Sevan Signs Agreement for $300 Million Bank Facility

Sevan Marine's affiliate Sevan Pte Ltd has signed an agreement for a US $300 million senior debt project finance facility for the Sevan Voyageur with mandated lead arrangers GE Energy Financial Services and GE Transportation Finance. GE Capital Markets will syndicate the facility, fully underwritten by the lead arrangers, to a limited group of international banks. Norway's export credit agency, GIEK, has partially guaranteed the facility. Eksportfinans funded GIEK`s portion of the facility.

The FPSO Sevan Voyageur, the third unit in its class, is expected to be installed on the Shelley Field in the UK's central North Sea during the fourth quarter of this year, and will operate under a five-year contract with Oilexco North Sea Ltd, a subsidiary of Oilexco, Inc. of Canada.

The debt facility is structured as a limited recourse financing consisting of a pre and post- completion construction financing of up to US $300 million that converts into a 5-year US $300 million amortizing term loan following delivery of the Sevan Voyageur to Oilexco North Sea. With this facility and the funding raised by Sevan in September 2007 under a NOK 870 million bond issue, the Sevan Voyageur is now fully financed.

"This bank facility completes the financing of the second Sevan floating, production, storage and offloading unit to be installed in the North Sea," said Jan Erik Tveteraas, CEO of Sevan Marine. "We now have five Sevan units contracted to clients, with an ambition of expanding the fleet further. The financing GE and its partners, including GIEK, are providing has played an important role in our company's development."

GE has worked with Sevan Marine twice previously: on the financing of a sister floating production, storage and offloading unit, the FPSO Sevan Piranema, deployed off Brazil, and of the Sevan Driller, an oil and gas drilling vessel to be deployed in the ultra-deep waters of the US Gulf of Mexico.

"This extension of our relationship underlines our trust in Sevan's management and the innovative solutions it is bringing to the floating production market," said Ron Petrunoff, Executive Vice President and General Manager, GE Transportation Finance.

Matt O'Connor, Managing Director and leader of debt finance at GE Energy Financial Services, added, "GE's close relationship with Sevan Marine, our extensive oil and gas technical, underwriting and investing expertise, our growing focus on debt lead arranging and on global growth and technology all have combined to make this transaction succeed."