Expro Wins Contract for Sakhalin Island Work

Sakhalin I
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Expro International Group has been awarded a new $60 million contract in its Expro Gulf Ltd subsidiary, awarded by Exxon Neftegas Limited, an affiliate of ExxonMobil Corporation and operator of the Sakhalin-1 consortium.

The contract is for the provision of an Early Production Facility ("EPF") to be installed at the Chayvo drilling and production site on the east side of Sakhalin Island, Russia. The contract duration is for approximately 30 months, inclusive of a 14 month, lease and operating period.

The EPF will consist of a 50,000 BPD crude oil separation and pumping facility, and a 150 MMSCFD gas conditioning plant, together with associated utilities, plant controls, storage, workshop and offices. Engineering design and procurement activities will be conducted by Expro staff based mainly in Houston. The modular design of the equipment must accommodate severe winter weather operating conditions (-40F and heavy snow) yet facilitate a safe, fast track solution for installation and commissioning. Russian subcontractors will be employed, under direct supervision by Expro, for on site EPF installation and commissioning. Start-up of the EPF is planned for summer 2005. Expro personnel (Russian and Expatriate) based at the Chayvo site will operate and maintain the plant.

The EPF will introduce first gas from the Sakhalin-1 Project into a pipeline for local gas supply and first oil into a pipeline for export. Operation of the EPF will continue until the permanent production facilities are ready, currently scheduled for late 2006.

Commenting on the award, Graeme Coutts, CEO of Expro stated: "Expro is delighted to have received this award to participate in this significant field development. This award demonstrates confidence in our proven ability to provide fast track solutions for early production."

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