ACQUISITION OF DRILLING RIG

Fred. Olsen Energy ASA, has on behalf of a subsidiary
entered into an agreement to purchase the semi-submersible
drilling rig Ocean Liberator from Ensenada Internacional
S.A., a subsidiary of Diamond Offshore Drilling Inc., for a
consideration of USD 14 mill. The Ocean Liberator is
currently in lay-up offshore Cape Town, South Africa.

The rig is an Aker H-3 design built in 1974 and has been
cold stacked in Saldanha Bay north of Cape Town since
November 2002. Engineering studies have commenced with the
purpose of determining the best application for the unit,
including production drilling and completion work. A final
decision related to the eventual upgrade of the unit is
expected late 2005 and will be subject to detailed
engineering and contract opportunities.