First oil on BW Pioneer

The FPSO BW Pioneer has received first oil in the US Gulf of Mexico. The FPSO is owned by BW Offshore and is the first FPSO to produce oil and gas in US waters. As stated in the press release by Petrobras, production of the Cascade field was started on 25 February from the Cascade 4 well.

The FPSO has a capacity to process 80,000 barrels of oil and 500,000 cubic meters of gas per day. The unit is provided of a disconnecting anchorage system which allows its displacement to sheltered areas in the event of a storm or hurricanes.

BW Offshore has a contract to operate on the Cascade Chinook oil fields, with a firm period of five years and additional options for up to three years.

The Cascade Chinook fields are located in a water depth of approx. 2,500 meters. Petrobras holds 100.00% of the Cascade field, while the partners in the Chinook field are Petrobras (66.67%) and Total (33.33%).

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. With the acquisition of Prosafe Production in 2010, the company has become 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 30 years of production, BW Offshore has successfully executed more than 30 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. Further information is also available on www.bwoffshore.com