I.M. Skaugen Completes Newbuild Program

I.M. Skaugen ASA, Oslo (IMSK) will take delivery of its sixth vessel in the newbuilding program, MV "Norgas Napa", on October 31, 2003. The vessel is built by the Hudong - Zhonghua Shipbuilding Group in Shanghai, China. The successful completion of the newbuilding program combined with the new alliance with A.P. Møller - Maersk have placed Norgas Carriers and Maersk, with the joint venture MNGC, a one of the world's leading gas carriers The Norgas fleet currently consists of 19 gas carriers (18 with ethylene carrying capacity) has about 150,000 cbm capacity. The age of the Norgas fleet have with these new vessels been reduced to an average of 16 years. The total delivered cost (incl. of all pre delivery cost such as supervision and financing cost during construction) is about $21.5 million per vessel. The company reported that it was very satisfied with the cost of the vessels, the quality of the work of the shipyard and thus the production capabilities. These are the first ethylene gas vessels made by this shipyard The vessels were built in China, owned by a Chinese company and will sail under Chinese Hong Kong flag. A long term, financing agreement is secured with the Export Import Bank of China in Beijing (EXIMBANK) for a 10 year "Buyers Credit" facility, an agreement that allows for a fixed base interest rate in USD for 75% for the vessels contract price and for a 10-year period.