Disposal of West Ceres 05-July-2009 Issue: WN 022 Seadrill has exercised its right to repurchase the jack-up drilling

rig West Ceres from a subsidiary of Ship Finance International Ltd, for the pre-agreed price of US$135.5 million. Ship Finance International acquired the drilling rig in 2006 from Seadrill in combination with a 15-year bareboat charter back, where Seadrill also was granted certain purchase options, first time in 2009.

RIG MARKET WEEKLY NEWSLETTER

Furthermore, Seadrill has subsequently entered into a memorandum of agreement to sell the jack-up rig to a reputable Middle East drilling company for a consideration of US$175 million plus an additional US$ 3 million for inventory related to West Ceres. Seadrill is expected to record a gain on sale of approximately US$20 million in the third quarter 2009. Closing of the agreement and transfer of ownership of the unit is scheduled to early July 2009. West Ceres is presently unemployed and is located offshore Ghana in West Africa.

Pride Missouri work extended Two Pride International jackups, Pride New Mexico and Pride Alaska, are not on contracts now. Pride New Mexico has completed its contract with ADTI in mid-June and is now stacked in a yard while Pride Alaska is idle after completing an ADTImanaged contract for Probe Resources in early June. The jackup rig Pride Missouri has got an extension with Arena Energy until August at a day rate of US$47,500. The rig is drilling on West Cameron Block 564 in the Gulf of Mexico in around 188 feet of water. The contract began in May.

Rigs Vessels E&P Projects Deals Financial-Others Commodities

18 8 14 14 17 17 26 26 30 31

DRILLING RIGS VESSELS NEWS

SeaDragon semi-sub in Jurong Shipyard Jurong Shipyard, a wholly-owned subsidiary of Sembcorp Marine, has secured a second SeaDragon rig order from Oban B Limited to complete and deliver a Moss Maritime Full Dynamically Positioned (DP-3) Semi-submersible Drilling unit. The 6-column Bare Deck hull, built in a Russian yard, arrived at Jurong Shipyard in early June 2009. Following arrival, Jurong will now proceed with the construction, outfitting, furnishing, equipping, testing and completion of the bare-deck hull into an ultra-deepwater semisubmersible drilling rig. The second unit is scheduled for delivery by end June 2011. The shipyards contract value for the second unit is US$237.3 million, excluding equipment supplied by the owner. This new rig will be built for a water depth rating of 10,000 feet and maximum drilling depth of 30,000 ft. The rigs ability to operate even in harsh environment gives it the multi-region flexibility to operate worldwide as compared to its peers. Mr George Sutherland, Technical Director of Oban B said, We are delighted to be working with the world class team at Jurong on this second project, which we are confident will result in a first class asset for charter in 2011. Mr. Don Lee, Jurong Shipyards Senior General Manager of Offshore Division said, We thank SeaDragon again for their trust and commitment in working with Jurong to realise this option after the first contract was signed in April 2009. These two state-of-the-art semi-submersible rigs will complement the range of semi-submersibles that Jurong is building and demonstrates our versatility in undertaking projects with diverse complexities. We now have two first of its class semi-submersible rigs to be delivered. We are pleased that, despite the current challenges due to the economic downturn and the credit crunch, our order book continues to strengthen. This rig order is testimony of the confidence that our clients, partners and vendors have in the deepwater market and in particular, Jurongs proven track record and project execution capabilities. We are committed to deliver on our promise and to build on this foundation for many years to come.

Demas Victory - 17 bodies so far The supply vessel Demas Victory sank with 35 people on board, off the coast of Doha. Thirty people were missing while five people, including the ships captain and chief engineer, had a narrow escape. 17 bodies were recovered so far, 13 missing and expected to be dead. The captain and chief engineer of the vessel are from Indonesia, 12 others are from Nepal, one from Bangladesh, while the rest of the crew is Indians. The vessel faced a rough weather when it sank, and currently investigation is under way with the captain and chief engineer.

Sevan Voyageur to start production The installation vessel has been mobilized to the Shelley field in the North Sea and is expected to arrive tonight. Upon arrival, the vessel will proceed with the installation and pull-in of the umbilical and production riser, to enable the FPSO Sevan Voyageur to start oil production. The FPSO Sevan Voyageur will be operated under a production sharing contract whereby Sevan will be compensated for its actual operating cost and will in addition receive a tariff payment based on actual monthly revenue from oil production from the field.

Ice-class rescue vessel delivered Keppel Singmarine Pte Ltd, the specialised shipbuilding arm of Keppel Offshore & Marine Limited, has delivered a Multi-purpose Duty Rescue Vessel on schedule to valued client, LUKOILKaliningradmorneft. Over the last four years, LUKOIL has entrusted Keppel Singmarine with specialized shipbuilding projects such as Asias first icebreakers, two ice-class Anchor Handling Tug/Supply vessels and a Floating Storage and Offloading vessel, which is being completed by sister yard, Caspian Shipyard Company in the Caspian Sea. Jointly designed by Marine Technology Development (MTD), the ship design and development arm of Keppel O&M and its consultants, Robert Allan, Kogalym is the fifth vessel Keppel Singmarine has delivered to LUKOIL since 2003. Victor Velikov, Deputy General-Director of LUKOIL said, Heavyduty support vessels such as Kogalym are highly valuable in ensuring smooth offshore operations all year round in the unique weather conditions of the Caspian Sea. Keppel Singmarine has demonstrated its strong capabilities and commitment once again, with the timely delivery of another fine vessel. The company has proven itself over the years as a reliable partner to LUKOIL, and we are pleased that the rest of our vessels being constructed by them are progressing well. Named after a key production region for LUKOIL in western Siberia, Kogalym was christened by Mrs. Olga Kessler, Environmental Engineer (Labor Safety) of LUKOIL at Keppel Singmarine. This 60-tonne bollard pull vessel will be deployed in the Caspian Sea region to perform supply duty and rescue operations in temperatures as low as -20C and ice thickness of up to 70 cm. Said Hoe Eng Hock, Executive Director of Keppel Singmarine, Through the successful delivery of Kogalym and several other important projects, we have developed a good understanding of LUKOILs operating requirements be it in the Caspian Sea or Arctic regions. In the process, we have also honed our expertise in designing, engineering and constructing advanced ice-capable vessels. We look forward to deepen our win-win partnership with LUKOIL and continue to support them to become a leading global energy company.

Consent to use Songa Dee Lundin Norway AS has been granted consent to conduct exploration drilling in the southern part of the North Sea with the mobile facility Songa Dee. The consent applies to drilling of exploration well 16/1-12 which belongs to production licence 338. A sidetrack might also be drilled. The activity has a planned duration of 74 days, including well testing. Songa Dee (formerly Stena Dee) is a semisubmersible mobile drilling facility of the type "Mitsubishi MD-602". It was completed in 1984. The facility is owned and operated by Songa Management AS in Stavanger.

Seajacks Leviathan delivered Seajacks International Ltd. has taken delivery of its second liftboat, the Seajacks Leviathan. We are pleased to take delivery of this vessel today, and we are proud of now having two liftfboats in operation, says Seajacks CEO, Thomas Berg. Seajacks Leviathan has been constructed at the Lamprell yard in Dubai and has been delivered on time and on budget. She will shortly leave on a heavy-lift vessel for the North Sea to commence a 14 months job for Fluor Ltd. to install wind mills at the Greater Gabbard wind farm project. Including the contracts with Dong Energy announced on 25th June 2009, Seajacks' two liftboats have a contract backlog of approximately 41 months, which is expected to generate time-charter revenues of approximately USD 174 million (including mobilization / demobilization fees).

Drillships new Names Pride International, Inc. has named the four new ultra-deepwater drillships it has under construction. With delivery of the first ship scheduled for early 2010, the company is naming the new vessels after major subsea features that occur in some of the deepest areas of the oceans. Louis A. Raspino, President and Chief Executive Officer of Pride International, commented, "These new drillships are a key element of Pride's transformation to a premier floating rig company. Once operational, they will offer leading-edge capabilities required for accessing an increasing number of deepwater geologic structures." The drillships and anticipated delivery are as follows:
Deep Ocean Ascension (formerly PS1) - First

Qatargas 3 shareholders are ConocoPhillips and Mitsui & Co., Ltd.

Qatar

Petroleum,

Puffin FPSO charter terminated On 17 June 2009 the Puffin Joint Venture had issued a Breach Notice to the owner of the Front Puffin FPSO in connection with certain material safety and operating breaches. Those breaches have not been rectified to the satisfaction of the Puffin Joint Venture by the owner of the FPSO. Moreover, reasonable steps in that regard have not been taken by the owner of the FPSO. The Puffin Joint Venture has therefore exercised its rights to terminate the charter contract with the owner of the FPSO. The Joint Venture will now consider its options for the Puffin Field. The AED/SIPC Joint Venture where SIPC through its wholly owned subsidiary, East Puffin Pty Limited operates the field. SIPC (Sinopec International Petroleum Exploration and Production Corporation) holds 60% in the joint venture with AED.

Quarter 2010.
Deep Ocean Clarion (formerly PS2) - Third Quarter

2010.
Deep Ocean Mendocino (formerly PS3) - First

Quarter 2011.
Deep Ocean Molokai (formerly PS4) - Fourth

Quarter 2011. Capable of working in water depths of up to 12,000 feet, the first three ships have been contracted by BP (Deep Ocean Ascension and Deep Ocean Clarion) and Petrobras (Deep Ocean Mendocino).

SBM Offshore - projects status SBM Offshore, under an EPCI contract with the Frade B.V., has completed installation of the FPSO Frade, which commenced oil production on 20 June 2009. The FPSO Frade is situated in the Frade field, which is located 375 kilometers northeast of Rio de Janeiro in the Campos Basin, offshore Brazil, in approximately 1,080 meters of water depth. The FPSO Frade is moored by an internal turret able to accommodate 33 risers and has topsides capacity for the production of 100,000 barrels of oil treatment and compression of 106 million standard cubic feet of gas, and treatment and injection of 150,000 barrels of water per day. The FPSO Frade is the most complex system the SBM has supplied in terms of topsides facilities with project duration of 36 months from signing of the contract in 2006. A total of approximately 18 million work-hours have been attributed to the project. SBM Offshore started operations of the unit following production readiness on the 19 June 2009 under a separate Operations Contract for a period of three years.

Two LNG carriers delivered to Nakilat Two of the worlds largest and most advanced Q-Flex LNG carriers were delivered to Nakilat and chartered on long term contract to Qatargas Liquefied Gas Company Limited (3), known as Qatargas 3, at Hyundai Heavy Industries Co., Ltd., shipyard in Ulsan. The Nakilat owned Q-Flex LNG Carrier Al Rekayyat (216,000 CBM) and Al Kharaitiyat (216,000 CBM) will be used to ship LNG produced by Qatargas 3, to markets primarily in the United States. The Q-Flex and the even larger Q-Max are a new generation of LNG mega-ships. The Q-Max has 80 percent more capacity than conventional LNG carriers with about 40 percent lower energy requirements due to the economies of scale created by their size and the efficiency of the engines. Q-Max LNG carriers are unique and purpose built for Nakilat and allow for more efficient transport of Qatars natural gas to markets throughout the world.

Turkmenistan MOPU and FSO completed:

purchase transaction

The purchase by Petronas Carigali of the MOPU and FSO facilities (MOPU/FSO Oguzhan) currently operating in Turkmenistan has been completed with an effective date of 19 June 2009. As previously announced, the transaction generates non-recurring turnover of US$ 51.5 million, and a post-tax profit of US$ 30 million. SBM Offshore supplied the MOPU and FSO facilities in May 2006 under a lease and operate contract of three years with an additional three years of extension options. Since start-up the facilities have been operating at a 99.5% production uptime with a total of 158 successful cargo offloads to shuttle tankers. Deep Panuke MOPU project finance loan signed: SBM Offshore confirms the successful completion of its US$ 350 million project loan facility to finance the construction and leasing of the Deep Panuke Production Unit. The unit is currently under construction and is scheduled to start production in late 2010 under an 8 year lease and operate contract for Encana Corporation a leading producer of natural gas in North America. Annual extension options provide for up to a maximum of twelve additional years charter. The Deep Panuke production facilities consist of a jack-up type of production platform, based on SBM Offshore's MOPU design, and will be located about 175 kilometres offshore Nova Scotia in a water depth of approximately 44 metres and harsh environment. The unit is designed to produce market-ready gas exported through a subsea pipeline to customers in Canada and the north-eastern United States. FSO Unity operating contract extension of six months: The operating contract with Total for the FSO Unity, located on the Amenam field offshore Nigeria, has been extended by twelve months until 30 June 2010.

The project won high acclaim, in that; the trials were carried out in only one month with far less noise and vibration. Until now, there has only been one main engine system to power LNGCs. As a result of Daewoo Shipbuilding & Marine Engineering continued efforts to develop this system since 1998, we can now see fruitful results. Motor propulsion based vessels are equipped with a diesel electric propulsion system consisting of two propulsion motors connected to their propellers, transformers, frequency converters, big diesel generators, and a remote control system. The vessels have benefited from the fact that boiled off gas can be used in the operation of the dual fuel engine. Two very significant benefits of having two motors power a vessel are it has greater efficiency and less vibration. Also, Electric Propulsion System LNGCs can be designated as clean and green for the environment. The implementation of the Electric Propulsion System and dual fuel generators has worked so well, the next generation of LNGCs will be outfitted with the same system.

PGS names a seismic vessel The most sophisticated vessel in the seismic industry, the 22-streamer Ramform Sterling was named at the yard in Tomrefjord, Norway The most sophisticated vessel in the seismic industry, the 22-streamer Ramform Sterling was named at the yard in Tomrefjord, Norway. The new vessel, a sister ship of Ramform Sovereign is 16 meters longer than the previous class Ramforms. It has significantly higher acquisition and transit speed, 25 percent longer endurance, and 60 percent higher production capacity compared to the previous Ramform class. The Ramform Sterling is the most powerful seismic ship in the world, with a power plant supplying 30 000 horsepower. The vessel class features many new innovations; including the world's first roll compensated helideck, steerable sources, dual workboat capacity and unique gear handling systems. The range of technologies employed is the new benchmark for 3D, 4D and wide azimuth acquisition - in terms of productivity, efficiency, safety and data quality. Jon Erik Reinhardsen, President and CEO of PGS states in a comment: "This on-time delivery is an important milestone to PGS, as we are combining the most sophisticated technology in the business, with the newest vessel in the industry. Ramform Sterling is adding another

Electric Propulsion System on LNGC A new Electric Propulsion System has been adopted for LNGCs by implementing an electric propulsion motor powered by dual fuel (gas/oil) and diesel generators (DFDE). The first application of the electric propulsion system was made on BW GAS LNG's LNGC H.2258, with a gas storage capacity 162,400 CBM. Their sea trial and gas trial concluded on June 13th, 2009. During the trial, the propulsion system was put to the test.

of the world's most cost effective vessels to our fleet, giving PGS a clear competitive edge in the market." Ramform Sterling has a capacity of 22 streamers at 8 km length. The 400 tons of highly sensitive electronic equipment deployed over an area equivalent to 830 soccer pitches. The power station on Ramform Sterling generates up to 30 000 horsepower. When collecting seismic data, the Ramform Sterling generates around 160 tons of thrust, equivalent to two Boeing 747 aircraft at takeoff. Ramform Sterling contains 53 cabins, all with separate bathrooms. Rune Eng, Group President Marine, states: "We are very excited at the prospect of getting another Ramform SClass into operations. There has been enormous interest amongst our client base for the vessel, and despite the general slowdown in the seismic market we register that interest for the high productivity, efficiency and safety of the Ramforms. Ramform Sterling already has several good projects lined up throughout the year. We expect to set more industry records for operational efficiency. Once again, this is a fantastic addition to the fleet."

HHI has the greatest global FPSO market share by receiving seven of the twelve FPSO orders worldwide.

UMLMA tanker chartered The Qatar Shipping Company (QShip) has signed an agreement with Bharat Petroleum Corporation (BPCL) for the time charter of the tanker UMLMA, which is fully owned and operated by Q-ship. The period of the time charter is two years with an option extension for further one year. The tanker, a 105,000dwt aframax, had been ordered and received by Q-ship in January 2006 and had been trading worldwide with various crude cargoes. On this time charter, the mainly will be used for the transport of crude from the Arabian Gulf, including Qatar, to India. Qship owns and operates, wholly and partially, a young, mixed fleet of vessels in a number of trades which include Crude oil, Petroleum Products, Liquefied Petroleum Gas, Ammonia, Petrochemicals, Liquefied Natural Gas and Offshore support services

Keel-laying for Usan FPSO Hyundai Heavy Industries (HHI) held a keel-laying ceremony for the Usan FPSO in the specially designed Hdock. The FPSO, which is ordered from Elf Petroleum Nigeria, Ltd. (EPNL), a Nigerian subsidiary of French oil company Total S.A, will measure 320m in length, 61m in width, 32m in depth, and weigh 114,000 metric tons. It will be able to produce 160,000 barrels of oil and 5 million cubic meters of natural gas per day and will be able to store 2 million barrels of oil.

Hull replacement for AHTS vessel Siem Offshore Inc has accepted a proposal from the Kleven yard to utilize an existing hull for the construction of one of the eight anchor handling tug supply vessels (AHTS vessel) to be built for the Company. HHI plans to complete the FPSO by February 2011. The FPSO will be delivered to EPNL and located in the Usan field, which is in 750m in water, 100km southeast of Bonny Island, Nigeria. HHI will build two 180,000DWT bulk carriers in H-dock at the same time to increase productivity. The H-dock, which was completed in April, is wider and deeper than normal shipbuilding dry docks and is equipped with two 1,600 ton Goliath-class cranes. With the H-dock, HHI can build an FPSO hull side four weeks faster than normal and also cut production cost by 15%. The H-dock specializing in FPSO construction will enhance HHIs productivity and competitive power to get new orders of super large offshore facilities such as FPSO and LNG-FPSO, an HHI official said. The existing hull was initially built for an AHTS vessel to be delivered by the Karmsund yard (Norway), but is currently owned by the Norwegian Guarantee Institute for Export Credits (GIEK) and SpareBank1 SR-Bank (Norway) due to the bankruptcy at the Karmsund yard. The existing hull is of a VS 490 design and is to a large extent similar to the VS 491 design ordered by the Company. The relevant vessel will be equipped with an ODIM ARF A-frame, FiFi I and Standby Class. The company has agreed to pay an additional NOK 25 million for the enhanced capabilities. All other terms are as per the initial contract. The scheduled delivery of the relevant vessel is May 2010 as compared to the initially scheduled delivery in March 2010.

Siem Offshore has accepted an offer for a 70% loan and guarantee facility for the relevant vessel. The loan will be provided by the Norwegian export credit institution for Export Financing (Eksportfinans) and the guarantees will be provided by SpareBank1 SR-Bank and GIEK.

Forum Energy Philippines Corporation 2.27 Alcorn Gold Resources Corporation 1.53 PetroEnergy Resources Corporation 1.03

ESV unit moved to Qidong TOP Ships - charters termination TOP Ships Inc. has terminated its bareboat charters for four Handymax vessels: the Faithful (DWT 45,720, built 1992), the Doubtless (DWT 47,076, built 1991), the Spotless (DWT 47,100, built 1991) and the Vanguard (DWT 47,100, built 1992), and redelivered the vessels to their owners after paying $11.75 million in termination fees and expenses. Additionally, the Company confirmed that the MV Astrale, a 75,933 DWT Panamax drybulk vessel, has entered into a time charter employment with Daeyang Shipping Co. Ltd., a Korean charterer, for a period of two years at a gross rate of $18,000 per day. COSCO Shipyards Ltd. has moved the Remedial ESV Solution, the industrys first Elevating Support Vessel or ESV unit, downriver to the COSCO Qidong shipyards from its berth quayside at Nantong for final steps in the vessels construction. The move will allow COSCO personnel to finish installing the ESV units 425-foot legs and thrusters and the remaining system commissioning. Once these activities are complete, the vessel will perform sea trials prior to delivery to Remedial. Remedials innovative ESV design, a self-propelled 300 class jack-up, is optimized for heavy well intervention in water depths to 325 feet (100 meters). Each ESV unit (two are under construction) combines the capabilities of a jack-up platform, an ocean-going vessel, a workover drilling rig, heavlift cranes and an offshore accommodations platform in a single package.

Delay in reconnection of the FPSO Otto Energy has been advised by the field operator, Galoc Production Company WLL (GPC), that there continues to be a delay in reconnection of the FPSO Rubicon Intrepid following the disconnection that was undertaken last week due to adverse weather in the Galoc Field. The delay is due to wrong orientation and deformation of the mooring and riser system that connects the FPSO to the seabed and subsea wells. An underwater survey was undertaken to establish the extent of the problem and an offshore construction vessel has been mobilized to the field to undertake remedial work. At this time the scope of the necessary remedial work is being established along with the likely duration. The Galoc Oil Field is located in SC14C off the west coast of Palawan in the Philippines. Otto holds a 31.38% shareholding in the Galoc Production Company (GPC) which has a 58.29% working interest in the license and is Operator. The participating interests in the Galoc Field are as follows: Galoc Production Company W.L.L.1 (Operator) 58.29% Nido Petroleum Philippines Pty Ltd 22.28 The Philodrill Corporation 7.03 Oriental Petroleum & Minerals Corporation/Linapacan Oil Gas & Power Corporation 7.57

Songa Rigs - June performance Songa Venus has achieved operating efficiency of 97% in June. The rig is operating for Shell Australia offshore North West Australia. Songa Mercur has achieved operating efficiency of 99% in June. The rig continues its work for Santos offshore North West Australia. It is currently working on its last well in the mentioned contract, with expected completion end of July / beginning of August. Songa Saturn has achieved operating efficiency of 86% in June. The rig continues to operate under the Nippon led consortium contract in Libya, and working on the third out of four firm consortium wells, this time for Petrobras. The fourth well is expected to have start-up early August; the rig will thereafter go to Malta for upgrade works. Songa Delta has achieved operating efficiency of 95% in June; the rig is working for Wintershall / Det norske oljeselskap at the Grosbeak field. Songa Trym has achieved operating efficiency of 99% in June; the rig continues to operate for StatoilHydro at the Troll Field.

Songa Dee finished its special periodic survey on 7 June and immediately entered onto contract with Marathon / Lundin. The rig had operating efficiency of 95% during the 23 days it was available in June, and is currently working at the Aegis Field.

maximum total production of 30,000 barrels of crude oil and 30 million cubic feet per day of natural gas in 2011. Production from Mafumeira Norte is an exciting milestone for Chevron and its partners in terms of bringing new energy supplies onto the world market and providing benefits to Angola," said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production. The engineering, procurement, construction, and installation contract for the Mafumeira Norte platform was awarded to Sonamet (Lobito), a joint venture between Sonangol and Acergy, marking the first time Sonamet was awarded such a contract. The fabrication of the platform was completed at Sonamets Lobito yard in southern Angola. Chevron, through CABGOC, has a 39.2 percent interest and is the operator of the Block 0 contractor group, which also comprises SONANGOL P&P (41 percent), Total (10 percent) and ENI (9.8 percent).

Cancellation of new-build 7037 New build 7037, which was ordered in May 2008 by Polar Marine I Pte Ltd, a 51/49 joint venture between GC Rieber Shipping and Otto Marine, has been cancelled due to significant delays. The cancellation, which has been put forward by Polar Marine I in accordance with the contractual terms, is disputed. Polar Marine I is confident that the contract is rightfully cancelled. The interim payment made by GC Rieber Shipping is covered by a refund guarantee, and thus the cancellation will have no negative financial impact for GC Rieber Shipping. The offshore vessel with MT design has a length of 75 meters and a width of 17 meters with diesel electric machinery and accommodation capacity of 40.

Repsol - two oil discoveries Repsol has made two new offshore oil discoveries in the Spanish Mediterranean. The Montanazo D-5 and Lubina-1 wells are located 45 kilometers from the coast of Tarragona, where the company is developing similar satellite fields. Repsol, with a 75% stake, is the operator of the first of these discoveries, in a consortium with Gas Natural (17.7%) and Cepsa (7.3%). In the second discovery, Repsol is the sole holder. Preliminary estimates show that the Montanazo and Lubina wells could produce oil for between five and seven years, extending the productive lives of the area. In the last three years, about 135 million euros were invested to drill and prepare these wells. The development of the fields will require a further 55 to 60 million euros over the next two years. The first of these discoveries took place within the Montanazo - D concession. The Montanazo D-5 well is in 736 meters of water, and reached a total depth of 2,354 meters. Initial tests indicate oil production flows of 3,800 bpd of 32 API crude oil. Repsols second discovery in the area is in the Lubina II concession. The Lubina-1 well, in 663 meters of water and 4 km to the north of Montanazo D-5, has a total depth of 2,439 meters. Tests indicate a production of 3,700 bpd of 31.5 API crude oil.

E & P NEWS
First Oil from Mafumeira Norte Chevron Corporations subsidiary, Cabinda Gulf Oil Company Limited (CABGOC), and its partners commenced crude oil production ahead of schedule from the Mafumeira Norte project located offshore Angola. Todays milestone underscores Chevrons commitment to growing its resource base in West Africa and delivering on our robust queue of major capital projects, said George Kirkland, executive vice president, Global Upstream and Gas, Chevron. Located in 160 feet (49 meters) of water about 15 miles (24 km) off the Angolan coastline, the Mafumeira Norte project is the first phase development of the Mafumeira Field located in Area A of Block 0. The project is being commercialized through fourteen wells to the existing Kungulo water injection platform and is expected to reach

The total production from these two wells could almost quadruple Spains existing 2,000 bpd of oil production. They are in the same area as the Repsol Casablanca production platform which already channels output from the Casablanca, Boqueron, Rodaballo and Chipirn fields. The crude oil coming from these discoveries will be processed and transported, together with the rest of the production from the other fields, through a 43 km pipeline that links the Casablanca platform to the coast. In this way, investment will be kept to a minimum as no new infrastructure needs to be built. Once these developments are approved, production will be channeled through a pipe to the Casablanca platform 8 km away, in the same way that other satellite fields such as Rodaballo and Chipiron were developed.

conduct geotechnical studies including the interpretation of available LandSat image data over a period of 12 months, for an anticipated cost of approximately US $406,000. Charle Gamba, President and CEO of Canacol, stated "This contract provides us with access to potentially material exploration prospects similar in nature to its Capella heavy oil discovery on the Ombu E&P contract, which is located immediately adjacent to and on trend with the Pacarana contract. The award of this contract reflects the execution of the Corporations strategy of focusing on organic growth in our core operating countries." Canacol is a Canadian based international oil and gas corporation with operations in Colombia, Brazil and Guyana.

Timan-Pechora well producing oil The Timan-Pechora Project oil well is a producing, commercially viable well. The oil well was drilled, cased, completed and stimulated during the past month. This initial well is the first of 10 wells that are planned to be drilled and completed for the Timan-Pechora Project. "We're obviously delighted with the results of this well," said Robert Charlton, President of PrimeGen. "We found what we hoped for when we entered the program. In addition, the short time between contract signature and production success is a testament to the good will and cooperation we have received from Kozik Energy Ltd."

Petrobras - refining of the first oil Petrobras has started up at Capuava Refinary (Recap) the refining of the first oil from Tupi field, located at the pre-salt area of Santos Basin. The oil, offloaded from Tupi Extend Well Test (EWT) production system, presented the following characteristics: gravity of 28.5 API, low sulfur and low acidity. The start of this process will be relevant to evaluate the quality and potentiality of the oil products produced using the pre-salt oil.

Antrim Energy - Block award Canacol - Pacarana block award Canacol Energy Ltd. has been awarded the Pacarana Technical Evaluation Area (Pacarana TEA) by the National Hydrocarbon Agency of Colombia. The Pacarana block is located immediately adjacent and to the south of the Ombu E&P contract which contains the Corporations Capella heavy oil discovery which is currently under appraisal. The Corporation has a 100% working interest in the block, which is approximately 470,022 hectares in size and is located in the Caguan - Putumayo Basin of Colombia. An interpretation of the existing geotechnical data on the block identifies prospective structural trends similar to the Capella heavy oil discovery located immediately to the north on the Ombu E&P contract. The work obligations associated with the contract require the Corporation to acquire 2,240 km of aeromagnetic and gravity data and Antrim Energy Inc. has been notified by the UK Department of Energy and Climate Change (DECC) that it has been offered Block 21/24b in the UK North Sea as part of the 25th Seaward Licencing Round. The block, which was awarded to Antrim on a 100% working interest basis, is in the Company's core area around the Fyne Field in the Central North Sea. In November 2008, Antrim was awarded five blocks in the 25th Round, three of which are in the Fyne area. Block 21/24b is approximately 10 kilometers northeast of the Fyne Field, and immediately adjacent to the Teal and South Teal Fields to the east, the Clapham and Guillemot Northwest Fields to the south and the Pict Field to the west. These fields all produce from either the Eocene Tay or the Upper Jurassic Fulmar Sandstones, and Block 21/24b is viewed to have potential in both of these formations. A significant oil column in the Fulmar was

discovered in this block by a previous operator. This discovery well 21/24-4 was drilled in 1991, but not tested. Block 21/24b will add approximately 36,000 acres to Antrim's asset portfolio in the area. The licence will be a Traditional Licence, with seismic processing to be completed and a contingent well to be drilled during the initial four year term. Stephen Greer, Antrim's President and CEO, commented, "With its close proximity to existing fields and infrastructure, and potential in two proven producing formations, Block 21/24b is an exciting addition to Antrim's Central North Sea holdings." Antrim Energy Inc. is a Canadian Calgary based highgrowth junior oil and gas exploration and production company with assets in the UK North Sea and Argentina.

Sillaro-2 drilling started The Sillaro-2 production well, at Po Valley's Sillaro gas production field, was spudded following mobilization of the drilling equipment to the field. Italian-based Perazzoli Drilling, employing a 200 tonne capacity HH200 hydraulic rig, has been contracted for the Sillaro-2 well. The second production well is a deviated well which will be drilled to a planned total depth of approximately 2400 meters vertical depth. The TD is expected to be reached in approximately 24 days. Sillaro-2, together with Sillaro-1 drilled in 2005, will provide expected initial production capacity of 3.8 million cubic feet of gas per day. The well is expected to be completed by the end of August at which time, Po Valley expects to commence civil works and installation of the Sillaro production plant.

The research project designed to study the startle response of seismic surveys on fish is also proceeding according to plan. The project aims to obtain new knowledge about the startle response and how long it takes for fishery activity to normalise after seismic data acquisition. The project is being carried out by the Institute of Marine Research (HI) on behalf of the NPD and has a total cost framework of NOK 25 million. HI designed the project with input from a reference group where both fishery organisations and local politicians are represented. HI has hired five local fishing vessels which started test fishing on 17 June, 12 days before the seismic data acquisition activity started in Vesterlen. The fishing vessels will carry out fishing throughout the entire seismic survey period, which runs to 9 August. Test fishing will continue after the acquisition activity is concluded, until the fishing has normalised. The research vessel Hkon Mosby is also participating along with the fishing vessels in the research project, which is the largest ever implemented worldwide. There was extensive fishery activity in the summer of 2008 in the part of Vesterlen where seismic data is now being acquired. On this basis, the NPD offered interested fishers a buy-out agreement under which fishers can receive compensation based on historic catch data from the same period in the same area in Vesterlen. The agreement entails that the fishers refrain from fishing in a manner which impedes the seismic data acquisition. Apart from that, fishers are free to carry out fishing in the area throughout the entire buy-out period of is six weeks. Approximately 110-115 fishers have signed buy-out agreements with the NPD. The Storting has directed the NPD to survey the geology in Nordland VII and Troms II to map potential oil and gas deposits. The results of the survey will be incorporated in the material which will form the basis for the Storting's renewed consideration of the comprehensive management plan for the Barents Sea and the waters off Lofoten in 2010.

Seismic started in Troms II MEO - 3D seismic work completed The seismic survey vessel Ocean Explorer started acquisition of seismic data north of Senja, on Troms II. There is little fishery activity in the area and the survey activity is proceeding as planned. Acquisition of seismic data in Vesterlen started two days ago, and is also going as planned so far. The Norwegian Petroleum Directorate (NPD) has commissioned the acquisition of seismic data on behalf of the Storting (Norwegian Parliament). MEO Australia Limited has been advised by Petroleum Geo-Services Australia Pty Ltd (PGS) that processing of the 250 km2 Artemis 3D seismic in WA-360-P (MEO: 70%, Operator), offshore Carnarvon Basin Western Australia has been completed on schedule. The survey was acquired in March 2009 to help delineate the northern extent of the Artemis prospect identified on MEOs existing 2007 3D seismic survey, in preparation for the drilling of an exploration well, currently scheduled for 2010. Interpretation of the Artemis 3D seismic survey is a

critical component of de-risking the Artemis prospect ahead of this drilling commitment. MEO launched a formal farm-out process in late April to attract a partner to fund the exploration well. The company has advised prospective parties that indicative farm-in offers are due by 31st July 2009. WA-360-P participants: North West Shelf Exploration Pty Ltd (MEO subsidiary, Operator) with 70%, Cue Energy Resources Limited with 15%and Gascorp Australia Pty Ltd with 15%.

TRACS International Consultancy, a wholly owned subsidiary of AGR Petroleum Services, will execute the reservoir management work throughout 2009 using its skilled team of geoscientists and engineers.

New discovery onshore Thailand The NSE-I1 well has confirmed the discovery of commercial hydrocarbons in a previously untested volcanic reservoir approximately 20 meters in thickness at 637 meters true vertical depth (TVD). The well is currently pumping 34 degree API oil at a stabilized rate of 75 bopd with approximately 200 barrels per day of water. NSE-I1 was a deviated well designed to target a shallow volcanic zone in the downthrown fault closure west of the NSE North fault compartment and a deeper volcanic objective on the high side of the north-south bounding fault. The first volcanic target zone was encountered at a depth of 637 meters TVD and exhibited moderate drilling fluid losses with oil shows observed at surface. A second, deeper volcanic objective was encountered at 750 meters TVD with the upper 85 meters penetrated before drilling was terminated while still in the zone. Minor oil shows were observed at surface along with minor mud losses while drilling through the zone. Subsequent testing of the lowermost objective recovered water and 2 barrels of 32 degree API oil. These test results have confirmed oil in a shallow volcanic reservoir in the down thrown fault compartment adjacent to NSE north. Plans are currently underway to target this same zone in a structurally much higher position on the high (east) side of the main bounding fault, that in the success case, establishes three to four additional future drilling locations. Additionally, the Bo Rang-1 RD (BR-1RD) well was drilled vertically to a depth of 757 meters approximately 80 meters west of the original Bo Rang-1 (BR-1) gas discovery which was drilled in 1990 by a previous operator of the concession. Two volcanic objectives were encountered, the first was 22 meters thick at a depth of 633 meters (tested 5.5MM cubic feet per day in the original well bore) and the second was 49 meters thick at a depth 25 meters below the base of the first zone. There were no drilling fluid losses (which are an indicator of good permeability) observed while drilling either volcanic zone. The upper gas bearing volcanic was isolated behind casing prior to penetrating the deeper objective in order to open hole test this deeper zone in isolation. Upon the completion of drilling of the deeper volcanic objective,

Tesla exploratory well plugged The Tesla exploratory well 22/24c-11 in the United Kingdom Central North Sea has been plugged and abandoned after failing to encounter gas condensate in commercial quantity. The well was drilled to a total depth of 15,291 feet to test the gas condensate reserve potential of the Triassic sandstone.

No participation in BCAM-40 Norse Energy Corp. ASA will not participate in the drilling of the Dend prospect (BCAM-40 block, 10% interest), offshore Brazil. Two of the four partners in the consortium have opted to drill the prospect sole risk. This operation has commenced. The company viewed the risk of this prospect to be significant and thus recommended the consortium to study the results from the Cravo prospect, drilled earlier in 2009, prior to a decision on Dend. Consequently, the company will have no exploration costs associated with the drilling of the Dend exploration well.

AGR Petroleum - 1million contract AGR Petroleum Services has been awarded a contract worth around 1million to support North Sea operator Premier Oil in the subsurface management of its newly acquired assets.

significant quantities of 34 degree API oil were observed at surface and in the drill string while tripping out of the hole. Subsequent testing resulted in the recovery of minor quantities of oil, gas and load fluid, indicating low permeability (insufficient fractures intersected). Though commercial oil rates were not achieved in BR1RD, excellent reservoir is inferred to exist only 80 meters away in the original BR-1 well based on the massive drilling fluid losses observed in this original well through the same objective zone. In addition, there is strong evidence that the primary volcanic objective in BR-1RD is oil bearing based on the free oil observed at surface while drilling through this zone.

approximately two weeks. Testing of Costayaco-7 is continuing and anticipated to be complete in early July. Once initial production testing is completed at Costayaco8 the drilling rig will be moved to the Costayaco-9 site, located 1,958 feet southwest of Costayaco-8. Site preparation for Costayaco-9 is currently underway, and drilling is expected to begin in early July. The Costayaco field is located in the Chaza Block in the Putumayo Basin of Colombia, where the company has a 100% working interest and is the operator. Production Update: Following repairs to the Ecopetrol-operated Trans Andean Pipeline, normal production operations have resumed and are currently averaging approximately 17,800 BOPD gross, or 14,750 BOPD net after royalty in Colombia. During the 15 days of reduced production due to pipeline repairs, oil sales averaged approximately 3,610 BOPD gross or 2,963 BOPD net after royalty. Production in Argentina averaged approximately 694 BOPD net after royalty in June due to the temporary shutin of four wells for workovers.

Logging of Costayaco-8 done Gran Tierra Energy has completed logging operations and initiated production testing of Costayaco-8. Well logs indicate that both the Upper T Sandstone of the Villeta formation and the Caballos formation lie completely within the field's oil column. In addition, production has returned to target levels of between 14,000 and 16,000 barrels of oil per day (BOPD) net after royalty following recent pipeline repairs. "The Upper T Sandstone and the Caballos reservoirs came in as expected and are well above the oil/water contact for the field according to well logs," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "Costayaco-8 was drilled on the crest of the Costayaco Field and early indications suggest the well will be a significant contributor to the production potential of the field." Costayaco-8, located 1,868 feet southwest of Costayaco1, reached a total measured depth (MD) of 8,570 feet on June 20, 2009. Well logs indicate the presence of reservoir sandstones in the Upper T Sandstone from 8,142 feet MD to 8,198 feet MD and in the Caballos formation from 8,268 feet MD to 8,437 feet MD. The bottom of both formations came in above their respective oil/water contacts. The gross reservoir thicknesses of the Upper T Sandstone and the Caballos formation are 56 feet and 169 feet respectively. During drilling operations, Gran Tierra Energy successfully acquired cores of the major sandstone reservoir intervals in Upper T Sandstone and the Caballos formation. These cores will be used to further assess reservoir parameters, including oil saturations of both zones. Completion and production testing operations at Costayaco-8 have been initiated and are expected to take

First steam injection achieved Saudi Arabian Chevron (SAC), has achieved first steam injection at its Large Scale Pilot (LSP) steamflood project at the Wafra Field, an Eocene heavy-oil carbonate reservoir in the onshore Partitioned Neutral Zone (PNZ). The $340 million LSP, which is the final test phase for the steamflood project, is expected to lead to full-field steamflooding of the First Eocene reservoir, marking the first commercial application of a conventional steamflood in a carbonate reservoir anywhere in the world. Full-field deployment of steamflood technology in the PNZ would significantly increase recovery of crude oil reserves, confirm the technologys potential applicability in other carbonate oil fields and build on Chevrons steamflood capabilities that date back five decades, said George Kirkland, executive vice president, Chevron Global Upstream and Gas. The LSP is the third in a series of staged tests to validate the feasibility of applying the enhanced oil recovery technology of steamflooding to unlock the producing potential of the heavy Eocene oil of the PNZs carbonate reservoirs. Previous tests included the Small Scale Test (SST), which was successfully completed in 2008, and

simple steam stimulation testing, conducted in the late 1990s. Steamflooding involves injecting steam into heavy-oil reservoirs to heat the crude oil underground, reducing its viscosity and allowing its extraction through wells. Chevron has successfully employed steamflooding to produce heavy oil from sandstone reservoirs at Kern River, Calif., for more than 40 years and at Duri in Sumatra, Indonesia, for 25 years. The company is recognized as the worlds leader in steamflood technology. SAC operates on behalf of the Kingdom of Saudi Arabia, the Kingdoms 50 percent undivided interest in the petroleum resources of the onshore PNZ between the Kingdom and the State of Kuwait. SACs operating agreement with the Kingdom was recently extended and amended, and runs until February 2039. The operations include four fields in the area - Wafra, South Umm Gudair, South Fuwaris and Humma - that produce mainly heavy crude from 10 reservoirs. In 2004, the 3 billionth barrel of oil was produced in the onshore PNZ.

have thermal maturities and total organic carbon in a range that could make them successful shale gas projects. Over the coming months, BNK intends to do further work by analyzing cores from previously drilled wells to determine the first well location. BNK intends to drill its first well in 2010. Each concession requires the spudding of a well within 18 months of the concession award date. BNK is entertaining partnerships for the exploration phase of this project. BNK is also undertaking geologic mapping and data acquisitions in other parts of Europe in order to evaluate additional opportunities.

TGS - 3D Multi-Client Survey TGS has commenced acquisition of a new Multi-Client 3D survey in the Barents Sea with the M/V Geo Barents. The survey covers a 4,300 square kilometer area over the Hoop Fault Complex. Seismic data and electromagnetic data in the TGS library have been the basis for defining the survey coverage. The survey, the largest 3D survey conducted by TGS on the Norwegian continental shelf, covers not only open blocks expected to be offered in later tender rounds, but also acreage awarded in the recent Norwegian 20th Round. "Interpretation work that TGS has completed utilizing its existing library, suggests that favorable conditions are present for the occurrence of hydrocarbons in the project area", said Kjell Trommestad, Vice President and General Director of Europe/Russia for TGS. "Participating oil companies will benefit from the efforts we put into the planning and design of this survey as they work towards the next major licensing rounds in Norway." The Hoop 3D has substantial client prefunding. TGS will deliver preliminary data packages to prefunding customers in the autumn of 2009. Final data products will be available to industry in the first half of 2010.

Dunquin acreage - work starts soon Providence Resources confirmed that site survey work will commence shortly on the Dunquin acreage, Porcupine Basin, off the west coast of Ireland. The work is to be carried out on behalf of itself and its coventurers and is to assess the site for the possible drilling of an exploration well. Providence holds a non-operated 16% interest in FEL 3/04 with its partners ExxonMobil (80%) and Sosina Exploration (4%). ExxonMobil is the license Operator.

BNK acquires acres in Poland BNK Petroleum Inc., on behalf of its Polish subsidiary, Saponis Investments Sp. z o.o. that it has been awarded three oil and gas exploration concessions in Poland by the Ministry of Environment. The three concessions, Starogard, Slupsk and Slawno, are located in Northern Poland and total about 720,000 acres. BNK has an 80% working interest in each concession. BNK believes that the preliminary data it has analyzed, indicates that the makeup of the some of the shales within its Polish Concessions, are silica rich and appear to Drilling started in Guayaquil Petroleos de Venezuela (PDVSA) and Petroecuador have started a joint exploration for natural gas in the Gulf of Guayaquil, a large body of water in the Pacific Ocean in western South America. PDVSA will run the exploration, which is expected to take 90 days. Under the set plan, the PDVSA will drill a well of 3 km in depth in Puna Island, which is off the coast of southern Ecuador at the head of the Gulf of Guayaquil.

The investment for the exploration, totaling 32 million U.S. dollars, will be covered by the PDVSA, which has a strategic alliance with Petroecuador in hydrocarbon projects in both countries.

platform and subsea tie-in spools at the Valhall Flank South and Valhall Flank North platform locations. The project management and engineering will be performed at Subsea 7's offices in Stavanger, Norway. The offshore operations are due to take place in two campaigns commencing summer 2010. Tor Espedal, Subsea 7's Norway Vice President comments: "This is a very exciting and diverse scope of work that will require the use of a number of our new purpose built vessels enabling us to demonstrate their capability and endorse our strategy of bringing them into the market. "The contract builds upon Subsea 7's successful partnership with BP on the Skarv and Valhall redevelopment projects, which continues to create sustainable value for both parties through integrated working and alignment of business principals and expertise." The Valhall field located 290km off the southwest coast of Norway in 70 metres of water in the Norwegian sector of the North Sea. The Valhall complex consists today of seven separate platforms, five in the centre and two Flank installations.

PROJECTS NEWS

58% of KEP2010 completed StatoilHydro has, together with the suppliers, completed 58% of Krst expansion project 2010 on behalf of the operator Gassco. The construction part of the project is 35% complete. Krst processing plant north of Stavanger has a key role in transporting and processing gas and condensate (light oil) from major areas of the Norwegian continental shelf. StatoilHydro is the technical service provider for Krst. Krst expansion project 2010 (KEP2010) is a collective term that includes several projects involved in upgrading Krst to meet future safety and reliability requirements. It is the oldest parts of the plant that are now being prepared for new decades. The instrument and utility system upgrading constitutes the main elements of KEP2010. "This is a very important project that will help make the plant more robust. Krst is a key component of Norway's gas machine and helps make the StatoilHydro group a stable and reliable gas supplier every day, all year," says Kjetil Ohm, senior vice president for processing and transportat in Natural Gas.

Petrofac - US$350 m contract Petrofac, the international oil & gas facilities service provider, has been awarded a contract worth more than US$350 million for the Kauther gasfield depletion-compression project. The contract was awarded on behalf of the Government of Oman by Petroleum Development Oman (PDO), which has been developing the Sultanate's gas fields on behalf of the Government since 1978. Petrofac will undertake the engineering, procurement and construction (EPC) of the gas compression system, and associated facilities at the Kauther gas plant, in addition to undertaking the commissioning and six months of initial operations. The project follows the successful completion of the Kauther gas plant in 2007, which Petrofac built on an EPC basis for PDO, including commissioning and operations. In early 2008, Petrofac was asked to carry out the front end engineering and design (FEED) for the gas depletioncompression project and then invited to submit a commercial proposal for the EPC on a negotiated basis. Maroun Semaan, group chief operating officer of Petrofac, commented: "We are delighted to have successfully secured the Kauther gas depletion compression project.

Subsea 7 - Contract with BP Subsea 7 Inc has been awarded a contract from BP Norway, for engineering, procurement, installation and commissioning (EPIC) of the Valhall Flank Gas Lift Pipelines and Wellhead Platform Riser Caisson project in the Norwegian sector of the North Sea. The contract has an approximate value of US $ 40 million. The scope of work involves engineering, procurement and fabrication of subsea and platform components, installation of 2 x 8" pipelines (1 x 6km pipeline + 1 x 7km pipeline) and 1 new caisson (Nom 30") on the Wellhead

This award serves to further reinforce Petrofac's commitment to the Omani market, gives us continuity of business in the Sultanate and again highlights Petrofac's continued competitiveness in the Middle East."

PassiveSONAR, offered to the market through the Expro Meters business, can be deployed on new or existing installations and provides robust performances over a range of process conditions, flow regimes and pipe sizes. Its applications include, but are not limited to, wellhead production surveillance, pipeline monitoring, process optimisation and inline production testing. Its benefits include: Low cost. Installation without process shutdown. Full-bore flow measurement no pressure drop. Non intrusive no pressure tappings. No calibration required. Measurement within a multiphase environment. Tony Walker, general manager of Expro Meters, said: We are very pleased to be given the opportunity to provide a solution to Teekay on this important project. While applying PassiveSONAR meters on tanker loading and offloading is not a core application for our new technology, it does demonstrate our ability to be flexible to the needs of our customers over a range of applications in the oil and gas industry. This project is an innovative use of PassiveSONAR in an environmentally-sensitive situation and once again reinforces Expros credentials as solution providers. Ingvild Sther, Vice President of Shuttle Tankers at Teekay said: The installation of the Expro PassiveSONAR flow meters on our shuttle tankers is another important step in our efforts to continuously improve the safety of our offshore loading operations. We have worked closely with StatoilHydro on this initiative and we are pleased with the solution offered by Expro Meters. Expro has further enhanced its portfolio of metering technology with the launch of ActiveSONAR, the next generation of clamp-on sonar technology. ActiveSONAR can be retrofitted to a wide range of applications in the upstream and downstream oil and gas industry. The new meters are specifically designed to address the flow rates and heavy schedule piping encountered in upstream oil and gas applications.

AGR - contract extension AGR Field Operations secures contract extension from StatoilHydro Tekst AGR Field Operations has secured an extension on its contract with StatoilHydro to inspect and certify its non-complex lifting equipment across StatoilHydro's North Sea operations, from Sleipner in the South to Snhvit in the North. The contract covers 30 offshore installations and 4 onshore facilities. The duration of the extension is for 2 years, with an additional 2 options, each 2 year. The extension has an estimated value of 32 MNOK gross revenue. Including the remaining option, the total value is estimated to be 96 MNOK.

Expro Meters selected for Tanker International oilfield service company Expro has secured a $500,000 contract to provide its PassiveSONAR clamp-on flow meters to enhance shuttle tanker loading and offloading operations in the North Sea. The contract with Expro Meters, secured from Teekay, in co-operation with StatoilHydro, is in line with regulatory recommendations to improve loading operations. Expros PassiveSONAR meters will be used to measure the instantaneous flow rate and provide early warning of any potential loss of containment between the host facility and the shuttle tanker. The PassiveSONAR meters are positioned immediately inboard the bow of the vessel and data is relayed back to the bridge to provide real time monitoring and control of the loading operations. Given the harsh North Sea conditions, the nature of tanker operations and the large pipe diameters involved with sizes ranging from 20 through to 32 - the robust, non-intrusive clamp-on flow meters were selected as the most suitable option, avoiding any modification of the piping onboard each vessel. Working with Teekay, Expro Meters installed the meters during routine tanker offloading operations at various receiving terminals, avoiding any unnecessary or costly delay in the shuttle tanker schedules.

Work started in Castello field Po Valley Energy confirmed the commencement of installation works on the Castello production field east of Milan. The Italian contractor, Semat SpA, has commenced site activities and expected to complete the civil works and plant installation within a target fourmonth schedule.

"All production plant and equipment has been built, factory tested and in storage awaiting completion of the 1st phase of civil works ready for installation. PVE is now in control of its development schedule for this field - a crucial hurdle for the Company" Po Valley Managing Director and CEO, Michael Masterman said. Castello is 78% complete and scheduled for start up in late October 2009 at an initial production capacity of 2.7 million cubic feet per day.

Interest in Grenland Group's Minox deoxygenation system comes in response to several factors. With the current tight energy market, more oil companies are considering water injection in the reservoirs for enhanced oil recovery. Many of the projects are in deeper water where the compact and lightweight modular system lends favorably to platform structural limitations. In addition, the Minox system is both environmentally friendly and flexible with regards to design and oxygen removal capacity. The oxygen is removed from the injection water in order to reduce corrosion in equipment and pipe systems, and to prevent growth of unwanted bacteria in the oil reservoirs. So far, about 30 Minox systems have been delivered to installations in the North Sea, USA, Brazil, Mexico, Malaysia and West Africa. The Minox technology from Grenland Group is unique since the oxygen level in the water is efficiently removed without the use of chemicals. The systems are also very compact and lightweight compared to systems from other suppliers. Minox Technology, based in Notodden, was acquired by Grenland Group in 2006.

Acergy - SURF contract in Australia Acergy S.A. has been awarded a SURF contract from BHP Billiton Pty Ltd, for the construction support services for a project located offshore Western Australia. These services will consist of project management and engineering and the offshore installation of subsea manifolds, flexible flowlines and risers, umbilicals, and the tie-ins associated with the field, including precommissioning of the subsea system associated with this FPSO Development. This project will be managed from our office in Perth, Australia with offshore installation, using the Toisa Proteus, commencing in the second half of 2009. Bruno Chabas, Acergy Chief Operating Officer, said The award of this work builds on Acergys experience as a leading provider of SURF services in the Asia Pacific region and Australia in particular.

Re-Launch bidding for Yanbu project Saudi Aramco and ConocoPhillips have re-launched of the bidding process for the construction of the planned 400,000 barrel-per-day export refinery at the Yanbu Industrial City, in the Kingdom of Saudi Arabia.

Deoxygenation system from Grenland New deoxygenation system from Grenland Group has the capacity to process 450,000 barrels of water per day at Agbami, the worlds largest FPSO. The start-up has been successful and the system has measured results far below the required 10 parts per billion oxygen in the injection water. Again we have proven our ability to deliver effective systems for removal of oxygen from injection water, says Hans Evald Henriksen in Grenland Group. The deoxygenation system is fabricated at Grenland Groups yard in Tnsberg and then transported to Korea for installation at the FPSO. Agbami, with Chevron as operator, is now producing oil about 110 kilometers off the coast of Nigeria. The FPSO will inject water and associated gas for reservoir pressure management.

Market improvements have provided a good opportunity to reactivate the bidding process for the Yanbu Export Refinery Project, said Khalid G. Al-Buainain, senior vice president, Refining, Marketing and International, Saudi Aramco. This state-of-the-art refinery will provide highquality refined products for global and domestic markets, and will add significant value to our downstream business portfolio. It will also support our goal of fostering increased industrial development and job opportunities within the Kingdom. ConocoPhillips is pleased to resume the bidding process now that the markets are more favorable, and we are committed to working with Saudi Aramco to progress the Yanbu Export Refinery Project, said Willie C. Chiang, senior vice president, Refining, Marketing and Transportation, ConocoPhillips. This project will provide very competitive new supplies of refined products to help meet the worlds growing energy demand. The full-conversion refinery is being designed to process Arabian heavy crude supplied by Saudi Aramco. It will

produce high-quality, ultra-low sulfur refined products that will meet current and future product specifications. The project is targeted to start up in the third quarter of 2014. Invitation for bid notices for the early work and major packages have been issued to prequalified local and international contractors. The major packages include a coker unit, crude facility, gasoline unit, hydrocracker, tank farm, offsite pipelines, high voltage electrical packages, as well as other infrastructure packages. Early work packages are expected to be awarded in November 2009. Bids for the remaining packages are due in the first quarter of 2010 and are expected to be awarded in the second quarter of 2010.

where the same technology is applied for subsea equipment condition monitoring in addition to leak detection. Bjrge consider the new contract as a confirmation of a rapidly growing demand for its patented subsea technology, driven by more advanced subsea facilities, increased focus on systems for protection of the environment and remote monitoring of subsea installations. Having signed this contract, Bjrge Naxys has work in process related to subsea instrumentation accumulating to a total value of more than 65 MNOK.

Shaw - FEED work in Iraq The Shaw Group confirmed that its Energy & Chemicals Group has signed two contracts with the Republic of Iraqs Ministry of Oil to provide feasibility studies and front end engineering and design (FEED) for two grassroots 150,000 barrels per day refineries near the cities of Maissan and Kirkuk in Iraq. The FEED work includes all process units, offsite facilities and utilities for both refineries. The new refineries are part of Iraqs development program and will address the countrys demand for fuels, alleviate domestic shortages and reduce imports. The value of Shaws contracts, which will be included in the companys fourth quarter fiscal year 2009 backlog of unfilled orders, was not disclosed. This is the first significant project for Shaws Energy & Chemicals Group in Iraq and will further enforce Shaws commitment to the Middle East region, said Lou Pucher, president of Shaws Energy & Chemicals Group. In March 2009, Shaw opened a new office in Abu Dhabi, United Arab Emirates, to support its increasing activity throughout the Middle East. Shaw has operated an ASME certified pipe fabrication facility in Bahrain since 1994.

Wellhead platform topsides installed Qatargas has completed the installation of the first of three offshore wellhead platform topsides for the Qatargas 3 and Qatagas 4 projects. J Ray McDermott's derrick barge DB101 has completed the installation which took two hours. The QW7 platform topsides weighing around 2,200 tonnes was positioned above the legs of a previously installed jacket structure and then successfully lowered over the ten pre-drilled wells onto the jacket. The topsides are being welded to the jacket, followed by the lifting of the helideck and flare boom. The next step is the hook up and commissioning of the platform systems. Once completed, the QW7 platform will form one of a trio of platforms which will deliver gas from Qatar's offshore North Field via two new 38" pipelines to the new liquefied natural gas (LNG) trains 6 and 7 currently under construction at Ras Laffan.

DEALS

Waste-To-Energy technology contract Bjrge Naxys - contract with GE GE Oil & Gas has awarded a contract to Bjrge Naxys for hydrocarbon leak detection on several new subsea installations in the North Sea. The systems to be delivered are based on the patented Naxys technology which has been developed by the company over the last decade. This last award comes in addition to several ongoing deliveries Keppel Seghers Belgium N.V., a wholly-owned subsidiary of Keppel Integrated Engineering Limited (KIE), has secured an 11 million (approximately S$22.3 million) contract to provide technology to a waste-to-energy plant (WTE) in Hangu, Tianjin, China. The contract was awarded by Tianjin Binhai Environmental Industry Development Ltd.

Located in Binhai Technical & Economic Development Area (TEDA), Tianjin, the plant will have three incineration lines which will be able to treat 1,500 tonnes of municipal waste per day (combined capacity) to generate more than 20 MW of green energy. It is expected to be operational in 2011. Keppel Seghers will provide equipment for the furnace, boiler and flue gas cleaning components of plant. Chua Chee Wui, CEO of KIE, said, Having gained momentum in Chinas WTE market as the leader for imported WTE solutions, we are pleased to make further inroads by providing proven, effective green technology for managing waste produced by burgeoning cities in China. Latest figures from Chinas megacities, like Beijing and Shanghai, show the urgency of Chinas waste problem. Just recently, Beijings municipal administration commission warned that at the current rate of waste production, Beijings 13 landfills will be full in four to five years. KIE is currently the market leader for imported waste-toenergy solutions in China, with 60% of the market. Earlier in March this year, Keppel Seghers was also awarded a S$30m contract to provide technology to a WTE plant in Jinan, Shandong by Riseland Holdings, a subsidiary of Everbright International. The plant will be able to treat 2,000 tonnes of municipal waste per day, making it one of the largest WTE plants in China.

of oil country tubular goods (OCTG) together with oil-field accessories, serving the Oil & Gas industry throughout the Asia-Pacific region. Leader in the Indonesian market, PTCT also owns the patents and technology for NS premium connections. The company employs around 1,000 people and generated revenues of approximately USD 300 million in 2008, with annual processing capacity of around 130,000 tonnes. Key customers include Total, BP, Exxon Mobil, VICO and Pertamina. Philippe Crouzet, Chairman of Vallourecs Management Board stated: We are delighted with this strategic move which allows Vallourec to strengthen its presence in Indonesia and the Asia- Pacific region, where oil and gas exploration and production is expanding, under technical conditions requiring increasingly premium products and solutions.

Santos - major acquisition Santos has the next major step in its Australian coal seam gas (CSG) strategy with the acquisition of significant additional acreage in the Gunnedah Basin in northern New South Wales and an investment in leading local CSG company, Eastern Star Gas Limited (ESG). Key elements of the $476 million transaction include: The acquisition by Santos of Gastar Exploration Limiteds 35% interest in various Gunnedah Basin exploration permits and production areas operated by ESG for $300 million; The acquisition by Santos of a 19.99% interest in ESG from Hillgrove Resources Limited for $176 million. Santos and ESGs combination of operated CSG permits in the Gunnedah Basin will cover a total area of around 63,000 square kilometers. The resource potential of this area is estimated to exceed 50 trillion cubic feet. The combination will consolidate the leadership position of both Santos and ESG among the 15 companies active in CSG acreage in NSW. Santos entered the Gunnedah Basin in 2007 and is currently undertaking a 23-well drilling program. ESG began exploring the area in late 2002 and is widely recognized as the leading independent explorer in the region. The transaction builds upon this presence and provides a basis for each party to work together to accelerate the development of the region and a range of commercialization opportunities, including domestic gas supply, power generation and future LNG options.

Vallourec - more shares in PTCT Vallourec, world leader in the production of seamless steel tubes, has increased its strategic shareholding in PT Citra Tubindo Tbk (PTCT) and now holds the majority with 78.2% of the capital. This increased shareholding was reached progressively during 2008 and 2009 through the acquisition of successive blocks of shares and a tender offer, full details of which were submitted to the Indonesian Financial Institution Supervisory Agency (Bapepam-LK). Vallourec and PTCT have worked closely for over 25 years. Established by Mr Kris Wiluan in 1983, PTCT has been a VAM licensee since 1985 and an associate of Vallourec since its public listing in 1989. Continuing this successful and historical partnership the local management of the company remains unchanged. The company has manufacturing facilities located in Batam, Indonesia, providing heat treatment and threading

Santos Chief Executive David Knox said: This is a significant step in our Gunnedah Basin strategy. Combining the proven CSG expertise of Santos and Eastern Star with the ability of Santos to deliver major projects and develop various channels to market will advance the regions potential as Australias next major CSG province bringing jobs and investment to the area. "We look forward to working with ESG towards this goal, he said. Mr Knox said the development of NSWs abundant coal seam gas resources presented an exciting opportunity to deliver carbon light gas fired power generation. ESGs Chief Executive David Casey said: We are excited to welcome one of Australias largest CSG players as a joint venture partner and strategic shareholder in what is a major milestone for ESG. We have said before that ESG is market constrained rather than resource constrained we expect that this transaction will play a key part in removing that constraint and unlocking value for both parties. The consideration being paid to Gastar equates to $0.66 per GJ of current 3P reserves. Santos will pay a further $20 million to Gastar if ESG meets certain reserve targets by 31 December 2009. Santos acquisition of a 19.99% interest in ESG represents a strategic investment that will align the interests of the respective joint venture partners. Santos will pay $176 million for the interest, equating to a price of $1.00 per ESG share. Santos has agreed to make an additional payment to Hillgrove in the event that any party completes the acquisition of a beneficial interest of more than 50% in ESG at a price in excess of $1.00 per share within 18 months.

outstanding on the facility, providing Range with $1.1 billion of borrowing base capacity under the facility. Commenting on the announcement, John Pinkerton, Range's Chairman and CEO, said, "Several years ago we made the decision to begin selling our non-core properties and redirecting the proceeds to higher-return projects. Since then, we have generated more than $500 million of sales proceeds that we have used to help fund our growth projects. Today, Range has the strongest balance sheet in its history. We are in an excellent position to seize opportunities and to continue our strategy of driving up production and reserves, while maintaining one of the lowest cost structures in the industry."

Landrig 5 acquisition completed Atlantic Oilfield Services Ltd (AOS), a wholly-owned subsidiary of KS Energy Services, has completed the acquisition of the remaining 60% of the share capital of Landrig 5 (BVI) Ltd from Dutco (BVI) Ltd for a cash consideration of US$1,500,000.00, representing 60% of its net book value. The net tangible assets of Landrig 5 was US$2.5 million as at 30 April 2009. Landrig 5 is a British Virgin Island incorporated investment holding company. It has an issued and paid-up share capital of US$2,500,000 comprising 25,000 shares at US$100 per share. Dutco is wholly-owned by Dubai Transport Company LLC, a controlling shareholder of KS Energy. Following this acquisition, KS Energy, through AOS, will own 100% of the equity interest in Landrig 5 and will have full control of its operations.

Sale of West Texas Properties closed RANGE RESOURCES CORPORATION has closed the sale of its West Texas Fuhrman Mascho properties located in Andrews County, Texas for $182 million. The properties include Range's interests in 445 producing wells and 54 water injection wells located on approximately 13,200 acres. Net daily production from the properties averaged approximately 15 Mmcfe for the second quarter of 2009. The proceeds from the sale were used to pay down the outstandings on Range's revolving bank credit facility. At June 30th, there was approximately $400 million Tejas acquires Team Oil Tools Tejas Holdings has acquired the assets of Tulsa-based Team Oil Tools in a transaction sponsored by Intervale Capital. The combined businesses will be rebranded as Tejas Completion Solutions. Team Oil Tools is a highly respected independent manufacturer of packers and down-hole completion tools. Team was founded in 1997 by Mike Sommers and Don Tinker, both of whom were previously associated with Arrow Oil Tools. Sommers will become Tejas' Vice President of Packer Systems Development and Tinker will oversee Team's existing U.S. Service Centers.

Tejas CEO Thomas Hill commented, "We are excited to partner with Team Oil Tools to broaden our completion products and services offering. The acquisition allows Tejas to continue its commitment to technological excellence for our completion customers. The combination leverages the manufacturing and distribution capabilities of Team and the design, engineering and testing resources of Tejas, enabling Tejas to be a leading, integrated supplier of down-hole completion products." Curtis Huff, a Managing Partner at Intervale added, "The acquisition of Team expands Tejas' addressable market in the U.S. to the growing extended-reach horizontal shale plays. We see tremendous potential in Team's multi-stage, open-hole T-Frac(TM) zonal isolation systems." Tejas Completion Solutions now provides a full range of down-hole packer and wellbore isolation products, standard and premium sand screen products, API-6A Merla(R) production chokes and Hemiwedge(R) flow control valves, as well as various gas lift and chemical injection valves. Tejas will continue to provide customers with engineering and HPHT testing services through its research lab in The Woodlands, Texas. Tejas is also commissioning a new 27,000 square foot manufacturing facility in Houston, Texas.

grade exploration asset is highly complimentary to our Cheal production permit by providing exploration opportunities with a reasonable risk profile."

Comet Ridge buys interests in PEP Crown Minerals has consented to the transfer of the forty percent (40%) interest held by Macdonald Investments Limited (MIL) in the Petroleum Exploration Permits (PEP) 50279 and 50280 to Chartwell NZ Pty Ltd. Chartwell NZ Pty Ltd, a wholly owned subsidiary of Comet Ridge Limited, now holds a one hundred percent (100%) interest in these exploration blocks with effect from 9 April 2009. MIL made a strategic decision to withdraw from these exploration permits in order to concentrate resources on the Greymouth (PMP 50100) block, where drilling of a five well coal seam gas pilot scheme will commence in 3Q 2009. Year 2 of the exploration phase for both PEP 50279 and 50280 is underway, with the Comet group technical team continuing exploration studies work on these large blocks.

TAG Oil - 100% in Taranaki Basin TAG Oil Ltd. binding offer to acquire Austral Pacific Energy's (in receivership) 66.67% interest in the 7,910 acre exploration permit "PEP 38748" has been accepted by the Receivers appointed to Austral Pacific Energy Ltd. Combined with TAG's current 33.33% operated interest the permit, TAG will control 100% of this Permit. The consideration to be paid by TAG for these assets includes:
US$50,000 in cash; and An initial 5% overriding royalty on any future net

Sheehan company acquisition done Integrated Pipeline Services, Inc. (IPS) has completed the acquisition of Sheehan Pipe Line Construction Company, a leading provider of pipeline construction and maintenance services. Sheehan will remain based in Tulsa, Oklahoma. This is a terrific opportunity for us, said David Sheehan, long-time CEO of Sheehan and great grandson of the Companys founder. The relationship with IPS and IPSs financial backer, prominent energy investor GFI Energy Ventures, gives us substantial added capital, resources, and expertise allowing us to expand our service offerings and further serve our customers. With the current energy market trends and the financial and operational backing of IPS and GFI, we see an exciting, growth-oriented future for our Company. David Sheehan will remain CEO of Sheehan Pipe Line Construction Company and will also join the Board of Directors of IPS. Rob Riess, current President & COO of Sheehan Pipe Line Construction Company, and Kent Schobe, VP Engineering, will continue in their respective roles with the Company as will the rest of the senior

oil sale revenue per barrel on PEP 38748 for the first 200,000 barrels of oil produced (reduced to 2.5% for the life of the field after 200,000 barrels of oil have been produced); and Certain permit work commitments to be completed in the next 20 months. Garth Johnson, TAG Oil CEO, commented, "We are pleased to acquire the remaining interest in this strategically located onshore acreage situated in the heart of the Taranaki discovery fairway. A number of drillable prospects have been identified by 3D seismic that indicates the potential for significant upside. This high-

management team. Messrs. Sheehan, Riess, and Schobe will hold a significant ownership interest in IPS. We are pleased to partner with Sheehan and play a role in supporting the Companys next phase of substantial growth in revenues and profitability, said John Allcorn, CEO of Integrated Pipeline Services. GFI Energy Ventures partner Ian Schapiro stated that Sheehans reputation for high-quality construction, safety, and responsive customer service makes it an excellent platform to capitalize on opportunities in the industry. Growing demand for energy infrastructure and new energy supply sources have created an environment in which we believe Sheehan will prosper. For these and other reasons, GFI is delighted to add Sheehan to the IPS family of companies. IPS was advised in this transaction by Western Commerce Group, a Fort Worth-based provider of advisory services in the areas of mergers and acquisitions, financing, and strategic planning. In addition, IPS confirms the formation of IPS Engineering, LLC (IPS EPC). IPS EPC will offer a full range of engineering, procurement and other professional services to complement IPSs construction subsidiaries and allow for responsive and high-quality turnkey Engineering, Procurement & Construction (EPC) service offerings for their clients. IPS EPC will be managed by Curt Simkin, Bryan Moses, and Tom Alexander. This management team brings over 80 years of experience in the pipeline and energy services sector to IPS. IPS EPC will be headquartered in Tulsa, Oklahoma, and co-located in the Sheehan office building to allow for seamless integration of EPC services.

The addition of Sermatech coatings to our offerings, particularly its signature SermeTel slurry-based product, further strengthens Praxair Surface Technologies ability to serve customers in our target end markets, said Praxair Surface Technologies President Mark Gruninger. Sermatech has built a reputation for quality surface treatments and an industry-leading brand worldwide. We welcome their employees to the Praxair team. Gruninger said Sermatech and its employees will be integrated into Praxair Surface Technologies global operations.

IT services for StatoilHydro Bouvet ASA has signed a frame agreement with StatoilHydro regarding consultancy services covering a wide range of IT competence areas. The agreement comes into effect July 1 2009 and has duration of two years with an option of extension twice, each for two years. As previously communicated, Bouvet signed a letter of intent regarding a new frame agreement. The frame agreement is now finalized and includes consultancy services within several areas, among other things custom application development on different platforms, test management, usability, services within information management, technical information systems, IT advisory and infrastructure. This is a significant vote of confidence from StatoilHydro. We are looking forward to the continuation of a very prosperous cooperation. The agreement represents significant opportunities, but also significant responsibilities, which we will meet with great enthusiasm and humility, says Nils Olav Nergaard, COO of Bouvet ASA and Regional Director of Bouvet West. Additionally, EDB is chosen as prime supplier to StatoilHydro within SAP - and Industrial IT Consultancy Services. EDB has signed a Letter of Intent with StatoilHydro for delivery of IT consultancy services within SAP and Industrial ICT. The agreement runs for 2 years with an option to prolong with 2 + 2 years. EDB will be the prime supplier of qualified personnel to StatoilHydro within the competence areas of SAP and Industrial IT. In addition EDB will also deliver consultants to StatoilHydro in other IT competence areas. "We are looking forward to a renewed partnership with StatoilHydro and are pleased that StatoilHydro recognizes EDB's unique combination of in-depth business

Praxair acquires Sermatech Praxair Surface Technologies, Inc. has acquired Sermatech International Holdings Corp. from Arsenal Capital Partners. Sermatech is a global supplier of protective coatings and advanced processes used on industrial and aviation gas turbines. Sermatech serves the aerospace, defense, power generation and oil and gas markets. Sermatechs high-performance slurries, along with its diffusion and thermal-spray coating processes, extend component life and reduce maintenance costs by limiting degradation of metal parts at high temperatures. Sermatech has operations in the U.S., Canada, United Kingdom, Germany and South Korea. The business generated sales of $116 million in 2008 and has 625 employees.

understanding in the Oil & Gas sector and broad SAP competence in the Nordic market. The agreement paves the way for delivering a broader range of services", says Johnny Rindahl, Executive Vice President Application Services in EDB. The Industrial IT area comprises competence within the production environment (platforms) and their administration including Integrated operations, aligning technology, work processes and people, security on plants enabling safe connection between administrative and production systems. Offshore data management, RFID, sensor and wireless technology and other very specialized Oil &Gas industry competence areas. The SAP area comprises a broad area of competencies within Business Intelligence, Accounting & Controlling, Treasury and Payment, Procurement, Sales and Logistics and Operations and Maintenance. The new agreement covers EDB's total delivery units within Application Services in addition to be a continuance of the agreements that formed the basis for EDB's acquisition of StatoilHydro's IS Partner.

As part of the agreement, the JV company will cooperate with CUEL on an exclusive basis to secure and perform installation and offshore construction projects in the Gulf of Thailand. Said Mr Raymond Goh, Executive Chairman and Group CEO of Swiber, This joint venture significantly expands the breadth and scope of the partnership between Swiber and CUEL. Both Swiber and CUEL are leaders in our respective fields Swiber in offshore installation and CUEL in Engineering, Procurement and Construction (EPC) work and I believe that aligning our capabilities will unlock synergies to our mutual benefit as well as to the benefit of the customers we serve. These include maximising operational and commercial efficiencies, achieving economic benefits, and delivering cost savings to our customers. Said Mr. Arthit Pratoomsuvarn, Managing Director of CUEL, We are very pleased to be able to formalise our commitment to partner with Swiber. In the past, we have always had to rely on third party contractors for our offshore construction projects. The Swiber Chai will not only provide us full flexibility in determining our project schedules, but also boost our competitive edge. The official signing ceremony for the JV was held in Thailand with Swiber Senior Management team led by Mr Francis Wong, Deputy Group CEO and Executive Director of Swiber and Mr. Arthit Pratoomsuvarn, Managing Director of CUEL. Swiber is very honoured to take its partnership with CUEL to the next level in this joint venture. We view this partnership as an exciting development for Swiber in terms of expanding our market presence in Thailand. The Gulf of Thailand is a key offshore hub in the region and teeming with offshore construction opportunities, and with the support of CUEL, we jointly hope to further expand our revenue stream from this market, said Mr Wong. Swiber Chai is a 1,200 ton capacity derrick lay barge measuring approximately 127 metres in length and 38 metres wide and capable of laying pipelines up to 60 inch in diameter. Apart from that, the JV Company will also focus on providing marine construction activities for the Thai market including the installation of jackets, topsides, associated structures, pipelines and subsea systems; decommissioning and removal of platforms, pipelines, loading buoys and other marine and subsea structures; and hookup and commissioning of offshore structures and facilities; and all engineering, project management and other support activities. Concluded Mr Goh, Swiber is off to a strong start in establishing and strengthening our market presence in the

Italgas and Stogit sale completed Following the agreements signed with Snam Rete Gas on February 12, 2009, Eni has completed the sale of its 100% stake in the joint stock of the companies Italgas, a leading operator in gas distribution in Italy, and Stogit, the leading operator in natural gas storage in Italy. Snam Rete Gas paid 1,587 million for the sale of Stogit and 2,922 million for the sale of Italgas. The total of both these amounts has already been paid in cash.

Swiber - CUEL Joint Venture Swiber Holdings Limited has signed the shareholders agreement with CUEL Limited to formalize its relationship with CUEL concerning the 51:49 (CUEL-Swiber respectively) Joint Venture Company, called CUEL Swiber Offshore (Thailand) Ltd, which will be based in Bangkok, Thailand. The primary focus of CUEL Swiber Offshore will be to drive offshore construction activities in Thailand, as well as to own and operate derrick lay barge (DLB), the Swiber Chai to support offshore installation and construction projects in the region.

region and this is due to our strategy to forge alliances with leaders in the local market. I am honoured to join hands with CUEL today and I look forward to working closely with them in the future to propel our partnership to new heights.

and also a key player on the National Balancing Point (NBP) in the UK Europes most liquid gas trading point. StatoilHydro is a major shipper in all gas pipelines from the Norwegian Continental Shelf to the UK (Langeled, Vesterled and Tampen Link). When fully commissioned, currently expected to be in 2012, Aldbrough will have the capacity to store up to 370 mcm in nine underground caverns and will be the largest onshore gas storage facility in the UK. It will be able to deliver gas to the National Transmission System at a rate of 40mcm per day and have up to 30mcm of gas per day injected. To form gas storage caverns, salt deposits around 2 km under ground are leached out by seawater, which, in turn, is replaced by gas under pressure. In addition to marketing its own gas, StatoilHydro markets gas volumes on behalf of Petoro which manages the Norwegian States direct financial interest (SDFI) on the Norwegian Continental Shelf.

Nitrogen generator delivered to MPSV Simtronics ASA has through its daughter company ETech Process AS received an order from STX Norway Offshore AS to deliver Nitrogen generator to a Multi Purpose Vessel in Norway. The order is in excess of MNOK, 1,2 and delivery will take place during Q3 2009. Simtronics ASA consider the order to be a strategic break through for supply of smaller Nitrogen Generator systems to the Offshore & Multi Purpose Vessel market segment.

Aldbrough gas storage operations StatoilHydro and Scottish and Southern Energy have started some commercial operations at the Aldbrough gas storage facility in East Yorkshire in the UK. StatoilHydro participates in the project with one thirds of the capacity. Initially, Aldbrough will provide around 60 million cubic metres (mcm) of capacity in two caverns. This will be the first new gas storage capacity in the UK for four years. Capacity in another three caverns is expected to become available by the end of 2010 and the facility is an important contribution to further build UKs gas storage capacity, according to the operator Scottish and Southern Energy plc (SSE). The UK is Europe's biggest gas market and lies close to our core area for gas production. We are a committed gas supplier and continuously work to improve and optimise our supplies to customers and the market. In this context, the start up of Aldbrough is a key event for creating value, said Torgrim Reitan, senior vice president for trading and operations in StatoilHydro's Natural Gas business area. Reitan underlines that the UK is a very important market for StatoilHydro. The group is today a considerable supplier of gas to this market through several long-term delivery commitments EXCO - agreement with BG Group EXCO Resources, Inc. has reached a definitive agreement with BG Group plc for the joint development and operation of EXCOs Haynesville shale and certain other related natural gas assets located in East Texas/North Louisiana. In addition, EXCO and BG Group have reached an agreement in principle regarding the joint development and operation of EXCOs midstream assets in East Texas/North Louisiana. Pursuant to a purchase and sale agreement (PSA), EXCO will sell BG Group a 50% interest in its producing and non-producing assets in a large area of mutual interest (AMI) which encompasses most of EXCOs holdings in East Texas/North Louisiana, excluding the Vernon Field in Jackson Parish, Louisiana, the Redland Field in Bossier and Webster Parishes, Louisiana and the Gladewater and Overton Fields in Gregg, Rusk and Smith Counties in East Texas. The parties will enter into a joint development agreement at closing with respect to the Haynesville, Bossier and other deep horizons as well as the Cotton Valley, Hosston and other shallow horizons. EXCO will continue serving as operator of the joint development subject to oversight from a Joint Development Operating Committee. EXCO and BG Group will each own 50% of the acreage, production and reserves within the AMI. The existing assets within the AMI include approximately 120,000 net

acres with approximately 65,000 net acres in East Texas and 55,000 net acres in Louisiana. Appoximately 84,000 net acres are prospective for Haynesville shale development, and most of this acreage is in the core Haynesville shale areas of DeSoto and Caddo Parishes in Louisiana and Harrison County, Texas. Also included is net production of approximately 95 Mmcfe/d from the Cotton Valley and other shallower horizons and approximately 60 Mmcf/d from the Haynesville shale. As of December 31, 2008, the Cotton Valley and other shallow rights included approximately 414 Bcfe of net proved reserves and approximately 445 Bcfe of net probable and possible reserves, based on year-end SEC pricing. The Haynesville/Bossier shale acreage is under development and EXCO estimates that its current acreage position, most of which is held by shallow production, includes over 1,600 undrilled Haynesville locations containing net potential reserves of 4 to 6 Tcfe, with significant additional potential in the Bossier shale. EXCO and BG Group plan an aggressive development program, particularly in the Haynesville shale, for the remainder of 2009 and in future years. EXCOs Haynesville shale results to date have been outstanding as 8 horizontal Haynesville wells have been drilled and completed in DeSoto Parish with average gross initial production rates in excess of 23 Mmcf/d on restricted chokes. These well results will allow booking a significant amount of proved reserves. The full year 2009 budget calls for a minimum of 34 horizontal Haynesville wells to be drilled, 27 of which will be operated by EXCO. EXCO will receive $655 million in cash at closing pursuant to the upstream joint development transaction, subject to customary closing adjustments. In addition, BG Group has agreed to fund $400 million of capital development on EXCOs behalf, with BG Group paying 75% of EXCOs drilling and completion costs on the deep rights until the $400 million commitment is satisfied. The drilling and completion cost commitment is expected to be satisfied in 2011 or 2012. EXCO and BG Group will share equally in additional leasehold and asset acquisitions within the AMI. In addition to the PSA signed for the upstream assets in East Texas/North Louisiana, EXCO and BG Group have also reached an agreement in principle whereby EXCO will sell BG Group a 50% interest in its midstream business (exclusive of the Vernon Field midstream assets) in the area for $249 million in cash. In concert with the planned Haynesville shale development, there will be an effort to develop and grow the midstream business. EXCO currently owns in excess of 700 miles of pipeline and gathering assets in the area and is constructing a 29 mile, 36 diameter header system to transport its Haynesville gas

production. Throughput in the midstream business to be contributed to the joint venture is approximately 440 Mmcf/d of which approximately 50% is EXCO gas and 50% is third party gas.

The upstream and midstream joint development transactions are expected to close in the third quarter of 2009, and both transactions have an effective date of January 1, 2009. The total unadjusted cash proceeds to EXCO of $904 million will be used to repay EXCO Operating Company, LPs $300 million Senior Unsecured Term Loan with the remainder to be applied to the outstanding balances under EXCOs credit facilities. Douglas H. Miller, EXCOs Chief Executive Officer, commented, We are very pleased and excited about our joint venture with BG Group. BG Group is a world leader in developing and marketing natural gas. With its strong technical and business capabilities in finding and commercializing reserves in 27 countries on five continents, BG Group will bring considerable expertise to the development of our Haynesville/Bossier shale assets. In addition, BG Group markets approximately 3.5 Bcf of natural gas per day through 66 major interstate and intrastate pipelines serving markets throughout the Midwest and Eastern United States. BG Group will be an extremely valuable partner in our gas marketing efforts. EXCO and BG Group are both committed to increasing the leasehold position and accelerating the drilling and completion efforts in the Haynesville and Bossier shales in East Texas/North Louisiana. This transaction is a significant event for EXCO, both in terms of the ability to aggressively pursue the Haynesville opportunities and in terms of strengthening our balance sheet to be in a position to capitalize on future opportunities in our core areas. We look forward to a long, mutually profitable relationship with our new partner.

Alcoa - Cameron joint collaboration Alcoa has signed a development agreement with Cameron to commercialize aluminum drilling riser systems for offshore oil and gas exploration and development. Houston-based Cameron markets and develops various products for the oil and gas market and is a market leader in the offshore drilling risers business. Alcoa is an expert in aluminum technology and the design and manufacture of aluminum products. The two companies will combine their expertise and collaborate on research and development projects to broaden the market for aluminum drilling riser systems.

The lightweight aluminum riser system will extend the capability of existing drilling vessels allowing exploration in deeper depths of 20% or more versus conventional steel risers. Welded aluminum risers weigh nearly 40% less than steel risers and require up to 40% less buoyancy material for similar depths. This weight savings equates into cost savings, because aluminum risers are easier and less expensive to transport, store and deploy. The aluminum drilling riser system is an innovation that could significantly change deep water oil and gas drilling, said Mary Zappone, President, Alcoa Oil & Gas. This partnership with Cameron, one of the most accomplished leaders in drilling and production systems, validates the lightweight aluminum riser system as a viable product. With the aluminum riser system, we will be providing the lightest drilling equipment in the industry, said Harold Conway, President Cameron Drilling Systems. Last week, Alcoa agreed to purchase Noble Corporations intellectual property pertaining to welded aluminum risers, opening the door for Alcoa to form this cooperative partnership with Cameron to develop lightweight welded aluminum risers for deepwater applications.

Russia, including on the Arctic offshore. The Agreement provides for broadening of cooperation in future Sakhalin II project development, development of joint shipping solutions for natural gas fields on Yamal Peninsula, further improvement of LNG shipping technologies, including in difficult ice conditions, and development of floating storage and regasification units for gasification in remote regions of Russia. According to Sergey Frank, Sovcomflot CEO, The signed agreement allows to combine Shells profound experience in the production and the transportation of liquefied natural gas with Sovcomflots knowledge and technical potential in delivering cargos by sea in harsh ice conditions of the Arctic and Far-Eastern seas. This longterm international project is aimed at working out highly effective and ecologically safe transportation and logistical solutions for Russias future oil and gas projects implemented in the offshore fields of the Arctic. Speaking at the event, Jan Kopernicki, Shells Vice President for Shipping, said, Shell and Sovcomflot have for some time worked together on LNG seafarer training and through the development of the Sakhalin II project. The signing of these agreements builds on this and allows us to share our respective skills in LNG and Arctic shipping to support future Russian LNG projects. Alongside General Cooperation Agreement, the companies signed time-charter agreements for Sovcomflots Aframax type oil tankers to ship Shells crude from North West Europe and the Mediterranean.

ESI leak detection selected Sunoco Logistics Partners L.P. has selected Energy Solutions International, Inc. (ESI) leak detection software for its Western Pipeline system. This agreement, in addition to an existing agreement for Sunoco Logistics Eastern Pipeline system, places approximately 8000 miles of Sunoco Logistics pipelines under ESI leak detection licensing. For its Western Pipeline system, Sunoco Logistics conducted a thorough evaluation of leak detection applications and again selected Energy Solutions International based on ESIs overall rating to deliver an accurate, effective leak detection system. Implementation of the software on the Western Pipeline system has begun.

Aker sells stake in Odim Aker Solutions has entered into an agreement to sell its 33% stake in Odim to Rolls-Royce. The agreed price is NOK 45 per share, corresponding to a total value of NOK 700 million. The sale gives Aker Solutions a profit of close to NOK 125 million, including dividends paid out by Odim in May. Aker Solutions announced the acquisition of 33% of Odim shares on 2 April this year. "Since our acquisition of 33 percent of the shares in Odim in April, we have considered how to secure the best return on this investment, including steps in direction of a future integration of Odim in Aker Solutions. During this process we have also been approached by other interested parties in the market, and we received a good offer from Rolls Royce Marine. After an overall assessment, our opinion is that it would be in our shareholders' interest to sell at this price," says Simen Lieungh, President & CEO of Aker Solutions.

Shell - Sovcomflot cooperation agreements Sovcomflot Group and Shell International Trading & Shipping Company Limited have signed a General Cooperation Agreement. The General Cooperation Agreement covers cooperation between the two companies in potential liquefied natural gas (LNG) shipping projects in

Aker Solutions has an established co-operation with Odim for deliveries of total solutions within light drilling and light well intervention. "Our industrial efforts within well services and marine operations continue. Rolls-Royce Marine is a very solid enterprise, and we are confident that our ongoing projects with Odim as supplier will be continued in a good way," says Lieungh. There were other interested parties in the market in April, when Aker ASA sold their stockholding in Odim to Aker Solutions. That interest led to an agreement with Aker on profit sharing (50/50) if the shares were resold during the following year. The total profit from the sale of the shares is NOK 186,6 million, of which Aker Solutions and Aker will receive NOK 93.3 million each, in accordance with the profit sharing agreement. Rolls-Royce has, through the share purchase agreement, committed to pay Aker Solutions a supplement should they make an offer for, or purchase, further shares in Odim at a price of more than NOK 45 per share. This commitment remains in place for nine months after the transaction has been completed. Aker Solutions' sale of Odim shares to Rolls-Royce is pending clearance by Norwegian competition authorities.

This is the second time AGR Drilling Services will be supporting drilling operations in the region. The Riserless Mud Recovery system (RMR) technology is the only technology in the world capable of returning drilling fluids and cuttings topside without a riser system and hence avoiding environmental discharge.

Mist Engineering - two orders Simtronics ASA has through its daughter company Water Mist Engineering AS received two orders for delivery of extinguishing systems and offshore field equipment in Norway. Extinguishing systems will be delivered to a sheltered housing in Songdalen and offshore field equipment will be deliverd to Hydrasund AS. The order is in excess of MNOK 3.0 and delivery will take place during Q3 2009. The work will be executed by the Simtronics ASA subsidiary Water Mist Engineering AS.

FINANCIAL OTHERS
Consortium not prequalified for Goliat Eni Norge AS has declined the proposed Aker Solutions, Aibel, Samsung Heavy Industries consortium to participate in the tendering process for the Goliat FPSO. Aker Solutions is of the opinion that this is the best delivery model for us for the chosen Goliat concept. Based upon the instructions from Eni Norge for further participation in the tender process, Aker Solutions has today informed Eni Norge that under these circumstances the consequence will be that we are no longer to be considered part of the tender process. Perenco - ready for legal action Perenco Ecuador Limited is prepared to take legal action against any company that purchases or transports crude oil the Ecuadorian Government has unlawfully seized. Perenco Ecuador is the Operator of Blocks 7 and 21 in Ecuador. On February 19, 2009, the Republic of Ecuador and its oil company, Empresa Estatal Petroleos del Ecuador (Petroecuador), commenced a coercive process to collect from Perenco approximately $327 million they claimed were due under a 2006 Ecuadorian law (Law 42) by which the Government asserts a right to 99% of the oil revenues above an arbitrary "reference price." In March produced Burlington in Ecuador 2009, Petroecuador began seizing crude oil by Perenco and its consortium partner, Resources Oriente Ltd., from Blocks 7 and 21 to satisfy the alleged Law 42 debt.

AGR Drilling Services new contract Korea National Oil Company (KNOC) and AGR Drilling Services have entered into a US$9m 2 year contract for Riserless Mud Recovery (RMR) services. Drilling will be undertaken off Sakhalin Island later 2009 and in 2010.

However, on May 8, 2009, a three member international arbitration tribunal constituted under the auspices of the International Centre for the Settlement of Investment disputes (ICSID) unanimously ordered that the Republic of Ecuador and Petroecuador were restrained from

"instituting or further pursuing any action" - including oil seizures - "to collect from Perenco any payments [they] claim are owed... pursuant to Law 42." The tribunal made clear that such orders "are binding on the party to which they are directed" and that the parties "are under an international obligation to comply" with them. Just this week, a different international arbitration tribunal in a separate ICSID arbitration commenced by Burlington issued a similar provisional measures order. Despite these ICSID tribunal orders, the Ecuadorian Government has announced that it plans to go forward with a July 3 auction of the crude oil it has seized from Perenco and Burlington. The Government first attempted to sell the seized oil at an earlier auction in May, but no buyers materialized. Now it is trying again. With the second auction looming and a third scheduled for later this month, Perenco Ecuador has indicated that it will take a firm stand to protect its rights. According to Rodrigo Marquez, Latin American Regional Manager for the Perenco Group, "Anyone who purchases the seized crude oil under the circumstances is buying property that Ecuador and Petroecuador are not entitled to sell. The arbitration tribunals' orders establish that Perenco and Burlington continue to have the right to sell that oil, and that the disputed portion of the sale price should be placed into escrow. Consequently, anyone who buys at the Government auction may be liable for conversion or other misdeeds. Perenco is prepared to enforce its rights wherever it becomes necessary to do so." At the same time, Perenco has continued to support a negotiated resolution of its dispute with Ecuador and Petroecuador. "We remain open to negotiations with the Government about fair terms for continued operations in Ecuador," said Mr. Marquez. He noted, "Perenco has consistently made clear to the Government that we prefer to have an agreement rather than an arbitration. That remains true today." Perenco Ecuador Limited is part of a privately held upstream oil and gas company and is the operator of Blocks 7 and 21 in Ecuador.

Aker Solutions has invested USD 17 million into the expansion and upgrade of the Batam manufacturing centre. As a result, manufacturing capacity for production and assembly of surface wellheads and trees has increased by more than 50 percent. Building space at the site has been expanded from 4 200 to 11 200 square meters to cover a new administrative building with full management support, machine workshop with 11 new machines, test and assembly workshop as well as a new warehouse. In total, the Batam site area has expanded to 21 800 square meters. Surface trees and wellheads is production equipment that is being used either onshore or at surface production platforms in shallow waters offshore. "Our business for surface products, which are manufactured at Batam, has achieved a 25 percent revenue growth annually over the past years. It is a cost efficient operation," says Egil Martinussen, president - Asia Pacific, Aker Solutions. "With the expansion and modernization of our facility completed, it is now able to meet the expected market growth"' The expansion of Batam's manufacturing facility was completed in 500 000 man-hours with zero loss time incidents (LTI). This was achieved on the back of the plant's existing two million man-hours of zero LTI. Aker Solutions has been present in Batam, Indonesia since 1995. Speaking at the official opening of the Batam facility, Egil Martinussen said Aker Solutions has had ambitious expansion plans since 2007 to establish and ramp up its facilities in Indonesia, Malaysia, Australia and Vietnam. In addition to these four locations, Aker Solutions already has a solid presence with additional service bases for surface products located in Singapore, Thailand, India, China, Nigeria and Middle East. Martinussen says: "We have a solid network of facilities for subsea and surface products in this region. This puts us in a very favourable position when it comes to supporting our customers. Even though we are a company with a global footprint, a key focus is always local presence and support. The expansion of our Batam facility is a testament to the latter". The Asia Pacific region is expected to be one of the fastest growing markets in the oil and gas industry in the coming years. In anticipation of this, Aker Solutions has over the past three years invested approximately USD 130 million in new facilities and upgrades of existing ones. The first was the establishment of a state-of-the-art manufacturing centre in Malaysia in 2007. This is the only facility in the world where a complete subsea production

Aker Solutions - manufacturing facility Aker Solutions is officially opening its significantly modernized and expanded manufacturing facility for surface trees and wellheads in Batam, Indonesia. The expansion is part of Aker Solutions' long-term strategy to increase its presence in the rapidly growing oil and gas markets in the Asia Pacific region.

system can be manufactured in one location. This was followed by the establishment of a new service and test facility in Perth, Australia, and a new service base in Vietnam, last year. "The long-term outlook for the subsea industry, as well as surface products, is very good. The investments over the last couple of years mean that we are very well prepared for an upturn in these markets," concludes Martinussen.

official recognition of the outstanding efforts of employers and employees who have achieved exemplary occupational safety and health. Star certification is the pinnacle classification for VPP participation. Aker Construction Inc. first initiated VPP Star application in March 2008 to ensure optimal worker safety and establish a partnership with OSHA. The approval process included a review of Aker Construction Inc.'s management commitment and employee involvement with safety programs, a worksite analysis, hazard prevention and control measures, and safety and health training plans. The company submitted documents to support these criteria and hosted a four-day onsite tour by government officials, a detailed document review, and both formal and informal interviews. "We are extremely proud of this accomplishment," says Bruce Kingsbury, Aker Construction Inc.'s Vice President of HSE. "It signals our people's belief in the highest priority for worker health and safety. Aker Construction Inc. is committed to maintaining this status by keeping average reportable incident rates below the national average and continuing to develop best practices and innovative safety procedures throughout the plant's construction." Under the Occupational Safety and Health Act of 1970, employers are responsible for providing a safe and healthful workplace for their employees. OSHA's role is to assure the safety and health of the U.S.'s working men and women by setting and enforcing standards; providing training, outreach and education; establishing partnerships; and encouraging continual improvement in workplace safety and health.

Use of Oseberg A with HFIS StatoilHydro has been granted a new consent for the use of Oseberg A with HFIS (Helicopter Flight Information Service) provided by Avinor. The original consent for the use of Oseberg A was granted on the condition that the HFIS service* was to be carried out on Oseberg A. *HFIS (Helicopter Flight Information Service): Local fight information and alarm service which is provided on a helicopter deck as well as to aircraft within the unit's area of responsibility. The service will now be performed by Avinor at Stavanger Control Centre.

Aker - top OSHA safety honor Aker Construction Inc., part of Aker Solutions, has earned Star membership in the prestigious Voluntary Protection Programs of the U.S. Department of Labor's Occupational Safety and Health Administration. The Star certification relates to the sitebased project Aker Construction Inc is delivering for Longview Power, LLC in Maidsville, West Virginia in the United States. Aker Construction Inc. is the primary contractor for the 769-MW coal-fired power station being built for Longview Power, LLC, owned by GenPower Holdings, L.P. More than 60 percent of the work is now complete, and scheduled for operation in early 2011, it will be one of the cleanest coal-fired power plants in the US. The Voluntary Protection Programs (VPP) of the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) promotes effective worksite-based safety and health, encouraging management, labor, and OSHA to establish cooperative relationships at workplaces that have implemented a comprehensive safety and health management system. Approval into VPP is OSHA's

Funding for development of CMP AGR Drilling Services has secured full funding for development and Field Trial of the CMP (Controlled Mud Pressure) dual gradient drilling system. CMP extends the use of Riserless Mud Recovery (RMR) for post top hole, blowout preventer (BOP) hole sections of the well. Dual Gradient Drilling is expected to save significant time and costs, and thereby enable the Operators to deliver wells cheaper and faster. In some cases Dual Gradient Drilling may become an enabling technology to deliver deepwater wells. The project budget is in excess of 50 MNOK. Funding has been secured from Norwegian Research Council's Demo 2000 program, StatoilHydro, BG Norge and BP Operating Company in Houston, in addition to funding by AGR.

The project will be managed from Houston where AGR continues to strengthen its organization and position itself as a major Dual Gradient and Managed Pressure Drilling service provider.

in Norway. Drilling results from the ongoing Grosbeak well in Norway are expected shortly.

Chevron Appeal refused Accident at Yara plant An accident at the Yara Tertre plant in Belgium is likely to halt ammonia production for a prolonged period. Two people were injured, but their injuries are not critical. The explosion took place early Saturday morning. An assessment will be carried out into the possible consequences on the rest of the Terte operation. The plant has an annual production volume of 420,000 tonnes ammonia and 920,000 tonnes of finished fertilizer products. The reason for the accident has not yet been established, but an investigation has been initiated, included the impact on the fertilizer production. The U.S. Supreme Court refused to hear an appeal by Chevron of a decision by a U.S. federal trial judge that denied the oil giants attempt to shift a $27.3 billion liability for environmental contamination in the Amazon rainforest to Ecuadors state-owned oil company. The Supreme Courts move is the latest of several legal and political setbacks recently suffered by Chevron in the 16-year-old case, considered the largest environmental matter in the world. Experts have dubbed the contamination in Ecuador the Amazon Chernobyl and say a clean-up would dwarf any decontamination effort ever undertaken. The dispute before the Court was between Chevron and Ecuadors government, but it was spawned by a private lawsuit for environmental damages brought against Chevron by thousands of private citizens in the countrys Amazon region. Damages in the private lawsuit, expected to end later this year, were estimated in 2008 at up to $27.3 billion by a team of court-appointed experts. Texaco (now Chevron) is accused of dumping billions of gallons of toxin-laden waste water into the Amazon rainforest from 1964 to 1990, when it operated a large oil concession in the area covering a 2,000 square mile area. Indigenous groups complain their cultures have been decimated, while the Ecuador court report found high cancer rates related to oil contamination have caused roughly 1,400 excess deaths. Chevron was challenging an order by U.S. federal district court judge Leonard B. Sand that denied its attempt to obligate Ecuadors government to take part in a binding arbitration over the liability from the private lawsuit based on a provision in a 1965 contract signed by Texaco and Gulf to operate a large oil concession in Ecuadors rainforest. Last October, a unanimous three-judge panel for the U.S. Court of Appeals for the Second Circuit found Chevrons argument was without merit and denied its appeal, prompting the petition to the Supreme Court. The narrow legal issue involved whether Ecuadors government could be subject to an arbitration provision under a contract that it never signed, and whose only signatories were two American oil companies. The implications of any arbitration between Chevron and Ecuadors government would have been highly significant given the amount of damages, however.

Noreco - 1,050 m NOK Loan facility Norwegian Energy Company ASA (Noreco) has entered into a 1,050 million NOK loan facility agreement with Sparebank 1 SR-Bank (lead), DnB NOR and BNP Paribas which will finance Noreco's exploration and appraisal activities in Norway in 2009 and 2010. We are pleased to extend our good relationship with Sparebank 1 SR-Bank, DnB NOR and BNP Paribas through this facility, which ensures cost-efficient financing of our exploration and appraisal activities in Norway, says CEO Scott Kerr. The loan facility will finance up to 70% of Noreco's exploration and appraisal activities in Norway for 2009 and 2010. The agreement is a NOK 1,050 million revolving loan facility entered into with Sparebank1 SR-Bank, DnB NOR and BNP Paribas as lenders and will replace the existing NOK 800 million exploration loan facility. The loan agreement will be finally completed when customary conditions have been fulfilled. Noreco runs a selective exploration program, with focus on exploration wells that have a high value creation potential for Noreco. In 2009, Noreco will be involved in five exploration wells, of which three have been drilled already resulting in a significant gas discovery at Gita in Danmark and the third discovery (Gygrid) in license PL348

From the beginning, the attempt by Chevron to tie up the nations highest court on a relatively obscure legal issue was more of a delay tactic than anything, said Andrew Woods, an American legal advisor to the Amazonian communities who brought the underlying legal case. The private lawsuit originally was filed in U.S. federal court in New York in 1993 against Texaco (now Chevron) and is currently on trial in Ecuador at Chevrons request. To transfer the case to Ecuador in 2002, the oil company filed 14 sworn affidavits praising Ecuadors courts and agreed to submit to jurisdiction and be bound by any ruling there. Once evidence in the Ecuador trial pointed to Chevrons culpability, the oil company began to claim Ecuadors courts were biased against it and tried to shift the liability to Ecuador's government. It also launched a public relations and lobbying campaign in Washington to try to convince the U.S. government to pressure Ecuadors government to quash the case, a strategy that up to this point has backfired.

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