Marine Log

UT 761 CD

June 27, 2006

Farstad orders construction vessel

Aker Yards has entered into a contract with Farstad Shipping ASA for the building of a construction vessel with a value of approx NOK 850 million ($134.6 million).

The hull will be built in Romania and the outfitting yard will be Aker Langsten in Norway. Delivery is scheduled for December 2008.

Farstad has signed a long-term service contract with Saipem UK Ltd. for the vessel, which has been designed for the main purpose of plow trenching of pipelines for the offshore oil and gas industry, and which is also fully capable of undertaking subsea operations at ultra deep waters.

The service contract has a minimum 5 year firm period and Saipem can elect to change this firm period up to 10 years. In addition Saipem has options to extend the contract with 5 x 1 year beyond the firm period. Commencement of the contract is January 2009.

The parties have agreed not to make public the commercial terms of the contract.

The vessel is a new UT-design from Rolls-Royce, and has been given the designation UT 761 CD .

It has a total length of 121.5 meters and breadth of 26.0 meters. The bollard pull will be more than 350 tons continuous.

The vessel will be built according to DnV's strictest environmental class: "Clean Design", will have Ice-Class for operation in northern waters and highest class for dynamic positioning (DP-3).

It will be equipped with a large construction crane and an A-frame.