FOP, GGPC Enter Agreement for FPSO Knock Taggart Offshore Gabon

Fred Olsen Production has entered into an agreement with GGPC Gabon (EOV) Limited, a 100% owned subsidiary of Bowleven Plc (BL) for the provision of FPSO Knock Taggart for the East Orovinyare Field
offshore Gabon. Final contract is subject to a confirmation to be provided by BL before December 15, 2008. FOP will immediately start technical preparations including certain engineering work. BL will pay US $2.5 million for the option to contract Knock Taggart.

Assuming the contract is finally confirmed by BL, the vessel will undergo certain repair and upgrade works with production scheduled to start first quarter 2010. The contract is structured on an evergreen basis with 6 months termination notice. Compensation is based on a combination of mobilization costs and fixed dayrates with a variable tariff mechanism tied to cumulative oil production and oil price.

It is expected that the field will produce for 4-5 years and generate average annual income of about US $24 million. With the present oil price the average annual income would be approximately US $29 million. FOP will
also deliver certain field operations and platform management services under the contract.