Offshore staff

Norway- Subsea 7 recently reported a very strong 2Q 2006, with a fully-utilized fleet and good project execution in several key offshore regions.

The subsea equipment and installation provider reported strong financial performance during the three months ending June 30th, with unaudited revenue from continuing operations of $462.2 million. This amounts to a nearly 40% increase from the same period in 2005.

Project execution was strongest in the North Sea and West Africa. Subsea 7 pointed to the Venture Production PLC partnership, Shell's integrated services contract operations and the BP West of Shetland contract as providing a high level of activity and utilization for its North Sea operations, as well as the successful completions of the Ormen Lange umbilical lay and the hyperbaric tie-ins for Statoil's Langeled field.

Offshore West Africa, Subsea 7 successfully completed construction of the major scope on the Addax (Phase 2) project. The company's vesselsPerseus and Skandi Navica made significant progress on the scope of work for the Lombito Tomboco project, with remaining offshore work expected to be complete in the 3Q 2006.

Subsea 7 also provided an update on several investments for its fleet. It reported that construction is on schedule for the new build deepwater rigid lay vesselSeven Oceans and the deepwater flexlay/J lay vessel Seven Seas.

The company also reported "good progress" on the construction of 2 new vessels that it has agreed to charter from third parties; these vessels are scheduled to join the fleet in mid-2007.

In light of these fleet investments, as well as the purchase of several work class and drill rig ROVs, Subsea 7 is expecting a very positive market outlook for the foreseeable future.

08/03/2006