Fred. Olsen Energy Acquires Ocean Liberator

Fred. Olsen Energy ASA, has on behalf of a subsidiary entered into an agreement to purchase the semisubmersible drilling rig Ocean Liberator from Ensenada Internacional S.A., a subsidiary of Diamond Offshore Drilling Inc., for a consideration of US $14 million. The Ocean Liberator is currently in lay-up offshore Cape Town, South Africa.

The rig is an Aker H-3 design built in 1974 and has been cold stacked in Saldanha Bay north of Cape Town since November 2002. Engineering studies have commenced with the purpose of determining the best application for the unit, including production drilling and completion work. A final decision related to the eventual upgrade of the unit is expected late 2005 and will be subject to detailed engineering and contract opportunities.