Fred Olsen Refinances Debt

Fred Olsen Energy has entered into a commitment letter with a group of six leading banks related to a US $485 million Revolving Credit Facility. The loan has a term of 6 years with an 8 year amortization profile. The loan carries an interest margin between 1.15 - 1.40% above USD Libor subject to certain financial performance criteria.

The facility will primarily refinance existing short and long term debt associated with the Navis Explorer I, outstanding debt on the Bideford Dolphin and on Byford Dolphin, as well as a short term liquidity facility. Subject to mutually agreed documentation, the loan is expected to close November 2001.