Venture and Subsea 7 Ink Partnership Agreement

Venture Production and Subsea 7 intend to enter into a subsea partnership agreement which is unique to the subsea contracting industry. The contract is valued in excess of US $150 million over the first three years.

The contract, which has no fixed term but will continue based upon performance & delivery, is for all of Venture's subsea engineering, construction, inspection, repair and maintenance requirements and will involve more than the traditional contractors scope. This will include involvement at the front end in concept development and costing, management and logistics, interface management with other key suppliers, management of the supply chain and lifecycle costing. The parties will also develop a number of innovative commercial models to ensure alignment and value creation. Operations will take place at Venture's locations across the UKCS and will utilise Subsea 7's vessels, ROVs (remotely operated vehicles) and equipment.

Mike Wagstaff, Chief Executive of Venture said, "We are delighted to enter into this important new partnership with Subsea 7. For Venture as a development operator, sub-sea engineering and construction generally represents the largest single element of project costs in a mature basin such as the North Sea. Consequently we believe it is crucial for the efficient delivery of our business objectives to bring our inventory of new field developments on stream as quickly and as cost effectively as possible and to build aligned long term relations with our key contractors."

Mel Fitzgerald, Chief Executive of Subsea 7 said, "This is a unique opportunity for Subsea 7 to work in co-operation with Venture and will serve to demonstrate to the industry a new way of contracting, by working together and involving the contractor early to ensure success for both companies.

Our fleet size, project management and engineering capabilities were key in Venture's selection of Subsea 7 for this award. This has already seen us able to accommodate Venture's activities for 2005 into our schedule with a cost benefit for both parties".