IFRS-EFFECTS FROM ITS OWNERSHIP IN FRED. OLSEN ENERGY

For full information see enclosed pdf-fileReference is made to FOE`s 4th quarter announcement and
preliminary results for 2004.

In the announcement, FOE presented an overview of various
accounting effects relating to the implementation of
financial reporting in accordance with IFRS. The relevant
parts of the FOE announcement is included in the text below.

Bonheur consolidates its proportionate share of equity and
net result in FOE in accordance with the equity method.
Pursuant to the Norwegian accounting standard, its
ownership comprises all shares in FOE owned by Bonheur,
both directly and indirectly, i.e, in total 31.6%. On
consolidation of FOE in accordance with IFRS, Bonheur will,
however, only consolidate its direct ownership in FOE and
hence, under IFRS, Bonheur will consolidate 30.3% of FOE.

Consequently, and in accordance with the equity method, the
reported IFRS effects related to Fixed Assets, Pensions,
Deferred Taxes and Financial Instruments should in
principle affect Bonheur with an amount corresponding to
its direct ownership in FOE. In addition, there will be an
indirect consolidation effect through Bonheur`s ownership
of about 49.5% in Ganger Rolf (also consolidated following
the equity method) which in turn, also has a 30.3% direct
ownership of FOE.

However, the consolidation of Fixed Assets are accounted
for differently as three of FOE`s drilling rigs originally
were owned by Ganger Rolf and Bonheur with 50% each. When
these rigs were sold to FOE at market value in 1997, both
Ganger Rolf and Bonheur kept the historic cost of these
rigs, whereas FOE on the other hand, used the purchase
price as its balance sheet value. Consequently, these rigs
have had a different balance sheet value in Ganger
Rolf/Bonheur respectively, and FOE.

Upon implementation of IFRS FOE has elected to measure its
mobile offshore units at their fair market value on 1
January 2004 as their deemed cost at that date. This choice
will result in a reduction in the net book values of
approximately 2.7 billion as of 1 January 2004. The
resulting effect for Bonheur of the above is estimated to
NOK 886 million. This includes the effect of its ownership
of about 49.5% in Ganger Rolf. It follows from FOE`s
announcement below that since 1 January 2004 the market
value of its mobile offshore units have increased by
approximately 20%.

In terms of the other items (Pensions, Deferred Taxes and
Financial Instruments), the reduction in book equity in
Bonheur is estimated to NOK130 million, including the
effect of its ownership of about 49.5% in Ganger Rolf.

In connection with the implementation of an IFRS
consolidated balance sheet as of 1st January 2004, FOE also
announced that the depreciation expense in 2004 is expected
to decrease by approximately NOK 180 million. The
corresponding reduction for Bonheur is estimated to NOK 45
million.

In addition to the above, there will be certain other
effects in Bonheur on adoption of IFRS, including the
valuation of other fixed assets in the company. These will
be explained in connection with the announcement of the 4th
quarter results on 15th February 2005.

Contact persons: Mårten Lunde / Jan Erik Bjoner
phone: +47 22341000


Extract from FOE`s 4th quarter report and preliminary year
end result 2004: (See attached pdf-file)