IFRS-EFFECTS FROM ITS OWNERSHIP OF FRED. OLSEN ENERGY A

For full information see enclosed pdf-fileReference is made to FOE`s 4th quarter announcement and
preliminary results for 2004.

In the announcement, FOE presented an overview of various
accounting effects relating to the implementation of
financial reporting in accordance with IFRS. The relevant
parts of the FOE announcement is included in the text below.

Ganger Rolf consolidates its proportionate share of equity
and net result in FOE in accordance with the equity
method. Pursuant to the Norwegian accounting standard, its
ownership comprises all shares in FOE owned by Ganger Rolf,
both directly and indirectly, i.e, in total 31.6%. On
consolidation of FOE in accordance with IFRS, Ganger Rolf
will, however, only consolidate its direct ownership in FOE
and hence, under IFRS, Ganger Rolf will consolidate 30.3%
of FOE.

Consequently, and in accordance with the equity method, the
reported IFRS effects related to Fixed Assets, Pensions,
Deferred Taxes and Financial Instruments should in
principle affect Ganger Rolf with an amount corresponding
to its direct ownership of FOE.

However, the consolidation of Fixed Assets are accounted
for differently as three of FOE`s drilling rigs originally
were owned by Ganger Rolf and Bonheur with 50% each. When
these rigs were sold to FOE in 1997 at market value, both
Ganger Rolf and Bonheur kept the historic cost of these
rigs, whereas FOE on the other hand, used the purchase
price as its balance sheet value. Consequently, these rigs
have had a different balance sheet value in Ganger
Rolf/Bonheur respectively, and FOE.

Upon implementation of IFRS FOE has elected to measure its
mobile offshore units at their fair market value on 1
January 2004 as their deemed cost at that date. This choice
will result in a reduction in the net book values of
approximately 2.7 billion as of 1 January 2004. The
resulting effect for Ganger Rolf of the above is estimated
to reduce equity of NOK 593 million. It follows from FOE`s
announcement below, that since 1 January 2004 the market
value of its mobile offshore units have increased by
approximately 20%.

In terms of the other items (Pensions, Deferred Taxes and
Financial Instruments), the reduction in book equity in
Ganger Rolf is estimated to NOK 87 million.

In connection with the implementation of an IFRS
consolidated balance sheet as of 1st January 2004, FOE also
announced that the depreciation expense in 2004 is expected
to decrease by approximately NOK 180 million. The
corresponding reduction for Ganger Rolf is estimated to NOK
30 million.

In addition to the above, there will be certain other
effects in Ganger Rolf on adoption of IFRS, including the
valuation of other fixed assets in the company. These will
be explained in connection with the announcement of the 4th
quarter results on 15th February 2005.

Contact persons: Mårten Lunde / Jan Erik Bjoner

For extract from FOE`s 4th qtr report, please see attached
pdf-file