Schedule 1.1. Navion Reorganisation
                                                                       to the Share Sale and Purchase Agreement
                                                                             between Statoil ASA and Statpet AS
                                                                                            and Norsk Teekay AS
                                                                                         dated 15 December 2002

Prior to Closing, the Sellers will procure that the following transactions, constituting the Navion
Reorganisation, be implemented, in such sequence and chronology as the Sellers may determine:

|1. | Sale of the offshore loading activity of Navion Maritime AS, including (i) all Vessels except Navion
     Odin owned by Navion Maritime AS, and (ii) all Contracts entered into by Navion Maritime AS, from Navion
     Maritime AS to Navion Offshore Loading AS at fair market value. The vessels referred to in (i) and the
     applicable fair market transfer prices are:
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| | (a)  MV Navion Norvegia
      (b)  MV Navion Europa
      (c)  MV Navion Britannia
      (d)  MV Navion Scandia
      (e)  MV Navion Hispania
      (f)  MV Navion Oceania
      (g)  MV Navion Anglia
      (h)  MV Navion  Scotia
      (i)  Goodwill | USD 58 million
      USD 58 million
      USD 67 million
      USD 62 million
      USD 66 million
      USD 65 million
      USD 66 million
      USD 30 million
      USD 18 million
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|   | The market price applied in relation to the Contracts amounts to USD 150 million in aggregate.
     For accounting purposes the said sale shall be treated as a transaction at fair market value for Navion
     Offshore Loading.
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|2. | Sale of all Vessels owned by Rasmussen Navion KS to Navion Offshore Loading AS at fair market value,
     being the following vessels to be transferred at the following market prices:                                           

| | (a)  MV Navion Clipper
      (b)  MV Navion Viking
      (c)  MV Navion Saga | USD 34 million
      USD 14 million
      USD 37 million
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|   | For accounting purposes the said sale shall be treated as a transaction at fair market value for Navion
     Offshore Loading.
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|3. | Certain restructuring/disposal transactions out of the Navion Group prior Closing:                                            

| | -   Sale of all the shares in Navion Drillship I AS to Statoil (or subsidiary) at fair market value.

  -   Sale of all the shares in Navion Maritime AS to Statoil (or subsidiary) at fair market value.

  -   Sale of all shares in Rasmussen Navion AS to Statoil (or subsidiary) at fair market value.
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| | In addition, certain transfer agreements regarding TMP may be entered into as agreed with the Buyer,
ref. Schedule 5.3.8.
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|4. | Prior to the Signing Date, Navion has concluded the sale to Statoil of its LPG-business, except for
         the ownership of MT Navion Dania.
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|5. | The sale of the Shares as well as the sale of Vessels and/or Contracts from Navion Maritime AS and
         Rasmussen Navion KS (as the case may be) to Statoil (or subsidiary) require the prior written consent
         from certain contractual parties.

         The Sellers shall use their reasonable efforts to obtain such consent as required in a timely fashion
         prior to Closing.

         If, for any reason, any requested consent from a third party is withheld or rejected, the Sellers
         shall procure  to the extent not prohibited under the relevant Contracts  to enter into
         back-to-back arrangements between Navion Maritime AS (following the purchase of all of the shares of
         Navion Maritime AS by Statoil or subsidiary) and Navion Offshore Loading, securing that the risk and
         rewards of the underlying contract(s) with the relevant third party be transferred to and allocated
         with Navion Offshore Loading effective as of the Effective Date as if the intended transfer had been
         accepted by the relevant third party.

         If, and to the extent, the relevant Contracts with third parties prohibit or restrict Navion Maritime
         AS or Rasmussen Navion KS ability to enter into any such back-to-back arrangements as aforesaid,
         the Sellers shall compensate the Buyer by way of a reduction of the Purchase Price equal to the net
         loss suffered by Navion for the remaining duration of the firm Contract(s) not being transferred.

         As far as the COAs are concerned, the net loss shall be determined as of 31 December 2003 in relation
         to all COAs in respect of which relevant consents may not have been successfully obtained based on
         the following formula:

         The net loss will equal the sum of the value of X for each remaining year of the firm contract period
         of each COA less Y. For the purposes hereof
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| | Y = the greater of (a) present value of relevant firm contract period in respect of a COA
              obtained with any field owner calculated using formula for obtaining X, or (b) income
              obtainable, as determined by a London Tanker Broker panel, for the remaining firm contract
              period in the conventional spot tanker market, assessed on the actual ability of the tanker to
              trade on the spot tanker market given its remaining commitments in the shuttle tanker business.

X = A/B*C*D
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| |  | X = annual compensation
                     A = forecasted annual oil production volumes for transportation as set out in Navions
                     TC/COA report (latest updated version as per the Signing Date) up until 2009, and, if
                     relevant, as per WoodMackenzies published P50 forecast for the period thereafter, or
                     partial years, remaining until the end of the firm COA period;
                     B = average cargo size (barrels per cargo) lifted in the 12 months preceding the
                     termination date of the relevant COA from the relevant fields;
                     C = average round trip voyage days (including notional ballast days) from the relevant
                     field during the 12 months preceding the termination of the relevant COA;
                     D = daily freight rate stipulated in the relevant COA;
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| | X to be calculated for each year of firm contract period remaining, and to be discounted to present
         value using a discount rate of 10% per annum.

         The net loss shall be adjusted by any benefit which may be created in respect of a COA with the
         relevant field and operator by way of replacement of or adjustment to an existing COA, including, if
         relevant, any extension of a contract period.

         Interest on the relevant compensation amount shall accrue from the date of Closing till payment is
         made to the Buyer at a rate of 6 months LIBOR + 1 %.

         For the avoidance of doubt, the above mechanism shall apply even in relation to any relevant
         Contracts referred to in Clause 5.3.10 which may be terminated.

         Notwithstanding the above, it is agreed and understood that a failure to effect the transfer of the
         risk and rewards as contemplated shall in no event per se constitute grounds for not consummating the
         Transaction. Provided, however, that the Sellers may, prior to Closing, terminate the Agreement
         without further liability to the Buyer if, in the Sellers opinion, such restriction from the
         relevant third party represents an obstacle for an orderly consummation of the Navion Reorganisation
         and/or the Transaction.
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