NRCC Project execution in and lessons learned by a Norwegian: Tendering, Pre-qualification, Winning Strategy, Execution and Delivery with a flavor of Russian/Norwegian Culture

As part of the NRCC “Doing Business in Russia” six days training program in Murmansk and St. Petersburg. 2011 By Erik Gulbrandsen CEO and Managing Director Norwegian Management Solutions AS St. Petersburg 11.04.2018

1 NorManSolutions Content of Presentation

• Introduction • Project Execution • Fabrication opportunities in Russia “Cooperation on Top of the World” • 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

2 NorManSolutions Introduction Presentation 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

3 NorManSolutions Barents, Kara and Sea of Okhotsk + Caspian Sea potentials

TheSizeThe size ofsize North of of North North Sea: Sea: Sea: NorwegianNorwegianNorwegian +and and UK UK SectorUK Sector Sector

Source TU

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

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

Dry Dock Slipforming in Dock

Tow out of dock Towing to the field

Installation Topside Float-over In operation 5 Fabrication opportunities in Russian yards NorManSolutions

Colour Legend: In progress In Operation Need Upgrade In Upgrading Opportunities Steel Mills Survey

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

SDP-1997, 2004,2006 & 2014 SDP-Supplier Development Program performed by Kvaerner Yard 35 Novatek Murmansk Yard Yard 82 Ex. – Reinertsen Vyborg Yard Murmansk Yard Murmansk Kalingrad Shiprepeair Yard Nikolayevsk-na-Amur

Kraznaia & Kuznitca Zvezhdoskha To be investigated: Amur Ship Building Plant SDP-1997, 2003, & 2008 - Izhorsky Zavod - Admiralty Ship yard - Baltiysky Zavod SDP-2005 Yakor Sovgavan -

Vostok Yard Dalzavod Yard Zvezda Yard

To be investigated in Astrakan: Slavyanka Yard - Korabel Nakhodka Ship Repair Yard - 3-International - Lotus - Krasnye Barricady

6 Fabrication locations in North West Russia NorManSolutions

Visiting program 2015 Color Legend:

Shortlisted Vyborg Yard For Module assembly Vyborg 21/22.09.15 Mechanical Workshops as Sub-Suppliers & TKC

Izorskey Zavod Zvyezdochka Yard StPetersburg 10.12.15 26.10.15 3 3 Krasnaya Kuznitsa Yard Severnaya Verf Arkhangelsk StPtersburg 27.11.15 23.09.15

Petrozavodsmarsh Batiyski Zavod 6 Mechanical Workshop StPetersburg Petrozavodsk 24.09.15 1 30.11.15 8 1 Admiralteiskiye Verf 4 StPetersburg 25.09.15 & 25.11.15 Atommash Volgodonsk 03.12.15 Kliver Verf Kliver Verf Kaliningrad Kaliningrad 15.11.2016 05/06.10.2015 ZiO Mechanical Workshop Podolsk 5 26.11.15 Yantar Verf 2 Kaliningrad 06.10.15 7 7 The Pre-qualification Process NorManSolutions How to qualify as a Contractor and a Supplier

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)

8 The Tendering Process NorManSolutions Winning strategy and risk evaluations.

WINNING STRATEGY RISK EVALUATION 1. Establish Risk Register 1. Product and Technology 2. Contractor’s Risk (your own) 2. Client Relations 3. Your Sub Contractor's Risk 3. Country Relations (export) 4. Engineering Risk 4. Sales Capability (tendering) 5. Procurement Risk 5. Project Execution (capacity) 6. Labour Productivity Risk 6. Capability / Partners 7. Schedule Risk 7. Profit Expectations 8. Quality Risk 8. Resources / Capabilities 9. Extra Work Risk 9. Additional Strategic Value

“Never take a RISK that you can NOT handle” 9 Establish a Risk Register during the Tendering Process NorManSolutions

Customer gives Tender documents to be compared with Mandatory Contractor’s legal Business Norms Items in Description of Customer Description of Contractor Gap Analyses with Tender documents Tender documents Business Norms comments 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 The C: Contract Schedule When to deliver Scope of Work difference D: Administration requirements How to handle the Contract between E: Technical requirements/Specifications Standards, Norms and Quality of Work What Risk ACCEPT can and NOT Drawings for Scope of work F: Drawings and Technical Documents Contractor ACCEPT G: Purchased Provided Items Company Provided and LLI ACCEPT H: Agreed/Nominated suppliers By Company and Contractor and NOT ACCEPT? and I: Procurement and Material Procurement and Material proposed J: Standard performance guarantee By Contractor and Subcontractors SOLUTIONS K: Insurances Min requirement. Contractor propose ! L: Supplier’s proprietary information NDA and Patents M: Bank Guaranty/Parent company guarantee Company requirements

10 Establis a Winning Strategy prior to the Tendering Process NorManSolutions

1. INTRODUCTION TO THE PROJECT 6. ACTION PLAN – for Tendering 1. High level 7. PROJECT INFORMATION 2. BUSINESS OPPORTUNITY 1. Description of Project in Detail 3. VALUE – commercial and product 2. Previous work performed to Field/Client 4. SUCCESS CRITERIA TO WIN 8. COMPETITOR ANALYSES 5. WINNING STRATEGY 1. SWOT analyses (Strength/Weakness/Opportunities/Threats) < 1st issue in Pre-qualification period > 1. Product and Technology 9. RECOMMENDATIONS: Go/No go 2. Client Relations 1. Based on TOA analyses 3. Country Relations (export) (Initial 1st TOA - Target Opportunity Assessment) 4. Sales Capability (tendering) 10. Short version for Upper Management 5. Project Execution (capacity) 1. Some 5-10 PPT slides 6. Capability / Partners 7. Profit Expectations 8. Resources / Capabilities 9. Additional Strategic Value

11 NorManSolutions Russian Regulatory navigation

10%

“Never take a RISK that you can NOT handle”

12 NorManSolutions Russia and Norway is organized differently in the Oil & Gas Industry

NORWAY RUSSIA Norwegian O&G Russian O&G Company Company

No ownership Ownership

Norwegian Russian Design Shipyards Supply chain Engineering Norwegian EPC Institute (RDI) Company Company Independent + Engineering Company Russian Design Constructability Institute (RDI) included in design Independent Shipyards

13 NorManSolutions Overall Russian power System

State Power State Power

Independent branches

Legislative Executive Judicial

Federal Prime Minister and System of

Federal level Federal Assembly Government Courts Regulatory Issues Legislative Head of the region and Regional regional government body of courts

subject of RF Regional level Regional

14 NorManSolutions RF government and Regulatory authorities (Updated Nov 2014) RF President Ministries and Services Reporting to RF President Reporting to Federal Assembly Foreign Afairs Justice Federal Security Service Accounting Chamber RF President Administration Internal Afairs Civil Defence Foreign Intellig. Service

Prime Minister Defence Federal Protection Service Regulatory First Deputy PM PM Administration Federal service for Responsibility technical and export control

Deputy PM Deputy PM Deputy PM Deputy PM Deputy PM Deputy PM Ministries

Energy Natural Resources Healthcare Construction Economic Transport Industry and Finance Agriculture and Development Trade Environmental

Federal Agency for Federal Agency Federal Autonomous Federal Service for Hydrometeorology and for Water Institution “Main State Property Federal Agency Federal Agency for Federal Federal Environmental Resources Department of State Management for Sea and Technical Taxation Agency for Monitoring Expertize (RosImushestvo) Inland water Regulation and Service Fishery (GlavGosExpertiza) transport Metrology GGE (RosStandard) Federal Agency for Federal Mineral Resources Forestry Agency Federal Custom Federal Service for Federal Agency on Federal Service for Federal Autonomous Agencies Service Ecological, Consumer Rights Transport Institution “Russian Technological and Protection and Human Supervision Maritime Register of and Federal Service for Nuclear Supervision Welfare (RosTransNadzor) Shipping” Supervision of Natural (RosTekhNadzor) (RosPotrebNadzor) Services Resources RMRS (RosPrirodNadzor) RTN RPN

Self Regional Regional Regional Regional Regional Regulating Regional Local Organisations Offices Offices Offices Offices offices Offices SRO offices 15 NorManSolutions Hierarchy of Regulatory design norms

Constitution of RF

Federal Law «On technical regulation»

Technical Regulations in form of Federal Laws

Federal Laws RF President Orders RF Governmental Decrees

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

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

(Project) Specific Technical Specification PSTS (ref.. Minregion Order No. 36)

International Standards (Foreign) National Standards Rules for Classification ISO, ISO/IEC, etc.. API, BS, EN, NORSOK, ASME, ASTM и др. DNV, LR, GL, ABS, BV

Rules, Local Standards, Company Standards RMRS, ВРД, СТО Gazprom, Р Gazprom, Interim Codes, СТП

16 16 NorManSolutions PSTS (Project Specific Technical Specifications) evaluation

PSTS = describes the Gap and how to close it

Russian Gap Analyses Standards: NS 3473 SNiP’s PSDC

and Close Gap ISO 19903 Gost’s

Technical Assignment = how to close the Gaps Explanatory Notes = Justifies the difference

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

17 NorManSolutions “Proekt” Approvals Process Overview

3 months App’d

Fed & Reg Final Concurrences Integrated Proekt

SEER Industrial Safety State Expert Environmental Review (RPN) App’d Draft Licensed org-s San-Epid 3-6 months Integrated App’d App’d Proekt State org-s Labor Cond’s Based on App’d Labor Service Decree 87 SER State Expert Review (GGE) Hist-Culture App’d State org-s 3 months App’d MChS App’d

PSTS approval App’d PSTS’s Minregion RF

1-3 months Sakhalin 1 Timespan 03/09 04/09 06/09 07/09 12/09 06/10

18 NorManSolutions Marine Operation with Tow Plan approved by RMRS (Russian Maritime Register of Shipping) • 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

19 NorManSolutions

Platform GBS Export & Customs Regime

By Erik Gulbrandsen T&C Manager 15.01.2012

20 NorManSolutions GBS multi border crossings

1st Crossing: From inside to outside 12nm zone

2nd Crossing: From outside to inside 12nm zone

3rd Crossing: From inside to outside 12nm zone

3 2

1

16.04.2018 © Kvaerner 2011 21 NorManSolutions 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 Customs in 6. FTS Federal Customs in Moscow 7. Temporary Re-export regime 1. For the Goods released into free circulation 8. Re-export regime 1. For conditionally released Goods

22 NorManSolutions 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

23 NorManSolutions Customs Organisation

Federal Customs (FTS) Moscow

Far East Customs (DVTU)

Nakhodka Vladivostok Sakhalin Customs (NC) Customs Customs (SC)

Korsakov Post Customs Vostochny Post Customs (VPC)

24 NorManSolutions An introduction to Culture in our neighbouring countries: Norway and Russia

Business and Daily Life

as seen by Erik Gulbrandsen in 2014

25 Russia vs Norway (Ref. data from The Economist: “Pocket World of Figures”) NorManSolutions Year Russia Norway Indicators 1997 2017 1997 2017 Area (km²) 17.075.400 323.878 (520)

Population 148.400.000 4.300.000 (35)

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

26 Russia vs Norway (Ref. data from The Economist: “Pocket World of Figures”) NorManSolutions 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 65 80 Life expectancy – year (Male) 62 74 pension 60 pension 62/67 74 76 81 84 Life expectancy - year (Female) pension 55 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 27 NorManSolutions Daily Life (made in 2014) № Russia Norway Most Russians arrive later at work (09:00) and stay late The work day starts at 8:00 am or earlier, High decree of 1 in the evening. A Russian standard work day is 8 hrs. freedom with flexi-time, vacation and “working from home”. A Norwegians work day is 7,5 hrs/day. Russians graduate early from universities at 20-22 year Norwegians graduate from the universities at 25-28 year and also start working at a young age and expectations and start looking for a job. There are very few women in 2 for a good career by 25 year is evident. In the early age, top Management positions . women are more ambitious than men. Often the job occupies a large portion of life. Time made available family and personal life has high 4 weeks Vacation + some 10 “moving” holidays. priority. Possibility for early retirement at 62 years (Pension 3 + AFP). 5 weeks Vacation + some 10 “moving” holidays (Vacation is age dependent). Limited contribution from the Government pension, A major portion of the Social Security System is supported social security, health insurance and child care. The by the Government. The personal tax is ranging from 28- 4 personal tax is 13% flat. 45% exponential pending income level. Indirect tax is Indirect taxes are limited. extensive. HSSE is not a prime priority in Russia as well as in HSSE attitude (both in business and everyday life). Fatalities companies. However, it seems that the O&G companies in transportation/traffic sector is 3 to 4 times less than in 5 have positively influenced the business in the last 10 Russia. years.

The Security (HSSE) is evident on the streets and in the Limited security in shops and in the streets, however, shops. I personally feel more secure these days when private initiatives for walking the streets at night are taken 6 walking in Moscow in the evening than when walking in (“Natteravnerne”). Just Care for the young people Oslo. I was born in Oslo.

28 NorManSolutions Cultural and Business conversations (made in 2014) № Russia Norway The history of Russia speaks for itself and Norway’s borderline (196 km) with Russia is young (since 1943) Russia/Norway has been good neighbours in 1000 and Russia was the first nation that recognised Norway as a free 1 years, all the way back to Viking King Harald Hardråde nation in 1905. in Novgorod. He had a Russian wife. Larger gap between rich and poor, middle-class is Middle-class is developed, many social security features, low segmented, however increasing fast, the far away mortgage loan interest rate, stable and predictable economic 2 regions have limited investments funds from situation. Norway is recognized as a country with the highest Moscow and less competent human resources. quality of life in the world by different ranking elements Any meeting culture: The Boss is the speaker. He Normally well prepared. Practise more democracy than time 3 often comes 10-15 min late. Small talking with or allows, structured with visual presentations. without telephone. In restaurants for Business purpose: Seated in rank Not used to the rapid toasting frequency, but learning fast. 4 order and also toasting in rank order. Russians like big parties, fancy restaurants and Norwegians are more conservative and most people does not 5 expensive goods (houses, cars, clothes, gadgets) 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 1962

+ =

29 NorManSolutions Business environment (made in 2014) № Russia Norway Monopolist companies dominating the market, meny High level of competition on the market, mainly private- 1 state-owned, especially in O&G sector owned joint-stock companies Personal Relations and business connections very often Openness of management for cooperation, business 2 matter in terms of doing business in Russia. Formal meetings, sometimes an e-mail is enough to arrange a correspondence with signed letter is recommended. meeting Many bureaucratic barriers, which slow efficiency and Electronic document control systems, online public services, 3 innovations (procedures, approvals, certifications and high level of IT infrastructure within the country. licenses) O&G companies are vertically integrated, meaning, O&G companies do not have ownership of engineering 4 controlling supply chain and RDI’s. companies and fabrication yards. O&G sector is the main industry of the economy, more O&G sector stimulates development of other industries and than 50% of taxes from O&G comes in the budget. Most cooperates with , construction, technology and 5 Companies require fast return of investment. infrastructure development. Companies allow long term investment, however, predictable. Short Tendering periods 2-4 weeks. It is assumed that you Formalised Prequalification and Tender periods, step-by- 6 have all basic information available. Prequalification and step, hence some 8 to 12 weeks. Our Tender PEM does not Tendering in same Offer (ITT) apply in certain aspects. Russian Managers can ask you for a price of your product Engineering Companies have “tons” of Experience with 7 and/or Offer before Concept is settled. Bench-marking and functional Project Management and Control sytems in place . Pension age: Women 55 and men 60 years. Pension age: Women and men the same 62 early and 67 Life expectancy age: Women 76 and men 65 years. years. Employer might keep you until 70 year. 8 Meaning average women enjoy pension in 21 years and Life expectancy age: Women 84 and men 80 years. men in 5 years!!. Meaning average women enjoy pension in 20 years and men in 16 years. 30 30 My Lessons Learned after 40 years in the O & Gas business NorManSolutions Soft issues < Including 20 years with Russian Companies > ➢ 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! 31 “ Projects?? takes you all the way to the top, however,

….fast down, if no Management? Control ? Systems are in place”

16/04/2018 32 32 NorManSolutions RUSSIA AND NORWAY: PEACEFULL NEIGBOURS FOR 1000 YEARS AND A PROMISSING FUTURE TOGETHER

33 Copyright and disclaimer

Copyright Copyright 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. Disclaimer This 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.

NorManSolutions 34 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 Far East Russia: Vostochney Port dry dock Sakhalin 1: Upgraded for one GBS substructure

Construction of gravity base structure for «Berkut» platform

Vostochniy Port

Sewage water treatment Administrative area Bund wall 6MO workshops Warehouse Casting basin 265х138х14 m

Welding workshop Concrete batching plants, 200 m3/hour

Rebar workshops, 100 t/day

38 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 SAKHALIN 2 CGBS PROJECT LUN-A TOWING ROUTE

1800 km by sea for 16 days !

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 50 Slide 50 Predominant current direction 50 LUN-A as installed Sunday, 3rd of July 2005 LUN-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

52 Thank you for your attention.

Norwegian Management Solutions AS Erik Gulbrandsen – CEO and Managing Director E-mail: [email protected] www.normansulutions.no Tlf.: +47 900 89 248 Tlf.: +7 915 073 0809

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