Solstad Offshore ASA - M&A Activity 2017

Agreement to sell shares in Normand Oceanic AS

Solstad Farstad ASA ("SOFF") has agreed to sell its 50% of

the shares in the 50/50 owned joint venture company Normand

Oceanic AS ("JV) to Subsea 7 Normand Oceanic Holding AS

("Subsea 7"). Normand Oceanic AS is the vessel owning entity

for the large construction vessel "Normand Oceanic".

Following this transaction, Subsea 7 will own 100% of the

shares in JV, and will assume all rights and obligations

entered into by the JV. For SOFF, the transaction releases

the Parent Company Guarantee given for 50% of the debt

financing in JV. Given the difficult market conditions,

SOFF's shareholding in JV was not expected to generate any

dividends for the foreseeable future.

The vessel is employed under a long term contract for

operations in Mexico, and SOFF will remain ship manager for

the vessel at least until end of this contract.

"We have found a solution to the benefit of both JV

partners. Subsea 7 has been a long term partner and client,

and we look forward to continue this important relationship"

says CEO Lars Peder Solstad in a comment.

The sale of shares has no cash effect for SOFF, but will

give a book loss of approx. NOK 144 mill.

Contacts:

Lars Peder Solstad, CEO at +47 913 18 585 or

Anders Hall Jomaas, CFO at +47 400 42 918

Skudeneshavn, 18 October 2017

Solstad Farstad ASA

www.solstadfarstad.com

This information is subject of the disclosure requirements

acc. to §5-12 vphl (Norwegian Securities Trading Act)

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