ABB and Statoil sign $23 million framework agreement

Three year agreement for modification and maintenance of telecommunications systems for all offshore installations on the Norwegian continental shelf.

Houston, Texas, July 2, 2010 – ABB announced today that it has signed a frame agreement worth up to $23 million to deliver and maintain telecommunications systems for all of Statoil’s offshore installations. The agreement runs for three years, with an option for an extra year, and covers all internal and external telecommunications systems for Statoil’s offshore operations on the Norwegian continental shelf. The agreement has an expected value of between $6 and $8 million per year.

ABB's oil, gas and petrochemical business unit is responsible for the agreement, which in addition to maintenance, also includes pilot studies, construction, testing, installation and commissioning of modifications to telecommunications systems on all of Statoil's offshore installations. ABB deliverables include data networks, telephony, radio (UHF and VHF), public address, meteorology and radar systems.

ABB’s center of excellence for telecommunications in Norway has worldwide responsibility for telecommunications within the oil, gas and petrochemicals industry, and will work closely with Statoil to deliver these critical systems under the frame agreement.

"We are of course delighted with this agreement, which shows that Statoil has confidence in our technology, competence and ability to deliver the solutions they need for a reliable telecommunications infrastructure,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “Our industry expertise in oil and gas, telecommunications project experience and track record of successful collaboration with Statoil were important factors in winning this contract.”

ABB has led development in telecommunications solutions which contribute to more effective, safe and profitable operations for customers in the oil and gas industry for over 25 years. ABB is responsible for a wide range of advanced, complete telecommunications systems supplied to offshore installations all over the world.

ABB’s Process Automation division delivers integrated automation solutions for control, plant optimization, and industry-specific application knowledge and services to help process industry customers worldwide meet their critical business needs in the areas of operational profitability, capital productivity, risk management and global responsibility. These industries include oil and gas, power, chemicals and pharmaceuticals, pulp and paper, metals, minerals, cement, marine and turbocharging.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,000 people.

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