18 July 2012

Speedy Hire Plc

('Speedy', 'the Company' or 'the Group')

Speedy's International Division awarded 5 year, $50 million contract to support ESNAAD in relation to ZADCO's artificial islands project in Abu Dhabi

Speedy today announces that, as subcontract partner to ESNAAD, the support services arm of Abu Dhabi National Oil Company (ADNOC), it has been awarded a long-term contract to provide logistics, asset management and equipment rental services to support Zakum Development Company's (ZADCO) flagship UZ 750 Project at Abu Dhabi's Upper Zakum field, the fourth largest oilfield in the world.

The contract, which is for an initial period of 5 years with a 2 year extension option, covers the full range of logistics, asset management and equipment rental services required to support drilling and processing activities on four artificial islands which are being constructed by ZADCO. The use of artificial islands, as opposed to conventional offshore rigs, is to enable the use of land-based drilling techniques to attain ultimate recovery of 70% of the field's proven reserves.

The UZ 750 Project is one of the largest offshore oilfield development projects in the United Arab Emirates and aims to increase oil production from the Upper Zakum field to 750,000 barrels per day and to sustain this level of production for at least 25 years.

The contract is expected to be worth in excess of $50 million in revenues to Speedy over its initial term. Phased mobilisation is to begin shortly.

Commenting on the contract award, Speedy's Chief Executive, Steve Corcoran said:

"We are delighted to have been awarded this major asset services contract  to support ESNAAD and ZADCO in relation to one of the flagship capital projects in the oil and gas sector in the Middle East region. As a group, we have significant experience over the years of using our technical expertise in major oil and gas infrastructure projects and this, combined with our ability to provide complementary asset management services on a wider basis, has been an important factor in our International Asset Services business securing this major contract."

Darwish Al Qubaisi, ESNAAD's General Manager added:

"This is an extremely significant agreement through which ESNAAD, with its technical partner Speedy, will service ZADCO's artificial islands. ESNAAD will execute its vast array of skill and technical expertise to ensure the successful culmination of this ground-breaking project. We look forward to the fruitful and continued cooperation between all parties."

For further information:

Notes to Editors:

1.   ZADCO's UZ 750 project is one of the largest oil and gas capital projects being undertaken in the Middle East presently with a total projected capital spend of some $15 billion. Abu Dhabi accounts for approximately 9% of the world's proven oil reserves. The Upper Zakum field is Abu Dhabi's largest current oil field covering approximately 1,200 square kilometres and is situated 80 km offshore. It is the second largest oil field in the Gulf and the fourth largest oil field in the world.

2.   ZADCO is a joint venture between Abu Dhabi National Oil Company (ADNOC) (60%), ExxonMobil (28%) and Japan Oil Development Company (JODCO) (12%) and manages the production from, and further development of, the Upper Zakum field. Upper Zakum is considered one of the most complex fields in the oil industry because of its high rock porosity and low pressure. Exxon Mobil joined the ZADCO consortium in March 2006 with the prime task of further developing the field in order to increase its daily output of 550,000 bpd to 750,000 bpd.

3.   In October 2009 it was announced that, instead of expanding production by constructing additional conventional offshore platforms on the field, four artificial islands would be built to enable the use of land-based drilling technology to enhance recovery rates. The islands, each of which measures approximately 1 km square, are made of rock and dredged sand. Handover to ZADCO of the first island took place earlier this year. The remaining three islands are in the process of construction and are expected to be handed over in six-monthly phased intervals.

4.   ESNAAD is a wholly-owned subsidiary of ADNOC and is the leading provider of oil and gas services in Abu Dhabi.   "Esnaad" is the Arabic word for "support".