Siem Offshore Acquires Stake in Three Platform Supply Vessels

Siem Offshore and O H Meling & Co AS have entered into a Heads of Agreement whereby the Company will acquire from OHM a controlling interest in one vessel and two shipbuilding contracts.

The parties have agreed that subject to certain conditions, the Company shall acquire a shipbuilding contract for a PSV of MT 6000 design with a 70 ton crane currently under construction at Kleven Maritime AS to be delivered at year end 2006.

Further, the Company shall become a 51% shareholder in a ship-owning company which will own a PSV of VS 470 mk II design, built in 2004, and a shipbuilding contract for a PSV of VS 485 design, to be delivered from Karmsund Maritime Services AS in June 2007. The remaining 49% of the ship-owning company will be owned by OHM and affiliated parties.

O H Meling & Co AS will continue to operate the jointly owned vessels, while Siem Offshore will have the overall chartering responsibility.

The Company's ownership in the above-mentioned vessel and shipbuilding contracts represents an investment of approx. NOK 500 million.