Re Contract

ABB Ltd
08 October 2002


ABB wins US$ 180 million order for subsea system in Barents Sea

Advanced technology to be used in gas project off northern coast of Norway

Zurich, Switzerland, October 8, 2002 - ABB, the leading power and automation
technology company, said today it has won a US$ 180 million order from the
Norwegian oil company Statoil to deliver a complete subsea gas production system
for the development of the Statoil-operated Snohvit gas field in the Barents
Sea.

The subsea system will be remotely controlled by operators at Statoil's
liquified natural gas plant near Hammerfest on Norway's northern coast. This is
done via a 161-kilometer-long fiber optic cable - the longest ever used in such
a subsea operation. The technology for controlling both the on- and offshore
operations is also being provided by ABB.

'The offshore oil and gas industry is increasingly moving equipment from the
ocean surface to the seabed. There are a number of reasons for this, including
environmental and cost considerations,' said Erik Fougner, senior vice president
and head of ABB's Oil, Gas and Petrochemicals division. 'This order is a sign of
Statoil's confidence in the research and development we have been carrying out
in this area in recent years.'

The terms of the contract include project management, engineering, manufacturing
of hardware, testing and technical services for the delivery of an integrated
subsea production facility for the gas field. The engineering work will start
immediately and the project is due to be finalized in 2005.

Statoil has placed a number of orders with ABB in the past few months, including
contracts relating to the Hammerfest plant, and for maintenance and modification
work on other oil and gas fields in the North Sea.

ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve performance while lowering
environmental impacts. The ABB Group of companies operates in more than 100
countries and employs about 150,000 people.



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