Grenland, FMC Sign LOI For Pazflor Project Contract

Grenland Group has signed a letter of intent with FMC Technologies' subsidiary in Kongsberg for the fabrication, assembly and testing of subsea structures that will be part of FMC Technologies' delivery for Total's Pazflor Project, located in Block 17 deepwater offshore Angola. The contract has a value of approximately NOK 160 million in revenue to Grenland Group.

The subsea structures to be fabricated and assembled by Grenland Group will have a total weight of over 1200 tonnes. Deliveries will be completed over a multi-year period and are expected to commence in 2009. The subsea structures will be fabricated at Grenland Group's yards in Grenland and in Tonsberg in Norway.

FMC Technologies has awarded substantial contracts to Grenland Group during the last year. Larger projects of note that are under fabrication include Woodside's Pluto development in Australia and StatoilHydro's Ormen Lange, Gjoa, Vega and Troll O2 developments in the Norwegian Continental Shelf.

"We are proud to be a main fabricator and supplier to FMC Technologies, including this recently announced large development offshore Angola", sais Terje Uthus, CEO of Grenland Group. "We find it of special interest to be selected as the fabricator of all three subsea separation modules to Pazflor. These projects follow the world's first-ever full field subsea separation module (3 phase separation), which began operations in the Tordis Field in January 2008 and was fabricated and assembled at our yard in Tonsberg last year."

In addition to Total E&P Angola, other partners in the Block are Esso Exploration Angola (Block 17) Ltd., BP Exploration (Angola) Ltd., and StatoilHydro. The Pazflor Project targets development of hydrocarbons in water depths between approximately 2,000 feet (600 meters) and 4,000 feet (1,200 meters). FMC Technologies' scope of supply includes three gas-liquid separation systems, which marks the first-ever deployment of subsea separation technology in West Africa, as well as 49 subsea trees and wellhead systems.