Expro International Group PLC
18 February 2005
Embargoed until 07.00, Friday 18 February 2005
EXPRO INTERNATIONAL GROUP PLC
Expro Announces New Contracts Awarded
Expro International Group PLC ("Expro") today provides an update on contracts
awarded since 30 September 2004. In addition to the recently announced
pan-European contract with Shell Exploration and Production Europe, valued at
$100 million over 5 years, Expro has won further contracts with a combined value
estimated at $100 million, with contract terms varying from 3 to 5 years. This
brings recent contract awards to a total estimated to be in excess of $200
million. The awards underpin Expro's confidence in its projections.
Expro is structured to deliver its range of technology driven products and
services to the global upstream hydrocarbons industry through a combination of
its functional business units and its geographic regions. This ensures that
Expro closely mirrors the buying characteristics of the industry and remains at
the forefront of these dynamic markets.
In the rapidly growing area of deepwater subsea field development, Expro's
Subsurface Systems business unit provides proprietary, niche technologies for
the installation of new subsea wells, and products and services to support the
well during its commercial life. Expro's market leading subsea safety tools have
recently been selected by ChevronTexaco for their Tahiti and Blind Faith
projects in the deepwater Gulf of Mexico. This $35 million contract is for the
provision of Expro's new electro-hydraulic deepwater safety systems in what is
believed to be the first high pressure subsea field to be developed in a
deepwater environment. The contract has an initial 3 year term with revenues
starting in late 2005. This material award reinforces the progress made by the
Subsurface Systems business.
Expro's geographic infrastructure supports both call-out and project work and
acts as the main conduit for marketing most of our Cased Hole Services and
Surface and Environmental product lines, both of which have secured enhanced
levels of business.
In the Europe/FSU region, in addition to the aforementioned Shell Europe
contract, other awards from bp and Talisman in the UK North Sea, and Total in
the Netherlands for Cased Hole Services, have totalled $25 million. Whilst the
majority of these awards are for the continuation of existing contracts, they
underpin Expro's market position for the next 3 to 5 years and offer the
potential for increased activity and opportunities to sell new products and
services. The region has also added several Surface and Environmental contracts
totalling $15 million in the period, including Marathon in Norway, KPO in
Kazakhstan, and Venture in the UK North Sea.
The Africa/Asia business, now managed out of Dubai, has also been successful in
securing business for both Cased Hole and Surface and Environmental Services. In
total, the region has secured $25 million of new contract wins, with the most
notable being with Woodside for their field development offshore Mauritania and
with CNR for their Espoir project, offshore Cote D'Ivoire.
Graeme Coutts, Expro's Chief Executive Officer commented: "Expro has placed
increasing emphasis on client engagement over the past year. The result of this
focus has been a significant improvement in converting enquiries into firm
contracts. Despite the difficulties created by the weakness of the U.S. dollar,
I am delighted with the overall progress that we continue to make."
- Ends -
For further information please contact:
Expro International Group PLC
Graeme Coutts, Chief Executive On Friday 18 February 2005: 01224 225 753
Colin Ainger, Executive Director 0118 9591 341
Weber Shandwick Square Mile 020 7067 0700
Mike Kirk / Rachel Taylor / Stephanie Badjonat
Note to Editors:
Expro International Group PLC ("Expro Group", "Expro" or "the Group") is a
leading upstream oil and gas technology and service provider, specialising in
well performance and production optimisation. Its products and services are
packaged into three distinct business segments: Cased Hole Services, Subsurface
Systems, and Surface and Environmental Systems. The Expro Group employs over
2,000 people worldwide and is an innovative leader in oilfield technology which
enables clients to maximise recovery of their reserves. For more information,
please refer to the Group's website at www.exprogroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
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