Solstad Offshore ASA - Capital/Financing Update 2018

Agreement on restructuring of Solship Invest 3 AS and its subsidiaries

Reference is made to the stock exchange announcement July 12th, 2018, in which

it was informed that Solship Invest 3 AS and its subsidiaries ("SI-3") had

entered into an agreement with its major financial creditors to postpone

instalment and interest payments until July 20th, 2018.

SI-3 has today entered into an agreement with its financial creditors for the

financial restructuring of SI-3 (the "Financial Restructuring").

The Financial Restructuring includes a deferral of scheduled instalments,

interests and bareboat payments until December 31st, 2019 in a total amount of

approximately USD 48 mill. The Financial Restructuring also entails suspension

of the majority of financial covenants in the same period.

As part of the Financial Restructuring, SI-3 will be provided a loan from Sterna

Finance Ltd. in the amount of USD 27 million, which shall be applied for general

corporate purposes in SI-3.

Completion of the Financial Restructuring grants SI-3 a sufficient runway to

meet the current market challenges.

"We are very satisfied that we have been able to come to an agreement with the

lenders, and for their continued support to the Solstad Farstad group. The

market is still challenging, but there are signs of improvement which we expect

will be strengthened further on the basis of a continued stable, high oil

price", says Lars Peder Solstad, CEO of Solstad Farstad ASA.

The Financial Restructuring is subject to customary conditions to be satisfied

within August 31st, 2018.

Skudeneshavn July 20th, 2018

Contacts

Lars Peder Solstad, CEO at +47 91 31 85 85

Anders Hall Jomaas, CFO at +47 40 04 29 18

Solstad Farstad ASA

www.solstadfarstad.com

This information is subject of the disclosure requirements according to the

Norwegian Securities Trading Act section §5-12

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