Navis Explorer Awarded Contract Extension from Petrobras

Fred Olsen Energy has reached agreement for a further one well extension of the drill ship Navis Explorer 1 with Petrobras in Brazil. The extension will commence shortly and will be the fourth well to be drilled for Petrobras under its current contract and reflects the vessels' satisfactory operational performance. The contract value for the Petrobras extension period is expected to be approximately $6.9 million. The vessel is expected to terminate the work for Petrobras in mid November 2001 and is then scheduled for a one well commitment with BP Trinidad with expected termination during 1st quarter 2002. The value of the contract with BP Trinidad is approximately US$ 14 million and the work is expected to be completed within a period of 90 days.

FOE is currently tendering for additional work in 2002 and onwards. Based on the vessels' recent successful performance in Brazil and the fact that she is one of the few true 3000 meter water depth capable units with clean availability for work in 2002, FOE expects to achieve improved rates as the vessel terminates her original contracts during 1st quarter 2002.