Siem Arranges Financing for Subsea 7 Stake

As stated in the Notice to the Oslo Stock Exchange dated November 15, 2004, SIEM intends to finance the acquisition of Halliburton's 50% share in Subsea 7 Inc partly with new debt.

SIEM has received a fully committed offer from DnB NOR for a loan of US $150 million and a bonding/guarantee facility of US $80 million. The terms are improved compared with the existing financing arrangement in Subsea 7 Inc.

The US $150 million loan will be used to repay Subsea 7's existing US $200 million term loan of which US $117 million is outstanding.

The US $80 million bonding/guarantee facility will replace the existing USD 50 million bonding/guarantee facility in Subsea 7 Inc. The increase of US $30 million enables Subsea 7 Inc to cover expected increase in short to medium term need for such bonding/guarantee facility.

Chairman Kristian Siem comments: "Confirmation of the bank financing is a condition for the equity issue and I am pleased to inform that this part of the financing package is confirmed well in advance of the expected closing of the equity transaction."