Siem Offshore Charters PSV

Siem Offshore Inc and Five Oceans Services GmbH have entered into a firm three year charter for the large-size PSV "Siem Carrier" for operation as a world-wide Cable Lay, ROV and Offshore Construction Support Vessel. The contract will commence in fourth quarter 2007.

The commercial terms of the contract are confidential between the parties. Siem Offshore Inc expects to invest $6 million in upgrade of the vessel prior to commencement of the contract.