Farstad Strengthens Brazil Position with Acquisition

Farstad Shipping ASA has reached an agreement with Petroserv S.A. in Brazil, on certain conditions, to buy Petroserv's 50% share in BOS Navegação S.A. Farstad Shipping will after the purchase have 100% ownership of BOS. The net purchase price for the 50% share is USD 56.5 million. The acquisition is expected to be consolidated in Farstad Shipping's accounts as from 1 July 2011.

BOS was established in June 1999 as a joint venture between Farstad Shipping and Petroserv. Today the company owns 3 AHTS on contracts with Petrobras. In addition BOS operates 10 Farstad vessels in Brazil. BOS' offices in Rio de Janeiro and Macaé employ 35 people onshore and 325 people offshore.

To Farstad Shipping this agreement represents a strengthening of our position in Brazil, a market of considerable growth.