Petrobras Awards Stolt Offshore $136 Million Contract

Stolt Offshore S.A. announced a one-year extension of the current contract and the award of a new four-year contract for the Seaway Condor from Petrobras in Brazil.

Under these two contracts, valued at $136 million, the Seaway Condor will continue to provide deepwater pipelay offshore Brazil for at least the next five years. The extension to the existing contract began in June this year and runs to August 2002 at which time the new contract starts. There is an optional extension of this new contract in 2006, by mutual agreement, for a further four years.

For the new contract the Seaway Condor will be upgraded to lay flexible flowlines and umbilicals in 2,000 meters water depth. The modifications to the ship will be carried out in Brazil during the ship's routine dry-docking in May 2002 prior to commencing the new contract.

Bernard Vossier, Chief Executive Officer said, "Stolt Offshore has now provided deepwater pipelay services in Brazil since 1996 when the Seaway Osprey started a four-year contract. This new contract for the Seaway Condor, which follows a recently awarded four-year contract from Petrobras for the Seaway Harrier, consolidates our position in Brazil and provides a strong basis for future growth in this region."