News

Date:	Monday 24th January 2005
Title:	Marine is Turning Focus to Caspian Sea

BUE Marine, the Scottish marine services company, is spending pounds-30m on 15 new vessels after switching the focus of its activities away from the home market to the fast-expanding Caspian Sea.

Profits rose sharply last year, after the Leith-headquartered firm sold its stake in a shortlived joint venture with Norwegian investment company Kistefos, the owner of Viking Supply Ships.

BUE forged the alliance in September 2002 with the aim of competing more effectively for North Sea work.

However, the company sold its 50-per cent stake in newly-created BUE Viking less than a year later, netting pounds-4m, its latest accounts reveal.

BUE Viking, now 100-per centowned by Kistefos, continues to operate as a separate firm employing 800 from Aberdeen.

BUE Marine was formed in 1991 by managing director Carl Rolaston to transport fuel, water, food and equipment to oilrigs in the North Sea and later the Caspian.

Explaining the change in strategy, he said: "We were aware that our Caspian business also required investment but there are limits to our resources.

"We felt the Caspian offers better prospects. That is not to decry the North Sea, but looking at the major oil companies one can see they are now in the Caspian, while the North Sea is now independents."

The transaction saw BUE Marine cut its staff from about 1000 to 622, of whom all but 17 are based in the Caspian region.

Unaudited figures for calendar 2004 show earnings before interest, tax, depreciation and amortisation of pounds-15m, up from pounds-10m in 2003 on a like-for-like basis. Rolaston said annual turnover rose from pounds-43m to pounds-58m.

The company's annual report for 2003, which does not contain comparable figures, show that BUE Marine posted a pre-tax profit of pounds-3.7m on turnover of pounds-63.3m.

Significant developments that year included the closure of an underperforming, "noncore" engineering business in Azerbaijan and the capture of lucrative contracts with BP.

Last June, the firm beefed up its Caspian f leet with the acquisition of 13 vessels from Bechtel Enka in Kazakhstan for pounds- 2.9m. BUE Marine has 50 vessels operating in the region, 36 in Kazakhstan and the rest in Azerbaijan.

Rolaston said a further 15 vessels - one supply boat, eight barges and six utility craft - are currently on order for the North Caspian zone.

The pounds-30m cost will largely be funded by debt.

Nearly 50-per cent of BUE Marine is split between Rolaston, the largest individual shareholder, and fellow directors Janess Adams, the finance director, and technical director Peter Gill.

The rest is held by institutions, including venture capital firm 3i and Kleinwort Benson.

BUE paid its owners pounds-703,320 in dividends in 2003, up from pounds-167,639 in the previous year.

Rolaston said selling the business is not yet on his agenda but he does not rule it out.

He added: "Things are good at the moment but there are no plans. We are still looking to develop and grow the company."

BUE Marine's brief involvement with Viking Supply Ships proved lucrative for its auditor, the Edinburgh office of Deloitte.

In 2002 the "Big Four" accountant banked pounds-353,000 in fees for "non-audit" services, dwarfing the pounds-65,000 which BUE paid for its audit.

In its 2003 accounts, BUE said pounds-335,000 of the larger sum related to advice given in connection with the establishment of the joint venture.

Source: The Herald

Date:	Monday 24th January 2005
Title:	Technip Wins Work from Kerr-McGee for the Ticonderoga Field

Technip has been awarded the Ticonderoga subsea flowline installation contract by Kerr-McGee Oil. The Ticonderoga production will be tied back to Kerr-McGee's 100% owned Constitution Spar.

The Constitution field is located in the Gulf of Mexico on Green Canyon blocks 679 and 680, approximately 190 miles southwest of New Orleans in 5,000 feet of water. The Ticonderoga field is located on Green Canyon block 768 in 5,250 feet of water. Kerr-McGee operates the Ticonderoga development and holds a 50% interest. Noble Energy owns the remaining 50%.

The overall project covers the installation of two pipe-in-pipe flowlines and steel catenary risers along with pipeline end termination (PLET) structures for the tie-back of the wells.

Technip's engineering center based in Houston will provide the installation engineering along with the design of the PLET structures. The group's deepwater pipelay vessel Deep Blue will install the flowlines during the fourth quarter of 2005.

Source: Technip

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