BW Offshore signs contract for Papa Terra FPSO

 (Bermuda, 1 February 2010): BW Offshore has, together with its Brazilian consortium partners in QUIP and QGOG (Queiroz Galvão Óleo e Gás), signed the contract for the FPSO P-63 with the Papa Terra Joint Venture (Petrobras (operator) and Chevron). QGOG is one of Brazil's largest private groups in the oil and gas sector.

BW Offshore's main responsibility will be to deliver the marine scope of the FPSO conversion, including the hull, offloading systems and mooring equipment for the vessel.

BW Offshore will jointly with QGOG operate the FPSO for a period of three years with gradual handover to Petrobras.

BW Offshore will utilize the ULCC BW Nisa (323,000 dwt) for the project.

The Papa Terra field is located in the Campos Basin offshore Brazil, and the FPSO is expected to commence production in 2013.

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 14 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.