Venture Drilling, Russian Co Renegotiate Bareboat Agreement for Drillship

Petrolia Drilling ASA

Venture Drilling AS, a company 50% controlled by Petrolia Drilling ASA, has a Bareboat agreement with the Russian stated owned company Arktikmorneftegazrazvedka, for use of the drillship Deep Venture.

Venture Drilling AS is paying Arktikmorneftegazrazvedka a Bareboat hire of US $21.000 per day.

Venture Drilling AS has operated under the agreement since 2005 and has a contract with Maersk Oil Angola AS until January 2011, where Maersk is paying US $495.000 per day to Venture Drilling AS.

Arktikmorneftegazrazvedka and the State Property Agency in Russia have now agreed that the BB agreement entered into in 2005 before the market rates increased, do not have the necessary approvals from Russian Authorities.

Obviously Venture Drilling AS disputes that.

Arktikmorneftegazrazvedka has therefore approached Venture Drilling, to try to renegotiate the agreement, including redelivery of the ship in 2011.

The Bareboat agreement is regulated by Norwegian law, and Venture Drilling will, if needed, take legal steps to secure their interests in
the Drillship Deep Venture.