EXTENSION OF CONTRACT FOR BORGHOLM DOLPHIN

Dolphin Drilling Ltd., a subsidiary of Fred
Olsen Energy ASA, has accepted a revised letter
of award for the provision of the accommodation
semi-submersible rig Borgholm Dolphin in the UK
North Sea from January 2007. The previous
announcement comprised a contract period of five
months and a contract value of approximately USD
28 million. The revised letter of award, which
is subject to execution of a final contract,
covers an approximate period of 7.5 months of
activity commencing mid January 2007. The
estimated contract value is approximately USD 43
million.