Prosafe Wins $56 Million Contract from Total

Prosafe Rigs Ltd, a wholly owned subsidiary of Prosafe ASA, has received a letter of intent from Total E&P Angola as the Operator of Block 17 offshore Angola for the use of MSV Regalia in relation to the modification of the Girassol FPSO that will be done to tie-in the 25-well Rosa subsea development.

The contract has a fixed duration of 12 months plus additional 4 x 1 month option periods, and will commence between 1 October and 31 December 2005. The start-up window will be narrowed down to two months later this autumn, and down to one month no later than six months prior to start up.

The contract includes a minor upgrade of MSV Regalia to comply with special requirement from Total E&P Angola. The upgrade has an estimated cost of USD 9 million which will be compensated by the client.

Total contract value, net of local withholding tax, is USD 56 million, excluding options, but including the upgrade of USD 9 million and contribution to mobilization and demobilization of total USD 5 million.

This is Prosafe's third contract for dynamic positioned support to an FPSO in west Africa. The market for such rigs is strong, and the number of demand drivers and prospects in several geographical markets, as well as the day rate level, serve to support our positive view on the future for accommodation and service rigs. Prosafe's strategy is to maintain its leading position in this market globally. We will therefore continue to work actively to maintain the largest and best fleet in order to serve coming demand, regardless of location, demand driver and contract duration.

The Rosa field is located in water depths ranging from 1,300 to 1,500 meters and is about 15 kilometers from the Girassol FPSO. The field is scheduled to come on stream in the first half of 2007, and it will raise and prolong the peak production of the FPSO. Sociedade Nacional de Combustíveis de Angola (Sonangol) is the Block 17 Concessionaire. Total's coventurers in the Block are Esso Exploration Angola (Block 17) Ltd, BP Exploration (Angola) Ltd, Statoil Angola Block 17 AS and Norsk Hydro.