Marine Log

Sevan drilling platform

April 6, 2006

Sevan orders drilling package

Sevan Marine ASA is a step closer to building a drilling platform version of its innovative SSP--Sevan Stabilized Platform.

Aker Kvaerner has now signed a contract with Sevan Drilling Pte. Ltd., a fully owned subsidiary of Sevan Marine ASA for delivery of drilling systems and equipment for a drilling platform of the Sevan design.

The total contract value for Aker Kvaerner is approximately $ 87 million. The contract also includes an option for delivery of a second, identical drilling package.

The contract is undertaken by Aker Kvaerner MH. The scope of work is to deliver a complete drilling package consisting of engineering, equipment deliveries and related services. The drilling system will be a high efficiency system designed for parallel operations and operation at remote locations.

The harsh environment, ultra deepwater drilling rig is scheduled for delivery in the first half of 2009. It will be designed for world-wide operation.

"We are pleased that Sevan Marine has awarded us this contract, which confirms our leading market position in the deep water drilling segment," says Roald Amundsen, President of Aker Kvaerner MH.

The first SSP--a 300,000 barrel capacity FPSO--was recently floated out of Yantai-Raffles and is to be dry-towed to Keppel Verolme , Rotterdam for completion. It is scheduled to enter service with Petrobras later this year.

Sevan announced its plans for the drilling version of the SSP in February this year. It will have an estimated all-in deliver cost of $430 million and will be owned by the Sevan Drilling subsidiary.