Prosafe Updates Fleet Operation Status

Norsk Hydro has decided to exercise only one of its four options remaining for the MSV Regalia on the Fram field in the North Sea. The vessel is schedule to go off contract on August 6, 2003. MSV Regalia will thereafter be taken to the yard in order to prepare for the subsea well intervention work for Statoil that will start early September.

The Safe Caledonia is now gangway connected at the Bayu-Undan field offshore Australia, ready to commence its contract for ConocoPhillips. The contract runs through April 2004. ConocoPhillips retains two one-month options that may be exercised by February 2004. The vessel has been on standby-dayrate May 21, 2003.

The upgrade of the Safe Regency began early in early June, soon than the scheduled time of the third quarter. The planned total off-hire remains two to three months before the long-term bareboat contract commences, and thus represents a timing difference between the second and third quarter. The Safe Britannia and Safe Lancia, of which the latter came off contract for upgrade on 27th June, will be upgraded during the third quarter, as previously announced.

The Safe Scandinavia, which is currently on a 152-day charter for Norsk Hydro on the Grane Field in the North Sea, commenced eight days late due to weather affecting the mobilization. The delay is a timing difference and does not affect the duration of the fixed contract period.