SHAWCOR LTD.
(TSX: SCL.A, SCL.B)
TORONTO, June 25 /CNW/ - ShawCor Ltd. (TSX: SCL.A, SCL.B) today announced its subsidiary, Bredero Shaw, has received a contract with a value in excess of US$35 million to provide pipeline coatings for Sabah Shell Petroleum Co. Ltd.'s (SSPC) Gumusut-Kakap Deepwater Project located in the South China Sea 120 km offshore Sabah. The contract has been awarded to Bredero Shaw (M) Sdn. Bhd. and the project will be executed at the Bredero Shaw facility in Kuantan, Malaysia.
The scope of the Gumusut-Kakap Deepwater Project requires 40 km of 18" pipe to be protected with Fusion Bonded Epoxy (FBE) and Bredero Shaw's ThermoFlo D insulation coating designed for water depths of 1,200 meters. Specialized processing equipment, designed by Bredero Shaw, will be mobilized and pre-qualification testing will be completed in December 2008. Upon completion of thorough simulated service testing, the ThermoFlo D insulation coating application will begin by the end of the first quarter of 2009.
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.
The news release contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify forward-looking information. This forward-looking information is based on assumptions, estimates, and analysis made in the 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 other reports and filings made with securities regulatory authorities and available at www.sedar.com.