Prosafe Suspends First Well Intervention Campaign

Prosafe revealed that the company in its sole discretion and in understanding with Statoil as Operator has concluded to suspend the planned well intervention campaign.

The reason being that further technical challenges related to the subcontractors' subsea equipment has occurred while preparing for operations on field location, and thus elevated the operational risk level. The new technical challenges are unrelated to those previously announced and resolved. MSV Regalia will consequently return to the base in Bergen.

The contract between Prosafe and Statoil covers a campaign of 4 wells, and it remains our intention that the well intervention work can be resumed in the autumn.

Prosafe maintains the view that there is a growing need for subsea well intervention and a lack of available equipment. Thus, Prosafe maintains its strategy of pursuing this niche. Prosafe therefore regards this as a delay to the commencement of its well intervention activities, and plan to return to the market as soon as practically and commercially possible.

The negative effect on the 2nd quarter 2003 result for Prosafe ASA is estimated to be approx. NOK 34 million.