APL Signs CNOOC Contracts and Opens Office in Shanghai

Advanced Production and Loading has signed the contracts with China National Offshore Oil Corporation, for the design, engineering and supply of two Single Point Mooring and Fluid Transfer Systems.

The value of the contracts, of which APL received a Letter of Intent 9th September, is approximately USD 60 million. The Contract Signing Ceremony was arranged in Beijing on Monday 17th October 2005. The contracts includes the supply of two APL designed STP Systems including mooring, turret, swivel and ship-related systems for the next two Chinese built FPSO's. The FPSO's are intended for the Wenchang II and Xijiang Project The installation at the field will take place during Summer 2007.

The contract represents an important milestone for APL and confirms APL's leading technology and position in this market. Furthermore the co-operation with CNOOC creates a solid foundation for further growth in the Asia Pacific region.

CNOOC was present by a team of 30 representatives, headed by Vice President, Mr. Zhou Shou Wei. APL was present by a number of representatives including the CEO for APL ASA, Mr. Carl K. Arnet, the President for APL Asia, Mr. Dagfinn O. Tegnander and Mr. Mattias Svensson, head of the future APL Representative Office in Shanghai.

These new contracts, which represent APL's project number 6 and 7 to Chinese Clients, have paved the way for the opening of the APL Representative Office in Shanghai. The office is established in order to serve the client efficiently on these, and future APL projects. Local Chinese engineers will supervise an increased amount of fabrication and procurement within China.

Through the establishment of APL Asia, APL provides 24-hour round-the-clock technical service to its worldwide clients. APL sees growing activities for the company in the Asia Pacific region. Further expansion is ongoing with establishment of a Joint Venture Company, APL Malaysia, which intends to serve the Malaysian Oil & Gas Market. APL is also opening a new office in Singapore to improve service for the clients and yards in Singapore.

The total number of APL employees in the Asia Pacific Region is currently 25, and will reach a total number of 40 by the establishment of these new subsidiaries.