Offshore staff

(North Sea, UK)-Venture Production, operator for the Chestnut Partnership, and Sevan Marine have signed a contract for the use of Sevan'sSSP 300 FPSO on the Chestnut field in the central UK North Sea, in a water depth of 120 m. The contract replaces a letter of intent between the parties entered into previously this year.

The fixed term of the charter contract is 30 months, with extension options for an additional 24 months. TheSSP 300 FPSO will be installed on the Chestnut field mid-2007. The contract value for the fixed term is $64 million, excluding the value of any operations services to be performed by Sevan Marine.

TheSSP 300 FPSO will be equipped with a process plant of 30,000 b/d, a water injection plant with 20,000 b/d and an oil storage of 300,000 bbl.

The Chestnut field has estimated reserves of 7 to 15 MMbbl. It will be one of the smallest developments in the North Sea with its own production unit.

08/30/05