FRED. OLSEN PRODUCTION - POSSIBLE CONTRACT

Fred.Olsen Production AS, a wholly owned
subsidiary of First Olsen which in turn, is
owned 50/50 by Bonheur ASA and Ganger Rolf ASA,
is in an advanced stage of negotiations for a
lease of its FPSO Knock Taggart for operations
in West Africa

For full information see: www.newsweb.noFred.Olsen Production AS, a wholly owned
subsidiary of First Olsen which in turn, is
owned 50/50 by Bonheur ASA and Ganger Rolf ASA,
is in an advanced stage of negotiations for a
lease of its FPSO Knock Taggart for operations
in West Africa. Knock Taggart has been under
contract to Addax Petroleum since 1998 and was
de-mobilised from its current location in
Nigeria earlier this week. The possible new
contract has a fixed period of 2 years with an
option structure to be finally agreed. Subject
to final agreements and relevant board
approvals, the vessel will transit to a shipyard
for repair and upgrade in preparation for a
start up in Q3 2007.

For further information please contact managing
director Paal Hylin,
phone +47 22341173 / +47 90516702