Nexus Floating Production Completes Private Placement

Advanced Production and Loading ASA announces that Nexus Floating Production Ltd. (NEXUS) has successfully completed a US $13O million private placement at US $10.0 per share for the investment in its first newbuild FPSO. The placement received good interest from investors internationally as well as in Norway and was closed at 17.00 hrs Monday, May 15th.

On completion of the private placement, NEXUS will issue 13.0 million shares. APL ASA invested US $52 million in the placement and will own 40% of the Company. APL will use the proceeds from the successful secondary issue last week for the investment in NEXUS.

The shares in NEXUS are expected to commence trading on the OTC list of the Norwegian Securities Dealers Association right after the shares have been issued, tentatively on or about allocation date. The Company intends to seek a listing on the Oslo Stock Exchange within twelve months. First Securities acted as manager of the private placement.

Carl Arnet, CEO of APL states that: "We are proud to give birth to a new-building specialist like NEXUS. The company will target strategic opportunities in the upcoming wave of offshore developments. The aim of NEXUS is to significantly reduce lead time for first oil for developments in harsh environment and strict regulatory regimes".

Anders Holm, CEO of NEXUS, states that: "With the proceeds of the private placement in place, the company is now ready to pursue its business objectives and follow up on the interest shown by the industry for the company's generic FPSO".

NEXUS has entered into a turn key contract with Samsung of Korea for the delivery of the FPSO including topsides and a turn key contract with APL for the delivery of their revolutionary STP 5000 turret. The concept will fully utilize several unique features, like connect and disconnect associated with the APL turret technology. The unit has several unique capabilities, among others; rapid deployment and hurricane management. The Nexus unit will be applicable to all operating theatres of significance, and is scheduled for delivery from the yard in June 2009. APL, as commercial manager, has already received strong industry interest for the vessel.

NEXUS plans to build, own and operate a fleet of FPSOs. An option for a second unit also to be built by Samsung has already been secured.