FSO Endeavor to Continue Operations at PY-3 Field Offshore India

Prosafe has received a Letter of Intent for a two- year contract extension by Aban Offshore Ltd for continued use of the FSO Endeavor at the PY-3 field in India. As a result, FSO Endeavor will now be on the field until the end of July 2009. The value of the extension is about US $24.7 million.

During the first year of the extension, Prosafe will carry out certain upgrades to the vessel. The upgrades will enable FSO Endeavor to stay in the field for an extended period.

Prosafe commenced the contract, which originally had a duration of three years, in July 1997. The contract extension ensures that the vessel will stay in field for a total of at least 12 years, which is four times the original contract term.