Signing LOU and retaining financial adviser to investigate strategic alternatives

LOU and investigation of strategic alternatives

Based on the marketing agreement between Nexus Floating Production Ltd. (“Nexus” or the “Company”) and APL, Premier Oil Vietnam Offshore B.V. (“Premier Oil”) and BW Offshore Singapore Pte. Ltd. have signed a Letter of Understanding (“LOU”) for the chartering of Nexus #1 FPSO offshore Vietnam. Nexus has given its authorization to BW Offshore Singapore Pte. Ltd. to execute the LOU with the aim of reaching a firm charter agreement with Premier Oil.

As previously announced by Nexus, the Company is preparing for a potential lay-up period for Nexus #1 after delivery from the yard end of June 2009 as a consequence of the Company not yet being able to secure a charter contract for the FPSO. The LOU with Premier Oil is in the opinion of the Company an important opportunity going forward. However, the charter agreement to be entered into with Premier Oil is conditional upon a substantial financial restructuring of the Company and Premier’s own internal Vietnamese and partner approvals. Nexus is strongly committed in finding acceptable solutions for all stakeholders, and has therefore retained Pareto Securities AS to investigate potential strategic alternatives for the Company.

For further information, please contact:
   Anders Holm, CEO
   aho@nexusfp.no
   +47 90 60 50 72

   Arild Bårdsen, CFO
   aba@nexusfp.no
   +47 92 66 75 90