Yantai Raffles Shipyard to Build Jackup for Uni-Arab Group

Yantai Raffles Shipyard Limited headquartered in Singapore, has sealed a building contract for a jackup drilling rig worth approximately US $135 million including owner furnished equipment costs. This is for the construction of a new Friede and Goldman (F&G) Super M2 jackup design. In its first transaction with Uni-Arab Group Holdings, YRS looks forward to a string of orders for jackups in the near future. The Rig will be built in its Shipyard in Yantai, Shandong, China.

The Super M2 jackup is a proprietary design by ("F&G"). It is designed for operating in up to 300 feet water depths and drilling depth of 20,000 feet. It also has accommodation facilities for 110 men. The construction of the Super M2 is expected to commence in the first quarter of 2008 and scheduled for delivery in early 2009.

This new contract signifies a major breakthrough for the Group into jackup drilling rigs and has boosted its order book to US $1.44 billion.

Executive Chairman of YRS, Mr. Brian Chang says, "Working with Uni-Arab Group Holdings is indeed an exciting opportunity for YRS. Our years of perseverance have helped us to keep improving and penetrating new global markets. We are confident that this will pave the way for future collaborations between both parties."

Yantai Raffles Shipyard Limited has been successful in contracting 30% of all the semisubmersible drilling rigs signed in recent months. It now has five submersible drilling rigs, one semisubmersible decommissioning rig and one drilling production semisubmersible under contract.

The offshore oil & gas sector continues to look buoyant with crude oil prices hovering around the US $60 level. According to analysts' estimates, rig utilization is almost at 100% worldwide. The need for new jackups at the right price will be required for a few more years.

Listed on the Oslo OTC Stock Exchange in Norway in May 2006,Singapore-based YRS specializes in jackup drilling rigs, semisubmersible drilling rigs, FPSO, offshore vessels and other units. The shipyard boasts state-of-the-art building facilities, which includes a 20,000MT gantry crane that is due for completion in mid 2007. With its core mission surrounding excellent quality, competitive pricing and client satisfaction, YRS continues to strive to be the Yard of Choice.

Uni-Arab Group Holdings is based in Abu Dhabi, United Arab Emirates and has been, for the past 30 years, a pioneer in oilfield services in the Arabian Gulf and Africa. It specializes in well intervention services such as coiled tubing & stimulation services, well testing and other services related to the upstream industry. In addition, the company also provides the supply of management to drilling operations as well as offshore drilling maintenance and upgrading of aged offshore drilling rigs in the region.

Key Management are a mix of graduated Petroleum Engineers with extensive experience in Oil & Gas Engineering, Services and Supplies, Operations, Finances and Administration, and have been with the Group since inception.

For more information, please see: www.uniarab.ae/

Friede & Goldman, LLC is a leading international mobile offshore drilling unit design company celebrating 2006 as their 60th year in business. The Company specializes in conceptual design of Jack-up and Semi-submersible design. F&G also provides Production and vessel designs as well as contract engineering services to the petroleum industry.