CONTRACT UPDATE FOR BORGHOLM DOLPHIN

With reference to the previously announced
agreement of 10th November 2005, Dolphin
Drilling Ltd., a subsidiary of Fred Olsen Energy
ASA has entered into revised and additional
interim agreements for the provision of the
accommodation semi-submersible rig Borgholm
Dolphin. The new agreements, which are subject
to execution of final contracts, will reduce the
standby period to approximately 25 days. The
estimated combined contract value of the new
agreements is approximately USD 42.7 million, of
which the value of the contract where the
Borgholm Dolphin is operational is approximately
USD 41.5 million. The combined commitment will
result in a standby period in January 2006 of 25
days followed by continuous operations with two
operators for estimated 260 days. Options exist
for a further two months extension thereafter.