September 4, 2001
Northern Offshore to reactivate MODU's
The board of Northern Offshore Ltd considers that the rates for mobile drilling units in Asia have now reached a level where a reactivation of the company's three drilling units currently laid-up in Singapore could be of financial interest. This would make it necessary to strengthen the company's personnel resources in Asia in connection with reactivation, marketing and technical operation of the Company's drilling units.
The board expects that the drillship Northern Explorer III will be the first of the units to be put into operation.
Earlier this year, Northern Offshore acquired Singapore-based drilling contractor Jet Drilling, which currently has operating and marketing responsibility for Northern Ofshore's drillship Energy Searcher.
The Northern Offshore board is willing to provide Jet Drilling with the financial and personnel resources necessary to present the rigs of Jet Drilling and Northern Offshore as attractive drilling units to oil companies in Asia.
With the increased focus on the Asia market, there will be cutbacks at Northern Offshore Management AS in Oslo. It is expected that a total of six people will be affected in connection with the transfer of most of the functions currently held by the office in Oslo to the Company's Singapore office, and to Northern Offshore Ltd's head office in Bermuda. The operation of the cmpany's production unit, Northern Producer, will continue unchanged from Aberdeen through PGS Production Services Ltd.