Venture Announces Sevan 300 Unit For Pilot Field

Venture Production plc ('Venture'), the Aberdeen based UK independent oil and gas production company today announces a further development in its strategic alliance with Sevan Marine ASA ('Sevan').

Venture has awarded Sevan a contract for the provision of a second floating production, storage and offloading unit to be deployed in its North Sea operations, thereby exercising an option previously agreed between the two companies. The hull and marine systems will be based on Sevan's patented Sevan 300 technology (formerly known as the SSP 300) and will be similar in design to the first unit already contracted to start work for Venture.

The first phase of the new contract covers detailed engineering for production facilities for the Pilot heavy oil field in Block 21/27a. At Venture's discretion, to be exercised before December 31, 2007, this contract may then extend into a life of field contract with a duration of five or ten years. Extension of the contract will be dependent upon successful appraisal of the Pilot field in 2007 and UK Government approval of the Pilot Field Development Plan but the unit will not be confined to use exclusively on Pilot.

Venture plans to drill an appraisal well on the Pilot field during the first half of 2007 and current development planning for Pilot envisages project sanction during 2007 with first oil production in 2009.

The initial contract announced today also fixes the day rate for the new Sevan 300 unit and therefore secures the economic foundation for the development of Pilot. It further underlines Venture's commitment to long term relationships and innovative technology as the means to unlock the development of 'stranded' fields in the North Sea.

Commenting on the news, Mike Wagstaff, Chief Executive said:

"Our strategic alliance with Sevan, announced almost exactly a year ago, has enabled us to secure access to a second floating production unit system from Sevan, thereby making Pilot a very attractive potential development. Our first Sevan 300 unit, which was previously called the SSP but has been renamed the Sevan 'Hummingbird', is nearing completion of shipyard construction in China and is anticipated to be deployed on the Chestnut field next year. Further out, we already have plans for deployment of this unit elsewhere in Venture's portfolio once it has finished producing from the Chestnut field. What we are announcing today is access to a second Sevan unit to allow us to press ahead with developing Pilot and other potential fields."

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Notes to Editors

Venture has previously signed a contract for the floating production unit Sevan Hummingbird, which is currently in construction in China.
The Sevan Hummingbird is to be installed on the Chestnut field in the central North Sea in 2007 with options for redeployment on other assets once Chestnut has finished producing.
Venture has a 20% equity stake in the Sevan Hummingbird.