New Contracts for the Bideford Dolphin & Borgland Dolphin

Fred. Olsen Energy's subsidiary, Dolphin Drilling, has received letters of intent from Norsk Hydro Produksjon a.s and Statoil ASA, respectively, regarding extension of the drilling contracts for the semisubs Bideford Dolphin and Borgland Dolphin.

The letter of intent from Norsk Hydro Produksjon relates to the drilling rig Bideford Dolphin and comprises drilling of up to 9 wells on the Norwegian continental shelf, including 7 wells in connection with the planned development of the Fram field. Planned commencement is immediately following the expiry of the existing contract in May 2005. Anticipated duration of the drilling program is 19 months. Norsk Hydro Produksjon has options for up to 24 months extension after completion of the drilling program. The duration is subject to the licenses' and the government's approval of the development plan for the Fram field during spring 2005. Estimated contract value is NOK 800 million, approximately (excl. option).

Statoil has notified its intention to declare its option for a 12 months extension of the existing drilling contract for the drilling rig Borgland Dolphin from December 31, 2005 for one year ahead. The rig is intended to operate in the Tampen area on the Norwegian continental shelf. Estimated contract value is approximately US $68 million. The letter of intent is subject to approval of the other licensees.