Prosafe Intends to Sell Turret & Swivel Business to NOV

Prosafe Production has entered into a Letter of Intent with National Oilwell Varco (NOV) to sell the turret and swivel business for US $165 million. In addition there will be a deferred payment corresponding to 10% of the sold business' third-party sales for a period of seven years.

In connection with the transaction, Prosafe Production will enter into a seven-year supply agreement with NOV, which secures access to turret and swivel solutions at competitive terms.

Closing of the transaction, which is expected Q2 2010, is amongst other subject to completion of a customary due diligence, as well as approval by both companies' board of directors.