Pipeline Pigs Frame Agreement with Statoil

(September 30th 2006)

Pipeline Engineering and Statoil have signed a frame agreement for Pipeline Engineering to supply pipeline pigs to support Statoil's ongoing oil and gas production operations. The agreement runs until August 2009 with options for further extensions.

David Bacon, Special Projects Director at Pipeline Engineering commented, "We are delighted to be entering this agreement with Statoil. This close cooperation will help us focus our resources to design and develop pipeline pigs for Statoil's operational requirements and Statoil will be able to plan and implement pipeline pigging programmes, confident that the pigs used will provide the most effective solutions for pipeline flow efficiency.

Pipeline Engineering is a market leader in the design and manufacture of utility pigs. We have been designing, testing and manufacturing pipeline pigs for many years and are recognised worldwide for our technical expertise in developing and adapting pipeline pigs to perform a range of often complex and unique operational requirements for individual pipelines.

Statoil is one of the world's largest producers and sellers of crude oil and gas and widely regarded as a leader in sub sea production. Statoil is a substantial supplier of natural gas to the European market; they are operational in 33 countries, with international production being an area of strong growth for the Company.