FPSOcean Converts Laurita into FPSO Deep Producer 1

FPS Ocean reports highlights from the fourth quarter 2007.

The conversion of "Laurita" into FPSO "DeeP Producer 1" continued throughout the Quarter with the first of three dry-dock sequences successfully completed in October and the second dry-docking initiated in December, and successfully completed by end of January 2008. The "DeeP Producer 1" conversion was about 80% complete by year end 2007. The vessel is scheduled for completion by the 2nd quarter and availability for first oil during 3rd quarter 2008.

FPSOcean has purchased the Aframax tanker "Semakau Spirit", for delivery in 2008, and is planning to start conversion of the vessel, to be renamed "DeeP Producer 2" during 2008. FPSOcean is seeking to develop a fleet of 4 - 6 deepwater FPSOs over a period of 4 - 6 years.

FPS Ocean do Brazil Ltda, a subsidiary of FPS Ocean AS, was incorporated in Brazil in October, with offices established in Rio de Janeiro.

The management organization was strengthened with several new key personnel employed.

Subsequent to the 4th Quarter, an operations agreement with Bibby Offshore (Aberdeen, UK) and Greystar (Houston, USA) was executed in January 2008.

Subsequent to the 4th Quarter, a NOK 175 million convertible bond issue was successfully completed in a private placement in January 2008, securing full funding for the "DeeP Producer 1" conversion project.