SCANROPE AWARDED NOK 65 MILLION CONTRACTS

Blom announced on 19th May the entry into an agreement to buy 100 per cent of the shares in Scanrope Holding AS for NOK 170 million. Scanrope’s two business areas are related to electricity and control cables for offshore installations and anchoring systems for ship and offshore installations.

Scanrope has been awarded two contracts for delivery of anchoring systems. One of the contracts is for a floating production ship in West Africa and the other one is for a floating production unit in the British sector of the North Sea. The two contracts together are worth NOK 65 million and delivery will mainly be in the second half of 2007. Scanrope is expecting an increase in the demand for the company’s various anchoring systems as a result of the increase in the pace of developing oil and gas production offshore.

Blom is pleased with the developments in Scanrope and realizes that in all likelihood the expected increase in contracts in the time ahead will materialize.