EXTENSION CONTRACTS IN BRAZIL

DOF's 100 % owned Brazilian company Norskan has secured a Memorandum of Understanding with Petrobras for extension of three charter contracts with an estimated total revenue during the firm extension periods of approximately NOK 3,1 billion. The contracts are for Norskan's three AHTS vessels, Norskan Botafogo, Skandi Rio and Skandi Fluminence. The firm period for each vessel is 6 years from end of present Petrobras contracts. DOF Subsea Brazil will provide ROV services onboard two of the vessels. The above value estimate includes the contract value for two work ROVs. The contracts are subject only to final approval by the Petrobras Board.

Norskan Botafogo, Skandi Rio and Skandi Fluminence are AHTS vessels of UT 722 L design. They are built in Brazil and fly the Brazilian flag with full Brazilian crew. All three vessels have worked for Petrobras since delivery from yard.