SBM Offshore Inks Deal with ExxonMobil for Kizomba C FPSOs

SBM Offshore has signed with an ExxonMobil affiliate, Esso Exploration Angola (Block 15) Limited, as Operator of Angola's Block 15, an agreement under which SBM will proceed with project development activities for two FPSOs for the Kizomba "C" development offshore Angola. Subject to a funding decision by the co-venturers, it is the intention of the parties to enter into definitive lease and operation contracts.

The contracts will be between Esso and the Sonangol / SBM Joint Venture companies Sonasing and OPS. The remuneration structure of the contracts and the duration of the leases will be disclosed after signing of the contracts.

These new FPSO conversions will be an extension of ExxonMobil's Early Production System (EPS) concept, with enhanced processing capacity. The FPSOs will be installed at the Mondo and the Saxi-Batuque fields in water depths of approximately 700 meters. The units will be based on the conversion of VLCCs taken from SBM's inventory. Each will be designed to produce 100,000 barrels of oil per day, and will have a storage capacity of close to 2,000,000 barrels. The FPSOs, moored by external turrets, will further be fitted with large capacity water and gas treatment and reinjection facilities as well as the related power generation equipment.

The two units will be completed and installed on site offshore Angola by the second quarter of 2008.

Aquila FPSO

The SBM/Saipem Joint Venture FFPP has received from Eni S.p.A. confirmation of an extension of the lease and operate contract of the FPSO Firenze, deployed on the Aquila Field in the Adriatic Sea offshore Italy, until the end of December 2007.

Tanker Terminals

An order has been received from the Willbros Group for the supply of a Catenary Anchor Leg Mooring system to be installed at the Escravos terminal in Nigeria. The system will be used for the export of the products of the "Gas To Liquid" plant of Chevron, currently under construction.

BP America Production Company placed an order for the supply of two CALM systems for deployment in the Gulf of Mexico offshore Louisiana. These tanker loading systems are part of BP's hurricane contingency plan and will be used to temporarily moor a storage and offloading tanker in the event of damage to the offshore pipeline and/or onshore infrastructure following a hurricane.

Portfolio Value

The aggregate portfolio value of the above projects amounts to approximately US $1.5 billion. This figure includes, for the lease and operate contracts, the SBM share of the non discounted revenues over the firm contract durations.