Fred Olsen Holds Private Placement

Fred Olsen Production AS, which is wholly owned by First Olsen Ltd., a company owned 50/50 by Bonheur ASA and Ganger Rolf ASA, has successfully completed a private placement of 44 million new shares at a subscription price of NOK 27 per share, with gross proceeds of NOK 1,188 million. The private placement was oversubscribed and the new shares were subscribed by both Norwegian and international investors. ABG Sundal Collier acted as manager for the placement.

First Olsen Ltd. holds 57.7% of the shares in Fred Olsen Production after the share issue. The shares in Fred Olsen Production will be listed on the OTC-market in Oslo. As previously announced Fred. Olsen Production envisages a listing on the Oslo Stock Exchange during 2007.

Fred Olsen Production is among the leading operators of floating production installations with long experience and a strong market position in a market with good growth prospects.

The company owns and operates 5 FPSO/FSO units. The fleet will be expanded with one additional unit in 2007 through the conversion of the suezmax tanker "Knock Allan" into an FPSO unit before commencing a 10 year contract with option for up to 10 additional years, with Canadian Natural Resources (CNR) for operation offshore Gabon.