APL Wins Contract for the Statoil Volve Field Development

Advanced Production and Loading AS (APL) announced that in late 2004 it signed a letter of intent with Maersk Contractors, for a Submerged Turret Loading (STL) system for mooring a Floating Storage and Offloading (FSO) vessel at the Statoil operated Volve field. The Letter of Intent is given subject to final project sanction by the Volve owners.

Volve is a small field, located in the Norwegian Central North Sea, southwest of Stavanger. The field is expected to come on stream in the first quarter of 2007 and to continue producing for four years.

Volve will be operated by Statoil and developed with the Mærsk Inspirer rig as a production platform and the STL moored tanker Navion Saga storing the oil for onward shipment. Rig and storage tanker are chartered from Mærsk Contractors Norge and Teekay Norge respectively.

The field development concept including the STL system for Volve is similar to the one for the Statoil operated Yme field where the same vessel was used as FSO, at that time named M/T Polysaga.

APL will install a refurbished STL buoy at the Volve field. This demonstrates the flexibility of a standardized and vessel independent turret mooring system.

Volve STL will be the sixteenth STL/STP system to be installed since the first one at the Shell operated Fulmar field in 1993. Since that time APL has been contracted for 28 turret mooring systems world wide for FPSOs, FSOs, shuttle tankers and standard trading tankers.

In addition to the Volve contract, APL has in 2004 secured three other large turret mooring contracts for the Woodside Petroleum Chinguetti field (contract with Bergesen), the Marathon Petroleum Alvheim field and the Petro-Canada DeRuyter field.

"2004 has been a fantastic year for APL", comments APL's CEO Carl Arnet, "new contracts have given us an all time high order backlog of 800 Million NOK" (corresponding to 130 Million USD). "We have also been writing American Energy history with the STL system installed in the US Gulf of Mexico as the world's first offshore discharge terminal for LNG vessels."