Dresser-Rand Secures Work on Nord Stream, Petrobras' P-55 Platform

Dresser-Rand has received two awards totaling over $200 million. The awards, which were booked in December 2008, include an order from Rolls Royce Power Engineering plc to supply DATUM compressors for Gazprom's Portovaya Station for approximately $108 million and an award from Petrobras Netherlands B.V. to supply power generation packages and services for the P-55 semi-submersible production platform for approximately $100 million.

Vince Volpe, Dresser-Rand's President & CEO, commented, "These two contracts add to our growing backlog of deliveries scheduled for 2010 and is further evidence of the continuing investment in the energy infrastructure to support the world's expected need for energy resources over the coming decades."

The Portovaya Compression Station is the head station of the Nord Stream pipeline and will have an installed compression capacity of 354 MW, unparalleled in Russia. It will be built near Vyborg, north east of Saint Petersburg, on the Russian coast of the Baltic Sea. According to Gazprom, the Nord Stream gas pipeline is a new route for Russian gas exports to Europe. It will be approximately 1,200 km (746 miles) long and run across the Baltic Sea from the Portovaya Bay to the German coast, near Greifswald.

"We're pleased that Gazprom and Rolls Royce selected Dresser-Rand to supply DATUM compressors for the Portovaya Head Compression Station," said Jesus Pacheco, Dresser-Rand's Executive Vice President of New Equipment Worldwide. "The advanced technology of the DATUM compressors combined with Rolls Royce's gas turbines for this application provides Gazprom with the best solution in terms of equipment and operating costs, as well as a reduced level of emissions compared to other technologies." Pacheco added that "Dresser-Rand's DATUM compressor efficiency significantly contributes to maximizing gas exports and its modular design minimizes downtime."

The P-55 award from Petrobras includes a $78 million supply contract for four (4) gas turbine driven power generation units using Dresser-Rand's advanced, modular VECTRA 40G power turbines and a services contract of up to $22 million. P-55 will be a semi-submersible platform with a production capacity of 180 thousand barrels per day of oil. It will be installed in a water depth of 1,795 meters at the Roncador field in the Campos Basin. It is scheduled to begin operations in early 2012.

Pacheco noted, "This award adds to our growing presence in Petrobras' offshore installations with both power generation and compression solutions, and is further evidence of how the value of our technology continues to support our role as a leader in the build out of the growing floating production market."