Scan Updates Newbuild Delivery Schedule

SCAN Geophysical has been informed that delivery of the company's three newbuildings will be delayed compared with the dates previously announced. Based on updated production schedules from the ABG Shipyard, each vessel will be delayed by three months, implying new delivery dates to be June 30, 2008, September 30, 2008 and mid February 2009.

During the third quarter the shipyard has suffered from capacity problems and increased lead-time from its suppliers, a situation faced by the ship building industry in general. The yard has previously informed that the subsequent delays were planned to be caught up, however, the yard has now informed that it will not be able to, causing its building programs to be delayed.

The delays on SCAN's vessels in particular are influenced by scarce engineering capacity, as some technical drawings yet have to be delivered. Even if most of the ships equipment for SCAN's vessels is secured and delivered, the yard now reports late delivery of some parts. SCAN is working proactively with helping the yard to reach time efficient solutions.

The three modern high-class vessels are being purpose built for seismic data acquisition. According to the general demand from the oil and gas industry to reach deeper and deeper targets, all vessels have a capacity to operate streamers of up to 10 kilometers each - a total capacity of 80 kilometer streamers. All vessels can tow up to 10 streamers for high-density surveys.


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