Local company to provide marine services to Terra Nova

Company News - March 22, 2000

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AOC Brown & Root Canada Ltd (ABC) has formed a strategic relationship with Canship Ugland Marine Services Ltd (CUMSL) who will provide marine expertise and assist in the supply of multi-skilled deck operators for the Terra Nova Floating Production Storage and Offloading (FPSO) vessel. CUSML will support ABC in their role as part of the Terra Nova Integrated Operations Team.

Commenting on the announcement, Max Ruelokke, ABC's General Manager said, "ABC recognised that local marine knowledge and expertise would enhance our ability to safely and efficiently support Terra Nova. As a leader in marine operations and shipping, Canship Ugland has a great deal of experience on the Grand Banks and access to marine expertise that will, undoubtedly, benefit the Terra Nova development."

"We were delighted when ABC approached us," said Hans Vigen, President of CUMSL. "Our marine knowledge compliments ABC's experience and involvement with offshore production operations. Over the next several months we will be focusing on providing competent and experienced multi-skilled deck operators for the Terra Nova FPSO. In addition, we will advise ABC on marine related issues as Terra Nova prepares for operations."

Canship Ugland Marine Services Ltd is a joint venture between Canship Limited of St John's, Newfoundland and the J J Ugland group of Grimstad, Norway. The Canship Ugland group operate and manage a variety of vessels in Newfoundland and Atlantic Canada waters, including two firefighting/escort tugs in Placentia Bay and two oil shuttle tankers deployed on the Grand Banks. The shuttle tankers are the largest registered vessels in Canada. In addition, the Canship Ugland group provides crewing and crew management services to other ship operators and owners.

AOC Brown & Root Canada Ltd was established in Newfoundland in 1995 to deliver integrated operations, maintenance and engineering services to the oil and gas industry in East Coast Canada. ABC was awarded the Operations Support Contract for the Terra Nova Development. The contract, valued at over $50 million, is for an initial term of five years with an option for an additional two years.

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