Bergesen Signs Contract for FPSO

Bergesen Worldwide Offshore Ltd (BWO) has signed a contract with Peak Petroleum Industries Nigeria Ltd and Equator Exploration Ltd for the use of an FPSO at the Bilabri Field, located in Block OML 122, offshore Nigeria. BWO will use the FPSO BW Endeavor, to be renamed BW Peace, for the services and operations. The terms and provisions of the contract are the lease and operation of a FPSO for a fixed period of 3 years with the Companies option to extend the contract for up to a total of 10 years. The operation on the Bilabri field is planned to commence during second half of 2007. The hire rate will consist of a fixed day rate plus a production incentive rate. The nominal value of the fixed day rate of the full term contract, including options, but excluding the production incentive rate, is approximately $259m. Based on the estimated recoverable reserves, the production incentive rate has a nominal value of up to $ 68m. BWO expects, that when the FPSO is ready and producing at the field, the fixed day rate in the contract will generate an annual EBITDA of $17.4m. In addition BWO will receive the production incentive rate that will be charged on a fixed dollar per barrel of oil-produced basis.