Subsea 7 Awarded Extension for Pipelay Contract in Brazil

Subsea 7 has been awarded an extension to the contract for its flexible pipelay vessel Lochnagar by Petrobras. The contract has a value of approximately US $12 Million.

The contract is for the exclusive use of the Lochnagar, for a period of 175 days, to provide flexible pipelay, engineering and subsea installation services for Petrobras. The vessel will work offshore Brazil in water depths up to 2,000 meters and is capable of installing bundles or single flexible pipes varying from 2" to 12" diameter.

The vessel has been working in Brazilian waters since 1998 when it was modified to convert it into a flexible pipelay vessel. This commitment to the vessel by Petrobras will offer continuity of work for the Lochnagar until December 2004.

Vice President for Subsea 7 Brazil, Victor Bomfim, confirmed the award and added, "This award shows considerable commitment by Petrobras to the Lochnagar and Subsea 7's pipelaying capabilities. Based on previous experience we anticipate that around 150 kilometres of flexible pipe will be installed during the contract period".