SBM Low Bidder on Petrobras Project

IHC Caland's subsidiary, Single Buoy Moorings, out of four remaining contenders, emerged as the lowest bidder at the public opening of the commercial tenders for the lease to Petrobras of a large turret moored FPSO for the development of the Golfinho field in the Espirito Santo basin offshore Brazil. Following this opening Petrobras has, in accordance with their tendering procedures, invited SBM for discussions to finalize the contract documentation. The lease and operate contract will be for an initial period of seven years, with options for subsequent extensions. First oil is scheduled for the first quarter of 2006.

SBM received a Letter of Award from Petronas Carigali (Turkmenistan) Sdn. Bhd. for the provision, under a three year lease and operate contract, of an Extended Well Test (EWT) system for Block 1 offshore Turkmenistan in the Caspian Sea. The EWT will consist of a purpose built production barge carrying the oil process equipment and an export system consisting of a flow line, a CALM buoy and a storage tanker.

Production is scheduled to start during the last quarter of 2005.

These two systems will bring the total number of leased production facilities operated by the Group to seventeen.

Indian Oil Corporation Limited issued a Letter of Award to SBM for the supply of a complete CALM crude oil import terminal to be installed at Paradip on the East Coast of India. Delivery will be during the third quarter 2005.

Based on the cumulative non-discounted revenues over the firm lease periods, the above projects represent a total portfolio value for the Group of about 725 million US dollars.