Norway: Odfjell Offshore Raising Funds for UDW Market Expansion

Norway: Odfjell Offshore Raising USD 500 mln to Expand Fleet

Odfjell Offshore, the rig owning subsidiary of international drilling contractor Odfjell Drilling, has initiated an equity private placement to raise USD 400 to 500 million to further develop its current fleet of six state-of-the-art ultra deepwater (UDW) and harsh environment offshore drilling units.

In addition Odfjell Offshore may over-allot up to 10% of additional new Shares.

Odfjell Drilling will remain a majority shareholder of Odfjell Offshore after the private placement and will continue to provide its 40 years of operational experience, as well as its 3,000 highly skilled employees in the Odfjell Drilling organization.

Chairman of the board of Odfjell Offshore Mr. Simen Lieungh states:

“Odfjell Offshore’s strategy is to expand our drilling operations in the ultra deep water and harsh environment market. Our fleet is uniquely positioned and we have a strong backlog. Currently, we have one newbuild ultra deep water semi under construction. In addition we have secured an option to build two similar units at Daewoo Shipbuilding & Marine Engineering in South Korea.”

Odfjell Offshore has retained DNB Markets, Pareto Securities AS, RS Platou Markets AS and Swedbank First Securities as Joint Lead Managers and Bookrunners and Danske Markets and Nordea Markets as Co-Lead Managers to advise on and effect the private placement of new shares directed towards investors in Norway and other jurisdictions subject to applicable exemptions from registration and other requirements under applicable securities laws.

The offer price per share will be determined through a book-building process within an indicative price range of USD 7.00 USD 8.00 per share.

The bookbuilding period commenced 12 March 2012 at 10:00 CET and will close 23 March 2012 at 17:30 CET. Odfjell Offshore may, however, at any time resolve to shorten or extend the application period at its own discretion.

Odfjell Offshore owns a fleet of highly capable and modern semisubmersible drilling units and UDW drillships currently under contracts in Norway, UK, Brazil, Angola and Tanzania. Odfjell Offshore has decided to apply for listing on Oslo Stock Exchange following completion of the private placement and targets listing in end May 2012.

Source: Odfjell Drilling, March 13, 2012