ZALIV OFFSHORE PRODUCTION PRESENTATION

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ZALIV OFFSHORE PRODUCTION PRESENTATION

• August 2006

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OUTLINE

• ZALIV OFFSHORE PRODUCTION PRESENTATION
• UKRAINE, KERCH
• General Information
• Oil Platforms at ZALIV
• Contact Information

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SECTION 1

• General Information

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ZALIV HISTORY

• ZALIV Shipyard was established in Y1938
• ZALIV Shipyard is situated on the shore of Kerch
  Channel between the Black Sea and the Sea of Azov
  (more than 260 hectares)
• During the period from Y1940 to Y2005 more than
  500 vessels were constructed at ZALIV
• In the 80s ZALIV started to build Panamax
  tankers with double bottom/size
• In Y1988 the first in the world nuclear powered
  LASH vessel Sevmorput was built at ZALIV
• In Y1991 ZALIV built a flagship of the Ukrainian
  military fleet frigate Getman Sagaitachniy
• In Y1994 ZALIV Shipyard was reorganized into a
  joint stock company
• In Y2005 ZALIV Shipyard was acquired by the
  company affiliated with KrAZ Industries Inc.
• In Y2006 ZALIV started co-operation with one of
  the biggest shipbuilding group in the world
  Aker Yards

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PRODUCTION FACILITIES OF ZALIV - I
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PRODUCTION FACILITIES OF ZALIV - II

• 2 deep-water outfitting 270 m and 240 m long
  respectively with 2 cranes (32 t lifting
  capacity) and 1 crane (50 t lifting capacity)
• 1 outfitting quay 186 m long with 1 crane (80 t
  lifting capacity)
• GUTMANN plate and profile automatic shotblasting
  and priming line
• NC plate and profile gas - cutting machines
• bending area with a 5000 t press
• welding-assembly facilities (TTS, ESAB),
  including block and panel line with an output up
  to 50,000 t steel constructions per year
  providing for fabrication of panels up to 12 m x
  18 m with weight up to 100 t, hull blocks 18 x 24
  m with weight up to 300 t
• a paint shop equipped with modern western
  technological and coating equipment (KIESS),
  with a total coating capacity 410,000 ? 2/year
• pipe production shop equipped by a pipe
  gas-cutting machine BUG-2, pipe-bending machines
  TGSV-1/2 including galvanic area
• machining, forging, machine assembly facilities
  including 700 tools, 51 of them are CNC
• AS WELL AS
• all necessary facilities for construction and
  repair of ANY FLOATING UNITS
• a port certified for international vessels to
  call at, where general cargoes can be handled
• a bonded store warehouse and customs brokers,
  providing for quick and proper clearance.

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QUALITY SYSTEM AT ZALIV

• The level of ZALIVs quality has obtained
  acknowledgment of customers and leading
  international classification societies
• In Y2002 ZALIV successfully proceeded the Quality
  Management System certification by Bureau Veritas
  Quality International in accordance with
  International Standard ISO 9001-94
• The leading classification societies (LRS, GL,
  BV, DnV) issued their certificates of approval to
  ZALIVs technological process related to marine
  production

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SHIPBUILDING

• ZALIV is distinguished by
• Grate tradition
• Vast experience
• Unique production potential
• Significant intellectual recourses
• Market oriented and customer driven concept
• Social responsibility

• ZALIV has produced more than
• 500 vessels and offshore units, including
• Product-carriers
• Chemical tankers
• Oil carriers
• Multi-purpose vessels
• Container-carriers
• Offshore platforms
• Naval vessels
• Fishing and support vessels

Today ZALIV is building a few different series of
the vessels (container-carriers, oil tankers and
metal sections) under the commercial contracts
with the famous European off-takers, namely Aker
Yards ASA (Norway), Bodewes Shipyards
(Netherlands) and Damen Yards (Netherlands).
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SECTION 2

• Rigs on Zaliv

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OFFSHORE CONSTRUCTION

• As the oil platform constructor ZALIV has the
  following significant advantages
• unique production complex
• artificial water area enabling to build the
  different offshore oil and gas floating
  drilling platforms and big-size outfitted steel
  structures, including topside structures of
  stationary drilling rigs
• convenient geographic location between the
  offshore areas of the Black Sea and the Sea of
  Azov
• long-term and successful production
  track-record

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ZALIV OFFSHORE PROJECTS

• In the 70th ZALIV fabricated block-modules of
  topside structure for stationary drilling rigs
  (total steel weight is more than 1500 ton)
  intended for Vietnam and outfitted with all
  necessary equipment, systems and mechanisms and
  delivered turn-key, including wells handling
  systems, oils separator cleaning systems, wells
  valve control systems, pumps, manifolds, piping,
  machinery etc
• Repair and modernization of jack-up drilling rigs
  in dry dock
• In Y2002 fabricated different units of
  stationary drilling rig intended for exploration
  and extraction of natural gas in the East
  Kazantip field in Azov Sea ordered by
  Chernomorneftegaz, including bearing block, pile
  foundations (assembled from pipes 1220x26
  fabricated at the yard from steel plates),
  topside structures, underwater pipelines (have
  also been manufactured for North Bulganak gas
  field in Azov Sea) with total steel weight of
  more than 7000 ton
• In Y2006 ZALIV finished construction of top side
  module structure of the shell mean offshore
  drilling submersible platform for the offshore
  drilling project of Chevron in Azov Sea

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DRILLING RIG CHERNOMORNEFTEGAZ
The drilling units of the rig were produced at
ZALIV in Y2002 under the drilling project of
Chernomorneftegaz in the East-Kazantip field in
Azov Sea.
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SECTION 3

• Contact Information

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CONTACTS

• ZALIV Shipyard Kiev
• Nikolay Kuzmenko, Chairman of the Supervisory
  Board 38 067 530 22 06
• nikolay.kuzmenko_at_zalivshipyard.com
• Yuriy Dovgiy, Project Associate
  38 067 509 19
  90
• yuriy.dovgiy_at_zalivshipyard.com
• ZALIV Shipyard Kerch
• Valeriy Belozerov, Head of Marketing Department
  38 050 397 47 87
• belozerov_at_zaliv.com
• WEB SITE www.zaliv.com