Subsea 7 Announces Investment In New Pipelay Vessel

28 April 2008

Subsea 7 Inc (OSE Symbol: SUB), one of the world's leading subsea engineering and construction companies, announced today that it has signed a contract for the construction of a new-build pipelay and construction vessel. The overall project cost is in the region of USD 190 million and is based on fixed prices from the Merwede shipyard.

The vessel will have an overall length of 133m and a beam of 24m. She will be equipped with a pipelay suite for installing flexible flowlines and umbilicals, including a Vertical Lay System tower and twin underdeck carousels, a 250t crane from Huisman and twin 3000m-rated ROVs. The ship is expected to be delivered in the third quarter of 2010. The vessel further enhances Subsea 7's pipelay capabilities, particularly in deepwater.

Mel Fitzgerald, Subsea 7's Chief Executive Officer, stated: "We have invested in excess of $1bn in new vessels and equipment between 2006 - 2008. Seven new vessels will join the fleet between 2007 and 2009. This investment in yet another new vessel demonstrates our considerable commitment to becoming the Subsea Partner of Choice for our customers and reinforces our confidence in the market going forward."

"It also builds on Subsea 7's already strong working relationship with the Merwede shipyard where we have successfully built the Seven Oceans and Seven Seas on time and on budget, and also with Huisman."

Subsea 7 is one of the world's leading subsea engineering and construction companies offering all the expertise and assets that make Subsea Umbilical, Riser and Flowline (SURF) field development possible.

With a multi-national workforce of over 5,000 people worldwide, the company's global offshore operations are supported out of the North Sea, Africa, Brazil, North and Central America and Asia Pacific. Subsea 7 has a fleet of industry leading, dynamically-positioned ships capable of reeled and flexible pipelay, subsea construction and saturation diving and a portfolio of pipeline construction yards worldwide. (www.subsea7.com)

Subsea 7