SFL – Delivery of the ultra-deepwater drilling rig West Hercules

Press release from Ship Finance International Limited, November 7, 2008
Ship Finance International Limited (NYSE:SFL) (“Ship Finance” or the “Company”), today announces that it has acquired the first of two ultra-deepwater semi-submersible drilling rigs from Seadrill Limited (“Seadrill”).
West Hercules is chartered to Seadrill for a period of 15 years, and it has commenced a 3-year sub-charter to Husky Oil China Ltd. The second drilling rig, West Taurus, is expected to be delivered to Ship Finance next week.
Lars Solbakken, Chief Executive Officer in Ship Finance Management AS, said in a comment: “We are very pleased to take delivery of West Hercules and we look forward to take delivery of West Taurus earlier than previously announced. These state-of-the-art drilling rigs are important investments for the Company and are expected to generate a strong cash flow during the 15-year charter period. We have successfully sourced a $1.4 billion bank financing relating to this project, which demonstrates our strong position in the international banking market.”
November 7, 2008
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Contact Persons:
Lars Solbakken: Chief Executive Officer, Ship Finance Management AS
+47 2311 4006 / +47 9119 8844
Ole B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
+47 2311 4011 / +47 9014 1243
About Ship Finance
Ship Finance is a major ship owning company listed on the New York Stock Exchange (NYSE: SFL). Including newbuildings and announced acquisitions, the Company has a fleet of 70 vessels, including 33 crude oil tankers (VLCC and Suezmax), two chemical tankers, eight oil/bulk/ore vessels, 13 container vessels, three dry bulk carriers, six offshore supply vessels, two jack-up drilling rigs and three ultra-deepwater drilling units. The fleet is one of the largest in the world and most of the vessels are employed on long term charters.
More information can be found on the Company’s website: www.shipfinance.org
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Ship Finance management’s examination of historical operating trends. Although Ship Finance believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Ship Finance cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in this presentation include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC’s petroleum production levels and world wide oil consumption and storage, changes in the Company’s operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.