NKT Flexibles Awarded 3-Year Frame Agreement by Petrobras in Brazil

NKT Flexibles has entered into a three-year frame agreement with Petroleo Brasileiro SA (Petrobras, Brazil) covering delivery of up to 90 km. of 6-in.ID and 8-in.ID flexible dynamic risers and static flowlines for installation in water depths down to 2.000 meter. The frame agreement will run in the period 2009-2011 and may reach a value of 1.4 billion DKK (close to 300 mUSD) if fully exercised.

Michael C. Hjorth, CEO of NKT Flexibles; "We are exceptionally pleased to be awarded this three-year frame agreement by Petrobras. It confirms NKT Flexibles' strong position in the global market for offshore flexible pipe systems and supports our long term development program focused at flexible pipe applications for ultra deep water. Furthermore this frame agreement marks the entrance of NKT Flexibles into the hugely important Brazilian market accounting for some 50% of the global flexible pipe market. We expect this step-up in co-operation with Petrobras to be the start of a mutually successful business relationship."