Purchase of tanker vessel

Knock Taggart II Pte Ltd, a wholly owned subsidiary of Fred. Olsen Production ASA (FOP), has entered into an agreement to purchase a 1993 built Aframax tanker. The company will take delivery of the vessel in 1q 2010 and the vessel will operate in the tanker market while FOP continues to develop possible projects for the vessel as a Floating Production and Storage Unit. Contact persons: CEO Mårten Lunde or CFO Jørn T. Røkaas + 47 22 34 10 00