Songa Offshore SE : Cat D update

On March 18, 2016, Songa Offshore submitted its defence in the arbitrations initiated by DSME in 2015, regarding the first two Cat Ds rigs, Songa Equinox and Songa Endurance (the "Rigs"). As previously informed, DSME's claim relates to alleged cost overruns and additional work in relation to the Rigs due to what DSME alleges were inherent errors and omissions in the design documents (as often referred to as the FEED package). Along with its defence, on the same date Songa Offshore submitted counterclaims in respect of the Rigs for the aggregate amount of USD 65.8 million, by means of which Songa Offshore intends to recover damages caused by the default of DSME.

As also previously reported, Songa Offshore will vigorously defend the claims asserted by DSME. Songa Offshore considers that DSME is solely responsible for the delays to the Rigs and any attempt by DSME to recover cost overruns has no merit due to the "turn-key" nature of the construction contracts.

Further details will be provided as and when appropriate.

21 March 2016
Limassol, Cyprus

For further information, please contact:
Bjørnar Iversen, CEO ([phone])

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

---

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Songa Offshore SE via Globenewswire

HUG#1996163