Contract extension for FPSO Petróleo Nautipa

BW Offshore and Fred Olsen Production have signed a contract with Vaalco Energy for a five year extension for the lease and operation of the FPSO Petróleo Nautipa. The FPSO is owned 50% by BW Offshore and 50% by Fred Olsen Production.

The firm period has been extended to Q3 2020 (from Q3 2015), with options for additional two years.

The contract has a total revenue value of USD 300 million including options, up from USD 100 million under the previous contract. The FPSO will undergo a life-extension upgrade with an estimated capex of USD 30 million. The figures for revenue and capex are listed on a 100% basis.

For further information, please contact:

Knut R. Sæthre, CFO, +47 9111 7876 (Media)

Kristian Flaten, Vice President IR and Corporate Finance, +47 9509 2322 (Investors/analysts)

About BW Offshore:

BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore is the world's second largest contractor with a fleet of 14 FPSOs and 2 FSOs represented in all major oil regions world-wide. BW Offshore has an excellent track record on project execution and operations, as well as a robust balance sheet and strong financial capabilities. In more than 30 years of production, BW Offshore has successfully executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. Further information is also available on www.bwoffshore.com

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)