Tom Ehret News

Internatioanl subsea inspection, repair and maintenance (IRM) group Harkand announced the appointment of John Reed as its new chief executive officer as it embarks on the next stage of its ambitious growth strategy. Reed, an industry veteran with more than 30 years’ experience in the offshore engineering and construction sector, will lead the development of the company as it drives forward with its target of growing turnover to $1 billion in the next five years. Due to take over the reins in October, he replaces Nicolas Mouté who steered the group’s formation since inception and through the merger of Iremis, Integrated Subsea Services (ISS) and Andrews Survey following investment by Oaktree Capital Management and the acquisition of Veolia Marine Services.

Group to Focus on Growing Global Underwater Inspection Repair and Maintenance Market. New Name in Subsea Unveiled at Subsea 2013. A new subsea oil and gas group, Harkand, chaired by oil and gas industry veteran Tom Ehret, is launching  with an ambition to grow to a turnover of $1 billion in the next five years. Following investment by Oaktree Capital Management in Iremis, Integrated Subsea Services (ISS) and their sister company Andrews Survey last year, the three names have merged to form one group focused on the fast-growing subsea inspection, repair and maintenance (IRM) market. Harkand aims to become a leading global name in subsea IRM focused on attaining the highest standards in health, safety, quality and environmental performance and delivering excellent execution of projects.

Stolt Offshore S.A. announced that Tom Ehret, Chief Executive Officer of Stolt Offshore S.A., has been appointed to the Company's Board of Directors. "Tom's appointment to the Board reflects our recognition of the good work he has done since he joined the company as CEO in March this year. The Blueprint for financial recovery prepared and implemented by Tom and his team places Stolt Offshore firmly on track for a return to profitability. "The period since March has been one of extraordinarily intense activity and change at Stolt Offshore. Throughout the company everyone's efforts have been focused on turning the business around and creating a real commercial future. Ehret takes up his position with immediate effect.

Stolt Offshore S.A. has signed Heads of Agreement with Oceaneering International Inc. for the sale of its ROV drill support business, consisting of a fleet of Remotely Operated Vehicles (ROV's) and their ancillaries, together with related contracts and employees. The transaction, which has a value of approximately $50 million before minority interests, is subject to due diligence. Tom Ehret, Chief Executive Officer of Stolt Offshore S.A., said, "This sale is part of our programme of disposals of non-core assets and businesses. It includes drill support ROV's and contracts in place in the North Sea, The Americas, and West Africa. Stolt Offshore will continue to be a major operator of ROV's in relation to our offshore construction business.

Stolt Offshore S.A. said that, further to the announcement on December 3, 2003, it had closed the sale of its ROV drill support business to Oceaneering International, Inc. for $48 million. This sale will realise approximately $43 million in cash to Stolt Offshore after minority interests and transaction costs. Tom Ehret, Chief Executive Officer of Stolt Offshore S.A., said, "The significance of the disposal of the ROV business goes beyond the cash resources it brings into the Group. Having re-designed and restructured Stolt Offshore in 2003, we have commenced re-orienting our asset base to fit our target markets and required operating cost profile."

Stolt Offshore S.A. announced that following suspension of the arbitration proceedings that it had previously initiated, an out of court settlement of all outstanding claims relating to the Duke Energy/AGT Hubline project in the USA had been reached. The cash related to this claim has now been received. Tom Ehret, Chief Executive Officer of Stolt Offshore, said, "The settlement of the Hubline claim, which is in line with provisions recorded at year end and the previously announced settlement of claims on the OGGS and Burullus projects, underscores our continued effort to resolve all disputes associated with the legacy contracts. Cash receipts in relation to outstanding claims in the last three months are now in excess of $100 million."

Stolt Offshore S.A. announced that its long running UK litigation with a competitor regarding a European patent covering technology related to the laying of flexible pipes, has been settled out of court. The settlement involves a cash payment by Stolt Offshore in respect of past patent infringements and the granting of a licence under the disputed patent covering the North Sea area. The settlement will not have a material impact on the Company's results for 2004. Tom Ehret, Chief Executive Officer of Stolt Offshore, said, "The satisfactory resolution of the this patent infringement action marks significant progress in our settlement of long outstanding disputes."

Stolt Offshore S.A. announced unaudited results for the second quarter and six months ended on May 31, 2004. "Stolt Offshore's turnaround is now well advanced. The Group now has the financial resources to compete effectively in its chosen markets thanks to a much improved balance between equity and debt. Furthermore, 45 project wins, with a total value of $1.2 billion in the first half of 2004 underlines that Stolt Offshore not only has made strong progress in winning profitable contracts but is transforming its earnings base and moving on from the period dominated by legacy projects. Looking ahead, the management team is focused on delivering sustainable profits.

Global Marine’s worldwide SCORE, or Summary of Current Offshore Rig Economics, for September 2000 increased 1.8 percent over the previous month. Global Marine Chairman, President and CEO Bob Rose said, “September marks the 13th consecutive month of improvement in the worldwide SCORE and the 15th consecutive month of improvement in the Gulf of Mexico SCORE. Global Marine’s SCORE compares the profitability of current mobile offshore drilling rig rates to the profitability of rates at the 1980-81 peak of the offshore drilling cycle, when speculative new rig construction was common. In the 1980-81 period, when Global Marine’s SCORE averaged 100 percent, new-contract dayrates equaled the sum of daily cash operating costs plus approximately $700 per day per million dollars invested.

Coflexip Stena Offshore has announced that the board of directors of Coflexip approved the upgrade of the CSO Constructor which will allow the group to offer its clients a heavy duty subsea construction vessel, capable of rigid or flexible pipelay in deepwater. This investment, to exceed $30 million, will significantly expand the capabilities of the CSO Constructor. The hull and the deck will be lengthened by 49 ft. and widened by 16 ft. to bring its pipeline payload to 3,000 metric tons. It will also be equipped with a 300 metric ton lift crane. After conversion, the vessel will be able to install rigid lines with the patented M-J Lay system, or flexible lines, stored in a carousel under deck, using the patented Vertical Laying System (VLS), down to 1,500 m (6,500 ft.) water depth.

Stolt Offshore S.A. announced that following a review of information which became available in recent project reporting and a subsequent major project review led by CEO Tom Ehret, it has identified substantially poorer than anticipated performance and cost overruns on three major EPIC contracts and several smaller projects. In addition, it is expected that activity levels will be slightly lower than previously anticipated. Stolt Offshore at this time expects its full year loss to be in the range of $100 million to $125 million, subject to further review at the time of completion of the previously announced Blueprint for financial recovery in July. A substantial portion of this loss will be taken in the second quarter.

Stolt Offshore S.A. ChevronTexaco's affiliate in Angola. platforms. award is a welcome addition to our business in Angola. EPIC project.

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