Oceanteam Signs LOI to Acquire JV in Mexico

Oceanteam Power & Umbilical ASA has signed a Letter of Intent with Oceanteam Holding B.V. with the objective to purchase its Joint Venture Operations in Mexico.

Oceanteam Holding BV, a 19.58% shareholder in Oceanteam Power & Umbilical ASA, owns a joint venture company with Grupo Diavaz, named CONAT SA de CV, which operates from Cuidad del Carmen, Mexico. The company currently owns and operates two new Damen 33 meter Axe Bow design fast support vessels (FSV). The vessels are working on a long term charter for IMR support services in the Gulf of Mexico and the company is in the process of expanding its business further.

Oceanteam Holding BV, through a 100% subsidiary named Oceanteam Mexico BV, owns 49% of the shares in CONAT SA de CV.

Based on the Letter of Intent legal and financial due diligences will commence. Two independent valuations will form the basis for the acquisition price. The companies expect to close the transaction by August 2007. The transaction is a related party transaction as Oceanteam Holding BV is controlled by the Halbesma family being the largest single shareholder of Oceanteam Power & Umbilical ASA.

Oceanteam Power & Umbilical ASA plans through this acquisition to grow its business into the smaller size IMR vessels services market and to market its power & umbilical installation and repair services, trenching capabilities and vessels in Mexico.

Oceanteam is a niche services provider focused on servicing, installation, trenching and IMR of flexible pipelines, umbilicals and power cables. This includes the provision of installation teams, fully operational spreads and time charters. Oceanteam is located in Bergen, Aberdeen and Amsterdam.