| Subsea
7 - News - June 8, 2005
Ground Breaking Partnership
Agreement between Venture and Subsea 7
Venture Production plc (Venture), the Aberdeen
based UK independent oil and gas production company,
and global subsea contractor, Subsea 7 today announced
their intention to enter into a subsea partnership
agreement which is unique to the subsea contracting
industry. The contract is valued in excess of
US $150M over the first three years.
The contract, which has no fixed term but will
continue based upon performance & delivery,
is for all of Venture’s subsea engineering,
construction, inspection, repair and maintenance
requirements and will involve more than the traditional
contractors scope. This will include involvement
at the front end in concept development and costing,
management and logistics, interface management
with other key suppliers, management of the supply
chain and lifecycle costing. The parties will
also develop a number of innovative commercial
models to ensure alignment and value creation.
Operations will take place at Venture’s
locations across the UKCS and will utilise Subsea
7’s vessels, ROVs (remotely operated vehicles)
and equipment.
Mike Wagstaff, Chief Executive of Venture said,
“We are delighted to enter into this important
new partnership with Subsea 7. For Venture as
a development operator, sub-sea engineering and
construction generally represents the largest
single element of project costs in a mature basin
such as the North Sea. Consequently we believe
it is crucial for the efficient delivery of our
business objectives to bring our inventory of
new field developments on stream as quickly and
as cost effectively as possible and to build aligned
long term relations with our key contractors.”
Mel Fitzgerald, Chief Executive of Subsea 7 said,
“This is a unique opportunity for Subsea
7 to work in co-operation with Venture and will
serve to demonstrate to the industry a new way
of contracting, by working together and involving
the contractor early to ensure success for both
companies.
Our fleet size, project management and engineering
capabilities were key in Venture’s selection
of Subsea 7 for this award. This has already seen
us able to accommodate Venture’s activities
for 2005 into our schedule with a cost benefit
for both parties”.
Ends
- more -
Subsea 7 Public Relations:
Pat Stephen Tel: +44 1224 344508 or +44 7712 427608
E-mail: pat.stephen@subsea7.com
Lyndsay Cruickshank Tel: +44 1224 344606
E-mail: lyndsay.cruickshank@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. Website: www.subsea7.com
Venture Production plc Contacts:
Chris Bird Tel: +44 1224 619000
E-mail: cbird@vpc.co.uk
Alistair McGregor Tel: +44 1224 619000
E-mail: amcgregor@vpc.co.uk
Notes to editors:
Venture Production plc (“Venture”)
is an Aberdeen-based UK independent oil and gas
company currently employing around 55 staff and
producing in excess of 35,000 barrels of oil equivalent
per day (“boepd”) from its Central
North Sea and Southern North Sea asset base. Venture
currently operates 18 UKCS field interests of
which 10 are in production, 7 are undeveloped
discoveries and one is an oil field under development.
In addition, Venture is a partner in the Saturn
field currently under development (operated by
ConocoPhillips) and in two further non-operated
discoveries. Total production is expected to exceed
45,000 boepd by the end of 2005 as further developments
are brought on stream. Venture is listed on the
London Stock Exchange (Ticker : VPC) and further
information can be found on its website www.vpc.co.uk
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