CH Offshore

[cyclone]

11 October 2013

The Board of Directors of CH Offshore Ltd (the “Company”) wishes to announce that the Company has commenced legal proceedings in London against PDV Marina S.A. (“PDV Marina”) and Astilleros De Venezuela C.A. (“Astivenca”) for a claim relating to outstanding charterhire amounting to approximately US$56 million (which amount includes interest claimed) in respect of the charter of the vessels the “Amethyst” and the “Turquoise”.

The Company had arrested vessels belonging to PDV Marina as security for its claim. PDV Marina has made payment of US$70 million into court as security for the Company’s claim including interest and costs. Accordingly, the Company has released PDV Marina’s vessels.

Service of proceedings on PDV Marina and Astivenca is being effected through the Hague Convention, to which both Venezuela and England are signatories. Under the service regulations, service can take up to a year, only after which the matter can be heard.

The Company will make further appropriate announcements as and when there are material developments in the matter.

Hmm, what's the chance CH Offshore can recover this written down receivable ?

<vested, indirectly via Chuan Hup>