Published

Expiry of acceptance period in squeeze-out - preliminary results and plan of settlement

NOT FOR PUBLIC DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, SOUTH AFRICA, CANADA, AUSTRALIA OR JAPAN

12 November 2010 - Reference is made to the announcement made by BW Offshore Limited ("BW Offshore") on 29 October 2010, regarding the acquisition by BW Offshore of all the shares in the issued share capital of Prosafe Production Public Limited ("Prosafe Production") not already owned, directly or indirectly, by BW Offshore (the "Squeeze-Out"), and the document containing equivalent information as a prospectus in relation to the Squeeze-Out (the "Squeeze-Out Document") dated 29 October 2010.

As described in the Squeeze-Out Document, the acceptance period for choosing to receive a consideration of 1.2 shares in BW Offshore plus NOK 3 in cash for each share held in Prosafe Production, rather than a consideration of NOK 15.11 in cash, expired today, 12 November 2010, at 17:30 hours (CET). All shareholders in Prosafe Production who have not submitted a combined consideration acceptance form in accordance with the procedures specified in the Squeeze-Out Document by this deadline are deemed to have chosen the consideration of NOK 15.11 in cash for each share held in Prosafe Production.

By the expiry of the acceptance period, preliminary results showed that combined consideration acceptance forms have been received for a total of approximately 12.6 million shares (corresponding to approximately 4.9 % of the total number of shares) in Prosafe Production, which implies that approximately 15.1 million new BW Offshore shares will be issued as consideration in the settlement of the Squeeze-Out.

Settlement of the Squeeze-Out is expected to be carried out according to the following indicative timetable:

-       15 November 2010: Suspension of trading in the Prosafe Production share.

-       18 November 2010: Transfer of Prosafe Production shares to settlement agent from shareholders in Prosafe Production who have chosen the combined consideration.

-       22 November 2010: Delivery of new shares in BW Offshore to shareholders in Prosafe Production who have chosen the combined consideration.

-       22 November 2010: Transfer of Prosafe Production shares to settlement agent from shareholders in Prosafe Production who have not chosen the combined consideration.

-       23 November 2010: Payment of cash component of combined consideration to shareholders in Prosafe Production with registered bank accounts in the VPS who have chosen the combined consideration.

-       24 November 2010: Payment of cash consideration to shareholders in Prosafe Production who have not chosen the combined consideration.

Shareholders in Prosafe Production should note that no trading in the Prosafe Production share will be permitted as of 15 November 2010.

For further information, please contact:

Carl K. Arnet, CEO, +65 9630 3290
Knut R. Sæthre, CFO, +47 9111 7876

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

This announcement is not an offer for sale of any securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act. BW Offshore has not registered and does not intend to register any portion of any offering of shares in the United States or to conduct a public offering of any securities in the United States.