Trada Maritime (“Trada”, the “Company”) is a specialized Indonesian shipping company focused on oil & gas support services. Established in 2000, its business model is currently 100% contract-based. It currently operates 4 FSOs on contract with various oil & gas companies such as Pertamina, CNOOC and Medco Energi; 5 oil tankers; 13 tugs and 12 barges. Trada is recognized as one of the market leaders in Indonesia in the FSO/FPSO market with a share of approx 26% by volume (2.87 million barrels). In 2008, over 70% of its revenue came from FSO and integrated offshore services, and the balance from liquid cargo (19%) and dry bulk (11%). During 2008/9, Trada purchased two tankers to gear up for the anticipated FSO tenders. Trada is seeking IFC support to finance an Indonesian-flagged Floating Storage & Offloading (FSO) vessel with a capacity to hold up to 700,000 barrels of oil. The FSO, to be owned by a special purpose company to be set up by Trada, will be contracted to CNOOC SES Ltd. (“CNOOC”) under a 7.5 year contract. Trada won the contract through a competitive bidding process in which 10 other bidders participated. The FSO is estimated to cost US$72 million and will be delivered by January 2011. The deployment location will be in the North Java Sea (Widuri-P Process Platform). Trada has already purchased the oil tanker required for conversion into the FSO. Apart from standard technical features, the CNOOC specifications require the FSO design to include the provision of accommodation for 280 workers of the off-shore oil rig and production facilities, and space for 6 turbines for power generation. Trada has contracted with a leading shipyard in China (COSCO) to undertake the above modifications. The project is the first FSO being bid out in the country after a Presidential decree issued in May 2005 and the subsequent introduction of the new Indonesian Cabotage Law approved in May 2008 that requires: (i) all domestic shipments of oil, coal, gas and other bulk commodities to be carried by Indonesian-flagged vessels only, using only Indonesian crew; from January 1, 2010, and (ii) only locally registered vessels to transport domestic passengers and cargo (inclusive of offshore operations vessels such as FSO and FPSO) from January 1, 2011. The legislation aims to improve the national fleet capacity and reduce dependency on foreign shipping services for inter-island transportation, to increase shipping related employment and services and thereby reduce dependency on foreign services, and minimize tax avoidance by shipping companies in Indonesia,. Given the limited access to longer term overseas financing in Indonesia, IFC is expected to play a critical role in complementing and structuring the overall debt financing for the project (see IFC Role and Additionality).