(TSX: SCL.A, SCL.B)
TORONTO, May 4 /CNW/ - ShawCor Ltd. (TSX: SCL.A, SCL.B) today announced that Bredero Shaw, through its joint venture Bredero Shaw Revestimentos de Tubos Ltda., has received a contract with a value in excess of US$25 million from V&M do Brasil to undertake the anti-corrosion and flow assurance coating requirements for Shell's BC-10 deepwater offshore oil pipeline project. Coating will commence during the third quarter of 2007 at the company's facility located adjacent to the V&M do Brasil seamless pipe mill in Belo Horizonte, Brazil.
This pipeline project will consist of approximately 81 kms of 6, 8, 10 and 12 inch diameter pipe that will be coated with a Syntactic Polypropylene flow assurance insulation coating and 64 kms of 6 and 8 inch diameter pipe that will be coated with 3 Layer Polyethylene and Fusion Bonded Epoxy anticorrosion coatings. The pipelines will be located in the Campos Basin, approximately 120 km from the city of Vitoria and will be installed in water depths up to 2000 meters. When in full production, the FPSO that will be used in the project will be able to process up to 100,000 barrels of oil per day.
Bredero Shaw has played a major role in the provision of pipeline coatings for oil and gas projects around the world for over 75 years. The introduction of Syntactic Polypropylene coatings at the Bredero Shaw Revestimentos de Tubos Ltda. facility in Belo Horizonte is a key part of the company's overall strategy to serve the growing South American oil and gas market with leading pipe coating technologies. Bredero Shaw's success in securing the BC-10 project is the result of a cooperative effort between Bredero Shaw Revestimentos de Tubos Ltda. and V&M do Brasil to provide Shell with a comprehensive package solution that includes logistical benefits and optimized pipe production and coating.
ShawCor Ltd. is an energy services company specializing in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry. The company operates through six divisions with over sixty manufacturing and service facilities located around the world.
Bredero Shaw, ShawCor's largest division, is the global leader in pipe coating solutions. The division provides specialized coating systems and related services for corrosion protection, insulation and weight coating applications on land and marine pipelines including highly engineered corrosion and insulation systems for deepwater applications.
This new release contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate", and similar terminology are used to identify forward-looking information. This forward looking information is based on assumptions, estimates and analysis made in light of the company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. The risks and uncertainties include, among other things, changes in global economic activity and changes in energy supply and demand which impact on the level of drilling activity and pipeline construction; political, economic and other risks arising from international operations; compliance with environmental, trade and other laws; liability claims; fluctuations in foreign exchange rates and fluctuations in raw material prices, as well as other risks and uncertainties that are more fully described in the company's Annual Information Form, annual and quarterly reports and in other reports and filings made with securities regulatory authorities and available at www.sedar.com.