Subsea 7 Wins North Sea Contract from BP

Further information in respect of North Sea contract previously announced on December 23, 2005, Subsea 7 announced a contract award with a value in excess of US $85M million from BP Exploration Operating Co. Ltd. for subsea construction services.

The contract will include the provision of a deepwater construction vessel with its in-house designed and built Hercules deepwater work class ROV systems. The vessel will be permanently employed in a program of work, supporting the development and maintenance of BP's deepwater West of Shetland oil and gas fields, Foinaven and Schiehallion and will undertake a wide variety of construction tasks as well as inspection, repair and maintenance (IRM) activities. The offshore program is supported by a dedicated onshore project management and project engineering team with added specialist knowledge of remote intervention activities in harsh environmental areas.

Although, the primary scope will be for work in the West of Shetland basin on the Schiehallion and Foinaven fields, the vessel may be deployed to other BP assets and fields as may be required from time to time.

At water depths reaching 500 meters, the Schiehallion and Foinaven developments are the deepest oil and gas producing fields in the UK continental shelf to date, and with their prevailing environmental conditions present a challenging frontier for performing remote intervention construction and IRM activities.

The contract is for two years and will commence on January 1, 2007 through to the December 31, 2008. Subsea 7 has been performing construction and IRM activities for BP in the West of Shetland basin since the initial development of the Foinaven field in the early 1990's. Over 100 Subsea 7 personnel both onshore and offshore will be employed in the provision of these services for BP.