Fred Olsen Reports Third Quarter Results

Fred Olsen Energy had revenues of 951.0 million in the 3rd quarter 2001, representing an increase of 137.4 million or 16.9% compared to 2nd quarter 2001. The operating result for the 3rd quarter 2001 was 106.2 million. The corresponding figure for the 2nd quarter 2001 was 119.1 after adjustment for the non-recurring income following the Norsk Hydro settlement . Net profit after minority interests for the 3rd quarter was 189.0 million against a profit of 111.6 million in the 2nd quarter 2001. Earnings per share for the 3rd quarter were 3.1 based on weighted average outstanding shares of 60.1 million against 1.9 in the previous quarter. After close of the quarter, FOE entered into an underwriting agreement with a group of banks regarding a US$ 485 million revolving Credit Facility. A settlement was agreed with Bideford Marine regarding the conversion of Bideford Dolphin. Note: All figures are reported in NOK and compared against 2nd quarter 2001.

All rigs and vessels were on contract with the exception of Bulford Dolphin which is owned by Borga AS and included in a pool arrangement. Navis Explorer 1 achieved a contract extension with Petrobras in Brazil and is scheduled to complete four wells before mobilization for BP Trinidad during 4th quarter 2001. Borgny Dolphin entered into a contract with PanCanadian for work in the UK sector with scheduled start up during November 2001. The FPSO Petroleo Nauptipa entered into a contract with with Vaalco Gabon (Etame) Inc. for operations at the Etame field in Gabon with scheduled start during 3rd quarter 2002. The FSO Knock Dee's current contract with Soekor in South Africa was extended at improved rates.