Koil Energy Solutions Inc. (KLNG)

[JoeSmith]

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Oceaneering Announces Shell Perdido Contract
Tuesday, July 08, 2008; Posted: 05:01 PM

HOUSTON, July 8, 2008 /PRNewswire-FirstCall via COMTEX/ -- OII | Quote | Chart | News | PowerRating -- Oceaneering International, Inc. (NYSE: OII | Quote | Chart | News | PowerRating) announced it has recently been awarded a contract by Shell for the fabrication and installation of subsea hardware on Shell's ultra-deepwater Perdido Regional Development project in the U.S. Gulf of Mexico (GOM).

Engineering and fabrication of the hardware to be provided under the contract has commenced. This hardware includes 29 flowline and well jumper spools, a pipeline tie-in sled, and related products. Hardware installations are scheduled to begin later this year. Installation services are planned to be performed using Oceaneering's dynamically positioned vessels, including the Olympic Intervention IV (OI IV) that will soon be available for service.

The Perdido Development is located approximately 200 miles south of Freeport, Texas in water depths greater than 7,800 feet. Some production is anticipated from wells in depths approaching 10,000 feet.

T. Jay Collins, President and Chief Executive Officer, stated, "We are delighted to have secured this contract to expand our participation in providing hardware and services in support of Shell's effort to produce hydrocarbons from deepwater fields around the world. The award of this contract reinforces our belief that demand for our subsea hardware installation and inspection, repair, and maintenance services in the GOM is growing.

"Our previously announced charter commitment to add the OI IV to our vessel fleet was instrumental in our success in securing this contract. This vessel has a North Sea class hull design, which lowers weather downtime risk, and will be outfitted with two of our work class remotely operated vehicles (ROV) to reduce operational downtime exposure. In addition to having a helipad and accommodations for 100 personnel, the OI IV will be equipped with a 150-ton heave compensated crane.

"Shell is one of our largest customers and we have a long-standing relationship of providing them vessel-based services in the GOM. On a project basis, we provide specialty subsea hardware to Shell throughout the world and are presently manufacturing the umbilical for Shell's deepwater BC-10 field development offshore Brazil. Additionally, we are the leading global provider of ROV services in support of Shell's deepwater drilling activities."

Oceaneering is a global oilfield provider of engineered services and products primarily to the offshore oil and gas industry, with a focus on deepwater applications. Through the use of its applied technology expertise, Oceaneering also serves the defense and aerospace industries.

For further information, please contact Jack Jurkoshek, Director Investor Relations, Oceaneering International, Inc., 11911 FM 529, Houston, Texas 77041; Telephone [phone]; Fax [phone]; E-Mail [e-mail].

SOURCE Oceaneering International, Inc.

http://www.oceaneering.com
http://www.tradingmarkets.com/.site/news/Stock%20News/1743029/