Sevan Set to Launch Bond Issue on Monday

Sevan Drilling AS, a wholly-owned subsidiary of Sevan Marine ASA, has retained Pareto Securities ASA and SEB Merchant Banking to advise on a contemplated bond issue directed toward professional Norwegian and international investors.

The bond issue is intended to be in the range of up to NOK 1 billion. The proceeds from the issue will be used to part-finance the construction of the Sevan Driller. The subscription period is expected to start November 13, 2006.

On October 25, 2006, Sevan Marine announced that a contract had been entered into between Petrobras America Inc. and Sevan Drilling Pte. Ltd, for the provision of a newbuild deepwater drilling unit, the Sevan Driller, for the US Gulf of Mexico. The drilling contract has a duration of six years and is expected to commence in the first quarter of 2009. Revenues which could be generated over the six year period are approximately USD 880 million, including a bonus arrangement and mobilization fee.

The Sevan Driller is currently under construction and the detailed engineering has been underway since March 2006. The rig is designed to include the most advanced drilling capabilities in the industry, based on Sevan's own patented technology. It will have a capacity of drilling of wells up to 40,000 feet in water depths of up to 10,000 feet, a variable deckload of more than 15,000 metric tons and high storage capacity of bulk materials. The rig will be equipped with an internal storage capacity of up to 150,000 barrels of oil.

Sevan Marine ASA is a Norwegian company listed on Oslo Bors with its own unique technology for floating production, storage and drilling. Sevan's technology is developed for applications in offshore oil and gas field developments. The cylindrical hull form has a significant competitive edge when compared to traditional type floaters. Sevan Marine has offices in Tananger, Arendal and Stjordal, Norway; Singapore and Rio de Janeiro, Brazil.

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