Sevan Marine ASA (the ‘Company’) is listed on Oslo Børs (ticker SEVAN) and has developed a cylinder shaped floater, suitable for all offshore environments. Presently, Sevan Marine has four FPSO contracts, including the Goliat Sevan 1000 FPSO, and three drilling contracts with clients.

The Company’s primary focus is to create value for its shareholders by delivering products and solutions to the offshore industry, utilizing its core competencies within the areas of design, engineering and project execution. The basis for the products and solutions is the Sevan technology.

So far, the Company has concentrated its efforts in utilizing the Sevan technology for floating production and drilling applications. However, due to its versatility, the Sevan design may also be used for other applications, including Gas to Wire (GTW), FDPSO (Floating Drilling & Production), floating LNG (FLNG) and accommodation. Going forward, the Company will evaluate the potential for such complementary uses of the Sevan technology.

The business model has traditionally been based on a build-own-operate scheme, whereby the Company takes the responsibility for the construction, ownership and operation of the Sevan units. Co-ownership with third-party partners may be considered if deemed beneficiary. Operations may be carried out by in-house personnel or in cooperation with recognized operations and maintenance contractors. Under the build-own-operate scheme, the Sevan units will typically be leased to clients under multi-year contracts, under which the Sevan Marine Group undertakes to carry out the production or drilling activities on a specific offshore location. Under this model, the Company’s remuneration typically consists of an agreed day rate, which the client (i.e. the oil company) pays for the bareboat or time charter of the unit. Such day rate will typically consist of one operating element and one capital element. The Company aims at minimizing the amount of reservoir risk in the remuneration it receives.

The license model is an alternative business model which may be attractive for some projects. Should the client prefer to be the owner of a Sevan unit, the Company will evaluate this on a case-by-case basis, taking into consideration factors such as risk, profitability, availability of financing and construction and engineering capacity.