Independent company for drilling business enters into LOI

The board of Sevan Marine ASA, Arendal, Norway, has decided to organize Sevan Marine’s drilling activities into a new company - Sevan Drilling ASA - to further grow and develop its ultra deep water (“UDW”) rig business.

Jan Erik Tveteraas, the current CEO Sevan Marine, will assume the position as CEO of Sevan Drilling as from the first day of listing on the main list of the Oslo Stock Exchange and Jon Willmann, Senior Vice President Drilling Sevan Marine, will assume the position of CFO.  Jan Erik Tveteraas will be proposed to the nomination committee as a board member of Sevan Marine. Sevan Marine is in the process of selecting a successor for Mr. Tveteraas.

Furthermore, Jon C. Cole will assume the position as Chairman of Sevan Drilling. Cole was founder of Scorpion Offshore Ltd. and served as its President and Chief Executive Officer from 2005 to 2010. Jon C. Cole has spent his entire career, spanning nearly three decades, in the contract drilling industry, including senior positions with Transocean and Ensco.

In connection with the initial public offering (“IPO”), Sevan Drilling has entered into letters of intent with the Korean yard COSCO for the building of two UDW rigs based on the same design as "Sevan Driller2 and "Sevan Brasil" with options for another two.  The rigs are to be delivered in the fourth quarter of 2013 and second quarter of 2014.Signing of the final construction contracts with COSCO is subject to listing of Sevan Drilling.