September 06, 2005 07:00 ET

Roxar Announces Letter Of Intent for Contract to Supply Multiphase Flow Meters to the Akpo Subsea Development, Offshore Nigeria

Letter Of Intent (LOI), Signed With Cameron Division of Cooper Cameron Corporation, Is the World's Largest Single Order in Value for Multiphase Flow Meters to Date

STAVANGER, NORWAY -- (MARKET WIRE) -- September 6, 2005 -- Roxar, a leading technology solutions provider to the upstream oil and gas industry, today announced the signing of a LOI (Letter of Intent) to supply its industry-leading MPFM 1900VI® SRC® Subsea Multiphase Flow Meters, with ROV retrievable electronics, to the deepwater Akpo field offshore Nigeria.

Roxar was awarded the contract by the Cameron division of Cooper Cameron Corporation (NYSE: CAM). In April 2005, Cameron was itself awarded a multi-million US dollar contract to supply the Subsea Production System to the 44-well Akpo development.

The final contract between Cameron and Roxar is valued at around US$12 million and is the world's largest single order in value for multiphase meters. It consolidates Roxar's industry-leading position in the subsea instrumentation market. In May 2005, Roxar won a contract to supply Multiphase Flow Meters to a leading Middle Eastern client and in January 2005, Roxar won a bid to supply its meters to the deepwater Rosa oil field off the Angolan coast through FMC Kongsberg with the field operator being Total.

Roxar's subsea Multiphase Flow Meters make well testing operations quicker and more efficient as well as providing valuable new information for the diagnosis and optimization of a well's performance. Its meters are designed to continuously measure the flow rates of oil, water and gas in the well stream without the need for separation. The information is then used to determine the optimal production capacity of each well over the lifetime of the field, thereby avoiding the risk of overproducing the well, while at the same time, accelerating production and increasing recovery.

Roxar CEO, Sandy Esslemont, welcomed the announcement:

"In today's competitive global E&P industry where success is measured by performance, production and profits, quality of information and speed are essential. By measuring multiphase flows in real-time to an unsurpassed degree of accuracy, operators can predict when a problem is developing immediately, thus avoiding any escalation that could lead to permanent damage to the well or the reservoir."

He continues:

"Today's announcement with Cameron is yet another vindication of the need for accurate and continuous information on well performance, exemplified through our Multiphase Flow Meters. Roxar is delighted to be consolidating its position in both West Africa and the subsea instrumentation market today, enhancing the operators' ability to manage their reservoirs."

Roxar's light-weight meters are designed for maximum reliability, performance and flexibility with each well having a jumper mounted meter with retrievable canisters containing electronics, CPU (Central Processing Unit) and power. The meters are more accurate than separation-based systems because they are independent of separation efficiency and insensitive to slugs, foam, carry-overs and emulsions.

Cooper Cameron (NYSE: CAM) is a leading international manufacturer of oil and gas pressure control equipment, including valves, wellheads, controls, chokes, blowout preventers for oil and gas drilling, production and transmission used in onshore, offshore and subsea applications, and also provides oil and gas separation equipment. Cooper Cameron is also a leading supplier of subsea EPC projects to the offshore oil and gas industry worldwide.

Roxar creates value for its customers through its Reservoir Interpretation, Reservoir Modeling, Reservoir Simulation, Well and Completion, Production and Process Solutions and Consultancy Services.

Note to Editors

About Roxar

Roxar is a leading international technology solutions provider to the upstream oil and gas industry. The company creates value for its customers through innovative products and services that help achieve maximum performance from oil and gas reservoirs.

With its head offices in Stavanger, Norway, Roxar employs close to 500 staff across a network of wholly owned offices in Europe, the Americas, Africa, CIS, Asia Pacific and the Middle East. Founded in May 1999, the company generated revenues of approximately US$100 million in 2004. Roxar's International customer base includes all of the multinationals, major independents and the majority of national oil companies.

Contact Information

  • For Further Information:
    Sandy Esslemont (USA)
    CEO, Roxar Group
    Tel: +1 713 482 6439

    Ådne Grødem (Europe)
    CFO, Roxar Group
    Tel: +47 51 81 88 23

    Gunnar Hviding, Managing Director
    Roxar Flow Measurement
    Tel: +47 51 81 88 75
    Email: Email Contact

    Kenneth Olsvik, Vice President
    Roxar Flow Measurement
    Tel: +47 51 81 88 75
    Email: Email Contact

    Jeanette Halford
    Marketing Operations Manager
    Tel: +44 (0) 208 971 4000

    Paul Fisher
    Axiom Communications Management
    Tel: +44 (0) 1285 713 776
    Fax: +44 (0) 1285 713 071