NORTHERN OFFSHORE LTD. ANNOUNCES THREE YEAR CONTRACT AWARD FOR SEMI-SUBMERSIBLE ENERGY DRILLER


Houston, January 28, 2008 – Northern Offshore Ltd. (NOL) today announced that Oil and Natural Gas Corporation Limited (“ONGC”) Drilling Services, Mumbai region, has awarded its wholly owned affiliate Jet Drilling (S) Pte.Ltd.a three-year contract for the semi-submersible rig Energy Driller for operations offshore India. The contract, which is subject to final execution, is expected to commence during the second quarter 2008, following a shipyard program and subsequent mobilization from Singapore to India. Revenues that could be generated over the three-year contract, total approximately $257 million. The estimate excludes revenues for mobilization, demobilization, and customer reimbursables.

The Energy Driller is a conventionally moored semi-submersible rig currently equipped to operate in up to 600 feet of water, however the rig will be upgraded to work in up to 1000 feet of water as part of this contract assignment. The shipyard program includes a regulatory survey and maintenance program already planned, along with the upgrade of the rig’s water depth capability

“The three year contract for the Energy Driller continues to indicate strong business fundamentals for the floater market,” said Northern Offshore’s CEO Marion Woolie. The upgrade of the Energy Driller demonstrates our willingness to enhance our fleet when the appropriate opportunities arise.”

Northern Offshore is a Bermuda exempted holding company which operates offshore oil and gas production and drilling vessels deployed around the world in strategically active locations. The Company’s recently renovated fleet consists of one production unit (the Northern Producer, a semi submersible floating production facility) and five drilling units (the Energy Searcher, a drillship, the Energy Driller, a semi submersible drilling rig, and the recently purchased jack-up drilling rigs, the Energy Enhancer, the Energy Endeavour, and the Energy Exerter). The vessels operate in various markets including the North Sea, the Middle East, the Indian Ocean, and Southeast Asia.