Update on LoU for FPSO Nexus 1

(Bermuda, 28 April 2009):  Reference is made to the notice of 7 April 2009, where Premier Oil with partners and BW Offshore have signed a Letter of Understanding (LoU) for the charter of the FPSO Nexus 1 offshore Vietnam. The LoU is conditional upon a substantial financial restructuring of Nexus Floating Production.

 

Nexus Floating Production has in a separate notice today reported that their Board of Directors is working on a restructuring plan. The plan is subject to approval by the various stakeholders. BW Offshore will, subject to financing and approval by the Board of Directors of BW Offshore, underwrite a potential private placement in Nexus Floating Production of USD 104 million.

 

BW Offshore has the intention to enter into an agreement with Nexus Floating Production related to the field specific upgrade and operation of the Nexus FPSO 1. The agreement has a potential contract value of USD 160 million to cover field specific investments. BW Offshore will also be compensated for the operation of the FPSO.

 

For further information, please contact:

Carl K. Arnet, CEO BW Offshore, +65 9630 3290

Knut R. Sæthre, CFO BW Offshore, +47 9111 7876

 

 

BW Offshore is one of the world`s leading FPSO contractors and a market leader within advanced offshore loading and production systems to the oil and gas industry. BW Offshore has more than 25 years' experience and has successfully delivered 13 FPSO projects and 50 turrets and offshore terminals. BW Offshore's technology division APL has delivered solutions for production vessels, storage vessels and tankers in a wide range of field developments. Adapting through competence, in-house technology, solid project execution and operational excellence, BW Offshore ensures that customer needs are met through versatile solutions for offshore oil and gas projects. BW Offshore has a global network with offices in Europe, Asia Pacific, West Africa and the Americas. BW Offshore has 1,100 employees and is listed on the Oslo Stock Exchange. For more information, please visit www.bwoffshore.com and www.apl.no