APL Expects Cost Increase for Total's BTL in Angola

Advanced Production and Loading (APL) expects higher cost for the execution of the Buoy Turret Loading System (BTL) contract for Technip in Angola. Total contract value is NOK 225 million. The total estimated cost increase is approximately NOK 10 million and will be included in the third quarter results for 2005. The cost increase is primarily the result of additional hours and higher costs for transportation, fabrication and customs declaration in Angola.

APL has finalized the qualification program and most engineering activities are completed. The remaining scope is completion of building, final assembly and testing at the yard in Angola. The final delivery to the customer is expected to take place in April 2006.

APL maintains its financial forecast for the full year 2005, as stated in the second quarter report, of NOK 900 - 1.000 million in revenues and an EBITDA margins somewhat above the level of 2004.