Fred Olsen Purchases Accommodation Rig

Fred Olsen Energy has entered into an agreement with Transocean Sedco Forex for the purchase of Rig 82 (formerly Polymariner and Allegeheny). The rig is a semisubmersible Aker H-3 design built at Aker Verdal AS in 1975 and is currently laid up at the Olen ship yard in Norway. The purchase price is US $5.6 million. Until 1996 the rig was operated in the accommodation market. The rig has no drilling equipment.

Rig 82 will supplement the Borgila Dolphin capable of providing various services in the offshore support market. Through the purchase of Rig 82, Fred Olsen Energy is also targeting its efforts within the floating production segment based on its concept of a Dry Completion Unit (DCU) based on the Aker H-3 design. By securing Rig 82 at this price level, the company believes it has a cost efficient entry into this segment.