Coflexip Stena Offshore Wins Large EPCI Pipeline Contract for the Devils Tower Deepwater Export Lines in the Gulf of Mexico

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Sept. 10 2001

Coflexip Stena Offshore (Nasdaq: CXIPY; Premier Marche: CFI FP) announced today that Coflexip Stena Offshore Inc., one of its Gulf of Mexico based entities, has been awarded by Williams Energy Services a large EPCI contract for the design, procurement, installation and commissioning of two 18" export pipelines, totalling 160 miles (260km), from the Devils Tower field development, located in 5,700 ft (1,750m) water depth in Block 773 of the Gulf of Mexico, to shallow water tie-in locations at the shelf edge.

The contract work scope comprises project management, engineering, procurement and installation of two export pipelines consisting of 160 miles of 18" pipeline, 12 miles of 14" pipeline and two 14" steel catenary risers (SCR). CSO will also be responsible for hooking up of the SCRs to the new-built Dominion Exploration Devils Tower Spar, diving work in the shallow waters and all pre-commissioning activities on the oil and gas export lines including pigging, hydrotest and drying of the gas export line.

The pipelines will be fabricated by CSO at its new spoolbase at Mobile, Alabama, and the installation will be completed by the CSO Deep Blue, the CSO's new-built ultra deepwater pipelay and construction vessel, utilizing the reel lay method. Installation is scheduled to take place in the second half of 2002 with the riser hook-up being completed in January 2003.

The two reeled SCRs to be installed to the new Devils Tower Spar in 5,700 ft (1,750m) will be the deepest 14" SCRs installed to date.

Ken Hulls, Senior Vice President Gulf of Mexico, Atlantic Region, of the Coflexip Stena Offshore Group, stated: "We are very pleased to provide to Williams Energy Services a second major EPIC contract. It is CSO's philosophy to deliver quality products and services that generate repeat business and further enhance our best in class status."

Svein Eggen, Deputy Chief Operating Officer of the Coflexip Stena Offshore Group, stated: "This significant contract is the third to be awarded to the CSO Deep Blue in the deepwaters of the Gulf of Mexico. It further
demonstrates the accuracy of CSO's strategic vision when the Group decided to build this new unit three years ago. She serves our clients' needs in developing deepwater fields, thanks to the unique combination of installation options she offers: rigid reeled or J-Lay pipelines or flexible lines."

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