Reference is made to the announcement dated 10 May 2006 regarding a Letter of Intent between Arrow Seismic ASA, a 54 % owned subsidiary of GC Rieber Shipping ASA, and WesternGeco for a state-of-the art multistreamer seismic newbuilding to be delivered medio February 2008. The parties have now entered into a firm and binding charter for the vessel at the same terms as set forth in the announcement dated 10 May 2006, for a fixed period of three years whereupon the continuation will be regulated by a put/call option to transfer the vessel to WesternGeco. The total value of the charter hire from the fixed charter and the purchase price under the put/call option is between EUR 115 million and EUR 125 million, dependent on timing of payment under the put/call option and charter hire.

 

The agreement with seismic major WesternGeco confirms Arrow`s position as a leading supplier of multistreamer seismic vessels to the marine seismic industry with cost efficient design and focus on safe and cost efficient operations. As previously announced WesternGeco also has an option of first refusal at market terms for the second newbuilding to be delivered in 4th Quarter 2008, such option expiring 1st November

2006.

 

For further information, please contact CEO Sven

Rong, phone + 47 55 60 68 00.

 

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GC Rieber Shipping develops, owns and operates advanced multifunctional special-purpose vessels for defined markets in offshore subsea support, marine seismic and ice-going research and supply. The group owns five vessels and three newbuildings due to be delivered in 2006 to 2008. In addition, seven seismic vessels are operated for other owners. The company`s registered business office is in Bergen.

 

Arrow Seismic ASA (`Arrow`), a 54 % owned subsidiary of GC Rieber Shipping ASA, develops, owns and operates advanced special-purpose vessels for marine seismic. Arrow owns the vessels `Laurentian` and `Polar King`. The Polar King, which is currently being converted to a state-of-the-art multistreamer seismic vessel, has been chartered to Fugro Geoteam AS from the middle of 2006 for seven years, whereupon the charterer has a 2 x 2 year option. Arrow has also contracted two special-purpose seismic vessels for delivery in the 1st and 4th quarter of 2008. The vessels are designed for optimal marine seismic operations with a strong focus on safety, a capacity of 12 (16) streamers and a high transit speed. Arrow has an option for two more similar vessels from the same shipyard for delivery 2009. To supply Arrow with the equity required to finance the investment in newbuildings, Arrow arranged a private offering of NOK 303 million in February 2006. The largest shareholder, GC Rieber Shipping ASA has an ownership interest of 54 per cent in Arrow after the private offering. The company`s registered business office is in Bergen, Norway.