Nexus signs Letter of Intent for FPSO in the Philippines

Nexus Floating Production has signed a Letter of Intent (LOI) with Burgundy Global Exploration Corporation (BGEC) for the lease of the FPSO Nexus#1.

The contract is for a period of seven years, with first oil scheduled for Q1 2010. The LOI is for the Camago Malampaya Oil Leg (CMOL) project offshore the Phillipines. BGEC is granted a first right of refusal which enables Nexus to continue promoting the vessel in the market.

The agreement has a value of approximately USD 800 millions for a managed lease of the Nexus#1 generic FPSO over the seven year contract period. Field specific adaptations of the generic unit will be compensated separately.

”We are pleased to sign a Letter of Intent with BGEC for the CMOL project, a challenging field development in deep water in an area subject to typhoon activity. This confirms our expectations for a stronger market in deep waters, and we are happy to be in a position to support such developments with our FPSOs,” says Anders Holm, CEO of Nexus Floating Production.

The CMOL project will develop the oil rim in the Malampaya Field, an oil and gas discovery located offshore the Phillipines 70 kilometers from the Palawan Islands on a water depth of 850 meters. The Camago Malampaya Oil Leg project is owned 84.9 percent by BGEC and 15.1 percent by Phillipines National Oil Company Exploration Corporation (PNOC-EC).

For further information, please contact:

Anders Holm, CEO

aho@nexusfp.no

            +47 90 60 50 72       

Arild Bårdsen, CFO

aba@nexufp.no

            +47 92 66 75 90       

Nexus Floating Production Ltd is located in Singapore and has a project office in Arendal, Norway. The company’s strategy is to be a world-class leading supplier of high quality harsh environment FPSOs. The company has ordered two FPSO’s from Samsung Heavy Industries in Korea and two Submerged Turret Production (STP) systems from Advanced Production and Loading (APL). The vessels are scheduled for delivery in June 2009 and May 2011.

Please visit www.nexusfp.no for more information