Solstad Offshore ASA — Capital/Financing Update 2014

Mar 11, 2014

Letter of Intent between Solstad Offshore and a major international offshore contracting company for the construction and operation of a large subsea construction vessel.

Letter of Intent between Solstad Offshore and a major international offshore contracting company for the construction and operation of a large subsea construction vessel.

Solstad Offshore ASA (SOFF) has signed a Letter of

Intent (LOI) with a major international offshore

contracting company to construct and operate a large

subsea construction vessel.

The intention is that the client will charter the

vessel from Solstad for a period of 8 years firm, in

addition to 3 x 1 yearly options.

At the same time, Solstad have signed a LOI with VARD

to design and build the vessel.

The hull will be built at VARD's own facilities in

Tulcea, Romania, while the outfitting of the vessel

will be done at VARD Brattvaag in Norway.

The scheduled delivery of the vessel is 2q-2016.

The vessel, which will be the largest in the Solstad-

fleet, will have a 550-ton top tension vertical lay

-system, enabling the installation of large diameter

flexible pipes in ultra deepwater and in harsher

environments. In addition, a 600 ton active heave

compensated offshore crane and a 4000 ton under-deck

carousel for storage of flexible pipes, cables and

umbilical's.

The vessel will be about 180 meters long, have a beam

of 33 meters and a deck area of more than 2500 m2.

The contractual values between the client and

Solstad, and between VARD and Solstad are

confidential at this point.

Solstad Offshore ASA is among the largest shipping

companies in Norway, providing advanced vessels and

extensive maritime competence for operations related

to the offshore petroleum industry. The company has

about 1,800 employees, and operates 48 vessels all

over the world. Solstad Offshore is headquartered in

Skudeneshavn, Norway and has branch offices in

Brazil, Singapore, the Philippines, the United

Kingdom and Australia.

Contacts: Lars Peder Solstad and Sven Stakkestad

(phone +47 52 85 65 00).

Skudeneshavn, 11. March 2014

This information is subject of the disclosure

requirements acc. to §5-12 vphl (Norwegian Securities

Trading Act)