Subsea 7 - News - December 14, 2005

Major ROV Contracts Awarded

Subsea 7’s Integrated Remote Technologies (IRT) division today announced the award of two contracts covering remotely operated vehicle (ROV) services for Statoil. One contract covers ROV services onboard the Visund FPDU with an option for similar services onboard Snorre A and Snorre B. The other contract is a frame agreement for ROV drill support onboard rigs under contract to Statoil. The contract also covers optional ROV operations from monohull vessels.

The value of the Visund contract including the optional extensions is in the region of US$ 30M while the value of the rig support contract, which will depend on the volume of work called off, is anticipated to exceed US$ 55M.

Both contracts began recently and are firm until 31st December 2008 with three separate two year options thereafter i.e. potentially until the end of December 2014. Subsea 7 will perform a variety of ROV services under these contracts including regular drill support, well completions, operation of a variety of tooling as required for inspection, maintenance & repair, pull-in and connection of flowlines and umbilicals, as well as numerous other operations potentially requiring new tooling development.

Subsea 7’s IRT Vice President Bill Boyle commented: “In addition to the ROV operations part of the contract we see these contracts as possible channels for increased activity within the Technical Solutions Group which is a dedicated group within the IRT division that undertakes advanced tooling development and autonomous underwater vehicle development, and designs and builds ROV systems and a variety of other specialised underwater equipment.”

Ends 14 December 2005
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Subsea 7 Public Relations:
Lyndsay Cruickshank Tel: +44 1224 344606
E-mail: lyndsay.cruickshank@subsea7.com
Pat Stephen Tel: +44 1224 344508 or +44 7712 427608
E-mail: pat.stephen@subsea7.com

Notes to editors:
With a workforce in excess of 3000 people worldwide, Subsea 7 is one of the world’s leading subsea engineering contractors. The company’s global offshore operations are supported out of Asia Pacific, Brazil, Gulf of Mexico, Norway, UK and West Africa. Subsea 7 has more than 100 remotely operated vehicles (ROVs), four pipeline construction yards and a fleet of modern, high specification dynamically positioned ships capable of deepwater reeled and flexible pipelay, deepwater subsea construction and saturation diving. www.subsea7.com
Subsea 7’s shares trade on the Oslo Stock Exchange (www.ose.no): Ticker Code SUB