Ramco Oil Services Extends OCTG Contracts

Ramco Energy's subsidiary, Ramco Oil Services, has extended its contracts with Shell Exploration and Production and JFE Steel Corporation, (formerly Kawasaki Steel Corporation).

The new agreement with Shell Exploration & Production follows on from Ramco's previous five-year contract to manage Shell Exploration & Production's tubular goods for its North Sea platforms and rigs. The contract, which has been extended for a further three years is worth approximately £12 million and will involve the storage, service and maintenance of an estimated 40,000 tons of pipe per annum at Ramco's one-stop integrated pipe management facility at Badentoy, just south of Aberdeen.

Ramco's existing contract with JFE has been extended for two years, from January 2004 to December 2005. The contract, which is estimated to be worth £1 million, will involve Ramco providing tubular care and maintenance services to JFE from its mobile Pipe Care Unit, operating out of the Chita steel works in Handa City, Japan.

Stewart Cumming, Managing Director of Ramco Oil Services, commented, "We are delighted that JFE and Shell have elected to extend their contracts with us. Both are significant contracts for Ramco Oil Services, and in a market experiencing some uncertainty, provide confirmation of the quality of our work and our leading position in the market place. We look forward to continuing our strong relationship with both companies."

Ramco Oil Services encompasses the tubular and pipeline activities of Ramco Energy plc. This profitable business is a North Sea market leader with over 80% of the market. In addition to Shell and JFE, the company's customer base includes BP, Chevron, Amerada Hess, Nippon Steel, Corus, Sumitomo, and Itochu.