Sevan signs mandate for the financing of two deepwater drilling units

October 29, 2008

Sevan Drilling ASA, a wholly-owned subsidiary of Sevan Marine ASA, has signed a mandate letter with two leading financial institutions to arrange construction financing of up to USD 1 billion (or 70% of construction cost) that converts into a six-year amortizing term loan following delivery of two deepwater drilling units.

The debt facility is intended to part-finance the construction of two deepwater drilling units (Sevan Driller II and III) that have been contracted to Petrobras and ONGC on charter contracts.

- We are pleased to announce the signing of this mandate letter in a difficult financial market. This is an important step towards securing full financing for these rigs, says Jan Erik Tveteraas, CEO Sevan Marine ASA.

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 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. For more information, please refer to http://www.sevanmarine.com/.

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