TEEKAY MARINE SERVICES

1
The View From Vancouver

• TEEKAY MARINE SERVICES

2
Teekay Corporation

• Founded 1973 by the late Torben Karlshoej
• Transnational company with 6,300 employees
• Transporter of more than 10 of the worlds
  seaborne oil

Trondheim
Stavanger/Grimstad
Aberdeen
Glasgow
London
Stamford
Gdynia
Vancouver
Tokyo
Hamburg
Nassau
Madrid
Manila
Houston
Mumbai
Singapore
Rio de Janeiro
Perth
Sydney
3
Business Unit Structure Stimulates Focus and
Growth
TEEKAY
CORPORATION
Bjorn Moller
President CEO
Art Bensler
Peter Evensen
EVP General Counsel
EVP Chief Strategy Officer
Bruce Chan
Vince Lok
EVP, Corporate Resources
EVP CFO
TEEKAY NAVION SHUTTLE TANKERS OFFSHORE
TEEKAY TANKER SERVICES
TEEKAY MARINE SERVICES
TEEKAY GAS
TEEKAY PETROJARL ASA
SERVICES
Graham Westgarth
Peter Lytzen
Kenneth Hvid
Paul Wogan
David Glendinning
President
President
President
President
President
President
President
4
Teekay Marine Services

• Newbuilds
• Conversions
• Technical Management
• Post Fixture Operations

• Claims
• Procurement
• Marine Management
• HSEQ
• Marine Personnel

5
TMS Organization

• 5,600 Multi Disciplined Sea and Shore Staff

• Process Engineers
• Structural and Paint Specialists
• Electrical/Automation Engineers
• IT Specialists

• Master Mariners
• Mechanical Engineers
• Civil Engineers
• Naval Architects
• DP Engineers

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The Teekay Marine Midstream Concept
5 Floating, Production Storage Offtake Units
(FPSO)
44 Shuttle Tankers
35 Product Tankers
17 Gas Tankers
5 Floating Storage Offloading Units
96 Crude Oil Tankers
OPERATIONS
FINANCE
PEOPLE
CUSTOMER
Includes 6 commercially managed vessels
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Maintaining a World Class Asset Base
Newbuild Management

• 63 newbuildings delivered into the Teekay fleet
  since 1988
• 29 of these in last 5 years
• 3.5 billion newbuilding program underway
• 30 newbuilds at 5 different yards

Asset Conversions

• FSOs
• Shuttle Tankers

8
First Class Customer Service

• 7,350 port calls in 2006
• 75 countries
• 146 customers
• 241 million tons of cargo in 2006

9
Teekays Mission

• To be a leading provider of marine services to
  our customers in the oil and gas industry.

10
Company History

• 1985
• First Aframax tanker purchased
• Embarked on major tanker acquisition program
  through newbuilding and second-hand purchases

• 2006
• Acquired majority stake in Petrojarl to capture
  growing FPSO market

Fleet 150 ships
Fleet 200 ships

• 1999
• Bona Shipholding acquired
• Sean Day succeeds Axel Karlshoej as Chairman

• 2003
• Navion Shipping acquired
• 50 of SPT acquired

• 2004
• Entered LNG sector
• Awarded 3 LNG contracts by RasGas II
• Naviera F. Tapias acquired

• 2007
• Acquired 50 of OMI Corp.
• Announced plan to publicly list conventional
  tanker business

• 1995
• Listed on NYSE

• 1973
• Teekay Shipping Group founded to manage and
  operate oil tankers

• 1998
• Bjorn Moller named CEO
• Australian Tankships acquired
• First FSO contract secured

• 1992
• Teekays founder, J. Torben Karlshoej, passed
  away
• Board of Directors established, chaired by Axel
  Karlshoej

• 2005
• Publicly listed Teekay LNG Partners
• (NYSE TGP)
• Awarded 2 Tangguh LNG contracts
• Awarded 4 RasGas 3 LNG contracts

• 2006
• Publicly listed Teekay Offshore Partners (NYSE
  TOO)

• 2001
• Ugland Nordic Shipping acquired
• Strategic charter deal with ConocoPhillips
• BHP JV
• First of numerous long-term shuttle charters with
  Brazil

Fleet 100 ships
Fleet 60 ships
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Teekay in 1998 A Regional Tanker Company
CUSTOMER LOGISTICS
CUSTOMER LOGISTICS
ASSET MIX (HARDWARE)
AFRAMAX INDO-PACIFIC
CENTRALIZED TECHNICAL AND COMMERCIAL OPERATIONS
PEOPLE SYSTEMS (SOFTWARE)
PEOPLE SYSTEMS (SOFTWARE)
SCALE
8 OFFICES 200 SHORE BASED EMPLOYEES
45 SHIPS 1800 SEA STAFF
TOTAL ASSETS 1.4 BILLION
SCALE
SCALE
12
Teekay in 2007 An Integrated Global Service
Provider

• The Teekay Marine Midstream Platform

NCSEMISSIONS CONTROL PROGRAM (VOC)
CONOCO-PHILLIPS SPECIALIZED VESSEL L/T CHARTERS
BHPB MARINE OUT-SOURCING
CALTEX AUSTRALIA OUT- SOURCING
CEPSA STRATEGIC L/T CHARTERS
OFFSHORE OILFIELD SERVICES
EMBEDDED CHARTERING AT ASTRA OIL
SPT LIGHTERING J/V
OFFSHORE OILFIELD SERVICES
OFFSHORE LOADING LOGISTICS
STRATEGIC COAs
CUSTOMER LOGISTICS
CRUDE OIL TANKERS
PRODUCT CARRIERS
SPECIALIZED
ASSET MIX (HARDWARE)
FSOs
SHUTTLE TANKERS
FSOs
LNG/LPG CARRIERS
FPSOs
ICE CLASS
FPSOs
LIGHTERING SHIPS
HANDY MAX
SHORT-SEA
VLCC
SUEZMAX
AFRAMAX
MR
LR2
LR1
INDIVIDUAL BUSINESS UNITS FOCUS ON BD/CUSTOMER
RELATIONS
REGIONAL MARINE, TECHNICAL CUSTOMER SERVICE
CENTRES
CENTRALIZED STANDARDS TEAMS
PEOPLE SYSTEMS (SOFTWARE)
BUSINESS INTELLIGENCE SYSTEMS
PROJECT MNGMT
TONNAGE POOLS
HSE / RISK MGMT.
PROJECT EXECUTION
PEOPLE DEV.
ASSET QUALITY
TANKERS
SHUTTLE
OFFSHORE
GAS
202 VESSELS OWNED, CHARTERED AND/OR MANAGED,
INCLUDING 27 NEWBUILDINGS 5,400 SEA STAFF
20 OFFICES 900 SHORE BASED EMPLOYEES
SCALE
TWO PUBLICLY LISTED MLPs
TOTAL ASSETS 9.6 BILLION
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TMS Strategies
FINANCE
OPERATIONS
CUSTOMER
PEOPLE
Cost Effective Operations
World Class Asset Base
Leadership In Risk Management
First Class Customer Service
World Class Staff Onboard Ashore

• Our vision is to excel in all five strategies
• By fulfilling these strategies our objective is
  to deliver a clearly differentiated operational
  product to our customers
• OCIMF TMSA 235 of 241 KPIs met

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TMS Operational Framework
CORE PURPOSE / CORE VALUES / HSEQ POLICY
- Strategies -
FINANCE
OPERATIONS
CUSTOMER
PEOPLE
Cost Effective Operations
World Class Asset Base
Leadership In Risk Management
First Class Customer Service
World Class Staff Onboard Ashore
- Initiatives -

• COST TIME
• STRATEGIC CONTRACTS
• VESSEL PERFORMANCE
• VALUE LOG

• SIMS
• MAINTENANCE MGMT

• DOCMAP
• TORA
• SOFID
• ELP
• PBVIEWS
• SAFETY IN ACTION

• DANAOS
• FUSION
• VQS
• 3Cs
• CIS
• PROJECT MGMT

• SCOPE
• B2B
• MGMT. TRAINING
• IDEAS BOARD
• KNOWLEDGE POOLS
• EMPLOYEE SURVEYS

STRATEGY
- Main KPI's -

• OPEX
• DRY DOCK COSTS

• AVAILABILITY
• PORT STATE CONTROL DEFICIENCIES.

• LTIF
• TRCF

• VETTING DEFICIENCIES
• FLAWLESS VOYAGES

• RETENTION SEASTAFF
• RETENTION SHORE STAFF

Organization Operations and Standards
Policies Group
Marine Operations Management System MOMS
EXECUTION
15
Competitive Strategies and Organisational
Performance in Ship Management

• The findings suggest that there is a positive
  relationship between pursuing competitive
  strategies and company performance in ship
  management.
• By Mr. Photos M. Panayidas