ABB signs letter of intent with Phillips Petroleum

North Sea platform modifications worth about US$ 60 million per year

Zurich, Switzerland, May 8, 2002 – ABB, the global power and automation technology group, confirmed today it signed a letter of intent to enter into a long-term contract with Phillips Petroleum Company Norway for modification work and maintenance assistance on oil and gas platforms in the Ekofisk field in the North Sea.

The initial term of the contract is for four-and-a-half years, with options for three two-year extensions, for a potential life span of nearly eleven years. The contract’s value will fluctuate from year to year, but is worth an average of US$ 60 million annually. ABB expects to book the order in the next few months, pending completion of contractual documents.

“We see this letter of intent with Phillips as an acceptance of our strategy for modification and maintenance work in Norway, and confirmation of ABB’s position as a leading player in this market,”says Gorm Gundersen, ABB executive vice president and head of the Oil, Gas and Petrochemicals division.

When financially closed, ABB will have contracts on a total of 43 platforms and three onshore facilities in Norway, spread among three major customers: Norsk Hydro, Statoil and Phillips Petroleum. The Phillips contract covers project management, engineering, fabrication and start-up work, and will involve about 300 people onshore and 300 offshore. Work is expected to begin immediately.

Last week, ABB announced a US$ 330 million contract with Statoil of Norway for maintenance and modification work on six offshore oil and gas platforms and an onshore processing plant.

ABB (www.abb.com) is a global leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. ABB has 152,000 employees in more than 100 countries.

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