62/67

No. Men per 100 women 88,3 86,8 98,0 101,5 !

Aver. Annual inflation (%)(1991-95 & 2010-15) 222,1 (only 1997) 8,7 2,9 1,7

GNP Total country ($) 392 bn 2.029 bn 114 bn 501 bn

GNP per person ($) 2.645 14.150 (5,3) 26.477 97.227 (3,6)

Cost of living (Dec. 1995 and 2015. New York 100) 115 53 147 96

Average no. of person/household 2,9 2,9 2,4 2,2

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Daily Life (made in 2014)

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№ Russia Norway

1Most Russians arrive later at work (09:00) and stay late in the evening. A Russian standard work day is 8 hrs.

The work day starts at 8:00 am or earlier, High decree of freedom with flexi-time, vacation and “working from home”. A Norwegians work day is 7,5 hrs/day.

2

Russians graduate early from universities at 20-22 year and also start working at a young age and expectations for a good career by 25 year is evident. In the early age, women are more ambitious than men.

Norwegians graduate from the universities at 25-28 year and start looking for a job. There are very few women in top Management positions .

3

Often the job occupies a large portion of life. 4 weeks Vacation + some 10 “moving” holidays.

Time made available family and personal life has high priority. Possibility for early retirement at 62 years (Pension + AFP). 5 weeks Vacation + some 10 “moving” holidays (Vacation is age dependent).

4

Limited contribution from the Government pension, social security, health insurance and child care. The personal tax is 13% flat.Indirect taxes are limited.

A major portion of the Social Security System is supported by the Government. The personal tax is ranging from 28-45% exponential pending income level. Indirect tax is extensive.

5

HSSE is not a prime priority in Russia as well as in companies. However, it seems that the O&G companies have positively influenced the business in the last 10 years.

HSSE attitude (both in business and everyday life). Fatalities in transportation/traffic sector is 3 to 4 times less than in Russia.

6

The Security (HSSE) is evident on the streets and in the shops. I personally feel more secure these days when walking in Moscow in the evening than when walking in Oslo. I was born in Oslo.

Limited security in shops and in the streets, however, private initiatives for walking the streets at night are taken (“Natteravnerne”). Just Care for the young people

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Cultural and Business conversations (made in 2014)

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№ Russia Norway

1

The history of Russia speaks for itself and Russia/Norway has been good neighbours in 1000 years, all the way back to Viking King Harald Hardrådein Novgorod. He had a Russian wife.

Norway’s borderline (196 km) with Russia is young (since 1943) and Russia was the first nation that recognised Norway as a free nation in 1905.

2

Larger gap between rich and poor, middle-class is segmented, however increasing fast, the far away regions have limited investments funds from Moscow and less competent human resources.

Middle-class is developed, many social security features, low mortgage loan interest rate, stable and predictable economic situation. Norway is recognized as a country with the highest quality of life in the world by different ranking elements

3Any meeting culture: The Boss is the speaker. He often comes 10-15 min late. Small talking with or without telephone.

Normally well prepared. Practise more democracy than time allows, structured with visual presentations.

4In restaurants for Business purpose: Seated in rank order and also toasting in rank order.

Not used to the rapid toasting frequency, but learning fast.

5Russians like big parties, fancy restaurants and expensive goods (houses, cars, clothes, gadgets)

Norwegians are more conservative and most people does not like to show off, however, modest and humble, even if they having money to support.

6 It is more custom to have Private Drivers in Business. Norwegians more used to have Company Car at their disposal

+ =

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Business environment (made in 2014)

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№ Russia Norway

1Monopolist companies dominating the market, menystate-owned, especially in O&G sector

High level of competition on the market, mainly private-owned joint-stock companies

2Personal Relations and business connections very often matter in terms of doing business in Russia. Formal correspondence with signed letter is recommended.

Openness of management for cooperation, business meetings, sometimes an e-mail is enough to arrange a meeting

3Many bureaucratic barriers, which slow efficiency and innovations (procedures, approvals, certifications and licenses)

Electronic document control systems, online public services, high level of IT infrastructure within the country.

4O&G companies are vertically integrated, meaning, controlling supply chain and RDI’s.

O&G companies do not have ownership of engineering companies and fabrication yards.

5

O&G sector is the main industry of the economy, more than 50% of taxes from O&G comes in the budget. Most Companies require fast return of investment.

O&G sector stimulates development of other industries and cooperates with shipbuilding, construction, technology and infrastructure development. Companies allow long term investment, however, predictable.

6Short Tendering periods 2-4 weeks. It is assumed that you have all basic information available. Prequalification and Tendering in same Offer (ITT)

Formalised Prequalification and Tender periods, step-by-step, hence some 8 to 12 weeks. Our Tender PEM does not apply in certain aspects.

7Russian Managers can ask you for a price of your product and/or Offer before Concept is settled.

Engineering Companies have “tons” of Experience with Bench-marking and functional Project Management and Control sytems in place .

8

Pension age: Women 55 and men 60 years.Life expectancy age: Women 76 and men 65 years.Meaning average women enjoy pension in 21 years and men in 5 years!!.

Pension age: Women and men the same 62 early and 67 years. Employer might keep you until 70 year.Life expectancy age: Women 84 and men 80 years.Meaning average women enjoy pension in 20 years and men in 16 years.

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Soft issues

➢ Keep in mind: “You can only make your 1st impression once”.

➢ Only do what you believe in …if in doubt leave it! However, practise 80/20% probability.

➢ “Out in the World”: Find persons that you can trust!

➢ And trust them until the opposite turns out to be the truth… if at all.

➢ There are 3 different kinds of persons in a Project:

1. Those who: “Do the Work” !

2. Those who ask: “What is going on?”

3. And those who ask: “What did happen?”…….Stay away from this one!

Technical issue

➢ Get yourself a Mentor (“private” supporter) in your Company organisation.

➢ Always involve a formalised review process when producing documents.

➢ Set Targets and meet them with personal rewards: Relaxation and Fun.

➢ As a Manager there are 3 things to keep in mind: Delegate, Delegate and Delegate.

➢ When Tendering for work, there are only Gold Medals that will be given.

➢ Make other people “Shine” on your own way forward.

➢ Treat the Young Generation well and with respect; they might soon be your Boss!

My Lessons Learned after 40 years in the O & Gas business< Including 20 years with Russian Companies >

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16/04/2018 32

“ ? takes you all the way to the top, however,

….fast down, if no ? are in place”

?Projects

?Management Control Systems

32

RUSSIA AND NORWAY:PEACEFULL NEIGBOURS FOR 1000 YEARS

AND A PROMISSING FUTURE TOGETHER

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Copyright and disclaimer

34NorManSolutions

CopyrightCopyright of all published material, photographs, drawings and images in this document remains vested in Norwegian Management Solutions AS and third party contributors as appropriate. Accordingly, neither the whole nor any of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered from any reproduction.DisclaimerThis presentation includes and is based on, inter alia, on forward-looking information and statements that are subject to risk and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economics conditions, the economic conditions of regions and industries that are markets for Norwegian Management Solutions AS lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as “expect”, “believes”, “estimates” or similar expressions. Important factors that could cause actual results to differ materially from these expectations include, among other, economic and market conditions in the general geographic area and industries that are or will be a market for Norwegian Management Solutions AS business, oil prices, market acceptance of new products and services, changes in governmental regulations, interests rates, fluctuation in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Norwegian Management Solutions AS believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation. Norwegian Management Solutions AS is making no representation or warranty, expressed or implemented, as to the accuracy, reliability or completeness of the Presentation, and neither Norwegian Management Solutions AS nor any of its directors, officers or employees will have any liability to you or any persons resulting from your use.

Introduction to the Sakhalin 1 and 2:

GBS Gravity Base Structures

35

“Virgin Area” in Vostochney Port: Far East Russian-Vladivostok:Ready for the Dry Dock Excavation for the Sakhalin 2 Project…

36

Far East Russia: Vostochney Port dry dock Sakhalin 2: Established for two GBS substructures in parallel

37

Vostochniy Port

Administrativearea

Concrete batching plants, 200 m3/hour

38

Far East Russia: Vostochney Port dry dock Sakhalin 1: Upgraded for one GBS substructure

Bund wall

Sewage water treatment

Rebar workshops, 100 t/day

Casting basin 265х138х14 m

Welding workshop

6MO workshops

Warehouse

Construction of gravity base structure for «Berkut» platform

38

Brand new Trucks ready for Action

39

Challenge: First snow and ground water table

40

Down to – 13,6 m to start of GBS construction (1,2 mill m3)

41

Challenging Far-eastern winters: -25C

42

Mechanical outfitting in Drill Shaft

43

First cell-wall section completed

44

A Perfect Pair of Legs

45

Dock flooding

46

Unsinkable giants

47

Bund wall removal operations

48

Sakhalin 2: Lun-A platform tow-out

49

Slide 50

SAKHALIN 2 CGBS PROJECT LUN-A TOWING ROUTE

Planned Towing Route

Indication of potential deviations to the planned towing route in case of adverse weather conditions

Indication of position with minimum 50nm to shore

Indication of position with minimum 30nm to shore

Predominant current direction

1800 km by sea for 16 days !

50 50

LUN-A as installed Sunday, 3rd of July 2005LUN-A Position: 2,8m from given position (± 5.0m)

Heading: 0.0° from given heading (± 2.5 °)

PA-B Position: 0.75m from given position (± 5.0m)Heading: 0.1° from given heading (± 2.5 °)

51

Sakhalin 2 LUN-A Scour Protection

▪ Installation by fall-pipe vessel

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Norwegian Management Solutions ASErik Gulbrandsen – CEO and Managing DirectorE-mail: eg@normansolutions.nowww.normansulutions.noTlf.: +47 900 89 248Tlf.: +7 915 073 0809

Thank you for your attention.