CHANGE OF CONTRACT FOR BORGLAND DOLPHIN

Reference is made to the notice to Oslo Stock Exchange as
of 16.9.2005 notifying that Dolphin AS, a subsidiary of
Fred. Olsen Energy ASA, had received a Letter of Award from
Drilling Production Technology as for a three years
contract for the submersible drilling rig Borgland Dolphin.
The award was subject to agreement on contract terms. The
parties did not reach agreement on such terms and have
terminated the negotiations.

Subsequently, Dolphin AS has entered into a letter of
intent with Statoil ASA, on behalf of itself and the other
licensees of the Tampen area on the Norwegian continental
shelf, for a three years drilling contract for Borgland
Dolphin. The contract value is estimated to approximately
USD 361 million. The contract period commences 1.1.2007,
immediately following expiry of the present drilling
contract with Statoil. Final contract is subject to
approval by the other licensees.