Northern Offshore Contract in Azerbaijan

Monday, November 30, 2009

Northern Offshore, Ltd. (Oslo Bors: NOF.OL) announced that its subsidiary, Northern Offshore U.K. Ltd, was awarded a contract with Caspian Drilling Company Limited (CDC) for the provision of support services for drilling operations in the Caspian Sea. The contract runs to July 2011 and has an estimated value of approximately $21m, comprised of fees for technical and operational support in management of the Dada Gorgud semisubmersible drilling rig. Any direct costs incurred in providing the services will be reimbursed. CDC is a subsidiary of The State Oil Company of Azerbaijan Republic (SOCAR).

The drilling operations will take place on acreage operated by BP, on behalf of a consortium consisting of BP, Chevron, SOCAR, INPEX, StatoilHydro, ExxonMobil, TPAO, Devon, ITOCHU and Hess. CDC has been the semisubmersible drilling rig contractor on this acreage for over 14 years. Northern Offshore's technical and operational support services will be provided by its Baku-based personnel, with assistance from the regional operations team based in Aberdeen, Scotland.

(www.northernoffshorelimited.com)

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