ABB Transfers Cable Projects to U.K.'s Global Marine Systems

---

Researched by Industrial Info Resources (Sugar Land, Texas)--ABB High Voltage AB, part of ABB Limited (NYSE:ABB) (Zurich, Switzerland), recently entered into a contract transfer agreement with Oceanteam ASA (OSL:OPU) (Bergen, Norway), whereby services provided by Oceanteam for three of ABB's offshore power cable installation projects have been terminated. ABB has awarded the three projects to Global Marine Systems (Essex, United Kingdom), which will now continue work on the BritNed, StatoilHydro Gjoa, and Nord E.ON 1 projects, all of which are scheduled for completion by the second quarter of 2010.

ABB reportedly chose Global Marine Systems and its partner Visser & Smit Hanab (Papendrecht, Netherlands) because of the company's expertise in the areas of submarine cable installations and offshore wind energy management, making them the ideal choice for the venture. The projects will be based on ABB's pioneering high-voltage direct current technology. ABB will supply cables for the venture.

BritNed is the first venture to link the power sources of the Netherlands and the U.K. The 1,000-megawatt (MW) project comprises a 260-kilometer cable running between Maasvlakte near Rotterdam in the Netherlands and the Isle of Grain in Kent, U.K. Upon completion, the $350 million project will connect upcoming power stations in the two regions.

The StatoilHydro Gjoa project is designed to connect the Gjoa platform, operated by StatoilHydro ASA (NYSE:STO) (Stavanger, Norway) in the North Sea, with a new power plant being built in Mongstad, located north of Bergen in Norway. The project is expected to reduce carbon dioxide emissions by 250,000 tons per year. This project is also a maiden effort to link an offshore floating oil platform with a power source from the mainland, making the StatoilHydro Gjoa rig the first of its kind to receive a direct power link.

The Nord E.ON 1 project will channel offshore wind energy generated at Borkum 2 to the German power grid in Diele, which lies about 75 kilometers inland. Borkum 2, located about 130 kilometers from the North Sea coast, is part of the large wind energy farms in the region. Power from the site will be transmitted to Diele via submarine cables.

Under the transfer agreement with Oceanteam, ABB and Global Marine Systems will continue to use the facilities of CLV Team Oman and CSV North Ocean 102 as spreads, including requisite equipment, personnel and support services until completion of the projects. Although the operational risk for Oceanteam will be reduced because of offloading of the projects, the company's resource utilization will also decline, thereby bringing down revenue.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.