Sevan Secures Bank Financing for FPSO Sevan 300 no. 4

Sevan Marine ASA, on behalf of one of its subsidiaries, has signed a mandate with a leading financial institution to arrange a pre-delivery construction facility of USD 280 million for the FPSO Sevan 300 no.4, that converts into a long-term USD 280 million amortizing term loan, following delivery of the FPSO. The debt facility is structured as a limited recourse financing.

The FPSO Sevan 300 no. 4 is under construction at the Hantong Shipyard in China. The unit has been contracted to Venture Production plc for the use on Pilot or another North Sea field. The contract has a duration of five or 10 years, originally to be determined at Venture's discretion by December 31, 2007. Sevan and Venture are currently discussing the terms for an extension of this agreement.

"We are pleased to announce this bank facility which demonstrates our ability to establish financing, both pre- and post completion, for a continued expansion of our fleet," said Jan Erik Tveteraas, CEO Sevan Marine ASA.