Subsea 7 Wins Pan Pandora, Katla Contracts

Subsea 7 announced today the award of an engineering, procurement, installation and commissioning (EPIC) contract from Statoil ASA for the Pan Pandora and Katla fields in the Norwegian sector of the North Sea. The contract is valued in excess of US $85 million.

The Subsea 7 work scope includes the design, fabrication and installation of one 11.5km subsea production pipeline and installation of one 11.5km umbilical between the Pan Pandora Template and the Gullfaks C Platform. It also includes the design, fabrication and installation of two 13km pipelines and the installation of one 13km umbilical between the Katla template and the Oseberg Sør Platform; as well as all associated tie-ins, testing and pre-commissioning works.

Peder Sortland, Subsea 7's Vice President - Norway, commented: "I am delighted that Statoil has chosen Subsea 7 to execute this significant pipelay project. The award further strengthens our proven track record of working with Statoil on major pipelay projects in the Norwegian sector of the North Sea. We look forward to helping to bring both the Pan Pandora and Katla developments on-stream in a safe and timely manner."

Engineering work will commence in November 2010 and will be performed at Subsea 7's office in Stavanger, Norway. Field installation works will commence during the second half of 2011 with pipeline fabrication commencing in early 2012 at Subsea 7's pipeline spoolbase in Vigra, Norway. Offshore pipeline installation and field installation operations are scheduled to commence in first half of 2012 and will be carried out utilising vessels from the Subsea 7 fleet.

The Pan Pandora and Katla fields are located south of the Visund field, in the Norwegian Sector of the North Sea in waters up to 292m depth.



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