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OFFSHORE PIPELINES, INC. AND HYUNDAI HEAVY INDUSTRIES ANNOUNCE JOINT VENTURE

 OFFSHORE PIPELINES, INC. AND HYUNDAI HEAVY INDUSTRIES
 ANNOUNCE JOINT VENTURE
 HOUSTON, Sept. 21 /PRNewswire/ -- Offshore Pipelines, Inc. ("OPI") (NYSE: OFP) today announced it has completed the formation of a joint venture company with Hyundai Heavy Industries Co., Ltd. ("Hyundai"). The joint venture, Offshore Hyundai International, Ltd. ("OHI"), will pursue marine construction projects in the Middle East, Southeast Asia and the Far East.
 The joint venture and OPI will immediately begin work on several awarded projects offshore India. These projects include the installation, by OHI of 32 pipelines and the installation of a 4,400 metric ton production deck. Concurrently with this work, under a separate subcontract, OPI will perform the installation of 14 pipelines and six platforms. While certain marine equipment will be immediately mobilized from the Gulf of Mexico, actual construction is scheduled to begin in December 1992, with most of the projects to be completed by May 1993.
 OPI and Hyundai have also executed an agreement for the sale by OPI to Hyundai of three vessels, the LB-289 pipelay vessel, the DLB-423 semi-submersible combination derrick and pipelay vessel and the launch barge OPI-319. Additionally, OPI and Hyundai have entered into a contract for the upgrade and modification of one of OPI's derrick vessels, the DB-Sarita, which will expand its derrick capability to 5,000 metric tons from its existing 2,000 ton derrick. The work on the DB-Sarita will be performed by Hyundai at its shipyard in Ulsan, Korea. OPI and Hyundai will charter these vessels under long-term agreements to the newly formed joint venture. The vessels will be renamed to reflect their basis of operation: the OHI-289, OHI-423, OHI-319 and the OHI- 5000.
 In addition to these construction vessels, the projects offshore India will also require the use of OPI's combination derrick and pipelay barge KP-1. All told, these projects will require the use of four major construction barges and numerous support vessels. With this work, OPI's total backlog for committed work stands at approximately $308 million, of which approximately $107 million is backlog of joint venture companies.
 Hyundai Heavy Industries Co., Ltd., founded in 1972 as a shipbuilder, is one of the principal companies in the Hyundai Business Group, the largest conglomerate in Korea. Hyundai has been very successful in the shipbuilding industry which has provided a natural opportunity for expansion into other heavy industrial fields. Utilizing its technology, experience, modern facilities and skilled manpower, Hyundai began its diversification in to offshore development projects in 1976 and has successfully completed 43 offshore projects including 20 turnkey contracts. Total numbers of structures delivered to clients worldwide are 237 jackets and 268 topside modules.
 Frank Wade, chairman and chief executive officer of OPI commented, "We view this joint venture as a significant alliance combining Hyundai's recognized capability in the fabrication and installation of offshore platforms with OPI's position as a leader in the installation of marine pipelines and offshore platforms. We are pleased to associate ourselves with a company of Hyundai's reputation, well deserved by the successful completion of major offshore projects worldwide. We see this partnership with Hyundai as a giant step in our strategy of increasing our worldwide presence in the growing international markets. Not only have we joined forces with a well known marine construction company which enhances our market position, we will also have one of the largest lift cranes in this industry, allowing us to compete for virtually any project worldwide."
 OPI operates one of the largest marine construction fleets in the world, capable of handling a full range of large-capacity and deep-water construction projects worldwide. The company is an industry leader in laying marine pipelines; installing, salvaging and refurbishing offshore platforms; and fabricating offshore platforms and their component parts.
 -0- 9/21/92
 /CONTACT: Victor M. Perez, senior vice president - capital markets of Offshore Pipelines, Inc., 713-952-1000/
 (OFP) CO: Offshore Pipelines, Inc.; Hyundai Heavy Industries Co. Ltd. ST: Texas IN: OIL SU: JVN


AH -- NY035 -- 1582 09/21/92 10:39 EDT
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Publication:PR Newswire
Date:Sep 21, 1992
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