SapuraAcergy JV Snags $825MM Gumusut-Kakap Devt Contract

Acergy has confirmed the award of a contract valued at approximately $825 million to SapuraAcergy Sdn Bhd for the development of the deepwater offshore Gumusut-Kakap field. The primary contract has been awarded by Sabah Shell Petroleum Company Limited (SSPC) to TL Offshore Sdn Bhd, a wholly owned subsidiary of our partner, SapuraCrest Sdn Bhd.

SSPC is the Operator of the Gumusut-Kakap field as contractor to Petronas. SSPC's co-venturers in the development of the Gumusut-Kakap field are Petronas Carigali Sdn. Bhd., ConocoPhillips Sabah Ltd. and Murphy Sabah Oil Co. Ltd.

SapuraAcergy's scope under the contract involves engineering, procurement, transportation and installation, offshore Malaysia in water depths of 1,200 meters, covering:

• An oil export pipeline and catenary riser, including the shore approach.
• Flowlines, jumpers, Steel Catenary Risers (SCRs), Pipeline End Terminations (PLET) and flowline inline structures (SLEDs).
• Mooring wires, chains and piles for a semisubmersible Floating Production System (FPS) including towing to the offshore location and installation thereof.

Engineering will commence with immediate effect, with offshore installation scheduled to commence in 2010 using the Sapura 3000, SapuraAcergy's state of the art dynamic positioning heavy lift and deepwater pipelay vessel.

This project will be accounted for in the share of results of associates and joint ventures line in the Acergy accounts. For this reason, the value of this award will not appear in Acergy's reported backlog and revenue.

Jean Cahuzac, Chief Executive Officer, Acergy said, "The Gumusut-Kakap Project represents an important development for the deepwater market in Malaysia and for our Joint Venture. Building upon the recent operational successes of the Sapura 3000, we are confident that this high specification asset, will perform strongly and enable our Joint Venture to deliver for us and our client."

Gumusut-Kakap

Located offshore Sabah, Malaysia, the Gumusut-Kakap field is in waters up to 1,200 meters deep in blocks J and K. In January 2008, Shell announced that the final investment decision was made on the Gumusut-Kakap field.

The Gumusut-Kakap field development will employ the region's first deepwater Floating Production System (FPS), with a processing capacity of 150,000 barrels of oil per day. Gumusut-Kakap will be developed using 19 subsea wells with oil exported via a pipeline to a new oil and gas terminal, which will be built in Kimanis, Sabah.

The Gumusut and Kakap fields were combined into a single development under a Unitisation and Unit Operating Agreement signed by the co-venturers in 2006. Shell and ConocoPhillips Sabah Ltd each hold 33% interests in the development, PETRONAS Carigali has 20%, and Murphy holds 14%. Shell serves as the operator of the development.