BG issues LOI for Safe Scandinavia

BG International (CNS) Ltd. has issued a letter of intent to Prosafe Rigs Ltd. for the semisubmersible accommodation/ service rig Safe Scandinavia to support the Armada/Maria development in the UK sector of the North Sea.

Offshore staff

(UK) - BG International (CNS) Ltd. has issued a letter of intent to Prosafe Rigs Ltd., a wholly owned subsidiary of Prosafe ASA, for the semisubmersible accommodation/ service rigSafe Scandinavia to support the Armada/Maria development in the UK sector of the North Sea.

The contract has a fixed-term of 56 days split into two phases: 23 days starting on July 12, 2006 and the remaining fixed-term beginning in 1Q 2007. Options may be available to BG International (CNS) Ltd. subject to vessel availability.

The value of the contract, including mobilization and demobilization, is approximately $14.6 million. Prosafe says "this contract demonstrates the strong market for this type of rig, especially in the North Sea."

12/28/05

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