Venture Drilling AS, a company 50% controlled by Sinvest AS (a wholly owned subsidiary of the Company), has a Bareboat agreement with the state owned company Arktikmorneftegazrazvedka (“Arktik”), for use of the drillship Deep Venture.

Venture Drilling AS is paying Arktik a Bareboat hire of USD 21,000 per day.

Venture Drilling AS has a contract with Maersk Oil Angola AS until January 2011, where Maersk is paying USD 495,000 per day to Venture Drilling AS.

Arktik and the State Property Agency in Russia have agreed that the BB agreement entered into in 2005 before the market rates increased, do not have the necessary approvals from Russian Authorities.

Venture Drilling AS disputes that.

Arktik has therefore approached Venture Drilling AS, to try to renegotiate the agreement, including redelivery of the ship in 2011.

The Bareboat agreement is regulated by Norwegian law, and Venture Drilling AS will, if needed, take legal steps to secure their interests in the Drillship Deep Venture.