Offshore staff

(Norway) - Songa Offshore ASA has purchased the semisubStena Dee, subject to inspection, for $270 million.

Stena Dee is a Mitsubishi MD602 design, a winterized rig built in 1984 in Japan with a capacity of operating in 1800 ft of water. The rig is currently doing development work at the Troll field for Norsk Hydro.

Stena Dee will be delivered to Songa Offshore in early April 2006, with a back to back bareboat charter to Sellers for a monthly rate of $1,250,000, until the rig is finished with the Norsk Hydro contract.

Upon completion of the Norsk Hydro contract at the end of 4Q 2008, the rig will be marketed for employment on the Norwegian and UK sector for commencement 1Q 2009.

The Norwegian sector of the North Sea faces high drilling demand in the coming years, as there are a record number of applicants for new licenses in Norwegian waters. Songa Offshore sees theStena Dee as well known among customers and well positioned for business in this market.

03/07/2006