Proposed Separate Listing of Petroleum Services

Petroleum Services pioneered the `Operator`s Operator` service model, and has grown into being a leading international offshore well management business. Through its strength within G&G, and building on the unique competencies and products from its consultancy and well management businesses, it is now planning to grow further within Field Development and Turn Key Drilling.

Petroleum Services has developed into the world`s leading independent provider in its field, and today has the scale and geographic footprint to continue as a standalone business.

`We are enthusiastic about taking this next step in developing the Petroleum Service business. We have a number of ambitious plans for growth, including strategic acquisitions and expansion into new service offerings. A separate listing will strengthen our ability to grow and seize identified opportunities in its market. By separately listing the Petroleum Services business, investors have the opportunity to more easily identify value in the business, as a single investment opportunity in a highly attractive oil service business`, says Sverre Skogen, CEO of AGR.

Chairman Hugo Maurstad commented, `I am delighted to see how Petroleum Services has progressed to become a strong stand alone business, with service offerings unique in its market space and an impressive pool of talents. I think the business will benefit from the strategic freedom an independent listing represents`.

The spin off of Petroleum Services is an important step in creating stronger focus on the challenges in each Business Area. After a spin-off, AGR Group will consist of Field Operations and Drilling Services. Both of these areas have initiated significant steps in order to improve its profitability and to facilitate the strong growth they are enjoying. We expect that results from these activities will materialize within 12-18 months.

The process of separating Petroleum Services will start immediately and the company is expected to be listed separately towards the end of 2008.