Cape Receives LOI from Aker Kvaerner Contracting

Cape PLC has received a Letter of Intent from Aker Kvaerner Contracting AS covering the initial call offs for the Early Work Activities, Hook Up and Commissioning of the Offshore Facilities associated with the Kashagan Field Development in Kazakhstan.

The services to be provided will include scaffolding, rigging, winterization, surface coatings, insulation and pipe cutting. Project completion is planned for late 2010. The contract, which is based on a schedule of rates, will peak in 2009 with a labor force of approximately 200 operatives indicating a total contract value in excess of US $10m.

The award of this contract reinforces Cape's position as the leading support services provider in the Caspian Region and in particular Kazakhstan. Since entering the market in 2000 Cape has secured major contracts at Tengiz with Parsons Fluor Daniel, at Karabatan with GAMA, Bateman, IGS Sicim, and now in Kashagan with one of our global partners Aker Kaverna. Key to Cape's success in this important market was our safety proposition, our ability to deliver on time, and our commitment to train a local workforce to demanding international standards. Earlier this year Cape established a purpose built training facility in Atyrau.

Martin May, Cape's CEO said: "We are delighted to have been awarded this important and significant contract by Aker Kaverna. I am convinced that Kazakhstan will prove to be an important market for Cape for many years to come. Full credit should be given to our local and regional team for bidding this contract successfully."