Commencement of Squeeze-out Procedure under Cypriot Law

NOT FOR PUBLIC DISTRIBUTION, DIRECTLY OR INDIRECTLY,
IN OR INTO THE UNITED STATES OF AMERICA, SOUTH
AFRICA, CANADA, AUSTRALIA OR JAPAN

11 October 2010 - Reference is made to the offer
document dated 27 July 2010 (the "Offer Document")
from BW Offshore Limited ("BW Offshore") regarding
the voluntary exchange offer (the "Offer") for all of
the issued and outstanding shares of Prosafe
Production Public Limited ("Prosafe Production") not
owned, directly or indirectly, by BW Offshore.
Reference is further made to the information
memorandum and supplemental document dated 16
September 2010 (the "Supplemental Document"), and
previous announcements issued in connection with the
Offer.

In pursuance of section 36(4)(d) of the Public
Takeover Bids for the Acquisition of Securities of
Companies Law of 2007, Law 41(I)/2007 (the "Law"), BW
Offshore hereby announces that an application under
sections 36(4)(a) of the Law has been submitted to
the Cyprus Securities and Exchange Commission
("CySec") today, on 11 October 2010, under which BW
Offshore requests a CySEC decision to be issued under
section 36(5) of the Law permitting BW Offshore to
acquire all the shares in the issued share capital of
Prosafe Production which BW Offshore does not own
(directly or indirectly) following settlement of the
Offer.

Further announcements on the squeeze-out procedure
will be made in due course.

For further information, please contact:
Carl K. Arnet, CEO, +65 9630 3290
Knut R. Sæthre, CFO, +47 9111 7876

This information is subject to the disclosure
requirements pursuant to Section 5-12 of the
Norwegian Securities Trading Act.

This announcement is not an offer for sale of any
securities in the United States. Securities may not
be offered or sold in the United States absent
registration or an exemption from registration under
the U.S. Securities Act. BW Offshore has not
registered and does not intend to register any
portion of any offering of shares in the United
States or to conduct a public offering of any
securities in the United States.