PROD - Letter of Intent to sell turret and swivel business

Prosafe Production has entered into a Letter of Intent with National Oilwell

Varco (NOV) to sell the turret and swivel business for USD 165 million. In

addition there will be a deferred payment corresponding to 10% of the sold

business' third-party sales for a period of seven years.

In connection with the transaction, Prosafe Production will enter into a

seven-year supply agreement with NOV, which secures access to turret and swivel

solutions at competitive terms.

Closing of the transaction, which is expected Q2 2010, is amongst other subject

to completion of a customary due diligence, as well as approval by both

companies' board of directors.

About Prosafe Production

Prosafe Production is a leading owner and operator of Floating Production,

Storage and Offloading vessels (FPSOs). Prosafe Production has 25 years of

operational experience from several of the world's largest oil and gas

provinces. Prosafe Production operates globally and employs approximately 1,000

employees from more than 40 countries. Headquartered in Limassol, Cyprus,

Prosafe Production is listed on the Oslo Stock Exchange with ticker code PROD.

Please refer to www.prosafeproduction.com

for more details.

For further information please contact:

Bjørn Henriksen, President and CEO

Mobile: +31 6105 32543

Sven Børre Larsen, Executive VP and CFO

DID: +65 6302 0321

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1395944]

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