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Subsea7 - News - August 17, 2004

Subsea 7 Awarded Important Pipe Installation Contract in Brazil

Subsea 7 do Brasil has been awarded a contract by Petrobras (Petróleo Brasileiro S/A) to install flexible and steel lines Offshore Brazil. The two year contract valued at US $110 million will involve two vessels from the Subsea 7 fleet, Lochnagar on virtually a continuous basis for flexible installation, and Skandi Navica on shorter campaigns for the steel line installation. The contract contains options to extend the duration for up to five years. Major modifications will be made to the Lochnagar, upgrading the top tension capability to in excess of 250 tons to enable the vessel to lay flexible lines in up to 2,000 metres.

This upgrade, which will make the Lochnagar one of the world’s most capable flexilay vessels, will be carried out in a Brazilian shipyard soon to be nominated.

It is anticipated that during the contract period the vessels will install over 300 km of steel and flexible lines primarily in deep water Campos basin. The project will commence in third quarter 2005.

Victor Bomfim, Vice President for Subsea 7 do Brasil, stated “This contract will build upon the world class expertise we have established in Brazil in the last six years, and is the first contract of its type from Petrobras that requires both the installation of flexible and steel pipelines. In particular, for the first time in Brazil, Petrobras will have the flexibility of installing steel pipelines on a long term contract, and reflects their confidence in the broad range of pipelay capabilities of Subsea 7”.

For more information, contact:

Pat Stephen on +44 1224 344508 or +44 7712 427608

Lyndsay Cruickshank on +44 1224 344606


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