Farstad Clinches 3 Charter Contracts

Farstad Shipping has been awarded the following charter contracts:

AHTS Far Shogun and AHTS Far Saracen have both been awarded 3-year firm contracts by Chevron Australia to support their drilling program off north west coast of Australia with the new semi submersible rig Atwood Osprey. Chevron also has options to further charter each of the vessels for a total period of 3 years.

These charters are scheduled to commence in March 2011 and are a significant continuation to the long term relationship Farstad Shipping has with Chevron in Australia. The vessels are for the time being trading the spot market in the North Sea. They are expected to depart the North Sea during January.

PSV Lady Melinda has also been awarded a 3-year firm contract by ConocoPhillips, Australia for their Bayu Undan operations. ConocoPhillips also has an extension option for a further 2 years.

The charter will commence in late December 2010 in direct continuation of the current charter.

These new contracts further strengthen and enhance Farstad Shipping's reputation as the leading vessel provider in Australia. The total value of the three charters is approximately NOK 1.7 billion ($251MM)  including options.

Entering into a very challenging 2011 for the supply vessel industry, these contracts are important for Farstad Shipping's contract coverage for 2011. The contract coverage for 2011 (including charterer's options to extend contracts) is approx 70%.

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