StatoilHydro Extends Contract for AGR's Claycutter X Technology

AGR Group says that StatoilHydro exercised an option under the contract with AGR Group to extend the use of AGR Group's new excavation technology, Claycutter X, at Ormen Lange gas field.

As an enhancement on currently available technology, the Claycutter X will have a range of excavation modes, which can be, interchanged subsea depending on the environment encountered. It is controlled remotely and incorporates hands free operation on deck and remote operation of all subsea systems. At Ormen Lange it will be used in conjunction with AGR's Seavator, which uses a high volume vertical flow of seawater to clear debris.

Prior to the exercise of the option the contract was estimated at 87MNOK value. The exercise of the option increases the value of the contract to 147MNOK, and close to doubles the excavation volume from approx. 1.900 m3, to approx. 3.900m3, with the offshore work period also estimated to double from 32 days to 64 days.

Sverre Skogen, CEO of AGR Group commented, "his further endorsement of our breakthrough excavation technology positions AGR Group to become a world leader in this market, where there is increasing demand for technology able to handle complex, deepwater trenching challenges."

AGR Group's technology provides the worlds most powerful mobile jetting pump spread. This spread is also ideal for powering jetting sleds for pipeline trenching on a global basis. The Claycutter X enables precise excavation in all water depths and soil strengths up to 400 KPA shear strength. It will be deployed to prepare routes across and through undulating seabed prior to laying pipelines in deepwater.