Magnora ASA

Related Party Transaction • May 15, 2014

SEVAN MARINE ASA: Logitel transaction

SEVAN MARINE ASA: Logitel transaction

In its capacity as lender under its MUSD 60 convertible loan agreement (the

"Convertible") with Logitel Offshore Pte Ltd, Sevan has entered into a tri-

partite letter of intent (the "LOI") with Teekay Offshore Partners LP ("TOO") as

buyer and Cefront Technology AS ("Cefront") as seller of all of the shares in

Logitel Offshore Holdings AS ("Logitel"), which owns two hulls that are

currently being converted into floating accommodation units ("FAUs") at the

COSCO (Nantong) Shipyard ("COSCO") and options to order up to six additional

FAUs. TOO intends to utilize Sevan's technology to build a position in the

floating accommodation market.

Under the terms of the LOI, Sevan will be relieved from its exposure as

"intervening party" under Logitel's employment contract with Petrobras in

respect of FAU no 1.

The LOI also entails that the repayment profile and maturity for the Convertible

is amended to six instalments of MUSD 10, payable not later than six months

after delivery of the relevant FAU from the COSCO yard. Sevan will also receive

license fees and provide services, as further FAUs are built by TOO.

The LOI is expected to become effective and formally documented within two

months.

CEO Carl Lieungh commented, "We are pleased to see the use of the Sevan design

in yet another offshore application with the potential for growth. This

demonstrates the flexibility and universal performance advantages of the

cylindrical design.  This transaction also represents the final step in the risk

mitigating exercise relative to the semi-completed hulls with substantial

attached liabilities formerly owned by Sevan. It helps clean up Sevan's balance

sheet with clearer visibility to our asset-light business model, while still

recognising that a part of the convertible loan and license fees are dependent

on Teekay Offshore's expansion in the floating accommodation market."

The information in this announcement is subject to the disclosure requirements

of the Norwegian Securities Trading Act section 5-12 and/or the Oslo Børs -

Continuing Obligations.

Sevan Marine ASA is specializing in design, engineering and project execution of

floating units for offshore applications, based on its patented cylindrical

floater technology. Sevan Marine ASA is listed on Oslo Børs with ticker SEVAN.

For more information, please refer to www.sevanmarine.com.

For more information please contact:

Marit Ytreeide, Press Contact (Media)

+47 901 28 308 mobile

Carl Lieungh, CEO, Sevan Marine ASA (Media)

+47 37 40 40 00 office

Kjetil Vangsnes, CFO, Sevan Marine ASA (Analysts)

+47 37 40 40 00 office

[HUG#1785726]