Petrobras and Sevan sign firm drilling contract

11 July 2008

With reference to the announcement on June 2, 2008, Petrobras SA and a subsidiary of Sevan Drilling AS, have signed a firm drilling contract for a newbuild drilling unit intended for operations off the coast of Brasil, in water depths down to 2,400 m. This is the second deepwater drilling unit contracted to Petrobras, and the third deepwater drilling unit to be built, owned and operated by Sevan Drilling, as the company also signed a drilling contract with India’s ONGC in June 2008.

The drilling contract will have a fixed term of six years with start-up by end-2011. Revenues which could be generated over the six year period are approximately USD 975 million, including a bonus arrangement and mobilization fee.

Sevan has awarded a letter of intent (LOI) to the Cosco Shipyard Group for a turnkey contract comprising the construction, equipment procurement and installation, and commissioning of the drilling unit. Cosco shall also provide yard financing. Aker Kvaerner MH has been awarded an LOI for delivery of the drilling package. Also the delivery of other long lead equipment has been secured.

The newbuild drilling unit to Petrobras is based on Sevan’s proprietary cylindrical Sevan 650 design, as is the case also for the two other Sevan drilling units. All three Sevan deepwater drilling units are built at the same shipyard and utilize the same drilling package, thus significantly reducing risks to schedule and cost.

Sevan Marine ASA is listed on Oslo Børs (ticker SEVAN) and is specializing 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 floating production, storage and offloading units (FPSOs) and three drilling unit 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.

For more information, please refer to www.sevanmarine.com.