I.     PROJECTED ULTRA-DEEPWATER PRODUCTION START-UPS OVER THE NEXT DECADE 1.     The Ultra-Deepwater Gulf of Mexico Major plays in ultra-deepwater Ultra-deepwater topography 2.     Trend Toward Deepwater Production 3.     Estimated Recoverable Reserves in Ultra-Deepwater 4.     Active Ultra-Deepwater Leases 5.     Activity on Ultra-Deepwater Leases Two fields now producing Five fields being developed More than 140 wells spudded in ultra-deepwater About 80 ultra-deepwater drilling permits Almost 100 deepwater drilling plans Currently drilling on six ultra-deepwater blocks 6.     Undrilled Acreage in Ultra-Deepwater Criteria used to segment undrilled leases Short list of priority undrilled sites 7.     Portfolio of 170 Ultra-Deepwater Development Sites 8.     Constraints Imposed by Drilling Equipment Demand for ultra-deepwater drilling equipment Shortfall in current rig availability Equipment supply will meter pace of development 9.     A Scenario for Site Start-Ups Fields in development stage - next 2 to 4 years Sites already spudded - 3 to 6 years out Drilling permits applied for - 4 to 7 years out Drill plans filed - 5 to 8 years out Big ticket undrilled sites - 6 to 9 years out Other priority undrilled sites - 7 to 10 years out II.     PIPELINE VS. SHUTTLE TANKER AS THE TRANSPORT SOLUTION 1.     Pipeline Transport Existing pipeline infrastructure in the GOM Mardi Gras Transportation System Challenges of ultra-deepwater & rough terrain Estimated pipeline capex per mile Estimated pipeline operating cost per barrel-mile 2.     Shuttle Tankers Shuttle tankers in other offshore areas Operating profile and technical requirements Shuttle tanker features required in the Gulf of Mexico The issue of fog on the Gulf Coast Sourcing & ownership restrictions unique to U.S. Estimated capex for 550,000 bbl U.S. shuttle tanker U.S. shuttle tanker estimated annual operating cost 3.     Cost Comparisons of the Two Transport Options Walker Ridge 633 to Lake Charles Green Canyon 845 to Lake Charles Garden Banks 949 to Lake Charles Atwater Valley 113 to Lake Charles 4.     Breakeven Distance to Infrastucture Breakeven distance in rugged terrain Breakeven distance in smooth terrain Base case breakeven scenario III.     SHUTTLE TANKERS REQUIRED THROUGH 2010 1.     Development Sites Likely to Require Shuttle Tanker Surrounding terrain Proximity to infrastructure Segmentation of sites Location & operators of "shuttle tanker friendly" sites 2.     Forecast of Shuttle Tanker Requirements Probabilities that sites will move to production Projected number of production sites Projected daily oil production Number and timing of required shuttle tankers Sensitivity of the forecast IV.     PROPOSED DESIGNS, BUILDING CAPACITY AND FINANCING ISSUES 1.     Proposed Shuttle Tanker Designs Articulated tug/barge Coastal product tanker conversion Coscol Marine's design Navion/Skaugen's design Conoco's Gomax Simplicity class tanker Selecting among the design options 2.     Building Capacity in the U.S. Five yards eyeing shuttle tanker construction Two yards could bid, but are geared to denser ships Another yard has capability, but requires investment Better business alternatives could limit competition 3.     Financing Options Direct purchase of ships by the field operator Partnership among field operators to buy ships Long-term charter, back-to-back building contract Contracts of affreightment from field operators Government guarantee of the ship financing The financing options compared APPENDICES 1.     Ultra-Deepwater Leases in the Gulf of Mexico 2.     Wells Spudded in Water Depth of 5,000 ft. or Greater 3.     Applications for Permit to Drill in Ultra-Deepwater Since 1999 4.     Ultra-Deepwater Drilling Plans Filed Since 1999 5.     Deepwater Drilling Activity in the Gulf of Mexico as of April 2001 6.     Portfolio and Mapping of 170 Ultra-Deepwater Development Sites 7.     Merchant Marine Act 1920, Section 27 8.     Cost Estimates and Assumptions for Transport Options from Four Fields          to the Citgo Refinery in Lake Charles