Update on Arbitration Proceedings with ONGC

Thursday, March 17, 2011

Further to announcement made on January 12, 2011, Sevan Marine (‘the Company’).

The Indian Supreme Court did not grant the Company’s application for an order preventing ONGC from calling on the Bank Guarantee for the sum of USD 15.9 m and/or to receive monies under the Bank Guarantee until after the disposal of the disputes between the Company and ONGC relating to the Firm Order by way of arbitration.

ONGC has called on the Bank Guarantee and is now entitled to receive monies under the said Bank Guarantee.

However, the disputes between ONGC and the Company will be determined in the arbitration proceedings where the Company is claiming that ONGC is not entitled to the monies under the Bank Guarantee on the grounds that ONGC has suffered no loss and/or that any loss suffered by ONGC does not amount to the sum of the Bank Guarantee. The Company is claiming for a refund of the monies paid to ONGC under the Bank Guarantee.

Sevan will continue to make the appropriate announcements as and when it receives further updates on the matter.

Sevan Marine ASA is specializing in owning, operating and licensing FPSOs and drilling units, based on its patented cylindrical floater technology. Sevan Marine ASA is listed on Oslo Børs with ticker SEVAN. For more information, please refer to http://www.sevanmarine.com//.

Sevan Marine ASA