Rigzone - 16 Sep 09

Prof. Robert B. Laughlin
Department of Physics
Stanford University, Stanford, CA 94305

(Copied 18 Jan 10)

Hallin Marine Bags ROV Services Contract for BP's Caspian Program

Wednesday, September 16, 2009

Hallin Marine has been awarded a five year contract by Dalgidj Private Company ('Dalgidj PC'), for remote operating vehicle (ROV) drilling support services in the Caspian Sea, off the coast of Azerbaijan.

The contract is scheduled to commence in late October this year and is in support of BP's drilling program from fixed platforms in the Caspian Sea.

The contract is split into two parts. For the first two years Hallin will provide two of its Quasar Compact ROVs, complete with specialized tooling and operational personnel, to Dalgidj PC, the Azeri company.

At the end of two years, Hallin will sell the two ROVs at a price already agreed to Dalgidj PC and continue to give technical and project support from onshore Baku, Azerbaijan for a further three years.

The total package of work, including the proceeds from the sale of the ROVs, which at the time of the sale will be five years old, is in excess of US $20 million.

As part of the contract Hallin will design and manufacture specialized ROV intervention tooling, utilising the in-house design capabilities of its wholly-owned subsidiaries -- Malton based Hallin Robotics Limited and Prospect Flow Solutions Ltd.

The board believes this contract enhances Hallin's earnings visibility and is an excellent demonstration of delivering `client solutions' involving the Company's different divisions.

Hallin's forward order book, including this contract, now stands at a figure in excess of US $75 million.

Mike Arnold, Hallin West Division's MD, said, "We are pleased to be awarded this contract in support of BP's drilling program and to be working with Dalgidj PC, who are a well established business with a first-class track record.

"We have been working closely with all parties since October of last year to ensure we have the best structure to ensure the ultimate success for this project.

"Our innovative solution is a win-win for all parties involved and shows how Hallin's ability to respond in a flexible and original way to the client's needs is a significant and clear differentiator.

"The contract, involving as it does, other divisions of the Hallin Group, fits well with the Company's aim of supplying clients solutions rather than just contracted services and integrates perfectly with Hallin's stated policy of continually updating its operational fleet of assets."