EXTENSION OF FLOTEL CONTRACT ON ÅSGARD

Statoil has exercised its option for the extension of the flotel contract on Åsgard B by 1 month. Consequently, Safe Britannia will be in operation on Åsgard until 24 September 2000. The extension of the contract has a value of approx. USD 3 mill. Further, Statoil has an option of 4 x 7 days.

Currently, ProSafe experiences 100% fleet utilisation having 3 rigs on contract in Mexico and 3 rigs on contract in the North Sea, and will by the end of the year have mimimum 4 rigs in Mexico. The extension of the flotel contract secures ProSafe approximately full fleet utilisation also in 3Q 2000.

ProSafe ASA, comprising the business areas Offshore Support Services, Offshore Drilling & Related Services and Technology & Engineering, is the largest contractor within the platform drilling segment on the Norwegian Continental Shelf and also the world’s leading operator of accommodation/service rigs owning 6 out of 8 units world-wide. Further the company holds leading positions within the areas of equipment for drilling fluid processes and also offshore fabrication through its subsidiaries Procon Engineering and Consafe Engineering. The company is listed on the Oslo Stock Exchange with ticker code PRS.

Tananger 18 July 2000