HOUSTON, Oct. 28 /PRNewswire-FirstCall/ -- Northern Offshore, Ltd. (Oslo Bors: NOF.OL) today announced a revision of estimated 2010 production tariff revenues from its offshore floating production facility, the Northern Producer. The Northern Producer is on location in the Don field area in the U.K. Sector of the North Sea under a "life-of-field" term contract. The majority of revenue from the Northern Producer is derived from a tariff on production moving across the platform. The tariff is based on both the level of oil production and the price of Brent crude. Estimated tariff revenue is included in the company's estimates of its contract revenue backlog.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080415/LATU540LOGO)

Based on production estimates available to it, the company had recently estimated the production tariff revenues for 2010 at approximately US$84 million. Northern Offshore has now reduced its internal expectations and projections of 2010 tariff revenue from the Northern Producer to about US$50 million at current Brent oil prices. This revised estimated tariff revenue is based on many uncertain factors and assumptions that could cause actual tariff revenues to vary materially.

Northern Offshore, Ltd. is a Bermuda holding company which operates offshore oil and gas production and drilling vessels deployed around the world. The company's fleet consists of one floating production facility and five drilling units (a drillship, a semisubmersible and three jackup drilling rigs). The Northern Offshore fleet operates in various markets including the North Sea, the Indian Ocean, offshore Russia, the Mediterranean Sea and Southeast Asia. More information on Northern Offshore, Ltd. may be found by visiting the company's website at http://www.northernoffshorelimited.com

For further information, please contact:

Brian Hefty at 713-739-7686 or via email at brian.hefty@northernoffshoreltd.com

SOURCE Northern Offshore, Ltd.

Back to top

RELATED LINKS
http://www.northernoffshorelimited.com