Operation contract with Statoil

BW Offshore has signed a 5 year contract with Statoil for the operation of the FPSO Peregrino, with options for additional 15 years. The unit is operating on the Peregrino oil field offshore Brazil. BW Offshore will take over operation after a transition period of 6 months.

BW Offshore is the world's second largest FPSO company, with more than 30 years of experience and operations in 13 countries.  The operational performance is class leading with regards to both HSE and production uptime.

BW Offshore has a strong onshore and offshore team in Brazil. From 2013, BW Offshore will operate five FPSOs in Brazil: BW Cidade de São Vicente, Cidade de São Mateus, Polvo, P-63/Papa Terra (owned by Petrobras and Chevron) and FPSO Peregrino (owned by Statoil and Sinochem).

BW Offshore is constantly working on optimising operational and financial performance. The addition of the FPSO Peregrino to the operational fleet will further strengthen BW Offshore's position.

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. BW Offshore is 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

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)