September 3, 2003 - Oil and gas SmartWell^® intelligent completion specialist WellDynamics has been awarded a three year, multi-well contract for the provision of intelligent completions for the Sapphire deepwater subsea gas development, offshore northern Egypt .

The installation of SmartWell technology represents the first application of intelligent completion technology in a Mediterranean deepwater subsea development. The contract award to Aberdeen based WellDynamics has a value of up to US $5.5 million.

The contract was awarded by the Burullus Gas Company, field developer and operator of the Sapphire gas field in the West Delta Deep Marine concession. The Sapphire gas field is located 75 km north of the Nile Delta and southwest of the Simian/Sienna development. The subsea production wells will be connected to the Scarab/Saffron production facilities.

The Sapphire reservoir is composed of sheet sands that collectively are distributed over a large area. The intelligent completion systems will be installed primarily to delay and control water production from the individual sheet sands throughout the field life, and thereby improve the recovery efficiency of the gas. The intelligent completion systems will be integrated with the wells' sand exclusion measures.

Completion Department Manager for Burullus Gas Company, Morten Iversen said, " Completing the wells in more than one zone can significantly reduce the total number of development wells and thus the project life CAPEX. In addition, managing each well individually within the field constraints can optimize recovery and plateau extension over the life of the field. Also, cumulative water production over field life is significantly reduced using the Smart well technology which means water-handling requirements, and thus facilities CAPEX and OPEX, for the field can be significantly reduced.

Employing SmartWell technology as opposed to conventional commingled production with limited water handling capacity can increase recovery. If the water influx is more severe than expected with early water breakthrough, SmartWell technology will minimize the impact through downhole control of water production rather than choking back at the wellhead. As such it mitigates the risk of early water production, maximising recovery and plateau length given the actual well conditions."

WellDynamics Regional Manager for Europe and the Middle East , Leo Koot said, "The application of SmartWell completions in the Sapphire project represents an important progression of acceptance of the technology in the Middle East and north Africa, and builds on WellDynamics' successful installation and operation of a multi-zone Digital Hydraulics™ SmartWell completion in the Sultanate of Oman. Burullus Gas Company have demonstrated leadership in the application of intelligent well technology in this important subsea gas development."

Ends

Issued on behalf of WellDynamics by Weber Shandwick Worldwide. For further information please contact Bill Phillips on (01224 806600) or email: bphillips@webershandwick.com

Notes to Editors

Burullus Gas Company is a joint venture company between the Egyptian Natural Gas Holding Company EGAS, British Gas Egypt and Petronas.

WellDynamics is the world’s market leader in intelligent completion technology. Formed as a joint venture between Halliburton Energy Services and Shell Technology Ventures, WellDynamics uses advanced intelligent well technology to deliver the world’s premier solutions for surface controlled reservoir monitoring and management of complex wells.

As well as its operations in Houston and Aberdeen, WellDynamics has a manufacturing plant in Livingston Scotland, and sales teams and operations in Norway, Brazil, Italy, Dubai, Saudi Arabia, Malaysia, Brunei and Australia.

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