First Olsen to Spin-off Floating Production

Bonheur ASA and Ganger Rolf ASA on Friday said that the 50/50 owned company First Olsen Ltd. has decided to initiate a process to spin-off and list its floating production activities organized in Fred. Olsen Production AS within the first half of 2007. Fred. Olsen Production has engaged ABG Sundal Collier as financial advisers and arrangers in this process.

Bonheur and Ganger Rolf intend to continue their strong engagement within floating production and intend to maintain a majority owning interest in Fred.Olsen Production. Further expansion is envisaged financed by a combination of increased equity and debt.

Fred. Olsen Production is a leading operator within floating production with extensive experience and strong market position in a growing market. Fred. Olsen Production owns and operates five FPSO/FSO units. The fleet will be increased with one additional unit later in 2007 by the conversion of the suezmax tanker Knock Allan into an FPSO for a contract with Canadian Natural Resources for operations in Gabon.

Marten Lunde will leave his present position as CFO in Fred. Olsen & Co and be appointed President and CEO in Fred. Olsen Production, with Paal Hylin as Executive Vice President and COO.