DeepOcean, Reliance End Negotiations for Support Vessel

Since receiving a letter of award from Reliance Industries Limited of Mumbai, India in August 2007 for the provision of a multi-purpose subsea support vessel and associated services, DeepOcean ASA has been involved in ongoing negotiations in order to finalize a contract.

DeepOcean said that the negotiations have been very difficult, thanks to numerous unresolved operational and technical issues. As a result, the companies have discontinued the talks and DeepOcean's order backlog is now approximately NOK 900 million lower.

DeepOcean will no longer take the vessel REM Etive on charter as previously announced.

DeepOcean's CEO Kare Johannes Lie commented:

"DeepOcean has done its outmost efforts to comply with the requests of Reliance, and we deeply regret that we could not reach an agreement with them. Having said that, there is a limit to how much contractual risk we can take in one market, compared to what we experience elsewhere in the world. With the present worldwide demand for subsea IMR services we can now focus more on offering our services to other clients for operations both in the North Sea, Mexico, Brazil and Australia. For DeepOcean we see many other possibilities next year and the years thereafter."

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