Stolt Awarded Contract for Burullus Scarab/Saffron Development

Stolt Offshore S.A. announced the award of a contract from the Burullus Gas Company consortium, which consists of BG Group (Operator), Edison and the Egyptian General Petroleum Corporation (EGPC), for the subsea construction and pipelay works on the Scarab and Saffron fields in the Eastern Mediterranean.

The Scarab and Saffron gas fields, the first deepwater development to be undertaken in the Eastern Mediterranean, will produce gas for Egypt. The $145 million contract includes the installation of gas export pipelines, in water depths ranging from shore to 415 meters, infield flowlines and service lines, manifolds, and well control umbilicals. The pipelay barge LB200 will install the gas export pipelines with the Seaway Falcon installing infield lines. The Seaway Explorer and Seaway Legend will undertake manifold installation, pipeline burial, survey and hydrotest work.

The shore approach work for the gas export pipelines will be subcontracted to Petrojet, the Egyptian national offshore contractor, who will use the Petrojet 11 and Petrojet 12 pipelay barges which will be equipped with Saturnax automatic welding equipment supplied by the Stolt Offshore subsidiary Serimer DASA. Petrojet will also install a 300 ton manifold and carry out the concrete coating of the gas export pipelines lines. The shore approach work will start fourth quarter of 2001 with the gas export pipelay and deep water works starting in the second quarter of 2002.

Bernard Vossier, Chief Executive Officer, said, "The Scarab and Saffron development is an important contract which marks the start of deep water field development in the Eastern Mediterranean. This award reflects our unique ability to undertake a complete field installation including both large and small diameter pipelay and subsea construction in all water depths. We welcome this opportunity to work in co-operation with Petrojet who will have an important part to play in the further development of the Eastern Mediterranean oil and gas fields.

Stolt Offshore is a leading offshore contractor to the oil and gas industry, specializing in technologically sophisticated offshore and subsea engineering, flowline and pipeline lay, construction, inspection and maintenance services. The Company operates in Europe, the Middle East, West Africa, Asia Pacific, and the Americas.