Health, Safety and Environmental Policy Statement

Faroe Petroleum is committed to high standards of health, safety and environmental performance across its business. Protection of the environment and the health and safety of our employees and all those affected by our business is critical to the overall success of our company.

Faroe Petroleum's defining policies have been developed from the best practices of other leaders in the field. The Company expects that its suppliers and partners share the same values and objectives.

Environmental Policy
It is the Company's policy not to damage the environment through its activities, and we will:
 - minimise the environmental impact of our activities
 - foster open communication on our environmental performance
 - systematically manage environmental performance
 - continuously improve the total environmental performance

Safety Policy
The Company's philosophy and policy on safety is that:
 - all injuries and occupational illnesses are preventable
 - all operating exposures can be controlled
 - working safely is a condition of employment
 - employees must receive safety training
 - safety performance must be audited
 - all deficiencies must be corrected promptly
 - people are the most important element in an effective safety, health and    environmental programme
 - off-the-job safety is an important part of the safety effort
 - and last but not least, safety is good business

Health Policy
The Company's occupational health programme shall protect employees from health hazards that may be associated with the Company's work and the working environment. The Company shall be active in health promotion, aiming at preventing health risks associated with the general living environment and life style. The Company's policy on health is to ensure:
 - a good working environment for the employee
 - clear personnel policy in relation to health
 - the avoidance of any illnesses which can be related to the work performed

As an operator, the Company will verify that all contractor personnel have adequate health organisations supporting their activity.

HSE performance will be routinely monitored and reported regularly to the Board of Directors of the Company, who will ensure that the necessary resources are provided to support this Policy fully.

Graham Stewart
Chief Executive
December 2007