This document provides an update on the Norwegian shipbuilding market. It notes that Norway is a world leader in offshore oil and gas, exporting large quantities of oil and gas. A major new oil field, Johan Sverdrup, is projected to generate substantial tax and economic benefits for Norway over 50 years. The maritime sector saw few new supply vessel orders in 2016 but over 140 other vessel orders, including contracts for offshore service and wind vessels. Norwegian shipyards continue to diversify and have secured various ferry, cruise, and specialized vessel contracts. The outlook for the Norwegian maritime industry in 2017 and beyond remains positive.

1. Gateway Norway AS
Shipbuilding Market Update

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Jaakko Isotalo
Senior Advisor
Member of the board
www.gatewaynorway.no

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Contents
 The Norwegian Offshore Sector
 The Norwegian Maritime Sector

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Norway is home to a world-leading
offshore and maritime cluster

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The Norwegian Offshore Sector
What´s new here? News etc.
Norway:
- The 3rd largest gas exporter in the world (covers more than 20 % of gas consumption in Europe)
- The world´s top oil producer no. 13 = Norway.

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Johan Sverdrup – Generating gigantic value
– First-phase investments estimated at NOK 117 billion / EUR 13.08
billion (2015 value)
– Total production revenues of NOK 1,350 billion / EUR 151 billion
over 50 years
– Corporation tax payable to the Norwegian state calculated at NOK
670 billion / EUR 75 billion
– Daily production during first phase estimated at 315,000 – 380,000
barrels per day
– Peak production estimated to reach 550,000 – 650,000 barrels daily
–The field will be operated by electrical power
generated onshore

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New gigantic contracts (> EUR 1 billion)
– Framework agreement with AKER BP for offshore
platform projects
– Kværner to upgrade the Njord platform

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The Norwegian Maritime Sector
MARKET UPDATE
Bad news, good news, hot news, rumours, etc.

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Bad news:
– Question:
– The number of orders of supply vessels at Norwegian
shipyards in 2016:
– Answer:
– “ 0 “ (none)!

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Good news:
- Number of shipyards: about 35 (new building yards).
- Number of vessels ordered: about 140 vessels (starting from about 15
meters workboats)
- In addition to this it should be bear in mind that this is only orders at
Norwegian yards. But there is another impressive list in the respect of
vessels ordered outside of Norway, by Norwegian ship-owners.
- More new orders signed from 2017 to 2018.
– Norwegian government supporting the yard industry: 3 coastal patrol
vessels to be built. Price of one vessel: estimation - NOK 2 billion.
– Fitjar Mekanisek Verksted AS / Westcon Yards AS / Havyard Ship Technology AS / Ulstein Verft AS / Kleven Maritime AS / Vard Langsten AS

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Post “crisis” activity at Norwegian yards
– Offshore mining
– Offshore wind
– Pleasure yachts (super yachts)
– Fishing boats
– Fish farming service boats
– Ferries
– Small cruise vessels

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More good news / new news:
-Repair & modification:
-FOSEN YARD:
- 2 x Fjordline: MS Stavangerfjord and MS Bergensfjord
- Extra cabins = 1 extra aluminum deck
- End 2017 / Early 2018.
-Design & engineering:
- FOSEN YARD:
- LOI signed on building of the world’s largest hybrid ship designed by Fosen. Fosen
Yard will design the vessel, Ulstein will build and Color Line is the owner/operator of
this hybrid ship.

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More good news / new news:
-Havyard
- Shipyard in Leirvik
- Sølvtrans order the world´s largest live fish carrier from Havyard.
- Contract price: over EUR 55 mill.
- Operation contract in Tasmania, outside of Australia (10 yrs).

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More good news / new news:
-Kleven yard - Ulsteinvik:
- 4 x AHTS – Mærsk serie
- 2 + 2 small artic hybrid cruisers – Hurtigruten
-Myklebust yard:
- Various fishing industry vessels: trawlers, fish harvesting vessels, live fish
carriers, ferry

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More good news / new news:
-Ulstein yard - Ulsteinvik:
- The world’s largest hybrid ship – Color Line
- X-Bow Super yacht – Unknown owner
- 2 x different SOV (Service Operational Vessel for offshore wind maintenance)

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More good news / new news:
-Vard:
- 5 yards in Norway: Aukra, Brattvaag, Breivik, Langsten, Søviknes.
- 2 x expedition cruise vessel – Hapaq-Lloyd Cruises
- 4 x expedition cruise vessel – Ponant Quartet
- Ferries – Norwegian fjords
- Supply vessels – earlier ordered vessels
- REV (Research Expedition Vessel)

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Hot news:
Norway: the place to be in
2017
-Nor-Shipping 2017:
- Oslo – Lillestrøm: 30.04.-02.05.2017
-Aqua-Nor 2017:
- Trondheim 15.–18.08.2017

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Company info:
SKIPSTEKNISK AS
Klaus Nilsens gt. 4 Phone: +47 70 10 33 44
P.O Box 36 Sentrum Fax: +47 70 10 33 48
NO-6001 Ålesund, Norway
Web: www.skipteknisk.no
E-mail: office@skipsteknisk.no
Turnover (2015): NOK 130 mill.
Managing director / CEO: Mr. Hans Ove Holmøy

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Key words:
Norway: maritime industry – today / future
-Green strategy for blue industry:
-Aquaculture
-Autonomous vessels
-Electrical / hybrid vessels

20. Gateway Norway AS
Strandgata 165
5525 Haugesund
Norway
Tel.: +47 930 19 616
E-mail: jaakko@gatewaynorway.no