Dockwise Bags $84MM Topside Transport Contract for Shtokman Field

Dockwise Ltd.

Following the letter of intent announced in June 2008, Dockwise announced that through its subsidiary Dockwise Shipping B.V., it has been contracted by Vyborg Shipyard to transport two topside structures from Korea to the Barents Sea and to install the units on semisubmersible hulls, using the float-over technique. Dockwise will receive US $84 million over the three year contract, with the revenue contributing immediately to fourth quarter 2008 cashflows.

Vyborg Shipyard was commissioned by Gazflot (the operating arm of Gazprom) to construct two platforms designed for operation in the arctic conditions of the giant new Shtokman field, 600km offshore Murmansk. The first topside structure is scheduled to be loaded end April 2010 for installation between July and August 2010; the second at end October 2010 for installation around February 2011. The structures will be transported from Geoje Island, Korea, to the assembly locations in the Murmansk harbour area. Each topside is estimated to weigh around 22,000 tons.

Andre Goedee, CEO of Dockwise, commented, "The Vyborg / Shtockman contract is a milestone in Dockwise's history. It demonstrates our primacy in handling extreme challenges: scale, distance, and climactic conditions are the significant features of this assignment. Furthermore, our installation role shows how Dockwise is developing its presence in the upstream production cycle. We are excited by the prospect of the Russian arctic market and are actively exploring ways to build upon today's announcement to develop long term relationships with Russian clients."