NEW DRILLING CONTRACT FOR BYFORD DOLPHIN

Dolphin Drilling Ltd., a subsidiary of Fred.
Olsen Energy ASA, has received a Letter of Intent
from Senergy Ltd. for a six month contract with
the semi-submersible drilling rig Byford Dolphin
for operations in the UK North Sea. The agreement,
which remains subject to final approvals, is on
the basis of direct continuation from the present
contract from around March 2008. The estimated
contract value is USD 65.7 million.