Letter of Intent for FSO Knock Dee in Brazil

Fred. Olsen Production and El Paso Maritime B.V have entered into a Letter of Intent (“LoI”) for the provision of Knock Dee as a floating storage and offloading vessel (FSO) on the Pinauna field offshore Brazil for a minimum period of 10 years.

According to the terms of the LoI the parties agree to work together to finalize the technical scope of the services required at the field and the associated contractual terms within 1st November 2008. In the meantime, Fred.Olsen Production will commence engineering and procurement activities for the project.

For more information, please contact CEO Mårten Lunde maartenl@fredolsen.no or CFO Jørn T. Røkaas jorn.rokaas@fredolsen.no. Phone number +47 22 34 10 00.