Prosafe Awarded LOI from Shell for Safe Scandinanvia

Prosafe has been awarded a letter of intent by Shell Offshore Inc. for the semi-submersible accommodation/service rig Safe Scandinavia to support Shell's activities in the U.S. Gulf of Mexico.

The contract has an initial fixed term of three months, and can be extended with another three months. The value of the contract, including mobilization and demobilization, net of any taxes, is approximately US $19.6 million. In addition Shell will reimburse any costs related to tow vessels required for Safe Scandinavia's transatlantic voyages.

Safe Scandinavia will start mobilization for the new contract immediately upon completion of the current contract for ConocoPhillips in the North Sea. The contract is expected to commence around December 1, 2005.

The contract is important as it is the first contract for Prosafe in the US Gulf of Mexico, and confirms the strength of the high end accommodation- and service rig market.

Prosafe has now secured a rig utilization of about 92% in 2005. Long-term market prospects for accommodation and service rigs are positive, and the business division has already now secured a fleet utilization of 89% in 2006, 62.5% in 2007 and 34% in 2008.