NEW DRILLING CONTRACT FOR BREDFORD DOLPHIN

Dolphin AS, a subsidiary of Fred. Olsen Energy ASA, has entered into a Letter of Agreement with RWE Dea Norge AS for a 160 days drilling contract for the semi-submersible drilling rig Bredford Dolphin for operation on the Norwegian continental shelf. In addition, AGR Petroleum has an option to extend the contract period with 80 days to 240 days within end of June 2009. The Letter of Agreement is subject to final contract and commencement is in direct continuation with current contract. The estimated contract value is approximately USD 69 million for the fixed period.