AGREEEMENT OF INTENT WITH KOREA NATIONAL OIL CORPORATIO

.Fred Olsen Energy ASA (FOE) has entered into an
agreement of intent with the Korean state owned
oil company, Korea National Oil Corporation
(KNOC) of South Korea, to request proposals for
the construction of a jointly owned new-build
ultra deepwater drillship. FOE`s wholly owned
subsidiary, Dolphin Drilling Ltd., will in case
of realizing the project, undertake the
technical and commercial operation of the
drillship. Finalisation of the project including
Board approval, is expected within the end of
the year.