AGR Adopts New Global Business Structure

AGR Group has restructured its management structure to reflect the expansion of its global interests and the development of its business processes.

Two new geographical business centers--Asia Pacific and the Americas--have been established to focus AGR's activities in these important regions. AGR Asia Pacific is headed by Cam Rathie, formerly managing director of Upstream Petroleum, the Australian-based provider of development and production services to the upstream oil and gas industry, acquired by AGR in January. AGR Americas--covering the US, Canada, Central America and South America - is headed by Erling Storaune.

The group has also streamlined its business units in line with its broadening base of products and services. A new division called Field Operations embraces the previous Project Services and Integrity Services business units and includes developing engineering projects. It is responsible for project management and engineering, subsea infrastructure, facilities integrity and operations and maintenance services. The Field Operations business unit is headed by Johan Warmedal, formerly Executive Vice President of Integrity Services. Egil Tjelta continues in his role as Executive Vice President, AGR Project Services. In addition, he takes on the engineering process role for the group as a whole. Terje Pedersen remains Manager, AGR RC Consultants.

As recently announced, Richard Erskine has been appointed as Executive Vice President of Petroleum Services. Sveinung Olsen continues in his role as Executive Vice President of Drilling Services. Andrew Paterson, currently Executive Vice President, Performance Improvement Processes, will be leaving the group this summer.

The group has also reinforced the executive team with the appointment of Erik Grantangen, as Executive Vice President, Safety, Environment and Quality, and Robert McPherson, Executive Vice President, Human Resources. Arne Aune, Executive Vice President, has added integration to his mergers and acquisitions responsibilities.

As part of the reorganization, Haakon Berg, Chief Financial Officer, has taken on a broader role, being responsible also for legal services, information technology and procurement. Ole Oulie has been appointed Director of Legal Services, Chris Ferrier has been appointed Vice President, Information Technology, responsible for the group`s IT network. A new Head of Procurement will be joining AGR on March 1st.

Financial reporting will follow new structure at release of the Q2 numbers at the latest.