Safe Caledonia Wins $52 Million Contract

Prosafe has received a letter of award from Total E&P UK PLC (TEPUK) and ELF EXPLORATION UK PLC (EEUK) for the provision of Safe Caledonia to support operations on the Dunbar and Elgin Franklin Fields in the British sector of the North Sea. On site operations are anticipated to commence on February 1, 2007.

The contract is for a firm one-year period with a one-year option. The value of the firm period including mobilization and demobilization is US $52.1 million.

Prosafe has secured a rig utilization of about 93% in 2006. Long-term market prospects for accommodation and service rigs are positive, and the business division has already now secured a fleet utilization of about 80% in 2007 and about 41% in 2008.