PROD - Extension of Letter of Intent to sell turret and swivel business

Reference is made to announcement of 22 March 2010 regarding the Letter of

Intent to sell the turret and swivel business to National Oilwell Varco.

As a consequence of BW Offshore's announced intention to present a voluntary

offer to acquire all outstanding shares in Prosafe Production Public Limited,

National Oilwell Varco has requested an extension of the Letter of Intent until

after the announced offer has been concluded and the future ownership structure

of Prosafe Production clarified. After careful evaluation, Prosafe Production

has decided to grant such an extension, still with the intention to close a

transaction during the 3(rd) quarter.

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.

Limassol, 30 June 2010

Contacts:

Bjørn Henriksen, President and CEO

Phone: +31 6105 32543

Sven Børre Larsen, Executive VP and CFO

Phone: +31 6515 65186

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

(Norwegian Securities Trading Act)

[HUG#1428428]

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