Africa Offshore Svcs to Supply Light-Well Intervention Vessel to Sonangol

Norwegian-based Africa Offshore Services AS has signed a contract for delivery of one light-well intervention vessel from Ulstein Verft in 3Q09. The vessel is chartered on a ten year contract with Sonangol for operations in West Africa and Island Offshore will be the operator of the vessel.

AOS has also ordered three offshore support barges with expected delivery in 4Q07, 2Q08 and 3Q08. The barges will be constructed at yards in China and Indonesia and marketed towards the West African offshore market.

The company is fully funded after raising NOK 325 million in equity from Norwegian and international investors, US $100 million in a bond and US $70 million in committed bank financing at delivery of the well intervention vessel (GIEK/Glitnir/BNP).

The first offshore support barge is expected to generate positive cash flow from the beginning of 2008.