Press release

Papendrecht, 3 May 2010

Royal Boskalis Westminster N.V. has been awarded a LoI (Letter of Intent) to install rock on the 1,220-kilometer "Nord Stream" gas pipelines running through the Baltic Sea, connecting Russia to Northern Germany. The contract value will amount to approximately € 100 million, with the share of Boskalis amounting approximately € 50 million.

Earlier, in January 2009 Boskalis already acquired the contract for seabed preparation prior to the installation of the two 48" gas pipelines. This subsequent contract requires Boskalis to install rock berms at critical sections of the installed pipelines after the pipeline is laid. This single contract will represent one of the largest pipeline rock protection contracts ever awarded. The rock - coarse gravel with a diameter of typically less than 10 cm - will be sourced from countries on the Baltic Sea coast. The rock material has to meet certain engineering and environmental criteria. Material has to be free from clay, silt, chalk, vegetation, or other deleterious substances. It will behave as any existing inert material on the seabed and will be re-colonised within a few years. In shallow waters, algae will soon populate exposed surfaces and in deeper water where oxygen and light are scarce, the surface of the rocks will be colonised by micro-organisms.

Boskalis Offshore worked closely with the main contractor Saipem in the preliminary project phase. The project will be executed in a 50/50 partnership and at least two, potentially three fall pipe vessels will be deployed, depending on the pipeline installation sequence chosen. The project is scheduled to start in 2011 and will be completed in 2012.

The energy-related offshore activities of Boskalis have shown strong growth over the last few years. Going forward, Boskalis sees numerous opportunities for further growth. The company also benefits from the strong safety record it has developed in these types of projects.

The Boskalis strategy is designed to benefit from the key macro-economic drivers that are fueling global demand in our selected markets: the growth in global trade, increasing energy consumption, expanding population pressures and the challenges of climate change. These offshore projects emphasize the need for infrastructure in order to accommodate the strong demand for energy resources.

Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. We provide creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world including the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. We offer a wide variety of marine services through SMIT and we have positions in strategic partnerships in the Middle East (Archirodon) and in offshore services (Lamnalco). The company holds important home market positions in and outside of Europe. Boskalis has a versatile fleet of over 1,000 units and operates in over 65 countries across six continents. Including its share in partnerships, Boskalis has approximately 14,000 employees. Boskalis celebrates its 100th anniversary in 2010.

For further information please contact:

Martijn L.D. Schuttevâer
Director of Investor Relations & Corporate Communications
Telephone:           +31 78 69 69 822 / +31 6 200 10 232
Telefax:                 +31 78 69 69 020               
E-mail:                   m.l.schuttevaer@boskalis.nl

This press release can also be found on our website www.boskalis.com

 

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