APL Inks Deal for Alvheim Project with Marathon

Today Advanced Production and Loading AS signed a contract with Marathon for the turret mooring system for the Alvheim FPSO. This contract will be the largest in APL's history with a contract value in excess of 400 Million NOK.

Marathon Petroleum Norge AS is a wholly owned subsidiary of the Houston based Marathon Oil Corporation (NYSE: MRO). APL (Advanced Production and Loading AS) is an independent Arendal based Norwegian company specializing on turret mooring systems.

The Alvheim field is located on Norwegian Continental Shelf, west of Haugesund and close to the UK border in 125 m waterdepth. Marathon and its Alvheim project partners, have recently received approval from the Norwegian Ministry of Petroleum and Energy for the companies' plan for development and operation (PDO). Marathon holds a 65 percent interest in Alvheim and serves as operator. License partners are ConocoPhillips 20% and Lundin 15%.

Production from a Alvheim development is expected to ramp up to more than 50,000 net barrels per day during 2007. The combined Alvheim development is estimated to contain resources of approximately 200-250 million gross barrels of oil equivalent.

CEO in APL, Carl K. Arnet expresses his appreciation of Marathon's selection of APL for this prestigious project. The contract represents an important milestone in APL's 11 year long history, not only by having the largest value, but also by bringing our technology back in Norwegian waters for APL's first FPSO application in Norway. We are also very enthusiastic about the acknowledgement from Marathon this contract implies. The Alvheim contract is of great importance for APL's future concludes Arnet.

APL will supply an STP system for permanent mooring of the MST Odin as FPSO for the field lifetime of 25 years. The STP system will have 14 slots through the turret to accommodate risers and umbilicals for the initial subsea wells and for planned expansions.

The Odin FPSO will after conversion store 560 000 barrels barrels of oil and will by means of a 12 line mooring system, be moored in a passive mode. The mooring system is designed to withstand the 100 year storm with 14.6m significant wave height.

APL has previously delivered four STP systems, of which two are mooring sister vessels to the Odin, one for the Statoil operated Lufeng field in the South China Sea and one for the Shell operated Pierce field in the UK North Sea. The two other STP systems in operation are the CNOOC operated Wenchang and the Devon Energy operated PanYu FPSOs in the South China Sea.

APL have since the first Submerged Turret Loading (STL) system was installed in 1993, been contracted for 27 turret mooring systems world wide for FPSOs, FSOs, shuttle tankers and standard trading tankers.