SALE OF VESSEL

Knock Dee Pte Ltd, a wholly owned subsidiary of Fred. Olsen Production ASA, sold and delivered FSO Knock Dee for scrapping on August 21st.  The arrangements provide for Knock Dee to be recycled in accordance with the IMO Guidelines on Ship Recycling.  The sale is estimated to give an accounting gain of about US$ 2 million which will be recorded in Q3 2010.

Contact persons: CFO Jørn T. Røkaas + 47 22 34 10 00