Sevan Continues Negotiations with Shipyard Concerning 2 FPSOs

In reference to FPSOs Sevan no. 4 and 5, Sevan Marine ASA informs that negotiations with the Jiangsu Hantong Ship Heavy Industry shipyard about the further progress of the construction of the two units are ongoing. In accordance with previous announcements, it is Sevan's intention to minimize the investments on FPSO Sevan no. 4 and 5 prior to achieving firm contracts with oil companies. During the ongoing negotiations with the shipyard, Sevan is withholding payments amounting to about USD 7 million.

Sevan Marine ASA specializes in building, owning and operating floating units for offshore applications. The Company has developed a cylinder shaped floater, suitable in all offshore environments. Presently Sevan Marine has four FPSOs and three drilling units contracted to clients. The Company is also developing other application types for its cylindrical Sevan hull, including floating LNG production and power plants with CO2 capture.