Odfjell, Petrobras Agree on Long Term Contract for Deepsea Stavanger

Odfjell Invest Ltd.

Odfjell Invest Ltd has reached an understanding with Petrobras for provision of the 6th generation semisubmersible drilling rig Deepsea Stavanger.

The contract is scheduled to commence when the unit arrives in Brazil in September 2010. Delivery from the DSME, South Korea, is scheduled for June 2010. The contract will have a fixed duration of 3 years from the commencement date. Petrobras has further the option to contract the two drillships Deepsea Metro I and Deepsea Metro II which Odfjell Drilling currently has under construction at Hyundai Heavy Industries in South Korea for rig owner Deep Sea Metro ltd.

Deep Sea Metro Ltd is a joint venture of Odfjell Drilling and Metrostar Management and the vessels will be delivered from yard in May and October 2011 respectively. The agreement is made subject partners and Petrobras Board of Directors approval.

Mr. Ketil Lenning, Chairman of Odfjell Invest, said, "We are extremely pleased to be nominated by Petrobras and partners to provide drilling services in Brazil. Deepsea Stavanger will be one of the most modern and well equipped drilling units for safe, efficient and environmentally sound operations.

"This will represent a break-through for Odfjell Drilling in Brasil and in the growing deep water markets. Securing such a long term charter with a quality operator as Petrobras will provide a solid foundation for further growth of the company."

Odfjell Drilling is the manager and drilling contractor for Deepsea Stavanger and the drillships Deep Sea Metro I and Deep Sea Metro II in addition to a number of other mobile offshore drilling units.

The sister rig of Deepsea Stavanger, the harsh environment deepwater drilling rig Deepsea Atlantic arrived Bergen, Norway after a 4000 nautical mile sea voyage on May 30, 2009. Deepsea Atlantic has a 4 year firm contract with StatoilHydro with additionally 2 ea 2 year options. Deepsea Atlantic will undertake some acceptance test activities before commencement on this contract.

Odfjell Drilling CEO Ketil lenning said, "It is with significant pride that we now are presenting Deepsea Atlantic prior to commencement as this unit represents the latest and most advanced marine and drilling technology for crew safety, operating efficiency and environmental protection.

"With more than 35 years' experience of international drilling operations, our personnel have contributed heavily with their expertise in the project. Emphasis has also been put on modern work processes with full application of integrated operation concept for further safety and efficiency improvements.

Focus on the environment and safety

Deepsea Stavanger and Deepsea Atlantic are rigs that can operate both in deep waters and under the most demanding environmental conditions. The rigs are built to comply with Norwegian regulations and applicable international standards.

The Deepsea Metro I and II drillships have the same overall features as the semi submersibles, but are not designed for the same harsh environment criteria.

Fleet renewal for NOK 20 billion

The new rigs are part of the company's fleet renewal strategy. While the Deepsea Atlantic has arrived in Norway, construction of its sister rig Deepsea Stavanger is ongoing. In cooperation with the shipping company Metrostar, Odfjell Drilling has two drillships under construction at the Hyundai Heavy Industries (HHI) shipyard in South Korea for delivery in 2011.