Siem Offshore Underscores Debt Financing for Vessel Contracts

Siem Offshore has twelve 100% owned shipbuilding contracts for vessels to be built at a Norwegian yard, with scheduled delivery during 2009 and 2010.

The Company was granted long-term debt financing from Eksportfinans (Norwegian export credit institution for Export Financing) prior to the ordering of such vessels. The debt financing from Eksportfinans is for a maximum of 80% of the project cost for each vessel and subject to satisfactory guarantees.

The Norwegian Guarantee Institute for Export Credits (GIEK) has informed that it will provide guarantees in favor of Eksportfinans for the relevant vessels, subject to participation by commercial banks on a pari-passu basis.

The Company has applied for guarantees for the three vessels scheduled for delivery during 1st half of 2009. GIEK and a commercial bank have presented firm offers for such guarantees, and their relative share of such guarantees is 70% and 30% respectively. The guarantees are for 60% of the project cost for each vessel and will support the 12 year debt financing from Eksportfinans.

The Company will in due course apply for guarantees for the remaining nine vessels scheduled for delivery during 2nd half of 2009 and 2010.