nortechs agrees to provide fpso for bilabri field in nigeria

Nortechs Agrees to Provide FPSO For Bilabri Field in Nigeria

06-18-2008

Nortechs FPSO PTE Ltd. entered into an agreement with Peak Petroleum Industries Nigeria Ltd. for the FPSO East Fortune to provide production, storage and offloading services on the Bilabri Field, located in Block OML 122, offshore Nigeria.

Following a short yard stay in Singapore, required to carry out the modifications and upgrades necessary for operating in Nigeria, the FPSO East Fortune will set sail from Singapore in time for production from the Bilabri Field to commence by the end of 2008.

The primary term of the contract is 3 years, with Peak having the option of extending the contract for up to a maximum of 10 years. The total nominal value of the contract, excluding options and production incentives, is about USD 110 million.

Harald Vartdal, CEO of Nortechs stated, "We are delighted to have signed a contract with Peak for operations in the Bilabri Field. Thanks to Nortechs' strategy of developing readily re-deployable and flexible FPSO solutions, we are in the position of being able to offer the FPSO East Fortune to Peak on an exceedingly short schedule. We look forward to working with Peak on this project with the goal of achieving first oil from the Bilabri Field by the end of 2008."