Bergensen Makes Final Negotiations on LNG Contract

Bergesen has agreed with Nigeria LNG Limited (NLNG) on a preliminary agreement for the employment of four LNG-carriers for a minimum of 20 ½ years from delivery. Final contract is subject to NLNG making its final investment decision on its further extension called NLNG Plus.

Subject to same investment decision, Bergesen will enter into an agreement with Daewoo Shipbuilding & Marine Engineering Co. Ltd., Korea, to build the vessels. Delivery shall take place in first, third and fourth quarter 2005, and in first quarter 2006. Total project price will be about $710 million, including interest and other expenses during construction period. The agreement is based on four vessels of 140.500 cbm each, but the vessels' capacity can be increased to 145.000 cbm at NLNG's option. The capital element of the charter rate is fixed for the entire period, while the operating element is subject to an annual adjustment. When all four vessels are delivered, the annual charter income will amount to about $100 million. Bergesen may invite partners to own up to 49 percent equity in vessel 3 and/or 4. NLNG has an option to purchase each of the four vessels at agreed stages during the contract period, first time five years after delivery from the yard. Provided final agreement is concluded, Bergesen will have seven LNG-carriers under construction at Daewoo, of which six are employed for minimum 20 years from delivery.