Prosafe awarded Polvo FPSO

Offshore staff

(Brazil)-Devon Energy Americas L.L.C. has given a Letter of Intent to Prosafe Production Services Pte Ltd for the provision of an FPSO for the Polvo field offshore Brazil. The contract has a fixed term of 7 years with a value of $271 million. The Letter of Intent includes additional 8 x 1 year options.

Devon Energy do Brasil Ltda operates the field on behalf of the Brazilian subsidiaries of Devon Energy Corporation (60%) and SK Corporation of Korea (40%). The field is located in the Campos Basin, with production expected to start mid-2007.

TheVLCC M/T Apollo will be used for the project, with Prosafe being wholly responsible for converting and operating the unit. The vessel will be turret-moored at a water depth of 100 m using Prosafe's turret/swivel technology.

The Polvo contract represents the entry into a new geographical region for Prosafe and increases their client base. The FPSO market in Brazil remains one of the most important for future developments, and companies like Prosafe will continue to invest heavily in this market. The company currently holds a purchase option for a suezmax tanker for future FPSO projects.

9/27/05