Koil Energy Solutions Inc. (KLNG)

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This was in Subsea 7's 2008 Annual Report that came out on Feb 3rd.

OUTLOOK
Whilst the market outlook will retain a degree of uncertainty for the medium term as a result of the current economic
climate, there has been no dramatic deterioration in the subsea market sector. Current indications are that National
Oil Companies and major operators are generally maintaining spending levels. The recent announcement from
Petrobras advising of a projected increase in Exploration & Production spending over the next 5 years from USD 65
billion to USD 105 billion supports this view.

However, as expected, the anticipated spending of smaller operators has been reduced and, as a consequence, a
number of development plans have been re-evaluated and deferred. This has particularly affected the UK Sector of
the North Sea (Norway remaining stable) and the Gulf of Mexico where a number of tie-back projects have been postponed. There are indications of decreases in costs throughout the supply chain and, in conjunction with this, the Company is focused on reducing its costs and improving efficiencies in order to remain competitive in the current market.

http://www.subsea7.com/cms/files/Subsea7_Inc_Quarter4report2008-FINAL.pdf