Bank aus Verantwortung

Marine Money Norway Ship & Offshore Finance Forum, June 4th 2015, Oslo

Thomas Ankele (VP Maritime Industries)

The New Challenges in Offshore Oil & Gas

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Maritime IndustriesPortfolio composition by subsector as of December 31, 2014

gesamt25,2%

Containerschiffe

Offshore Container

TankerBulker

Passenger

USD 18bn

Container

16.5%

Product/Chemical/Crude OilTankers

4.6%

LNG/LPGTankers

6,2%

BulkCarriers

1.5%

Misc.

2.7%

Ferries

7.5%

Tourism

44.1%

MaritimeEnergy

11,1%

Sovereigns

1.8%

Shipyards

4.0%

Maritime IndustriesOil & gas offshore portfolio as of December 31, 2014

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Anchor Handling Tug13%

Construction Vessel4%

Drillship16%

FPSO13%

Jack-up Rig4%

Platform SupplyVessel

6%

Semi-SubmersibleRig

13%

Shuttle Tanker3%

Wind FarmInstallation Vessel

10%

Pipelaying Vessel10%

Semi-SubmersibleAccomodation Rig

8%

TOTALUSD 2,0 bn

Major Lenders in the Maritime IndustryIPEX-Bank among the Top 10 in Maritime Finance

Source: Marine Money International, May 2014

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Offshore Exploration Cycle: Financing considerations

Vessel ClusterOCVs

Offshore Construction Vessels

OSVsOffshore Service

VesselsFloating Production Vessels

Production

- Seismic- Drilling (Ship, Semisub), Construction, Pipelay- Diving Support- Well Intervention- Well Testing

Vessel Type- AHTS- PSV- Accommodation

- Small-/Medium Scale- Large Scale

Field Exploration & Development

• Moderate financing amounts per asset• EPC competition• Relevance of vessel mortgage as collateral• Charter concentration risk (e.g. Petrobras in Brazil)• Short/medium term employment –market risks-

• Large financing amounts• EPC oligopoly• Low Asset Fungibility• Charter diversity• Long term employment

FinancingConsiderations

Sovereign risk

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Sovereign/Country risk: Why relevant?

› State-owned companies

control most ( ̴90%) of the

world's oil reserves today

(1970: ̴10%).

› Exploration & Production is

more complex, capital

intensive and remote today

than in the past.

› Oil price drop is putting

pressure on state budgets.

- Norway (S&P: FC AAA)

- UK (S&P FC: AAA)

- US (S&P: AA+)

- Canada (S&P FC: AAA)

- Australia (S&P: AAA)

Traditional offshore nations

- Nigeria (S&P FC: B+)

- Angola (S&P FC: B+)

- Mozambique (S&P FC: B)

- Brazil (S&P FC: BBB+)

- Mexico (S&P FC: BBB+)

- Vietnam: (S&P FC: BB-)

New offshore nations

Jack Up Rig (shallow water) versus FPSO (low fungibility) versus PSV (high fungibility)

Mortgage/Registry Flag, Country of Registration, Jurisdiction of Employment

Pure offshore account structures versus partial local currency obligationsCash flows

Legal reliability & judicial efficiency of relevant authoritiesTax, Fees, Maritime

Liens etc.

NOCs versus IOCs versus Independents versus Oilfield Service ProvidersCharterer

Place of Employment Territorial Waters versus Exclusive Economic Zone/International Waters

Financing type Corporate Financing versus Asset Based Financing/Project Financing

Local Content Weakening or strengthening local content requirements may threat profitability

Sovereign/Country Risks: Which are relevant for financiers?

Asset Type

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Field owner/operator,vessel owner

International versus Local Corporates

+++Risk Profile+++

Involvement of local banks to fully/partially cover repayment risks of local owners

Secure Capex Cashflow through involvement of IOCs/International Corporates:OPEX Guarantees

Residual Value GuaranteesCharter Payment Guarantees

Mitigation of sovereign/country risk

Diversify Financing Risks among ECAs of most relevant supplier nations

Financing among banks with local presence and expertise

Financing of Maritime Assets for Oil & Gas OffshoreGerman Suppliers & Shipyards

VDMA - German Engineering Federation VDMA Supplier Directoryhttp://www.vdma.org http://www.shipandoffshore.net/fileadmin/user_upload/pdf/GOED2013k.pdf

VSM - German Shipbuilding and Ocean Industries Associationhttp://www.vsm.de

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Financing of Maritime Assets for Oil & Gas OffshoreEuropean Suppliers & Shipyards

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Your Team for Maritime Industries at KfW IPEX-Bank GmbH

Dr. Carsten WiebersGlobal Head Maritime Industries

Phone: +49 69-7431-3644E-mail: carsten.wiebers@kfw.de

Thomas AnkeleVP Maritime IndustriesPhone: +49 69-7431-8458E-mail: thomas.ankele@kfw.de

KfW IPEX-Bank GmbH

Palmengartenstrasse 5 - 9

60325 Frankfurt am Main / Germany

Visitor address:

Zeppelinallee 8

60325 Frankfurt am Main / Germany

Tel: +49 69 7431–3300

Fax: +49 69 7431-2944

www.kfw-ipex-bank.de