Subsea 7 Awarded Two Contracts from Statoil

Subsea 7 has been awarded two call off contracts as part of existing frame agreements with Statoil for the Asgard Q and Glitne (A6) projects which will be executed under joint venture arrangements. The total joint venture value for both contracts is approximately $25 million.

Asgard Q will be performed in joint venture with Technip Offshore Norge AS and the scope of work for Subsea 7 entails installation of two 15 km parallel 9" 13% chrome flowlines from Asgard Q to Asgard A. The 13% chrome flowlines will be welded by Technip Offshore Norge at their facilities in Orkanger. Subsea 7's pipelay vessel Skandi Navica will be utilized to perform the work which is scheduled to take approximately 25 days during Autumn 2004. The value for Subsea 7's share of the work is in the region of $6 million. The Asgard field is located in Haltenbanken area North Sea in approximately 270 meters water depth.

The Glitne extension, which includes procurement and installation of 2.3 km, 6" flexible flowlines and umbilical, is an option exercised by Statoil under the existing frame agreement that Subsea 7 holds in joint venture with Stolt Offshore and is in addition to the work performed in 2003. The offshore installation work will be performed during summer 2004 and will include the use of divers for the tie in scope. The value for Subsea 7's part of the work is in the region of $7 million. The Glitne field is located in Sleipner area in the North Sea in approximately 110 meters water depth.

Commenting on the award, Asle Solheim, Subsea 7's vice president Norway said, 'These additional developments give Subsea 7 the opportunity to provide further pipelay and diving services in the North Sea and to continue to build on our relationships with Statoil and our joint venture partners.'