Sevan Secures Construction Capacity and Mandates GE

Sevan Marine has signed an agreement with Hantong Shipyard of China for the construction of the hull for the first SSP drilling unit. The fully completed rig, which will be capable of drilling in harsh environment and in ultra deep water, shall be ready to drill in 1H 2009.

Sevan has also signed an agreement with Hantong for the construction of the hull of one SSP 300 FPSO, the fourth SSP 300 to be built by Sevan.

In order to secure capacity for future construction, Sevan has signed a long-term agreement with Hantong, whereby Sevan on an exclusive basis will lease dedicated parts of the shipyard facilities, until December 31, 2012. Under the agreement, Sevan has secured rights to build up to nine additional SSPs, which may be of various sizes and types.

The unique agreement with Hantong provides Sevan with a long-term and stable capacity for the construction of SSP platforms. It allows us to carry out our planned construction program and positions the Company for further growth, says Jan Erik Tveteraas, CEO of Sevan Marine ASA.

Under a separate agreement, Sevan has signed a mandate with GE to arrange construction financing and a term loan, both up to US $100 million, to part-finance the first SSP drilling unit. The drilling unit will be owned by Sevan Drilling AS, a wholly-owned subsidiary of Sevan. Sevan intends to apply for a separate listing of Sevan Drilling on Oslo Bors later this year.

The agreement with GE represents an important milestone in the development of a solid capital base for Sevan Drilling, says Jan Erik Tveteraas.

Sevan Marine ASA is an offshore technology company, which specializes in the market for floating production and storage of oil and gas. The Company has developed a new, cylinder shaped platform type named SSP (Sevan Stabilized Platform), which is suitable for use in all offshore environments. Sevan Marine has its head office in Tananger, Norway and branch offices in Arendal, Norway and Rio de Janeiro, Brazil.

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