Offshore staff

OSLO, Norway-- Scana Industrier ASA and FPSOcean have decided to cancel the acquisition of Flexible Engineered Solutions Limited (FES Ltd.), after deciding the development potential was too small.

The companies had announced they would develop technology and equipment for floating production units and the conditional acquisition of FES Ltd. during the recent Offshore Technology Conference in Houston.

Scana and FPSOcean will continue their cooperation for further development of the jointly owned turret/swivel technology for the FPSO market, the companies said. The first such turret/swivel system is in final stages of testing and will be installed intoDeeP Producer 1 shortly.

FPSOcean owns the shuttle tankerMT Laurita, currently being converted at Drydocks World-Dubai (DWD) into a deepwater dynamically positioned FPSO vessel. The vessel, to be renamed the DeeP Producer 1, is scheduled for completion by 3Q and availability for first oil during 1Q 2009.

FPSOcean has purchased the Aframax tankerSemakau Spirit, for delivery in 2008, and is planning to start conversion of the vessel, to be renamed DeeP Producer 2 during 2008. FPSOcean is seeking to develop a fleet of four to six deepwater FPSOs over a period of four to six years.

05/09/08