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Scheldepoort Secures Order for Conversion of Drill Rig

Maritime Activity Reports, Inc.

June 20, 2011

Scheldepoort Repair & Conversion Yard in Vlissingen has signed a contract for the conversion of jack up drill rig "GFS Labrador" into an accommodation rig. The project will commence when the rig arrives in Vlissingen at the end of June and will take approximately 4 months. Among other things the main scope of work is the removal of the complete drilling installation from the rig, such as the 80 meter drilling tower, the sliding piece, cement and mud tanks, all drilling equipment and redundant cabling and piping.

Scheldepoort will build a 400 tons new to be fitted accommodation block which is to be placed on the deck. The current accommodation facilities will be completely refurnished and new life saving equipment will be installed. The rig will be fitted with sponsons in order to comply with stability regulations. In addition a complete survey as well as a painting program will be executed. After delivery the accommodation rig will go into service in the coastal waters of Denmark.

Currently, Scheldepoort is in the final stage of the conversion of McDermott's "Agile" into a flexible pipe layer. The "Agile" will be delivered back to the owner in August after a six month conversion project. \V'ith this new order Scheldepoort further establishes her name in the offshore and conversion market in the North Sea area.

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