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ECO Wins $241.5M Navy Contract

Maritime Activity Reports, Inc.

January 26, 2005

Edison Chouest Offshore (ECO), Galliano, La., is being awarded a $26,616,165 firm fixed price contract with additional reimbursables for the time charter of one Offshore Petroleum Discharge System (OPDS). The OPDS system provides rapid, mobile transfer of fuel from offshore tankers to U.S. military fuel storage facilities ashore when conventional fuel transfer facilities are unavailable. Each OPDS system includes one new-build support vessel and one tender. The vessels covered under this contract are to be named in the future. This contract contains options, which if exercised, would bring the cumulative value of this contract to a total of $241,457,294. Work will be performed in the Guam/Saipan area, but are deployable worldwide, and is expected to be October 2006. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured with more than 50 proposals solicited and two offers received. The U.S. Navy's Military Sealift Command, Washington, D.C., is the contracting authority (N00033-05-C-3300).

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