Prosafe Says Contract Extended for FPSO Petroleo Nautipa

Tinworth Limited, a company owned and controlled 50% by Prosafe ASA and 50% by Ganger Rolf ASA / Bonheur ASA, has entered into an agreement with Vaalco Gabon (Etame) Inc., extending the contract for the employment of FPSO Petróleo Nautipa at the Etame field offshore Gabon until September 2012.

The contract may be terminated by Vaalco with effect from September 2011. The extension ensures continuous employment for FPSO Petróleo Nautipa following the expiry of the current contract in September 2007. The extension includes a fixed dayrate, which is expected to provide Prosafe with an annual EBITDA of US $5 million, including a production related tariff.

FPSO Petróleo Nautipa was originally converted to an FPSO in 1998, following an award of a four- year contract offshore Angola. The new extension ensures continuous employment for the vessel for 13 years, more than three times the original contract period. The extension is as such another confirmation of Prosafe's anticipation of a strong future redeployment market.