Apache Northwest News

Oceaneering International, Inc. (OII) announced that the primary contract term for use of the Ocean Legend mobile offshore production system (MOPS) has been extended from three to five years effective May 17, 2002. The primary contract term will now terminate in May 2006. The Ocean Legend is working offshore Western Australia under a services agreement with Woodside Energy Ltd., on behalf of a joint venture comprising Woodside Energy Ltd., Apache Northwest Pty. Ltd., and Santos Limited.

Oceaneering International has been awarded a contract to provide a mobile offshore production unit (MOPU) for development of the Legendre North and South oil fields in WA-1-P on the Northwest Shelf of Western Australia. Participating companies in Legendre fields are Woodside Energy, Apache Northwest and Santos Limited, with Oceaneering converting its jackup Marine 7 to serve as the Legendre MOPU. The contract is a dayrate services agreement with a primary term of three years. With production predicted to commence by mid-2001, Oceaneering expects to accumulate incremental earnings of $.30 per share annually during this primary contract term. The company plans to fund the estimated capital cost of $80 million through cash flow from operations and its existing revolving credit facility.