Scana, FPSOcean Cancels Acquisition of FES

Scana and FPSOcean have decided to cancel the announced acquisition of FES Ltd. A due diligence exercise has revealed that the targeted synergies related to technology and markets will be more difficult to realize then expected and an acquisition as such has too small development potential.

Scana and FPSOcean will, however, continue their co-operation for further development of the jointly owned turret/swivel technology for the FPSO market. The first such turret/swivel system is in final stages of testing and will be installed into "DeeP Producer 1" shortly.

FPSOcean owns the shuttle tanker "MT Laurita", currently being converted at Drydocks World-Dubai (DWD) into a deepwater Dynamically Positioned Floating Production, Storage and Offloading (DP FPSO) vessel. The vessel, to be renamed the "DeeP Producer 1", is scheduled for completion by the 3rd quarter and availability for first oil during 1st quarter 2009. 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.