Friday, September 14, 2007

Norwegian offshore oil company to establish facility in Vung Tao Vietnam

Odim will set up Vung Tao facility

Vietnam

VIETNAM: Odim will establish a facility in Vung Tau, Vietnam, for assembly and testing of automated handling solutions, as a follow up of the detailed analyses of the group's capacity requirements. The investment is estimated to be about US$14.9 million.

The facility will supplement the group's existing plants and outsourcing network; thereby, allowing Odim to get seriously to grips with its next growth phase from 2009, the company says. Vung Tau is the 12th largest city in Vietnam, and the country's center of offshore oil and gas activities.

Odim previously has reported that more capacity is a necessary requirement for exploiting the substantial market potential offered by the high level of activity in existing segments, including seismic, offshore supply and subsea, as well as the aggressive commitment to the deepwater area.

''We've also reported that a solution to this question must be found during 2007.'' said Chief Executive Jogeir Romestrand. Alongside the efforts being devoted to a major capacity increase, Odim has been working actively for a long time to expand its outsourcing network in China and Singapore. Plans include boosting capacity in Singapore this autumn.

The deepwater market is expanding rapidly, and Odim expects that fewer large discoveries and petroleum exploration in ever deeper water will mean strong growth for deepwater installation activity from 2008-09.

ODIM establishes significant capacity in Asia

Company News - September 13, 2007

The board of ODIM in Norway has resolved to establish a facility in Vung Tau, Vietnam for assembly and testing of automated handling solutions, as a follow up of the detailed analyses of the group’s capacity requirements. The investment is estimated to be about NKr 85 million.

The investment decision is in line with ODIM’s existing strategy of technological leadership with automated handling solutions in those parts of the value chain which contribute most to value creation in the group. At the same time, this decision represents a good, long-term and flexible solution to ODIM’s capacity challenges, on competitive terms.

"An assembly and testing facility in Vung Tau, Vietnam will supplement the group’s existing plants and outsourcing network. It will allow ODIM to get seriously to grips with its next growth phase from 2009," said the company in a statement.

Vung Tau is the twelth largest city in Vietnam, and the country’s centre for offshore oil and gas activity.