Update on FPSO for Basker Manta Gummy

(Bermuda, 19 December 2008): Anzon, on behalf of the participants in
the BMG Project, has given notice to BW Offshore of a termination of
the Letter of Intent (`LoI`) signed in July 2008 for the supply of a
FPSO for the proposed BMG Phase-2 Project.

BW Offshore will act according to the conditions under the LoI related to a termination with the purpose of receiving recovery of the costs already occurred
in the project.