Sevan Marine Introduces the Sevan Drilling Unit

Sevan Marine has carried out an evaluation of complementary uses of its patented SSP technology. In particular, the Company has evaluated the possibility of utilizing the SSP hull as basis for a drilling unit with capabilities of operating in ultra-deep water and harsh environment. Based on the encouraging results of the evaluation, the board of directors has decided to establish Sevan Drilling.

Accordingly, the Company has secured rights to enter into contracts with yards and equipment suppliers for the construction and outfitting of the first SSP drilling unit. The unit will be designed for operations in ultra-deep water and harsh environment. A 100% owned subsidiary, Sevan Drilling, will be the owner of the drilling unit. It is intended that an application for a listing of Sevan Drilling on Oslo Stock Exchange will be filed within 12 months.

The estimated all-in delivery cost is US $430 million, with delivery in first half of 2009. In order to part-finance the construction and to raise necessary equity in time to exercise its contractual rights for the construction of the first drilling unit, the Company intends to carry out a private placement of US $230 million. The Private Placement will be directed towards existing shareholders, and institutional and professional investors. The subscription price will be set through a book-building process. The subscription period is expected to be February 22 through March 3, 2006. Shareholders not invited to participate in the private placement will be invited to subscribe in a subsequent share issue. The board will convene an extraordinary shareholders' meeting to be held on March 7, 2006 to consider and adopt the relevant resolutions.

Sevan Marine has retained SEB Enskilda and Pareto Securities as financial advisors in connection with the Private Placement.

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