Alto Mar Girassol News

Stolt Offshore reported that, following the TotalFinaElf announcement of first oil production from the Girassol field, that a major milestone had been reached on this unique field development on which Stolt Offshore has been working for four years. The operator of the field is TotalFinaElf with a 40 percent interest. Other partners are Esso Exploration Angola (Block 17) Limited (20 percent), BP (16.67 percent), Statoil (13.3 percent) and Norsk Hydro (10 percent). Girassol is being developed under a production sharing agreement with Sonangol, the national oil company of Angola. Stolt Offshore has been involved in two parts of the development.

Stolt Offshore S.A. accounting adjustments. The adjustments have a positive impact on the Company's net income of $1.4 million. $333.4 million. on net operating revenue of $627.5 million. overstatement of net income in the second quarter. The second adjustment relates to the elimination of a 1998 provision for a tax liability of $3.2 million. This tax liability was proved to be unnecessary following the receipt of an assessment letter from the relevant tax authority.