FPS Ocean Completes Funding for DeeP Producer 1

DP Producer AS, a 100% owned subsidiary of FPS Ocean AS, has signed a USD $50 million loan agreement with DVB Bank and Eksportfinans to partly finance the conversion of shuttle tanker "Laurita" to FPSO "DeeP Producer 1". The loan is secured by a 1st priority mortgage on the vessel and associated equipment and a parent company guarantee, and matures in September 2008.

The loan, together with the company's two bond issues of USD 75 million and NOK 210 million (approximately USD 34 million) and equity raised in 2006, completes the required funding for the "DeeP Producer 1" conversion project.

FPSOcean has acquired the shuttle tanker "Laurita" and the Aframax tanker "Semakau Spirit" for conversion into deepwater dynamically positioned Floating Production, Storage and Offloading (FPSO) vessels. The "Laurita", to be renamed the "DeeP Producer 1", is scheduled for completion by 1st quarter 2008 and ready for first oil by 2nd quarter 2008. The "Semakau Spirit" will be renamed "DeeP Producer 2" and is likely to start conversion at Dubai Drydocks during first half of 2008. FPSOcean is seeking to develop a fleet of 4 - 6 deepwater FPSOs over a period of 4 - 6 years.