Subsea 7 Wins Two ROV Contracts from Statoil

Subsea 7's Integrated Remote Technologies (IRT) division announced the award of two contracts covering remotely operated vehicle (ROV) services for Statoil. One contract covers ROV services onboard the Visund FPDU with an option for similar services onboard Snorre A and Snorre B. The other contract is a frame agreement for ROV drill support onboard rigs under contract to Statoil. The contract also covers optional ROV operations from monohull vessels.

The value of the Visund contract including the optional extensions is in the region of US $30 million while the value of the rig support contract, which will depend on the volume of work called off, is anticipated to exceed US $55 million.

Both contracts began recently and are firm until December 31, 2008 with three separate two year options thereafter i.e. potentially until the end of December 2014. Subsea 7 will perform a variety of ROV services under these contracts including regular drill support, well completions, operation of a variety of tooling as required for inspection, maintenance & repair, pull-in and connection of flowlines and umbilicals, as well as numerous other operations potentially requiring new tooling development.

Subsea 7's IRT Vice President Bill Boyle commented: "In addition to the ROV operations part of the contract we see these contracts as possible channels for increased activity within the Technical Solutions Group which is a dedicated group within the IRT division that undertakes advanced tooling development and autonomous underwater vehicle development, and designs and builds ROV systems and a variety of other specialized underwater equipment."