Subsea 7 Announces $70M Contract for Centrica in the Southern North Sea

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21 July 2008

Subsea 7 Inc (OSE Symbol: SUB), one of the world's leading subsea engineering and construction companies, announced today that it has been awarded an engineering, procurement, installation and commissioning (EPIC) contract valued at approx. US $ 70 million by Centrica Resources Limited, a subsidiary of Centrica plc, for the Grove Extension and Seven Seas Development Projects in the Southern North Sea.

The EPIC contract is a tieback of new gas production wells to the existing Grove and West Sole Alpha Platforms via 6" and 8" carbon steel production pipelines and integrated service and control umbilicals.

The work scope includes project management, engineering, procurement, fabrication, installation and pre-commissioning of two 6" pipelines and one 8" pipeline totalling approx. 13 km in length, three service umbilicals and three piled structures, all associated subsea installation and construction work including trenching and protection of the pipeline and umbilical systems.

Engineering will commence immediately and will be performed at Subsea 7's Aberdeen offices. Fabrication of the pipelines will be carried out at Subsea 7's new North Sea pipeline fabrication and spoolbase facility at Vigra, on the west coast of Norway. Offshore operations are due to take place during 2Q and 3Q 2009 and will utilise a number of Subsea 7's vessels, including the recently acquired Seven Navica.

Robin Davies, Subsea 7's North Sea Vice-President stated, "This award builds on Subsea 7's already strong reputation globally as the Subsea Partner of Choice for major EPIC projects. We are delighted that Centrica has chosen Subsea 7 for this major scope of work in the UKCS."

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