Stolt Offshore S.A. Announces $280 million Contract Award

abarrelfullabarrelfull wrote on 18 Jul 2012 05:50

November 14, 2003

Stolt Offshore S.A. (NasdaqNM: SOSA; Oslo Stock Exchange: STO) announced today the award of a contract worth approximately $280 million, including options, from the Ormen Lange license group 1 for the installation of part of the Ormen Lange pipeline. Upon completion, this pipeline will be the longest in the world.

Stolt Offshore will be responsible for the installation of 540 kilometres of 44-inch diameter pipeline which will transport gas produced from the Ormen Lange field via the North Sea Sleipner gas export hub to Easington in the UK. Included as part of this contract is an option in 2006 for the installation of 362 kilometres of 42-inch diameter pipeline starting just outside Nyhamna going to the Sleipner Platform through the Norwegian Trench. Each contract represents full utilisation of the LB200 pipelay barge in 2005 and 2006.

Tom Ehret, Chief Executive Officer of Stolt Offshore S.A., said, “We are delighted that the Ormen Lange license group have awarded us this very significant pipelay project at a time when we are going through a period of restructuring. The Company has an excellent track record of operating the LB 200 in the North Sea on pipelay projects of this type, having laid both the 862 kilometre NorFra pipeline in 1997 and the 700 kilometre Aasgard pipeline for Statoil in 1998 and in 1999. We see this award as a validation of Stolt Offshore’s expertise in managing technically demanding long-term projects and as a key milestone in Stolt Offshore’s turnaround.”

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