Fred. Olsen Energy Not to Declare Option for 2nd Drillship from HHI, South Korea

Reference is made to notice to Oslo Stock Exchange dated 17th October 2011 regarding an option for a second drillship at Hyundai Heavy Industries Co. Ltd. A wholly owned subsidiary of Fred. Olsen Energy ASA has decided not to declare the option for a second drillship.

On October 17, a wholly owned subsidiary of Fred. Olsen Energy ASA and Hyundai Heavy Industries Co. Ltd. agreed on an extension of the time limit for declaring the drillship option for 20th December 2011.

A wholly owned subsidiary of Fred. Olsen Energy ASA in April 2011 entered into a turnkey contract with Hyundai Heavy Industries Co., Ltd. for the building of a new ultra-deepwater drillship with scheduled delivery in 3rd quarter 2013. Total project cost is estimated to USD 615 million (including spare parts, owner furnished equipment and project team).

The contract included an option from Hyundai for the purchase of a similar second drillship exercisable within October 2011 and later put off for December 20.

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Offshore Energy Today Staff, December 19, 2011; Image: HHI