Commencement of Squeeze-out Procedure under Cypriot Law

NOT FOR PUBLIC DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED

STATES OF AMERICA, SOUTH AFRICA, CANADA, AUSTRALIA OR JAPAN

11 October 2010 - Reference is made to the offer document dated 27 July 2010

(the "Offer Document") from BW Offshore Limited ("BW Offshore") regarding the

voluntary exchange offer (the "Offer") for all of the issued and outstanding

shares of Prosafe Production Public Limited ("Prosafe Production") not owned,

directly or indirectly, by BW Offshore. Reference is further made to the

information memorandum and supplemental document dated 16 September 2010 (the

"Supplemental Document"), and previous announcements issued in connection with

the Offer.

In pursuance of section 36(4)(d) of the Public Takeover Bids for the Acquisition

of Securities of Companies Law of 2007, Law 41(I)/2007 (the "Law"), BW Offshore

hereby announces that an application under sections 36(4)(a) of the Law has been

submitted to the Cyprus Securities and Exchange Commission ("CySec") today, on

11 October 2010, under which BW Offshore requests a CySEC decision to be issued

under section 36(5) of the Law permitting BW Offshore to acquire all the shares

in the issued share capital of Prosafe Production which BW Offshore does not own

(directly or indirectly) following settlement of the Offer.

Further announcements on the squeeze-out procedure will be made in due course.

For further information, please contact:

Carl K. Arnet, CEO, +65 9630 3290

Knut R. Sæthre, CFO, +47 9111 7876

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

This announcement is not an offer for sale of any securities in the United

States. Securities may not be offered or sold in the United States absent

registration or an exemption from registration under the U.S. Securities Act. BW

Offshore has not registered and does not intend to register any portion of any

offering of shares in the United States or to conduct a public offering of any

securities in the United States.

[HUG#1450865]

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