AGREEMENT TO UPGRADE KNOCK NEVIS

For full information see www.newsweb.noFred. Olsen Production ASA (OTC-listed) which
indirectly is 57.7% owned by Bonheur ASA and
Ganger Rolf ASA, has today published the
following announcement:

First Olsen Pte.Ltd, a wholly owned subsidiary
of Fred.Olsen Production ASA (FOP), has entered
into an agreement with Maersk Oil Qatar (MOQ)
for the upgrading of the capacity of the Knock
Nevis floating, storage and offloading vessel
(FSO) currently on contract to MOQ on the Al-
Shaheen field, offshore Qatar. The upgrade
project targets a 25% increase in the liquid
handling capacity of the vessel. All FOP-
related capital expenditure is refundable by MOQ
and there is a compensation arrangement in place
which is expected to yield an increase in the
EBITDA contribution of 3-5 MUSD over the
remaining life of the contract. The 564,000 dwt
Knock Nevis, which is the world`s largest
vessel, is on contract to MOQ until August 2009.
MOQ may terminate the contract as from August
2007.

For further inquiries, please contact Paal
Hylin, Chief Operating Officer, Fred.Olsen
Production ASA, +47 905 16 702