Fred Olsen Receives Contract Extension

Fred Olsen Energy reports that the company has entered into an amendment to contract with Norsk Hydro Produksjon AS (Norsk Hydro) regarding an extension of the contract for Borgila Dolphin. Borgila Dolphin has been working as a tender assist drilling unit at the Oseberg field for Norsk Hydro since 1998. The existing contract terminates in December 2001 but has now been extended with a minimum firm period to July 1, 2002. The day rate during the extended contract period will increase to NOK 540.000. The effective date of the new contract rate is still subject to final agreement between Fred Olsen Energy and Norsk Hydro.