Prosafe to Provide FPSO for Polvo Field Offshore Brazil

Prosafe Production Services Pte Ltd has received a Letter of Intent from Devon Energy Americas L.L.C. for the provision of an FPSO for the Polvo field offshore Brazil. The Letter of Intent has a fixed term of 7 years plus 8 x 1 year options. The value of the fixed term of the contract is US $271 million.

Devon Energy do Brasil Ltda is the operator of the field on behalf of the Brazilian subsidiaries of Devon Energy Corporation (60%) and SK Corporation of Korea (40%).

Prosafe will apply the VLCC M/T Apollo, and will convert and operate the unit on a wholly owned basis. The vessel will be turret-moored at a water depth of 100 meters using Prosafe's own turret/swivel technology The field is located in the Campos Basin, and production is expected to start mid 2007.

The Polvo contract represents an important milestone for Prosafe. It marks the entry into a new geographical region and increases the company's client base. Brazil is one of the most important markets for future FPSO developments.

Prosafe remains very optimistic on the outlook for the FPSO market. The company currently holds a purchase option for a suezmax tanker for future FPSO projects.