Bouygues Offshore S.A. awarded two contracts.

MONTIGNY-LE-BRETONNEUX, France--(BUSINESS WIRE)--Jan. 24, 1997--

-- Contracts to Upgrade FPSOs Broaden Range of Capabilities --

Bouygues Offshore S.A. (NYSE:BWG), a leading international oil and gas services contractor, announced today that it has been awarded two contracts which illustrate the company's growing presence in the Floating Production Storage and Offloading (FPSO) market:

Modification of the Balder FPSO

Bouygues Offshore's wholly owned subsidiary, UiE Scotland Limited, has just been selected by Esso Norge AS, a Norwegian subsidiary of Esso, to carry out the modification of the Balder FPSO. The Balder oil field, located in the North Sea west of Stavanger, Norway, is 125 meters deep with production capacity of 25,000 barrels per day.

The contract, which has a minimum value of 4.5 million pounds sterling (approximately $7 million) includes the following activities:

-- internal strengthening of the steel hull;

-- installation of additional risers on process units;

-- additional modifications to conform with Esso's standards.

The Balder FPSO will dry dock in March 1997 at UiE Scotland's Inchgreen dry dock, one of Europe's largest and best equipped for deepwater berthing. All modifications on the FPSO will be completed by the summer.

Upgrade of Zafiro FPSO's Process Units

Bouygues Offshore's 50% owned Saibos CML joint venture was awarded a contract from Oceaneering International, Inc. (NYSE:OII) to upgrade the process units of the Zafiro oil field's FPSO in Equitorial Guinea, operated by Mobil. The project is designed to increase the FPSO's production capacity.

Work on the project is slated to begin in January and is expected to last approximately three months. The contract has a minimum value of $8 million.

The project entails the connection of two new production and separation modules to the FPSO and their integration into Zafiro's existing facilities. Bouygues Offshore will use the BOS 355 Barge with the support of the company's Cameroon-based subsidiary, UIC.

Commenting on the two new contracts, Herve Le Bouc, Chief Executive Officer of Bouygues Offshore, stated, "The ability of FPSOs to operate in deep or rough water is increasing their importance in the exploration and production plans of major oil companies. The Balder and Zafiro projects demonstrate Bouygues Offshore's expertise in providing economical solutions for oil companies using this technology."

Bouygues Offshore is a leading international contractor serving the oil and gas industry for offshore-onshore turnkey projects. The company also provides maintenance services, principally to oil refineries, petrochemical facilities and offshore platforms, engages in high-end maritime and river-related civil works projects and designs and constructs liquefied natural gas import terminals as well as storage tanks.

CONTACT: Lynn Morgen/Jeff Majtyka

Press: Terry Rooney/Brian Maddox

Morgen-Walke Associates,Inc.

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