Oceaneering Receives Letter of Intent for FPSO

Oceaneering Intl. has been granted a letter of intent from Angola Drilling Company (ADC) to charter the FPSO Ocean Producer for a period of seven years to produce the Canuku Area of Block 3 offshore Angola. ADC has a letter of intent from Sonangol Pesquisa and Producao to develop and produce the Canuku Area.

Under contract with Sonangol Pesquisa and Producao, Ocean Producer generated more than 12 million barrels of oil from the Kiabo Field in Block 4 over a period of seven years. The contract is expected to be completed in April, at which time Oceaneering will then move Ocean Producer to a shipyard for modification, life extension and repair as required for the new location.

Production from Canuku is scheduled to commence early in the third quarter of 2001.