01/05/2017

Proposed amendments to FOE05 bond agreement

Reference is made to the announcement on 15 December 2016 regarding covenant waivers and amendments to Fred. Olsen Energy ASA’s (“FOE” or the “Company”) original USD 2 billion credit facility agreement (the “Bank Facility”).

The amendments include, inter alia, that the leverage ratio and interest cover ratio will be temporarily waived until 30 June 2018, subject to similar covenant waivers being accepted by the bondholders in FOE05 (ISIN NO 0010704125). The Company stated that further dialogue with FOE05 bondholders will be initiated as soon as possible.

The Company has subsequently had discussions with larger bondholders and in principle agreed on the following proposal:

-        The leverage ratio and interest cover ratio is proposed temporarily waived until 30 June 2018

-        As compensation, the Company proposes to offer each bondholder a pro rata repurchase of bonds at 100% of par value for a total purchase price of NOK 75 million (plus accrued and unpaid interest on the repurchased bonds), representing a nominal amount of approximately 6.82% of the outstanding bonds

The compensation proposal represents the maximum agreed compensation as per the approved waivers and amendments to the Bank Facility. Subject to receiving further prior support, the Company intends to summon for a bondholders’ meeting in due course.

For questions regarding the above, please contact:

Hjalmar Krogseth Moe, CFO Fred. Olsen Energy, + 47 22 34 12 49

or

Danske Bank Markets, DCM Sales, +47 22 86 13 07 or knko@danskebank.com

DNB Markets, Fixed Income Sales, +47 24 16 90 30 or bond.syndicate@dnb.no