THE PACIFIC INSPECTION J.

S COMPANY
Head : 71 & 73 Le Quoc Hung Street - District 4 - Hochiminh City -
ISO 9001 : Office Vietnam
2000 Tel: (84.8) 8.26.27.88 Fax: (84.8) E-mail: pico@ hcm.fpt.vn
8.26.27.99

PRELIMINARY REPORT Date: 08/03/2006

Applicant : SPICA SERVICES

For and on behalf of : PLEASE ADVISE
Attn. : Mr. LE HA BINH
Your Ref. : PLEASE ADVISE
Fax/ E-mail : (+84) 8.232530/ spicavietnam@hcm.fpt.vn
Our Ref. : 14233M/HCM.
Number of pages : 4

Subject: M/V "HAI LONG 02" collided with T/B ARAFURA 2000 on the way out
bound on 04/03/2007.

Dear Sir,
Upon receive your instruction on 07/03/2007, we attended on board the T/b "Arafura
2000" as well as M/v "Hailong 02 to carry out an investigation to ascertain nature, caused
and extent of the alleged damages reportedly sustained due to collision between the above
said vessels. Hereunder are our findings:

1. Outlines of circumstances:

According to the Masters Statement of Fact, log book & referring to the
information / declaration from concerned parties, we have learnt that:

- The tug boat Arafura 2000 is a off shore oil-rig service boat. On 03/03/2207 she was
scheduled to berth at PTSC berth.

- Hailong 02 is a general cargo carrier, just left dry dock Vung tau ship yard under self
pilotage for destination of Thailand port after 3 months staying at dock for repair
and maintenance.

- On the way inbound, 1555hrs on 03/03/2007 the T/b Arafura 2000 was collided in
way of her starboard side by an out-bound vessel Hailong 02 at position of
10o23.8N & 107o04.3E under the fair way of Vietsopetro nearby buoy No.5.

- After collision, T/b Arafura 2000 maneuvered to berth PTSC port, the Hailong 02
turn back and berthed at Vung tau ship yard.

- No oil pollution and casualty was reported.

 No. 13969M/HCM
Page 2

2. Inspection findings:

At the time of our attendance, on 07/03/2007, we carried out a visual inspection on

the both vessels, we recorded:

2.1. Damage to T/bArafura 2000:

- The starboard bulwark, associated stays and part of rescue door ripped off with length
of approx. 16M (from frame No.1 15 to 40).

- Air pipe and sounding pipe of fuel oil, barite, FW, DW on starboard side broken.

- Piping system of cargo, oil, water and manifolds at starboard side were indent, bent.

- Side shell plating in way of phlimsol mark was indent with dimension of 1.5M x 1.5M.

- Rubber tires installed at starboard as fenders was missed.

- Starboard handrail crushed and broken.

* Note:

- The above mentioned damage to vessels structures appeared to be fresh traces.

- Shell plating under water is checking by ABS surveyors from entering inside of star
board side tanks.

- The tug boat is scheduled to depart to Singapore for repair damage after the matter
settled.

2.2. Damage to Hailong 02:

2.2.1 Particular:

- Vessel name : HAILONG 02

- Registered owner : HAILONG SHIPPING & TRADING COMPANY LTD.

- Flag : VIETNAM

- Type : DRY CARGO

- Construction : STEEL

- Length overall : 72.50M

- Breath : 11.20M

- Gross / Net tonnage : 1,162 / 737

2.2.2 Damage extent:

 No. 13969M/HCM
Page 3

Whole stem plate of the vessel rushed, seriously deformed, torn open from keel
plate to draft mark 5M in way of fore peak tank, affecting to approx. 10 frames from
No. 105-110 of approx 6 M in length. A broken part of bulwark plate of t/b Arafura
2000 still stuck at contacting point.

* Note:

- The above mentioned damage to vessels structures appeared to be fresh traces and
appeared as a consequence of contacting with T/b Arafura 2000.

- A joint survey on extent of damage to Hailong 02 is taking place today with attendance
of surveyor appointed by Underwriter (Bao Minh insurance)

3. Cause of incident:

3.1 Event leading up to the collision- Arafura 2000:

Please refer to Master report and sketch of movement attached. Detail will be reported
later.

3.2 Event leading up to the collision- Hailong 02:

Please refer to sketch of movement attached. Interview and investigation is under proceed.

We will keep you abreast of the development.

Best regards,

Bui Thai Chinh