Solstad Orders New Construction Vessel

Reference is made to the announcement dated July 6, 2006 regarding the agreement between Solstad Offshore ASA (SOFF) and Subsea 7 for the hire of a large construction service vessel for a fixed period of six years plus 4 yearly options. Solstad has now entered into a letter of intent with Flekkefjord Slipp og Maskinfabrikk AS for the building of the vessel.

The new vessel, that will have a length of 113m and width of 24m, will be purpose built for the Inspection Maintenance and Repair (IMR) segment. The vessel design is developed in close cooperation between SOFF, Subsea 7 and Vik- Sandvik AS.

Solstad is one of the world's leading owners and operators of offshore construction service vessels and will, after the delivery of the said new vessel, operate a total of 11 vessels within this segment.

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