DeepOcean Wins Reliance Contract

DeepOcean has received a Letter of Award from Reliance Industries Limited for the provision of a Multi-Purpose Subsea Support Vessel and associated services. Contract duration is for a three year fixed term starting December 2007 with a further two, one year options. The three year base scope is valued at US $166 million while the options hold a value of US $118 million if exercised.

The Multipurpose Service Vessel (MSV) REM Etive will be deployed in December 2007 under the terms of a commercial agreement between DeepOcean and TS Marine (Contracting) Ltd., of Aberdeen. The vessel will be utilized to support the development of oil and gas discoveries in Block KG-DWN-98/3 in the Krishna Godavari Basin in the Bay of Bengal on India's east coast.

The MSV spread will be fully equipped for operations in 2,000 msw, although the initial phase of the field development will see installation activities in 1,200 msw. 18 to 20 subsea wells and 6 manifolds will be installed to produce through two export lines to an onshore terminal. The vessel will be utilized for all aspects of deepwater Installation, Commissioning and IMR (Inspection, Maintenance and Repair), having two Workclass ROV systems permanently installed as well as cranes and active heave compensated winch systems suitable for deployment of subsea hardware throughout the field.

DeepOcean has also committed to upgrading the vessel with fire fighting and pollution control systems as part of the contract.

DeepOcean's CEO Kåre Johannes Lie commented, "Involvement in the Reliance project will further expand DeepOcean's international activities in line with its established strategic direction. The extensive scope of work will also enable us to further demonstrate the company's expertise in this area."