AWO Prospectus PETROJACK offer - COSL Drilling Europe AS

The prices include yard contract prices (which are fixed for the contracted rigs and the PPL option
rigs), newbuilding supervision, owner furnished equipment, spares, financing, and other project
expenses.
Each of the Offeror’s options can be declared independently of the others. A particular feature for
the PPL options is that both the steel price and the currency exchange rate element of the contract
price have been fixed. This is normally not the case, as yards will typically reserve the right to
adjust the final price for movements in steel prices, currency exchange rates and certain other
factors.
Following the ordering of WilTBN, the Offeror was awarded an option for an additional rig from
Keppel Fels. The Keppel option B has steel price and currency exchange rate adjustments based on
the levels of steel prices and currency exchange rates that applied on second half of July 2005.
The price is also subject to increase in major equipment price over that purchased for WilTBN.
Price increase in major equipment includes but is not limited to the price of main engines and
generators, emergency generators, cranes and drilling equipment set.
Under the Keppel option B agreement, a total of USD 12 million of the yard price will be subject to
adjustment in the event of variations in the steel price from second half of July 2005 to the time of
entering into a firm contract. Correspondingly, a total of USD 84 million of the yard price will be
subject to adjustment in the event of variations in the currency exchange rates between USD and
Singapore Dollars, and between USD and Euros, from second half of July 2005 to the time of
entering into a firm contract.
Additional information on the rigs and designs is provided in section 7.6. A further description of
the newbuilding contracts and option agreements is set out in section 11.2. A description of the
financing arrangements is set out in section 11.3.
7.2 Anders Wilhelmsen Group – background
The Anders Wilhelmsen Group is a privately owned group of companies based in Norway and with
headquarters located in Oslo. The first company in the group, A Wilhelmsen AS, was founded in
1939 as a shipowning and investment company, and the group has over the years been involved in
many sectors of the marine industry.
The chart below gives an illustration of the main businesses in the Anders Wilhelmsen Group.
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