Grenland Signs Deal for Petronas Sumandak II

Grenland Group Technology AS with its branch office at Notodden, Norway, has received a Letter of Intent for the delivery of a new Minox Deoxygenation System for the Petronas Sumandak II Waterflood Project in Malaysia.

The system, capable of processing 55 000 BWPD (Barrels of Water per Day), is designed to remove oxygen from seawater--used for injection into the oil reservoir--down to 20ppb. By removing the oxygen, corrosion and bacterial growth in the reservoir will be minimized. All engineering and procurement will be performed by Grenland Group's Technology Division in Norway. Fabrication of the process module will be performed in Malaysia. Fabrication follow-up will be partly performed by Grenland Group's Malaysian office in Kuala Lumpur, and by this, Grenland Group's international profile gives directly payoffs in this project.

Grenland Group said that it is pleased to be a supplier to Petronas in this large development project in Malaysia. In addition, the company is producing a similar process system for Shell's Ursa project for the Gulf of Mexico. The delivery of the new system is scheduled for December 2007. The total contract value of the deliveries in this project is approximately NOK 13 million.

"This is a very exciting opportunity for us," said Bjorn C. Anker, head of Grenland Group's Technology Division. "The project is secured in a competitive international market, for a new client. The fact that we are able to serve our clients internationally with high tech products like the Minox process, is a sign of the successful internationalization of the company. This project will be an excellent reference, and we anticipate great potential for our products in the future."

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