APRIL 22, 2013 — Island Offshore, in which the Chouest and Ulstein families are partners, has been awarded a major contract extension by BP Exploration Operating Company Ltd.

The two-year contract extension is valued at approximately NOK 0.5 billion ($86.5 million) and includes options for NOK 0.75 billion ($129.8 million). It covers 2014 and 2015, has been awarded to Island Offshore and the North Sea RLWI Alliance, which operates three monohull vessels specially designed for well intervention tasks. Island Offshore's Island Constructor (pictured at left) - a 120 m long, 8,200 ton, state-of-the-art Ulstein built X-Bow vessel – will perform the scope of work for the client.

Commenting on the award, Robert Friedberg, Managing Director of Island Offshore Subsea, says: "We are delighted to continue our successful operations for BP. This is an important extension of a contract that has now been in place for 5 years."

"It demonstrates the strength of the relationship we have built with BP and the excellent standard of service that Island Offshore, and its partners in the North Sea RLWI Alliance, have delivered."

He continues: "We have acquired some unique experience working with the BP team in the harsh environments West of the Shetland, and we look forward to building on that in the future."

The North Sea Alliance was formed in 2004 to provide integrated wireline services to the growing subsea intervention market. The Alliance performs between 60-70 well interventions each year, providing services such as scale milling, gauging and logging operations, plug setting and re-perforating requirements. Island Offshore and the North Sea RLWI Alliance are currently the world leading riser-less wireline intervention,("RLWI"), provider. To date the partners have performed close to 250 well interventions.