________________________________________________

                                   SHARE SALE AND PURCHASE AGREEMENT
                            ________________________________________________

by and among

STATOIL ASA and STATPET AS

and

NORSK TEEKAY AS

dated
December 15 2002

THIS SHARE SALE AND PURCHASE  AGREEMENT (the  Agreement)  is made and entered into on this 15th day of
December 2002, by and among:

|(1) | STATOIL ASA,  (Statoil) a Norwegian public limited liability  company  (allmennaksjeselskap),
         having its registered office located at Forusbeen 50, 4035 Stavanger,  Norway,  registered with
         the Norwegian Register of Business Enterprises under number 923 609 016, and                                                                                
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | STATPET AS,  (Statpet) a Norwegian private limited liability company  (aksjeselskap),  having
         its registered  office located at Forusbeen 50, 4035 Stavanger,  Norway and registered with the
         Norwegian Register of Business Enterprises under number 981 363 116,

         Statpet together with Statoil hereinafter being referred to as the Sellers,
|and |                                                                                                                                                                                                                                                                                                                                                                               
|(3) | NORSK TEEKAY AS, (the Buyer)  having its postal  address at P.O.  Box 1484 Vika,  0116 Oslo,
         registered with the Norwegian Register of Business Enterprises under number 985 030 235,                                                                                                                                                                              

in respect of the Buyers purchase of all of the shares in Navion ASA.

WHEREAS:

|(A) | The  Sellers  own all the  issued and  outstanding  shares  and  voting  rights in NAVION  ASA,
         (Navion)  a  Norwegian   public   limited   liability   company  with  a  share   capital  of
         NOK 1,687,500,000,  with its  registered  office  at  Verven 4,  4004  Stavanger,  Norway,  and
         registered with the Norwegian Register of Business Enterprises under number 979 199 325; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B) | the Buyer  desires to purchase  all of the shares in Navion from the  Sellers,  and the Sellers
         desire  to sell  such  shares  to the  Buyer,  subject  to the  terms  and  conditions  of this
         Agreement.                                                                                                                                                                                           

NOW, THEREFORE, the Sellers and the Buyer agree as follows:

1.          DEFINITIONS AND INTERPRETATION

1.1        Definitions

`The terms  defined in this  Clause  1.1 shall,  for the  purpose  of this  Agreement,  have the
         following meaning:

         Annual Accounts:               has the meaning set forth in Clause 3.3.2;

         Basic Purchase Price:          means the purchase price set forth in Clause 3.1;

         Business Day:                  means a day on which  banks are open for  business in New York
                                          and Oslo;

         Buyer Parent:                  means  Teekay  Shipping   Corporation;   a  Marshall   Islands
                                          corporation  with its  business  address at TK House,  Bayside
                                          Executive   Park,  West  Bay  Street  &  Blake  Road,  PO  Box
                                          AP-59212, Nassau, The Bahamas;

         Buyer Parent
         Guarantee:                      means  the  irrevocable  and  unconditional  guarantee  to  be
                                          delivered  by the  Buyer  Parent  in  favour  of the  Sellers,
                                          substantially  as set  out  in  Schedule  1.1  Buyer  Parent 
                                          Guarantee;

         COA:                           means a contract of  affreightment  to which a Group Member is
                                          a party;

         Closing:                       has the meaning set forth in Clause 10;

         Closing
         Disclosure Letter:              has the meaning set forth in Clause 5.3;

         Contracts                      means the Frame Agreements, the COAs and the T/Cs;

         Current Auditors:              means Ernst & Young AS, Stavanger;

         Disclosed Information:         means (i)  written  information  disclosed  by the  Sellers to
                                          the  Buyer in the data room as per the list  contained  in the
                                          Signing  Date   Disclosure   Letter  and  Closing   Disclosure
                                          Letter,  (ii) the  said  two  disclosure  letters,  and  (iii)
                                          information disclosed in Schedules to this Agreement;

         Effective Date:                means January 1, 2003;

         Encumbrance:                   means any charge, lien, mortgage, or preemption right;

         Frame Agreements:              means  the  five  frame  agreements   between  relevant  Group
                                          Members  and certain oil  companies  regarding  transportation
                                          of crude oil;

         Financial Statements:          has the meaning set forth in Clause 5.3.1;

         Gas Tanker:                    means MT Navion Dania;

         Group Member:                  means any company within the Navion Group;

         Navion Group:                  means Navion and the Navion Subsidiaries;

         Navion Reorganisation:         means   the   reorganisation   contemplated   by  the   Navion
                                          Reorganisation  Agreements,  the main  elements  of which  are
                                          described in Schedule 1.1 Navion Reorganisation;

         Navion Reorganisation
         Agreements:                     means  the  agreements,  other  than  this  Agreement,  to  be
                                          entered into between  relevant  Group Members  and/or a member
                                          of the Statoil Group in respect of the Navion Reorganisation;

         Navion Subsidiaries:           means the  companies  owned  directly or  indirectly by Navion
                                          as set out in Schedule 1.1 Navion Subsidiaries;
         Navion Offshore
         Loading:                        means   Navion   Offshore   Loading  AS,  a  private   limited
                                          liability  company  established as a  wholly-owned  subsidiary
                                          of  Navion,   registered   with  the  Norwegian   Register  of
                                          Business Enterprises under number 984 837 771;

         Net Working Capital:           has the meaning set forth in Clause 3.3.1;

         NGAAP:                         means Norwegian Generally Accepted Accounting Principles;

         LIBOR:                         means for the relevant  currencies,  the BBA London  Interbank
                                          Offered  Rate  (BBA  LIBOR)  as  published  electronically  by
                                          Reuters  and  sponsored  by the  British  Bankers  Association
                                          (BBA), which as at the Signing Date is LIBOR01;

         NOK:                           means  Norwegian  kroner,  being the  lawful  currency  of the
                                          Kingdom of Norway;

         Parties:                       means the Sellers and the Buyer;

         Party:                         means any of the Sellers or the Buyer;

         Performance
         Guarantee:                      means  the  performance  guarantee  to be  issued by the Buyer
                                          Parent  in  favour  of the  counterparties  to  the  Contracts
                                          (including  Statoil,  as  applicable) in the form of Schedule
                                         1.1 Performance Guarantee;

         Person:                        means any individual,  firm,  corporation,  limited  liability
                                          company,  general  or  limited  partnership,   joint  venture,
                                          association,  joint  stock  company,  trust or  unincorporated
                                          business or organization or other entity;

         Purchase Price:                means the purchase  price  payable by the Buyer to the Sellers
                                          in respect of the  Shares,  being the  aggregate  of the Basic
                                          Purchase Price and the  adjustments  (if any) as determined in
                                          accordance with Clause 3;

         Rate of Exchange:              means  the rate of  exchange  as  quoted by the Bank of Norway
                                          as close as  possible  to 2.15 pm on  business  days in Norway
                                          and as published electronically by Reuters on page NOCV;

         SDFI:                          means the Norwegian  States Direct Financial  Interest in the
                                          petroleum sector;

         Shares:                        means the  Statoil  Shares and the  Statpet  Shares,  together
                                          constituting  the 1,687,500  ordinary  shares in Navion,  each
                                          with a nominal par value of NOK 1,000.-;

         Shuttle/FSO Tankers:           means  MT  Navion  Anglia,  MT  Navion  Hispania,   MT  Navion
                                          Oceania,  MT Navion  Britannia,  MT Navion Scandia,  MT Navion
                                          Norvegia,  MT Navion  Europa,  MT Navion  Viking and MT Navion
                                          Clipper, FSO Navion Scotia, and FSO Navion Saga;

         Signing Date:                  means the date of this Agreement;

         Signing Date Payment:          means an  amount  equal to 10 per cent of the  Basic  Purchase
                                          Price;

         Signing Date
         Disclosure Letter:              means  the  disclosure  letter  issued by the  Sellers  to the
                                          Buyer on the date hereof in the form of Schedule  1.1 Signing
                                          Date Disclosure Letter;

         Statoil Group:                 means  Statoil  and  its  subsidiaries,  excluding  the  Group
                                          Members;

         Statoil Shares:                means  the  1,350,000  shares  in  Navion  owned  by  Statoil,
                                          representing 80 per cent of the Shares;

         Statpet Shares:                means  the  337,500   shares  in  Navion   owned  by  Statpet,
                                          representing 20 per cent of the Shares;

         T/C:                           means a time charterparty to which a Group Member is a party;

         Transaction:                   means the sale and purchase of the Shares as  contemplated  by
                                          this Agreement;

         USD:                           means the lawful currency of the United States of America;

         Vessels:                       means the Shuttle/FSO Tankers and the Gas Tanker;

         VOC:                           means volatile organic compounds.`

|1.2   | Interpretation
         The  definitions in Clause 1.1 and elsewhere in this Agreement  shall apply equally to both the
         singular and plural forms of the terms defined  herein.  Whenever the context may require,  any
         pronoun shall include the  corresponding  masculine,  feminine and neuter forms. All references
         herein to Clauses,  Clause and Schedules  shall be deemed to be  references to Clauses,  Clause
         and  Schedules  to this  Agreement,  unless the  context  shall  otherwise  require.  The words
         include, includes, included and including shall be deemed to be followed by the phrase
         without limitation.  The word or used in this Agreement shall not be exclusive,  unless the
         context shall  otherwise  require.  The words  hereof,  herein and hereunder and words of
         similar  import when used in this  Agreement  shall refer to this  Agreement as a whole and not
         to any particular  provision of this Agreement.  In case of any conflict or discrepancy between
         the provisions of this Agreement and any of the Schedules, the latter shall prevail.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2.    | AGREEMENT TO SELL AND PURCHASE THE SHARES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|2.1   | Sale and Purchase of the Shares

         Subject to the terms and  conditions  of this  Agreement,  the  Sellers  hereby  agree to sell,
         transfer  and deliver to the Buyer,  and the Buyer hereby  agrees to pay for and purchase  from
         the Sellers, the Shares.  Accordingly,  Statoil shall sell the Statoil Shares and Statpet shall
         sell the Statpet Shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|3.    | PURCHASE PRICE AND PAYMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|3.1   | Basic Purchase Price

         The  Basic  Purchase  Price for the  Shares  shall be USD  760,000,000,  which  price  shall be
         adjusted in accordance with Clauses 3.2 and 3.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|3.2   | Adjustment of the Basic Purchase Price

         The Basic  Purchase  Price shall be adjusted in accordance  with this Clause 3.2 and Clause 3.3
         below, and shall, to the extent relevant,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|3.2.1 | be increased USD for USD with the following items (on a consolidated Navion Group basis):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

| | (a) | the book value of VOC investments of any Group Member as of 31 December 2002; and                                                                                                                                                                                                                                                                        
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | any group  contribution  net after tax given by a company  within the  Statoil  Group to one or
                  more Group  Members from the  Effective  Date up to and  including the date of Closing
                  or  payable  thereafter  to the  extent  not  included  in Net  Working  Capital as of
                  31 December 2002; and
| | (c) | if positive, any amount of Net Working Capital determined as of 31 December 2002, and                                                                                                                                                                                                                                                                    
| | (d) | any  loans  or  accounts  receivable  determined  in  accordance  with  NGAAP as of 31
                  December 2002, or as incurred as a result of the Navion Reorganisation,  to the extent
                  not included in Net Working Capital as of 31 December 2002,                                                                            
| |     | such items hereinafter referred to as the Inclusion; and                                                                                                                                                                                                                                                                                               

|3.2.2 | be reduced USD for USD with the following items on a consolidated Navion Group basis:
|----- | -------------------------------------------------------------------------------------

| | (a) | any liability shown in the Annual  Accounts,  or as incurred as a result of the Navion
                  Reorganisation,  not  included  in Net  Working  Capital  as of 31  December  2002  or
                  otherwise excluded under Clause 3.3.1; and                                                                                                                                                                                                                                                                                                                                             
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | any group  contribution  net after tax paid by Navion to a company  within the Statoil
                  Group from the  Effective  Date up to and  including  the date of Closing,  or payable
                  thereafter,  to the extent not included in Net Working Capital as of 31 December 2002;
                  and                                                                                                                                                                                                                                                                           
| | (c) | any dividend  approved to be paid by Navion to the Sellers from the Effective Date and
                  up to and  including  the date of Closing to the extent not  included  in Net  Working
                  Capital as of 31 December 2002; and                                                                                                                                                                                                                                                                                                                                                    
| | (d) | if negative, any amount of Net Working Capital determined as of 31 December 2002, and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (e) | any  correction  income tax  (korreksjonsskatt)  resulting  from (b) or (c) above to the extent
                  not included in  Net Working Capital, as of 31 December 2002; and                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (f) | any difference,  net of taxes,  between (i) the sum of vested and non-vested  pension  benefits
                  earned  as  of 31  December  2002  by,  to  the  extent  relevant,  past  and  present
                  employees  intended to remain with the Navion  Group after  Closing as  determined  in
                  accordance  with  NGAAP  and  assumptions  generally  applied  to  on-shore  personnel
                  employed  by Statoil,  and (ii) the net assets held in the pension  fund of the Navion
                  Group pertaining to such employees as of said date;
| |     | such items hereinafter referred to as the Reduction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

|3.2.3 | Interest shall accrue on the Basic Purchase  Price,  adjusted in accordance  with  Clause 3.2.1
         and  Clause 3.2.2 as  appropriate,  (less the Signing Date Payment) at a rate of 6 months LIBOR
         plus 100 basis points from and including  the  Effective  Date and up to but excluding the date
         of Closing, provided, however, that
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | interest on any  Inclusion  shall be  calculated  up to Closing  from the  Effective  Date with
                  respect  to the Net  Working  Capital  and  otherwise  the later of (i) the  Effective
                  Date,  or (ii) from the date such  Inclusion  was made or  received as the case may be
                  by the relevant Group Member; and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | the amount of any  Reduction  shall be increased by interest at the rate stated above  computed
                  from the later of (i) the  Effective  Date,  or (ii) the date such  Reduction was paid
                  or came into existence as the case may be up until Closing.                                                                               

|3.2.4 | Any  conversion  to US Dollars  relating to any  Inclusion or Reduction  shall be calculated at
         the Rate of  Exchange  as of 31  December  2002,  except for  adjustments  pursuant  to Clauses
         3.2.1(b)  and  3.2.2(b),  (c) and (e),  which shall be converted to USD at the Rate of Exchange
         prevailing on the date of the relevant transaction.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.3   | Determination of Net Working Capital

For the purposes of Clause 3.2 the Net Working Capital shall be determined as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.3.1 | The  Net  Working  Capital  shall  be  computed  in  relation  to  Navion  on  a  Navion  Group
         consolidated basis, and shall include current assets less current  liabilities  classified in a
         manner  consistent  with NGAAP and  consistent  with prior periods with  adjustments  described
         below.

         Current assets shall include bank deposits,  including  deposits  within the Statoil Group bank
         account  system,  accounts  receivable,  including  accounts  receivables  from  Statoil  Group
         companies,   inventory,  prepaid  T/C  hire  for  in-chartered  vessels  (both  short-term  and
         long-term),  loans to employees (both  short-term and long-term) and other current assets,  but
         shall not  include  amounts due from  surrogates,  such as  insurance  proceeds in respect of a
         vessel.

         Current  liabilities  shall include  accounts  payable,  including  accounts payable to Statoil
         Group  companies,  prepayments  from  customers,  accrued  withholding  tax and holiday pay and
         other current  liabilities.  Excluded from current  liabilities  are any (both  short-term  and
         long-term)  accruals  for  future   dry-dockings,   losses  on  T/Cs  and  any  future  pension
         expenditures.

         Included in Net Working  Capital  shall be the market value of any interest  swap  arrangements
         and the market value of any forward  currency  exchange  contracts  and the market value of any
         other financial derivatives valued as of 31 December 2002.

         Indebtedness for borrowed monies and interest bearing receivables, including short term
         portions of any such loans and receivables, shall not be included in Net Working Capital, nor
         shall any of the other elements subject to separate adjustment pursuant to sub-clauses 3.2.1
         and 3.2.2.
|3.3.2 | The Sellers  shall use their best  efforts to procure that the 2002 annual  statutory  accounts
         for the Navion Group (on a consolidated  basis) (the Annual  Accounts) be prepared as soon as
         reasonably  practical after the Effective  Date, in connection with which a separate  statement
         reflecting the Net Working Capital in accordance  with sub-clause  3.3.1 shall be prepared and,
         for the purposes hereof, form part of and be included in the defined term Annual Accounts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|3.3.3 | Immediately  following the preparation thereof,  Statoil shall instruct the Current Auditors in
         writing  (with a copy to the Buyer) to review and audit the Annual  Accounts  and to confirm by
         way of a written report (the Current  Auditors  Report)  whether the Annual Accounts and the
         calculation  of the Net Working  Capital  have been  prepared  in  accordance  with NGAAP,  the
         provisions  of this Clause 3 and the relevant  definitions  in Clause 1. The Current  Auditors
         Report shall be prepared as soon as reasonably  practical,  but in any event within 14 Business
         Days of the date of the  instruction  letter from Statoil.  If the Current  Auditors are of the
         opinion that  corrections or adjustments  should be made to the  calculation of the Net Working
         Capital in order to comply with the  requirements  of this  Agreement,  they shall  specify the
         relevant discrepancies in their report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3.3.4 | To enable the Current  Auditors to prepare their report on the Net Working Capital  calculation
         and to audit the  Annual  Accounts,  the  Sellers  shall  procure  that all  books and  records
         relating to the Navion Group are kept  up-to-date and made  available to the Current  Auditors.
         The  Sellers  furthermore  agree to procure  that the Navion  Group shall  facilitate  and make
         available  the  services  of its  employees,  as may  reasonably  be  required  by the  Current
         Auditors to assist the Current  Auditors to undertake the matters  contemplated  by this Clause
         3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3.3.5 | The Current  Auditors Report shall be distributed to the Parties  promptly and  simultaneously
         upon its  completion.  The Current  Auditors Report in respect of the Net Working Capital shall
         be final and  binding  on the  Parties,  and be applied  for the  purpose  of  determining  the
         adjustment  to the Basic  Purchase  Price,  unless there is an obvious error on the face of the
         document, in which case the error shall be corrected by the Current Auditors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

|3.4   | Adjustments and cooperation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.4.1 | The Parties agree that any net temporary  differences  between tax and accounting  values as of
         31 December 2002,  summarised on a company by company level within the Navion Group,  including
         tax losses carried forward,  shall be off-set by group contributions  between the Statoil Group
         and the Navion Group.  Any  differences  between the  allocation  of the Purchase  Price to the
         different   shareholdings   within  the  Navion   Group,   and  the  tax  values  of  the  same
         shareholdings, shall not be compensated between the Parties.

         The Sellers  confirm that,  unless  otherwise  required by the Buyer,  no  depreciation  on the
         Vessels will be made by Navion Offshore Loading for the fiscal year 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|3.4.2 | The  Parties  agree,  that if and to the extent the Navion  Reorganisation  shall not have been
         completed  by the  Effective  Date,  the net cash  flows as from the  Effective  Date  from any
         business and  operations  which may be carried out by a Statoil  Group  company,  and which are
         intended to be part of the Navion  Groups  business  and  operations,  shall be for the Navion
         Groups  benefit and account,  and be allocated and  transferred  to Navion (or relevant  Group
         Member) by the relevant  Statoil  Group company on a monthly basis within 10 Business Days from
         the end of each  month  and until  the  relevant  part of the  Navion  Reorganisation  has been
         completed,  together  with  interest  thereon at the rate set out in Clause 3.2.3 from the date
         the cash flow arises until the date of actual  transfer  payment to or from the relevant  Group
         Member.  Accordingly,  any net cash flows earned by a Group Member as from the  Effective  Date
         from a part of the  Navion  Groups  business  and  operations  which,  as  part of the  Navion
         Reorganisation,  is  intended  to be taken over by a Statoil  Group  company,  shall be for the
         Statoil Groups  benefit and account and shall be paid and transferred  from the relevant Group
         Member to the relevant  Statoil Group company  pursuant to the  principles  set out above.  The
         Parties  shall  cooperate  on a good faith  basis to make and agree any  adjustments  as may be
         necessary to effect the above.
|3.5   | Payment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3.5.1 | Payment  of the  Purchase  Price by the  Buyer  together  with  interest  thereon  computed  in
         accordance  with Clause  3.2.3,  including the release and transfer of the Signing Date Payment
         to the Sellers  together  with any interest  accrued  thereon for the benefit of the Sellers as
         per Clause  3.5.2,  shall take place for value on Closing as  contemplated  in Clause 10 and in
         accordance  with  the  Sellers  payment  instructions  and  account  details,  which  shall be
         notified  in writing by the  Sellers to the Buyer not less than three (3)  Business  Days prior
         to Closing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|3.5.2 | The Signing Date  Payment  shall be payable by the Buyer to the Sellers on the Signing Date or,
         of this is not a Business Day, on the first  Business Day  thereafter  in  accordance  with the
         Sellers  payment  instructions.  The  Signing  Date  Payment  shall  be paid  into a  separate
         interest-bearing  account opened  jointly in the names of the Buyer and Statoil,  with interest
         accruing to the benefit of the Buyer from the Signing Date to the  Effective  Date,  and to the
         benefit of the ultimate  beneficiary  of the Signing Date  Payment from the  Effective  Date to
         the date of payment out.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|3.5.3 | If, for any reason not  attributable  to the  Sellers,  the Buyer does not make payment in full
         on the relevant  due date,  default  interest  shall accrue at a rate of 6 months USD LIBOR + a
         margin of 4  percentage  points per annum from the due date till the  relevant  amount has been
         received in full.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

|4.  | MUTUAL REPRESENTATIONS AND WARRANTIES                                                    
|--- | -----------------------------------------------------------------------------------------
|4.1 | Each of Statoil, Statpet and the Buyer represents and warrants to the other Parties that:

| | (a) | (A) in the  case of  Statoil,  Statoil  represents  and  warrants  that it is a public
                  limited  liability  company duly  incorporated  and validly existing under the laws of
                  the Kingdom of Norway,  (B) in the case of Statpet,  Statpet  represents  and warrants
                  that it is a private limited  liability company duly incorporated and validly existing
                  under the laws of the Kingdom of Norway,  and (C) in the case of the Buyer,  the Buyer
                  represents  and  warrants  that  it  is  a  private  limited  liability  company  duly
                  incorporated and validly existing under the laws of the Kingdom of Norway;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | the entering into by it of this  Agreement  has been duly  authorized by all necessary
                  corporate action;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (c) | the person  executing  this  Agreement on behalf of such Party is duly  authorized and
                  empowered to do so;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (d) | the entering into by it of this  Agreement  and the  consummation  of the  Transaction
                  will not violate or  contravene  (A) its by-laws or articles of  association,  nor (B)
                  any laws,  regulations,  governmental or judicial  decrees,  decisions or other public
                  restrictions  applicable  to it, or (C) any  contractual  obligation  or limitation by
                  which it is bound; and                                                                                                                                                                                                                                                                      
| | (e) | this Agreement  constitutes  (subject only to  prohibition  by competition  and/or any
                  other  relevant  regulatory  authorities)  the valid and binding  obligations  of such
                  Party, enforceable against it in accordance with its terms.                                                                                                                                                                                                                                                                                                                                                                                                                                                   

|5.    | REPRESENTATIONS AND WARRANTIES OF STATOIL AND STATPET                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5.1   | Statoil representations as of the Signing Date
Statoil represents and warrants to the Buyer as of the Signing Date, that:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|5.1.1 | Navion Corporate Organization

         Navion and the Navion  Subsidiaries  are companies  duly  organized and validly  existing under
         the laws of the jurisdictions of their respective incorporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|5.1.2 | Capitalization of Navion. Title to the Shares

         The Shares  constitute  all of the share  capital of Navion,  all of which are fully paid.  All
         the Shares are free and clear of any  Encumbrances.  Statoil and Statpet are the sole owners of
         the Statoil Shares and the Statpet  Shares,  respectively,  and (save as  contemplated  by this
         Agreement)  there are no outstanding  option rights or other rights to purchase,  subscribe for
         or otherwise acquire any shares in Navion.                                                                                                                                                                                                                                         
|5.1.3 | Navion Subsidiaries

         All of the shares in the Navion  Subsidiaries  are owned,  directly or  indirectly,  by Navion,
         and the share capital of each such Navion Subsidiary is set out in Schedule 5.1.3 hereto.

         All the shares in the Navion  Subsidiaries  are  issued and fully  paid,  free and clear of any
         Encumbrances.  There are no outstanding  options or other rights to purchase,  subscribe for or
         otherwise acquire any of the shares in any of the Navion Subsidiaries.                                                                                                                                                                                                                                            
|5.1.4 | Title to the Vessels

         Navion Maritime AS,  Rasmussen  Navion KS or Navion  Shipping AS owns and has marketable  title
         to all the  Vessels,  all of which  are free and clear of  Encumbrances,  except  for  maritime
         liens  incurred  in the  ordinary  course of  business  and  which  will be  discharged  in the
         ordinary course of business.                                                                                                                                                                                                                                                                                                                                                                                         
|5.1.5 | Patents and Trademarks

         Group Members have title to,  ownership of or valid  licenses to use, all patents,  trademarks,
         service marks, trade names, copyrights,  trade secrets,  information and other intellectual and
         industrial  property  rights which it uses in the  performance of its business.  Schedule 5.1.5
         sets out a list of patents  which will be  retained  by Group  Members or  transferred  free of
         charge to Statoil (or subsidiary), respectively, prior to Closing.                                                                                                                                                                                                                                        
|5.2   | Representations by the Sellers as of the Effective DateVessels in Class on Effective Date

         The Sellers  represent and warrant that, as of the Effective  Date, the Vessels with everything
         belonging  to them shall be as they were at the time of the Buyers  inspection,  fair wear and
         tear  excepted.  However,  each of the Vessels shall be maintained in class without any overdue
         condition/recommendation  by  Class  or  other  relevant  authority,  free  of  average  damage
         affecting  the  Vessels  class,  and  with  her   classification   certificates  and  national
         certificates,  as well as all other  certificates  the  Vessel  had at the time of  inspection,
         valid and unextended.

|5.3   | Statoil representations as of the Signing Date and the Effective Date

         Statoil has  presented  to the Buyer,  prior to the Signing  Date,  a draft of the Signing Date
         Disclosure  Letter,  which  letter has been  accepted by the Buyer.  An updated  version of the
         Signing Date Disclosure Letter,  being the Closing Disclosure Letter,  shall be provided to the
         Buyer at least five (5) Business  Days prior to Closing.  The Closing  Disclosure  Letter shall
         be identical to the Signing Date  Disclosure  Letter in all material  respects,  except that it
         shall make  reference  to the Annual  Accounts and reflect  changes  that have  occurred in the
         ordinary   course  of  business  after  the  Signing  Date   including,   without   limitation,
         circumstances  in connection  with the Navion  Reorganisation  which may affect the accuracy of
         any of the  representations  and  warranties  of Statoil set out herein.  Subject as  aforesaid
         Statoil  represents  and warrants  that,  to the best of its knowledge and belief (after having
         made  reasonable  enquiries  to  satisfy  itself  as to the  accuracy  and  correctness  of the
         following), as of the Signing Date and the Effective Date:
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5.3.1 | Financial Statements

         The audited  balance  sheet of Navion and the Navion Group and the related  audited  statements
         of profit and loss and cash flow of Navion and the Navion  Group,  respectively,  including any
         related  notes,  for the fiscal years ended 31 December  2001,  2000 and 1999 together with the
         reports  thereon from the Current  Auditors (the Financial  Statements)  are consistent with
         the  books  and  records  and give a true and fair  view of  Navions  and the  Navion  Groups
         financial   position,   assets  and  liabilities  as  of  31  December  2001,  2000  and  1999,
         respectively,  and for the profits and loss and results of operations  and the  statutory  cash
         flow  statements  for the periods then ended,  have been prepared in accordance  with Norwegian
         laws and  regulations  and NGAAP as  applied  on a  consistent  basis  throughout  the  periods
         covered thereby.  For the purposes of the Closing Disclosure  Letter, the above  representation
         and warranty shall be true for the Annual Accounts.                                                                                                                                                                  
|5.3.2 | Books and Accounts

         All Group Members have properly kept and maintained  all necessary  books of accounts and other
         statutory  books and records,  and prepared (to the extent  applicable)  all annual reports and
         accounts in accordance  with  relevant  legislative  requirements,  and made all reports to and
         filings in respect thereof with appropriate official authorities as required by law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|5.3.3 | Tax Matters

         Each Group Member has                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

| | (a) | duly filed all tax returns  required to be filed by it in a timely  fashion,  which tax returns
                  are true, correct and complete in all material respects;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | paid all taxes due and payable by it.

There are no proceedings pending or threatened against any Group Member in respect of taxes.                                       

|5.3.4 | Assets

         Each Group  Member  owns or leases  all assets  necessary  for it to carry on its  business  as
         presently  conducted,  and  such  assets  are  in  all  material  respects  in  good  operating
         condition,  except for normal wear and tear,  and  maintained and serviced on a timely basis in
         accordance with good industry  practice.  None of the assets of the Navion Group are pledged as
         security for the obligations of the Sellers or their affiliates (other than the Navion Group).
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5.3.5 | Environmental Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

| | (a) | The Navion Group is in compliance  with all applicable  environmental  laws, and holds
                  all applicable environmental permits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | There has not been,  there is no  existing  basis  for,  nor is there  currently,  any
                  governmental or other  investigation,  enquiry or disciplinary  proceeding relating to
                  any alleged  breach of any  environmental  law or  environmental  permit by the Navion
                  Group  and,  as far as Statoil is aware,  none is pending or  threatened,  and which -
                  individually  or in combination  with any other such  breach(es)  is likely to result
                  in a cost (exclusive of  out-of-pocket  expenses and insurance  cover, if relevant) to
                  the Navion Group in excess of NOK 10 million.

|5.3.6  | Insurances

         The  Navion  Group  has taken  out,  maintains  and will  maintain  to  Closing  all  customary
         insurance  policies  covering  the Vessels  and the  operations  of the  business of the Navion
         Group,  which  insurances  are placed  with  reputable  insurers  in  amounts  and on terms and
         conditions  believed by Statoil to be on market terms and in accordance  with market  practice.
         No Group  Member has done or omitted to do anything to render the  insurance  coverage  void or
         voidable.  All events which could justify an insurance  claim have been timely declared to each
         insurance  company.  At the date of the Agreement,  there is no material claim which has arisen
         and remains outstanding under any of the policies.                                                                                                                                                         
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5.3.7  | Employees

         Since 1 January  2000 no Group  Member  has been  involved  in any labour  dispute of  material
         importance  with any employee of the Navion  Group,  any labour  union,  staff  association  or
         other body  representing  the employees,  and no event has occurred  which could  reasonably be
         expected to give rise to any such dispute or action.

         Statoil and Navion have  complied  with all legal  obligations  to inform and consult  with the
         employees  and/or  their  representatives  in the Navion  Group in  connection  with the Navion
         Reorganisation and the Transaction.

         No employee of any Group Member will receive any additional  salary,  fee or other benefit as a
         result of this Agreement or Closing.                                                                                                                                                                    
|5.3.8  | Litigation and investigations

         Except  as  disclosed  in  Schedule  5.3.8,  there  are no  claims,  actions,  suits,  legal or
         governmental  proceedings,  labor disputes or  investigations  pending or threatened before any
         court,  arbitrator  or  governmental  authority,  brought by or against any Group  Member,  and
         there are no  circumstances  reasonably  likely  to give  rise to any such suit or  proceeding,
         which  if adversely  determined   individually  or in the  aggregate is likely to result in a
         final  decision  with a cost  (exclusive  of costs and  insurance  cover,  if  relevant) to the
         Navion  Group in  excess  of NOK 10 mill.  No  investigation  or  enquiry  is being or has been
         conducted by any fiscal,  regulatory  or other  governmental  body in respect of the affairs of
         the Navion Group, and no such investigation is pending, threatened or expected.
|5.3.9  | Consents, licences and permits

         No consent from any  governmental  authority is required for the consummation by the Sellers of
         the  Transaction  or for the  implementation  of the Navion  Reorganisation.  The Group Members
         have obtained all licences,  consents,  permits and authorizations required for carrying on the
         business of the Navion Group as currently  conducted,  and there are no facts or  circumstances
         in existence which may lead to any such licences,  consents,  permits or  authorizations  being
         revoked, modified or not renewed for any reason attributable to the Sellers or a Group Member.                                                                                                                                                                                                                                                                                                           
|5.3.10 | The Contracts

         The Contracts  constitute  valid and binding  agreements.  Except to the extent  resulting from
         the transfer of the shares in Navion  Maritime AS from Navion to a member of the Statoil  Group
         prior to the Effective Date, no Group Member is                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

| | (a) | in any  default  under any  Contract  to which any  Group  Member is a party,  and no event has
                  occurred  which in relation to a Group  Members  performance  thereunder  which would
                  constitute  such a default,  in either  case which  would  entitle  the other party to
                  cancel or terminate the relevant Contract;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | a party to any  Contract  in  respect  of which  the  counterparty  thereto  has  breached  its
                  obligations  in a manner which would  entitle the  relevant  Group Member to cancel or
                  terminate the relevant Contract;                                                                                                                   
| | (c) | a party to or  bound  by any  type of  contractual  agreement  or  arrangement  not made in the
                  ordinary course of its respective business; or                                                                                                                                                                                                              
| | (d) | a party to or bound by any  agreement  or similar  arrangement  restricting  its or the Groups
                  ability to enter into or engage in any market or line of business.                                                                                                                                                                                          

|5.3.11 | Accuracy of Information

         To  the  best  of  the  Sellers  knowledge,  the  Sellers  representations,   warranties  and
         statements,  as well as the information  contained in the Disclosed  Information,  are true and
         correct in all material  respects,  none of which  contains any untrue  statement of a material
         fact  or  omits  to  state  any  material  fact   necessary  in  order  to  make  any  of  such
         representations, warranties or statements not misleading.
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5.3.12 | Absence of Certain Changes

         Other  than the  transactions  undertaken  in  connection  with the  Navion  Reorganisation  as
         contemplated  by Schedule 1.1 Navion  Reorganisation,  since 1 July 2002,  the Navion Group has
         conducted its business only in the ordinary  course  consistent  with past  practices.  Since 1
         July 2002, with respect to the business of the Navion Group, there has not been:                                                                               

| | (i)   | any event or  combination  of events  affecting  the  business  of the  Navion  Group,
                  which will have a negative financial consequence in excess of USD 75 million;                                                                                                   
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii)  | any  obligation or liability  incurred  (including,  without  limitation,  guarantees,
                  indemnities or similar  obligations)  other than obligations and liabilities  incurred
                  in the ordinary course of business or reflected in the Annual Accounts;
| | (iii) | any  purchase or sale or other  disposition  (or any  agreement  or other  arrangement
                  thereof) of any  substantial  property or assets other than in the ordinary  course of
                  business and consistent with past practice of the Navion Group.        

|5.4   | Statpet representations as of the Signing Date and Closing

         Statpet  represents and warrants to the Buyer that as of the Signing Date and Closing,  Statpet
         is the sole owner of the Statpet  Shares and (save as  contemplated  by this  Agreement)  there
         are no  outstanding  option  rights or other  rights to  purchase,  subscribe  for or otherwise
         acquire any Statpet Shares in Navion.                                                                                                                                                                                                                                                      
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5.5   | No representation regarding SDFI

         The Sellers make no representation or assurance as to the future  relationship  between Statoil
         and SDFI.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|6.    | REPRESENTATIONS AND WARRANTIES OF BUYER

         The Buyer represents and warrants to the Sellers as of the Signing Date and Closing that:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|6.1   | Financial capability, Acquisition for its own account, No Litigation

         The Buyer has  sufficient  funds to undertake the  Transaction  and is acquiring the Shares for
         its own  account  and not as nominee  or agent.  No action,  suit or  investigation  is pending
         which could  delay,  alter or prevent the Buyers  ability to complete the  Transaction  and/or
         fulfill its obligation under the Agreement.                                                                                                                                                                                                                                      
|6.2   | Consents and Approvals, Non-violation

         The  execution,  delivery and  performance  by the Buyer and the Buyer Parent of this Agreement
         and the Buyer Parent Guarantee  respectively  require no consent or waiver of any governmental,
         administrative  or regulatory  authority or any court,  domestic or foreign.  The entering into
         and  performance by the Buyer of its  obligations  under this Agreement and the issuance of the
         Buyer  Parent  Guarantee  by the Buyer  Parent does not violate any  agreement  or  contractual
         undertaking or restriction by which the Buyer and/or the Buyer Parent, respectively, is bound.
|7.    | COVENANTS OF SELLERS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|7.1   | Conduct of business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|7.1.1 | As from the Effective Date and until Closing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

| | (A) | the Sellers  shall cause the Navion Group to conduct its business  and  operations  in
                  the ordinary  course,  exercising all  reasonable  due care and attention,  consistent
                  with  the  standard  of  a  prudent  operator  and  materially  consistent  with  past
                  practices.  The Sellers will not without the prior consent of the Buyer (which consent
                  shall not be unreasonably withheld) permit any Group Member to:
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | conclude  new-building  contracts for any type of vessel,  or purchase second
                           hand vessels of whatever nature;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | materially amend (other than to change the contractual  party as contemplated
                           by  the  Navion  Reorganisation),  change  the  applicable  charter  rate  or
                           terminate  any of the existing  T/Cs in respect of any of the  Vessels,  time
                           chartered  vessels or the COAs or the Frame  Agreements  in  existence at the
                           Signing Date.  Provided,  however,  that the  conclusion of new time charters
                           and/or COAs of less than 12 months  duration in the normal course of business
                           shall be permitted;                                                                                                                                                                                                                                                                                                                                                  
| | (c) | sell  any of the  Vessels,  except  as  contemplated  as part  of the  Navion
                           Reorganisation;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (d) | amend any existing employment,  severance or consulting agreement,  grant any
                           general  increase in the  compensation  of officers or  employees,  except in
                           either  case  in  accordance  with  pre-existing  contractual  provisions  or
                           consistent with past practices;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (e) | fail to keep in full force and effect any insurance  comparable in amount and
                           scope to coverage maintained by it, or on behalf of it, on the Signing Date;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (f) | take any action that would cause any of the  representations  and  warranties
                           pertaining  to the  Navion  Group in this  Agreement  not to remain  true and
                           correct in all material respects;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (g) | borrow  money  in  excess  of  USD 10 million  (or the  equivalent  in  other
                           currencies)  (except  for inter  company  loans  within the  Navion  Group or
                           between a Group Member and a member of the Statoil  Group for bridge  finance
                           purposes),  provided,  however,  that Navion  shall be entitled to draw funds
                           under  the  existing  credit  facility  with  Den  norske  Bank  ASA  (or any
                           replacement  thereof) within the existing limits, and provided further,  that
                           any  member  of the  Navion  Group  shall  be  entitled  to enter  into  loan
                           agreements for the purpose of the Navion  Reorganisation and/or the financing
                           of the VOC investments  undertaken by Navion;  provided such loan commitments
                           are for a duration of less than 12 months;
| | (h) | make any loan,  advance  or  capital  contribution  to or  investment  in any
                           Person  (other  than a Group  Member)  in  excess of USD 10  million  (or the
                           equivalent in other  currencies),  provided that any such permitted  payments
                           shall be in accordance with existing  policies within the Navion Group and in
                           compliance with the Sarbanes-Oxley Act;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | (i) | make any change in any method of accounting or accounting principle,  method,
                           estimate  or  practice  except for any such  change  required  by reason of a
                           concurrent change in NGAAP;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (j) | enter  into any  contracts,  arrangements,  settlement  other than on  commercially  reasonable
                           terms consistent with an arms length transaction; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | (k) | make any  personnel  changes in key  positions or alter the number of  employees  except in the
                           circumstances identified in Section 8.3(c).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

| | (B) | the Sellers shall cause the Navion Group to:
| | --- | --------------------------------------------

| | (a) | file,  when due or  required,  state,  foreign and other tax returns and other
                          reports  required  to be filed and pay when due all taxes,  assessments,  fees
                          and  other  charges  lawfully  levied  or  assessed  against  it,  unless  the
                          validity  thereof is  contested in good faith and by  appropriate  proceedings
                          diligently conducted;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | keep its books of  account,  records and files in the  ordinary  course and in
                          accordance with existing practices;                                                                                                                                                                                                                                                                                                             
| | (c) | continue to maintain  existing  relationships  with  suppliers  and  customers
                          relating   to  the  Navion   Groups   business,   to  the  extent  that  such
                          relationships  are, at the same time, judged to be economically  beneficial to
                          the Navion Group.                                                                                                             

| | (C) | the  Sellers  shall  permit  the  Buyer  to have one or more of its  nominated  senior
                  managers present in Navions  offices,  either full time or part time, for the purpose
                  of becoming  familiar  with the  operation of the business and to be fully  exposed to
                  the day-to-day operations of Navion.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.1.2 | As from the Signing Date and until  Closing,  the Sellers  undertake to keep the Buyer  advised
         on a regular  basis of material  developments,  changes or  important  opportunities  which may
         present themselves to any Group Member and of which they become aware.                                                                                                                                                                                                                                                            
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|7.2   | Sale of Ownership Shares in Fields

         Statoil  covenants  and agrees that if it sells or swaps any  ownership  share it has in an oil
         field as of the Signing Date where Navion has a  contractual  entitlement  to carry such oil on
         behalf  of  Statoil,  it shall  use its  best  endeavours  to  procure  that the  buyer of such
         ownership  interest  enters into an agreement  with Navion to  transport  such crude oil on the
         same terms and conditions as applicable between Statoil and Navion.

|8.  | COVENANTS OF THE BUYER                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|8.1 | Covenants prior to Closing

         Within 14 Business Days of Statoils  written  request,  the Buyer shall procure that the Buyer
         Parent  provides  to Statoil  (on  behalf of Navion)  original  Performance  Guarantees  to the
         counterparties under the Contracts.

         The Buyer  undertakes  to the Sellers  that if,  prior to Closing,  the Buyer is of the opinion
         that  there  has been a breach  by the  Sellers  of any of their  representations,  warranties,
         covenants or  agreements  under this  Agreement,  the Buyer shall notify the Sellers as set out
         in Clause 11.1 (b), in order to provide the Sellers with the opportunity to cure such breach.

         While the Parties share the opinion that the  Transaction  does not create any  competition law
         concerns,  the Buyer  undertakes  to the  Sellers  that if,  prior to  Closing,  any  competent
         competition  authority  having  jurisdiction  in  the  matter  shall  request  or  require  any
         reorganisation  of,  divestiture  from or other  adjustment  to be made to the business  and/or
         operations  of the  Navion  Group  or the  Buyer  and/or  other  companies  owned  directly  or
         indirectly  by the Buyer Parent in order to approve of the  Transaction,  the Buyer shall  and
         it  shall  procure  the  Buyer  Parent  will  -  use  its  best  efforts  to   diligently   and
         constructively  enter into negotiations  with the relevant  authorities with a view to reaching
         an acceptable  solution  which will remove any  competition  concern  expressed by the relevant
         authority,  it being  understood  and agreed,  however,  that any such dialogue or process with
         the  authorities  shall not,  other  than in case of a  preliminary  prohibition  as set out in
         Clause 10.2.1 (f),  prevent or delay Closing.  The Buyer will keep the Sellers promptly advised
         of any  correspondence  and/or meetings with any such competition  authorities and will, to the
         extent  reasonably  practical,  consult with the Sellers in advance,  it being understood that,
         subject  as stated in Clause  10.2.1  (f),  it shall be the risk of the Buyer  solely to obtain
         any  relevant  clearance,  whether  before or after  Closing.  Upon the  Buyers  request,  the
         Sellers  undertake to support the Buyer in any dealings with the  competition  authorities  and
         shall promptly provide the Buyer with all  information,  analysis and data in the possession of
         the Sellers or the Navion Group which may be of assistance in the  preparation  of  submissions
         to the relevant competition authorities.
|8.2 | Confidentiality obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

| | (a) | The Buyer  acknowledges  that it has received  information  in respect of the business
                  and financing of the Navion Group and its dealings,  transactions,  affairs, plans and
                  proposals,  all of which is, or may be,  secret or  confidential  and important to the
                  business  of  the  Navion  Group  (Confidential   Information)  including,   without
                  limitation,  confidential or secret  information  relating to the Navion Groups trade
                  secrets,   know-how,  ideas,  business  methods,  finances,  prices,  business  plans,
                  marketing  plans,  development  plans,  manpower plans,  sales targets and statistics,
                  customer lists and  relationships,  computer  systems and software.  The Buyer further
                  acknowledges  that the disclosure of  Confidential  Information  (whether  directly or
                  indirectly)  to actual or potential  competitors of the Navion Group might place it at
                  a competitive disadvantage and might do damage to its business.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | The Buyer  accordingly  agrees and undertakes  that (i) until Closing,  or (ii) in the
                  event that Closing shall not take place or this Agreement is  terminated,  at any time
                  after the date hereof,  it will not, and it will procure that neither the Buyer Parent
                  nor any other  Person it or the Buyer  Parent  controls  or has  engaged,  retained or
                  communicated with in relation to the Transaction will:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

| | (1) | disclose  Confidential  Information  to  any  third  party  except  to  those
                           authorised by the Sellers;                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | use  Confidential  Information for any other purpose than the preparation and
                           consummation of the transactions contemplated by this Agreement; or                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (3) | through any failure to exercise all due care and  diligence,  cause or permit any  unauthorised
                          disclosure of any  Confidential  Information,  provided,  however,  that these
                          restrictions   on  the  Buyer  will  cease  to  apply  to  information   which
                          (otherwise  than  through  the default by the Buyer,  the Buyer  Parent or any
                          such Person) becomes available to the public  generally,  or is required to be
                          disclosed by law, accounting rules or regulations.

|8.3 | Covenants after Closing

The Buyer undertakes  for a period of at least twelve (12) months from Closing to:
|--- | -----------------------------------------------------------------------------------------------------------

| | (a) | maintain the Navion head office in Stavanger;                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | conduct  the Navion  Groups  business  and  operations  from the head  office in its  ordinary
                  course and consistent with past practice; and                                                                                                                                                                                                                                                                                                
| | (c) | subject as set out in Schedule  8.3 (c),  maintain  the present  level of  employees;  provided
                  however the Buyer shall not be  obligated  to hire new  employees  to replace  persons
                  who die,  become  disabled or otherwise  unable to work,  voluntarily  terminate their
                  employment  or who are  terminated  for  cause  in  accordance  with  the  laws of the
                  Kingdom of Norway.

|9.   | MUTUAL COVENANTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|9.1  | Further Assurances

         Upon the terms and subject to the conditions of this  Agreement,  each of the Parties agrees to
         use its best  endeavors  to take or cause to be taken all action  and to assist  and  cooperate
         with the other Party in doing all things  necessary,  proper or  advisable  to  consummate  the
         Transaction.                                                                                                                                                                                                                                                                                                                    
|10.  | CONDITIONS FOR SIGNING AND CLOSING

         The  obligations of the Parties to consummate the  Transaction  (the  Closing) are subject to
         the fulfillment of the following deliveries and conditions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|10.1 | Signing deliveries of the Buyer

         By signing this  Agreement,  the Buyer  confirms that as of the Signing Date it is not aware of
         any facts or  circumstances  that could give rise to a claim  against the  Sellers  under or in
         connection with the  representations  and warranties or otherwise under this Agreement and that
         in  particular  the Buyer has been  given the  opportunity  to  inspect  the  Vessels  and that
         irrespective  of  whether  such  inspection  has  taken  place or not,  the  Vessels  have been
         accepted as is.

         On signing of this Agreement, the Buyer shall deliver to the Sellers:

| | (a) | the Buyer Parent Guarantee,                                                                                                                                                                                                                                                                                                           
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | evidence  acceptable  to the  Sellers  that  (i)  the  Signing  Date  Payment  will be
                  effected on the Signing Date, or if this is not a Business Day, on the first  Business
                  Day  thereafter,  and (ii) the Buyer has the financial means to pay the Purchase Price
                  at Closing.

|10.2   | Conditions to the Parties Obligations on Closing            
|------ | -------------------------------------------------------------
|10.2.1 | The consummation of the Transaction shall be subject only to:

| | (a) | performance by the Parties of their respective obligations under this Agreement on or prior
                  to Closing;                                                                                                                                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | the receipt by the relevant Parties of the documents referred to in Clauses 10.4-10.5;                                                                                                                                                                                                                                                                                                       
| | (c) | the Navion Reorganisation having been consummated in all material respects, or failing
                  necessary consent from any third party on terms and conditions acceptable to the
                  Parties, suitable back-to-back arrangements or alternative acceptable solutions
                  having been put in place as contemplated in Schedule 1.1 Navion Reorganisation;
| | (d) | any adjustment to the Basic Purchase Price shall have been determined in accordance with
                  Clause 3;                                                                                                                                                                                                                                                                         
| | (e) | all necessary consents from relevant  contractual  parties regarding the Transaction shall have
                  been obtained by Navion or the relevant Group Member; and                                                                                                                                                                                                                  
| | (f) | no prohibition  against the  consummation  of the  Transaction or order  requiring the
                  divestiture  of the Shares or  otherwise  prohibiting  the  ownership  by the Buyer of
                  Navion having been imposed by any relevant  competition  authority having jurisdiction
                  in the matter.                                                    

|10.2.2 | For the  avoidance  of doubt it is agreed that (except as  contemplated  in Schedule 1.1 Navion
         Reorganisation)  neither  the need to make  back-to-back  arrangements  or other  solutions  in
         connection  with the  Navion  Reorganisation  nor the  lack of  clearance  from  any  competent
         competition  authority shall per se or otherwise  constitute  grounds for not  consummating the
         Transaction.                      
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.3   | Closing

         The  Parties  agree to notify each other in writing as soon as all  conditions  for Closing set
         forth in this  Clause 10 have been met,  whereupon  Closing shall take place fourteen (14) days
         thereafter  and no later  than  30 June  2003.  Closing  shall  take  place at the  offices  of
         Statoil,  or on such other place  and/or date as the Sellers and the Buyer may  mutually  agree
         upon in writing.
|10.4   | Closing deliveries of the Sellers

        On Closing, the Sellers shall deliver or make available to the Buyer:                                                                                                                                                                                                                                                                                                                                                      

| | (a) | evidence of any consents or waivers  required from any third party to  consummate  the
                  Transaction;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | letters of  resignation  of the members of the Board of Directors of the Group Members
                  who are not employees of a Group Member,  substantially in the form attached hereto in
                  Schedule 10.4 (b);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | (c) | Certificates  of  Ownership  and  Encumbrances  dated not more than seven (7) Business
                  Days  prior to  Closing in respect of the  Vessels  from the  relevant  ship  register
                  evidencing that (i) a Group Member is the registered owner thereof,  and (ii) the said
                  Vessels are free and clear of registered Encumbrances;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (d) | class  certificates  in respect of the Vessels  dated not more than seven (7) Business
                  Days prior to Closing  evidencing that there are no overdue  recommendations  by class
                  on any of the Vessels,  it being agreed that notes,  if any, which are accepted by the
                  Classification  Society are not to be taken into account.  It is agreed that the loss,
                  or a compromised,  arranged or  constructive  total loss of one or more of the Vessels
                  or any of the time  chartered  vessels shall have no  consequences  whatsoever for the
                  obligation of the Parties to consummate the Transaction;                                                                                                                                                                      
| | (e) | a statement in writing dated as of Closing  confirming (i) the accuracy and  correctness of the
                  representations  and warranties of the Sellers set out in Clauses 4 and 5 (as the same
                  may be qualified in the Closing Disclosure  Letter),  and (ii) that the Sellers to the
                  best of their  knowledge are not aware of any facts or  circumstances  that could give
                  rise to a claim  against  the Navion  Group  which  could  reasonably  be deemed to be
                  material in relation to the Transaction;                                                                                                                                                                                                                                                                                      
| | (f) | a statement  in writing,  dated as of Closing on behalf of each of the  Sellers,  substantially
                  in the form attached  hereto in Schedule  10.4.  (f),  certifying  that (i) the Navion
                  Reorganisation   has  been   implemented  in  accordance   with  Schedule  1.1  Navion
                  Reorganisation  , (ii) as at the Effective Date, the Vessels were in the same physical
                  condition  as they  were at the time of the  Buyers  inspection,  fair  wear and tear
                  excepted,  and  (iii)  as at the date of  Closing  the  Vessels  are  owned by  Navion
                  Offshore  Loading  or  Navion  Shipping  AS,  all of  which  are  free  and  clear  of
                  Encumbrances,  except for maritime liens incurred in the ordinary  course of business;
                  and
| | (g) | evidence  acceptable  to the Buyer  that any loan  outstanding  from  Navion (or other
                  Group Member) to a Statoil Group company will be repaid by the relevant  Statoil Group
                  company on the date of Closing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

|10.5 | Closing deliveries of the Buyer

         On Closing, the Buyer shall deliver or make available to the Sellers:
|---- | ---------------------------------------------------------------------------------------------------------------

| | (a) | evidence  acceptable  to the Sellers  confirming  that (i) the payment of the Purchase
                  Price has been made by the Buyer  pursuant to the  provisions  of Clause 3.5, and (ii)
                  any loan  outstanding  by Navion (or other Group  Member) to a Statoil  Group  company
                  will be repaid as contemplated in Clause 10.6 on the date of Closing;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | a statement in writing dated as of Closing  confirming  that the Buyer is not aware of
                  any facts or  circumstances  that could give rise to a claim against the Sellers under
                  or in connection  with the  representations  and  warranties  or otherwise  under this
                  Agreement  substantially in the form of Schedule 10.5.(b); and       
| | (c) | a certificate  executed on Closing by a duly  authorized  senior officer of the Buyer,
                  substantially  in the form  attached  hereto  in  Schedule  10.5 (c),  certifying  the
                  accuracy and  correctness of the  representations  and warranties set forth in Clauses
                  4 and 6.                                                             

|10.6 | Closing Mechanics

         Subject to the terms and conditions of this Agreement and a detailed  closing  memorandum to be
         agreed by the Parties in accordance  with and embodying  customary  procedures and  principles,
         the Sellers  shall cause the  transfer of ownership to the Shares from the Sellers to the Buyer
         to be promptly  recorded in the share register book of Navion with the Computerised  Securities
         Register  (VPS) upon (i) payment by the Buyer of the Purchase  Price and (ii) repayment in full
         of any loan  outstanding  from  Statoil to a Group  Member at Closing  together  with  interest
         accrued  thereon at a rate of 3 months USD LIBOR + 17.5 bp per annum (the Statoil  Loan),  in
         respect of which the following shall apply:

         The Buyer may elect (i) to cause Navion (or other  relevant  Group Member) to repay in full the
         Statoil  Loan on the  date of  Closing,  or (ii) to  purchase  the  Statoil  Loan  and  related
         security from Statoil in  consideration  of the payment of an amount equal to the Statoil Loan.
         If Navion (or relevant  Group Member)  repays the Statoil Loan,  Statoil shall provide  written
         confirmation  that such loan has been repaid  forthwith  upon receipt of such funds from Navion
         (or relevant  Group  Member),  and shall  forthwith  discharge all security  granted in respect
         thereof.  If the Buyer purchases the Statoil Loan from Statoil,  Statoil shall  concurrent with
         the  payment  of the loan  amount to it,  assign  over to the Buyer  the  Statoil  Loan and all
         related  security  (if any) granted by any Group Member in  connection  with the loan.  Statoil
         shall,  not less than ten (10) Business Days prior to the date of Closing,  advise the Buyer of
         the amount of the Statoil Loan (such  statement to be updated on the date of Closing),  and the
         Buyer  shall,  not less than  seven (7)  Business  Days  prior to the date of  Closing,  advise
         Statoil  whether it will  purchase the Statoil Loan and related  security (if any),  or whether
         it shall cause Navion (or relevant Group Member) to repay such loan on Closing.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|11.  | BREACH OF AGREEMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|11.1 | Breach by the Sellers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

| | (a) | Compensation to be paid by the Sellers

                  The Sellers hereby agree,  in case of being in breach of any of their  representations
                  and warranties  contained in this Agreement,  to compensate the Buyer from and against
                  any  reasonably  foreseeable  net  losses  (after  tax)  suffered  by the  Buyer  as a
                  consequence  thereof in accordance with the following  provisions of this Clause 11.1,
                  provided that the Buyer has notified the Sellers in accordance with Clause 11.1 (b).                                                                                                                                                                                                                                                             
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | Compensation procedures

                  The Buyer shall  promptly  (and no later than 60 days after the Buyer becomes aware of
                  facts  sufficient  to show a claim  exists)  give the  Sellers  written  notice of any
                  matter  which  the Buyer  has  determined  may or could  (in  combination  with  other
                  current or potential  future claims) give rise to a right of  compensation  under this
                  Agreement.  The claim shall, if practicable,  include (i) an estimate of the amount of
                  the claim;  (ii) a reference  to the  relevant  Clause in this  Agreement  and a short
                  description of the basis for the claim;  and (iii) the  documentary  evidence which is
                  then available as proof of the claim.
| | (c) | Limitations on payments by the Sellers

                  Any  compensation  as  provided  for  in  Clause  11.1 (a)  shall  be  subject  to the
                  following limitations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

| | (1) | The Sellers  shall have no  liability  with respect to any single claim which
                           does not exceed 0.01 per cent of the Purchase Price.                                                                                                                                                                                                                                                                                   
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | The  Sellers  shall have no  liability  with  respect to any claim  until the
                           total amount of all claims  (excluding  the claims for which the Sellers have
                           no  liability  according  to Clause 11.1 (c) (4)) exceeds one (1) per cent of
                           the  Purchase  Price,  but shall  thereafter  be liable to the full extent of
                           such amount.
| | (3) | The Sellers shall have no liability  whatsoever  with respect to claims under
                           or in relation to this Agreement in excess of the aggregated  amount of fifty
                           (50) per cent of the Purchase Price.                                                                                                                                                                                          
| | (4) | The Sellers shall not be liable in respect of a claim from the Buyer:                                                                                                                                                                                                                                                                                                                                                                           

| | (i)   | if and to the extent any  disbursement,  damages  or loss  forming  the
                                 subject matter of such breach or claim shall be  recoverable  under any
                                 relevant  insurance  policy in place or would have been so  recoverable
                                 but  for a  change  in law or the  terms  of its  insurance  after  the
                                 Effective Date;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii)  | if and to the extent the Buyer or, if relevant,  the relevant Group Member,  has failed to take
                                   the  necessary  steps to mitigate the damage or loss caused by any of
                                   the Sellers  breach or such breach or claim is  attributable  to any
                                   act,  omission,  transaction or arrangement of the Buyer or any Group
                                   Member acting on the instructions of the Buyer;                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (iii) | if and to the extent  the loss  even if it is  claimed to be caused by a relevant  breach  is
                                   too  remote a  consequence  of the  alleged  breach  of the  relevant
                                   representation,  such as loss of opportunity,  loss of oil production
                                   and the like;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (iv)  | if and to the extent the Buyer  recovers  any damages or loss from a
                                   third party.

The Buyer  undertakes  to make its best efforts to recover as much as possible
                          of its claim for damages or loss under insurance  policies  referred to in (i)
                          above or from third  parties  as  described  in (iv)  above.  The Buyer  shall
                          notify the  Sellers  to the  extent  (i) and (iv)  above may apply.  The Buyer
                          shall  keep  the  Sellers  fully   informed  of  the   development   regarding
                          settlement  of these  claims.  If a claim is  recoverable  under the  Sellers
                          insurance  policies,  the Sellers shall likewise keep the Buyer fully informed
                          of the development regarding settlement of such claim.

| | (5) | The Buyer shall not be entitled to make any claim:
| | --- | --------------------------------------------------

| | (i)   | if the  claim  is  based on or  caused  by any fact or  circumstance
                                    which is  included  in the  Disclosed  Information  or is  otherwise
                                    known to the  Buyer or its  advisors  (advisors  meaning  advisors
                                    directly working for the Buyer in this  Transaction  having obtained
                                    the relevant  knowledge in  connection  therewith)  prior to Closing
                                    unless notified by the Buyer to the Sellers prior to Closing;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii)  | unless  otherwise  specifically  provided for in this Agreement,  to
                                    the  extent  that  sufficient  appropriate  reserve,   provision  or
                                    allowance  for the matter or liability  which would  otherwise  give
                                    rise to the claim has been made in  the Annual Accounts;                                                                                                                                                                                                                       
| | (iii) | if the claim  would  not have  arisen  but for a change in  legislation  or  practice  relating
                                    thereto made after the Effective Date.                                                                                                                                                                                                                                                                                                                                                                                                                                

| | (d) | Time limitations

       The  compensation  provided for in Clause 11.1 shall be subject to the following  time
                  limitations:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------

| | 1. | claims with  respect to taxation and  environmental  matters set out
                                    in  Clause  5.3.3 and  Clause  5.3.5  must be made on or before  the
                                    expiration of the applicable statute of limitation for such claims;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | a claim with  respect to any other  matters  must be made within two
                                    (2) years  after  Closing,  except  that any claim  with  respect to
                                    matters set out in Clause 5.3.12 (i) must be made before Closing.  

| | (e) | Subrogation

                  Upon  payment in full by the  Sellers  pursuant  to the  provisions  of Clause 11, the
                  Sellers  shall be  entitled  to the full  benefit  of all rights to  reimbursement  or
                  indemnification  from third parties  relating to the amount paid. The Buyer undertakes
                  that it will take all steps as may be  reasonably  requested  by the Sellers to effect
                  such   subrogation   and,  upon  request,   provide  the  Sellers  with  all  relevant
                  information  and documents in the  possession of the Buyer and relevant  Group Members
                  to enable the Sellers to pursue any such claim for reimbursement or indemnification.                                                                           
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (f) | SubrogationThird Party Claims

                  In  respect  of third  party  claims  which may give  rise to a right of  compensation
                  under this Agreement  (Third Party Claim),  the Buyer shall consult with the Sellers
                  regarding  its conduct of the Third Party Claim and take into  account any  reasonable
                  requirements  of the Sellers in  connection  with such  conduct.  The Buyer shall also
                  provide the Sellers with such  information  and copies of such  documents  relating to
                  the Third  Party Claim as the Sellers  may  reasonably  request.  No Third Party Claim
                  may be settled by the Buyer  without the prior written  consent of the Sellers  (which
                  shall not be unreasonably withheld).

|11.2 | Breach by the Buyer
|---- | -------------------

| | (a) | The Buyer hereby  agrees,  subject to  Clause 11.2 (b),  in case of being in breach of
                  any  of  obligations  under  this  Agreement,   to  compensate  the  Sellers  for  any
                  disbursements, losses or damages resulting therefrom.        
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | The Buyer  agrees in case of being in material  breach of any of its  obligations  set
                  out in Clause 8.3 to pay  liquidated  damages to the Sellers for each and every breach
                  in an amount equal to two (2) per cent of the Purchase Price.

|11.3 | General

         Clause 11 and/or  Clause 12 shall form the only  basis upon which any of the  Parties or Navion
         may bring  claims for  indemnification  or breach of  representations  or  warranties  (whether
         based on express or implied  representations  or warranties of any kind) against the other, and
         none of the  Parties or Navion may take any other  action  nor invoke  other  claims or grounds
         for  claims  in  respect  of  representations,  warranties  or  indemnifications  that it might
         otherwise  be  entitled  to  pursuant  to  applicable  law.  For the  avoidance  of doubt,  the
         foregoing  shall not limit the right of the Buyer to claim  compensation  for any breach by any
         of the Sellers of any of their other obligations under this Agreement.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|12.  | LIMITED INDEMNIFICATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|12.1 | Indemnification

         The Sellers  undertake to indemnify  Navion  against any net losses  (after tax) in  accordance
         with the  following  provisions  of this Clause 12,  provided  that the Buyer has  notified the
         Sellers  in  accordance  with  Clause  12.2.  This  indemnification  shall be limited to claims
         suffered by Navion as a reasonably forseeable consequence of any of the following events:                                                                                                                                                                                                                                                                                                                                                                                                         

| | (a) | payment by Navion  pursuant to the  « Sellers  Earnings  Guaranty »  as set out in Clause 27 in
                  Memorandum  of  Agreement  dated 31 August 2001  regarding  the sale of FPSO  « Navion
                  Munin »,  it being  understood  that Statoil  shall have the option at any time in its
                  discretion to request the said  guarantee  obligation to be  transferred  by Navion to
                  and be assumed by Statoil;                                                                                                                                                                                                                                                     
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | payment by a Group Member pursuant to the  « Overføringsavtale »  dated 1 August 2002 regarding
                  the sale of the LPG business of Navion;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (c) | tax payable by a Group  Member  arising  from the  operations  of the Navion Group prior to the
                  Effective  Date,  or  arising  in  connection  with  the  Navion  Reorganisation,   or
                  triggered  by the  change of  control  of the  Navion  Group in  connection  with this
                  Transaction.  For the avoidance of doubt, this tax  indemnification  shall not include
                  any  tax  liability  which  may  arise  in  relation  to a  deferred  capital  gain of
                  approximately  NOK 600  million  in Navion  related to the  transfer  of the shares in
                  Navion Shipping AS to Navion Shipping Holding AS in 2001; and
| | (d) | tax payable by a Group Member  arising as a consequence  of any group  contribution  given by a
                  company  within the Statoil Group to one or more Group  Members in the financial  year
                  2002 or later as provided for in Clause 3.2.1 (b).                                                                                                                                                                                                                                                                                                                                                                                                                                               

| | If a tax claim is levied  against a Group  Member,  Statoil  shall be entitled to contest  such
         claim on  behalf of  Navion  at  Statoils  cost and  expense,  in which  case the Buyer  shall
         procure  that  Navion  and  relevant  Group  Members  provide  free of charge to  Statoil  such
         assistance and documents as Statoil may reasonably require in connection therewith.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.2 | Procedure

         The Buyer shall  promptly  (and no later than sixty (60) days after the Buyer  becomes aware of
         facts  sufficient  to show that a claim exists) give the Sellers  written  notice of any matter
         which the Buyer has  determined may give rise to a right of  indemnification  under this Clause
         12. The claim shall, if practicable,  include (i) an estimate of the amount of the claim;  (ii)
         a reference to the relevant  Clause in this Agreement and a short  description of the basis for
         the claim;  and (iii) the  documentary  evidence which is then available as proof of the claim.
         If an indemnification  payment is made by the Sellers,  Clause 11.1 (e) shall apply accordingly
         in relation thereto.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|12.3 | Limitations on payments by Sellers

         The  Sellers  shall not be liable in respect of a claim  pursuant to this Clause 12 from Navion
         or the Buyer:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

| | (a) | if and to the extent any  disbursement,  damages or loss forming the subject matter of
                  such breach or claim shall be recoverable  under any relevant  insurance policy of the
                  Buyer  and/or the  relevant  Group  Member in place or would have been so  recoverable
                  but  for a  change  in law or the  terms  of its  insurance  after  the  date  of this
                  Agreement;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | if and to the extent the Buyer  and/or the  relevant  Group  Member has failed to take
                  the  necessary  steps to mitigate  the loss or such loss is  attributable  to any act,
                  omission,  transaction  or  arrangement of the Buyer or any Group Member acting on the
                  instructions of the Buyer;                                                                                         
| | (c) | if and to the  extent  the loss  even if it is  claimed  to be caused  by a  relevant
                  breach   is  too  remote  a  consequence  of  the  alleged  breach  of  the  relevant
                  representation, such as a loss of opportunity, loss of oil production and the like;                                                                                                                                         
| | (d) | if and to the extent the Buyer and/or the relevant  Group Member  recovers any damages
                  or loss from a third party;                                                                                                                                                                                                                                                                                                          
| | (e) | to the extent that  sufficient  appropriate  reserve,  provision or allowance  for the
                  matter or  liability  which  would  otherwise  give rise to the claim has been made in
                  the Annual Accounts.                                                                                                                                                                                                        

|     | The Buyer  undertakes  to ensure that the relevant  Group Member shall make its best efforts to
         recover  as much as  possible  of its  claim  for  damages  or loss  under  insurance  policies
         referred  to in (a) above or from third  parties as  described  in (d) above.  The Buyer  shall
         notify  the  Sellers  to the  extent  (a) and (d) above may  apply.  The Buyer  shall  keep the
         Sellers fully informed of the development  regarding  settlement of these claims. If a claim is
         recoverable under the Sellers insurance  policies,  the Sellers shall likewise keep the Buyer
         fully informed of the development regarding settlement of such claim.                                                                                                                                                                        
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|12.4 | Time limitations

         Clause 11.1 (d) shall  apply  accordingly  to any claim which may be brought  under this Clause
         12, except in relation to claims under Clause 12.1 (a) and/or (b).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|12.5 | Indemnification by the Buyer

         If it becomes necessary for Statoil and/or Navion Maritime AS to remain  responsible  towards a
         relevant third party (whether due to sub-contracting  arrangements,  guarantee  requirements or
         otherwise)  in order to effect  the  relevant  transfer  under,  and/or the  intended  economic
         effects in  relation  to the Navion  Reorganisation,  the Buyer and Navion  shall hold  Statoil
         and/or  Navion  Maritime  AS (as the case  may be)  fully  indemnified  and  harmless  from any
         liability or economic  consequence  whatsoever resulting therefrom (except to the extent due to
         the gross  negligence or wilful  misconduct  by such party),  provided,  however,  that Statoil
         shall not be entitled to change any fees in connection with administering such arrangements.
|12.6 | Cooperation

         The Buyer undertakes to ensure that,  after Closing,  each Group Member shall make such filings
         in respect of tax,  corporate,  business and operational matters as shall be required by law or
         applicable  regulations  in a timely,  correct  and  complete  manner in relation to the fiscal
         year 2002 and the  Navion  Reorganisation  (including,  to the  extent  required  by the Navion
         Reorganisation, in relation to any fiscal year subsequent to 2002).                                                                                                                                                                                                                                                                                                                                                                     
|13.  | TERMINATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|13.1 | Termination before Closing

         Notwithstanding  anything to the contrary  contained  herein,  this Agreement may be terminated
         at any time before Closing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

| | (a) | by mutual consent of the Sellers and the Buyer;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | by  the  Sellers,  (i)  in  the  circumstances  referred  to in  Schedule  1.1  Navion
                  Reorganisation,  (ii) if the Buyer makes a claim based on Clause  5.3.12 (i), or (iii)
                  if the Buyer has  materially  breached  this  Agreement  and has not cured such breach
                  within 30  Business  Days after  written  notice to the Buyer,  provided  that no cure
                  period shall be required for a breach which by its nature  cannot be cured,  such that
                  the conditions set forth in Clause 10  will not be satisfied;
| | (c) | by the Buyer,  if the Sellers have  materially  breached  this  Agreement and have not
                  cured such  breach  within 30  Business  Days  after  written  notice to the  Sellers,
                  provided  that the Buyer is not then in breach  of the  terms of this  Agreement,  and
                  provided  further  that no cure  period  shall be required  for a breach  which by its
                  nature cannot be cured,  such that the  conditions  set forth in Clause 10 will not be
                  satisfied;                                                   
| | (d) | by each of the  Parties,  if  Closing  shall not have  taken  place by  30 June  2003,
                  provided  that the right to terminate  this  Agreement  under this Clause 13 shall not
                  be available to a Party whose  failure to fulfill any material  obligation  under this
                  Agreement  has been  grossly  negligent  or willful and the cause of, or resulted  in,
                  the failure of Closing to occur on or before such date.                                                                                                               

|13.2  | Termination after Closing

         None of the Parties shall be entitled to terminate the Agreement after Closing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|13.3  | Effect of Termination

         In the event of the  termination of this  Agreement as provided in Clause 13.1,  this Agreement
         shall  forthwith  become void and there shall be no liability or  obligation on the part of any
         of Sellers and the Buyer and their respective  representatives,  except to the extent that such
         termination   results  from  the  willful  or  material  breach  by  a  Party  of  any  of  its
         representations,  warranties,  covenants  or  agreements  set  forth  in  this  Agreement,  and
         provided  that the  provisions  of Clause 8.2 hereof  shall remain in full force and effect and
         survive any termination of this  Agreement.  Upon  termination,  the Signing Date Payment shall
         be  immediately  returned to the Buyer,  except in the case of  termination  pursuant to Clause
         13.1.b (iii),  in which case the Signing Date Payment shall be released by mutual  agreement of
         the  Parties  or upon the  order of a court of  competent  jurisdiction  after the  period  for
         appealing such order has expired.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|14.   | MISCELLANEOUS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|14.1  | Expenses

         The  Sellers  and the Buyer  shall each bear all of their own costs and  expenses  incurred  in
         connection  with the  Transaction  and its  consummation,  including,  as the case may be,  the
         fees,   disbursements  and  expenses  of  their  financial  or  legal  advisors,   auditors  or
         accountants or the  representatives  retained by them. External expenses reasonably incurred in
         connection  with the  Navion  Reorganisation  shall be for the  account of Navion to the extent
         incurred  prior to the Effective  Date,  and for the account of Statoil to the extent  incurred
         thereafter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|14.2  | Entire Agreement

         This  Agreement  constitutes  the  entire  understanding  and  agreement  between  the  Parties
         concerning   the   Transaction   and   supersedes   and  replaces  all  prior   agreements  and
         understandings,  oral or written,  with respect to this  Transaction.  All Schedules hereto and
         any documents and instruments  delivered  pursuant to any provisions  hereof are expressly made
         a part of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14.3  | Public Announcements

         The  Parties  agree that after the  signing  of this  Agreement,  they shall not make any press
         release or public  announcement  concerning this  Transaction  unless a press release or public
         disclosure is required by law or  regulation or the Parties so agree.  Before a Party makes any
         such  announcement  or other  disclosure,  it shall give the other  Party  prior  notice and an
         opportunity to comment on the proposed disclosure to the extent reasonably practicable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|14.4  | Clause Headings

         The clause  headings in this  Agreement  are for  reference  purposes only and shall not affect
         the meaning or interpretation of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|14.5  | Counterparts

         This  Agreement  may be executed in  counterparts,  each of which shall be deemed an  original,
         but all of which shall constitute the same instrument.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|14.6  | Amendments

         This Agreement may not be amended except by a written  instrument  duly signed by each Party or
         their respective duly authorized representatives.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|14.7  | Notices

         All notices,  requests,  demands and other communications under this Agreement or in connection
         herewith  shall be in writing and shall be delivered  personally,  telecopied or sent by e-mail
         and shall be deemed given when so received if delivered  personally  or received by telecopy or
         e-mail, as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|      | if to the Sellers:

         Statoil ASA
         4035 Stavanger
         Norway

         Fax Number: + 47 51 99 00 50

         Attention: Mr. Kristoffer Marø
         e-mail address: kmm@statoil.com

         with copy to:

         Statoil ASA
         4035 Stavanger
         Norway

         Fax Number: + 47 51 99 00 50

         Attention: Mr. Odd Sollesnes
         e-mail address: osol@statoil.com
         if to the Buyer:

         Teekay Shipping Corporation
         TK House, Bayside Executive Park
         West Bay Street & Blake Road
         PO Box AP-59212
         Nassau, The Bahamas

         Fax Number: + 1 242 502 8840

         Attention: Mr. Bruce Bell
         e-mail address: bruce@oceanic.bs


         with copies to:

         Teekay Shipping (Canada) Ltd.
         Suite 2000, Bentall 5
         550 Burrard Street
         Vancouver, British Columbia
         V6C 2K2

         Fax Number: + 1 604 609 6447

         Attention: General Counsel
         e-mail address: art.bensler@teekay.com

         and


         Ugland Nordic Shipping ASA
         Thor Dahls gate 1/5
         3200 Sandefjord
         Norway

         Fax Number: + 47 33 42 15 45

         Attention: Chief Executive Officer
         e-mail address: companymail@uns.no

         Any Party may change its address for  notices  specified  above by notice to the other Party in
         accordance with this Clause 14.7.

         Statpet hereby  confirms that Statoil has been duly  authorized to give and receive  notices on
         its behalf in all matters which may arise under or in connection with this Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|14.8  | Non Competition and Non Solicitation

         The Sellers hereby  undertake with the Buyer that they will not,  whether for their own account
         or for the account of any other  person,  or as agent,  consultant or  shareholder,  during the
         period  from  Closing  to four (4)  years  after  Closing  - or such  shorter  period as may be
         permitted  under  applicable law - carry on or be engaged in any business in the territories in
         which a Group Member operates as at Closing which is in competition  with the offshore  loading
         business  of the Navion  Group as carried on  immediately  after  Closing,  provided  that this
         undertaking  shall not affect  (i)  Statoils  current  and future  interests  in the  offshore
         loading  business of KS Statfjord  Transport  (KSST) as it relates to the  Statfjord  field and
         current  practice,  and (ii) any offshore loading business or activity which may be acquired by
         Statoil  as a  business  or  activity  which  is  incidental  to and  an  integral  part  of an
         enterprise or larger  business (the  Enterprise)  which is the primary  subject matter of any
         such  acquisition,  in which case  Statoil  undertakes  subject to  Statoil  having  acquired
         (directly or  indirectly)  control over the  Enterprise  to divest of such  offshore  loading
         business within 24 months of having acquired control over same.

         The Sellers  further  undertake  with the Buyer that neither they,  nor any company  controlled
         directly  or  indirectly  by them,  will  during the period  from the date  hereof to 24 months
         after  Closing,  solicit or endeavour to entice away from or discourage  from being employed by
         any Group  Member,  any person who is at the date hereof or at Closing an employee in a leading
         position in any Group Member,  or whom any such  companies may at the date hereof or at Closing
         have agreed to engage as such an  employee.  For the  avoidance  of doubt,  it is  acknowledged
         that the  foregoing  undertaking  shall not  prevent  Statoil  to employ  previous  or  current
         employees  from the  Navion  Group  who apply  for jobs  within  Statoil  pursuant  to  regular
         advertisements  placed by Statoil on its intranet  page or  otherwise  publicly in the ordinary
         course.
|14.9  | Confidentiality Agreement

         Except as set forth in Clause  14.3  hereof,  each of the  Parties  agrees  that the content of
         this Agreement as well as any and all other information  being delivered or disclosed  (whether
         orally or in  writing)  to the  other  Parties  in  connection  herewith  shall be deemed to be
         confidential  and  proprietary,  unless  specifically  designated by the Party  disclosing such
         information  to be  non-confidential  or  non-proprietary.  The  Party  receiving  confidential
         information  shall treat,  and shall cause its  officers,  directors,  employees,  advisors and
         auditors also to treat,  such  information  as strictly  confidential  and shall not divulge or
         disclose  (directly or indirectly)  such  information to any other person or entity (other than
         to its officers,  directors,  employees,  advisors, providers of finance, auditors,  investment
         bankers  and  their  advisors  who may  assist in future  debt or equity  transactions,  and/or
         potential  bidders  for  the  shares  in such  Party  who  reasonably  require  access  to such
         confidential  information  for the  purpose for which it was  disclosed),  except when (i) such
         disclosure  is required  by law or by any order of any  administrative  or  judicial  authority
         which is (x) final and subject to no appeal,  or (y) although not final,  is executory  pending
         any appeal,  (ii) such  information has become public through no fault of the receiving  Party,
         or (iii) such  information  has been obtained  separately  by the receiving  Party from a third
         party that is not bound by any confidentiality regarding such information.

         This Clause 14.9 shall  survive the  termination  date of this  Agreement  and shall be in full
         force and effect for a period of three (3) years from the date hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14.10 | Governing Law and Jurisdiction

         This Agreement is governed by and shall be construed in accordance with the laws of Norway.

         Any  dispute  arising  out of or in  connection  with this  Agreement  shall be referred to the
         Stavanger City Court (Tingrett), Norway.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

IN WITNESS  THEREOF,  the Parties have executed this  Agreement to be effective as of the date set forth
above.

|STATOIL ASA

By:     __________________________

Its:     __________________________


NORSK TEEKAY AS
By:     __________________________

Its:     __________________________ | STATPET ASA

By:     __________________________

Its:     __________________________
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------