ShawCor Receives Letter of Intent for the Pipe Coating of the Ichthys Gas Export Pipeline


TORONTO - ShawCor Ltd. (TSX: SCL.A, SCL.B) today announced that its pipecoating division, Bredero Shaw, has received a letter of intent from Mitsui & Co., Ltd. to provide pipeline coatings and related products and services for the gas export pipeline on the Ichthys Gas Field Development Project. The letter of intent is conditional on a Final Investment Decision ("FID") by the Ichthys partners, Inpex Corporation and Total E&P, and the receipt of a purchase order and definitive production schedule detailing the start of production and the project duration. Based on current estimates, the Company's scope of work for the project is expected to exceed US$400 million.

The Ichthys gas export pipeline will transport production from the offshore central processing facility through a subsea pipeline to the onshore LNG facility to be located at Blaydin Point, Darwin, Northern Australia. The pipe coating will involve approximately 900 km of 42" pipe that will be protected with Asphalt Enamel coating, SureFlo(TM) internal coating and HeviCote® concrete weight coating. The Company will execute the work at Bredero Shaw's facilities in Kabil, Indonesia and Kuantan, Malaysia.

The Kabil and Kuantan facilities are technology-based, full service coating plants that were built specifically to process large, complex projects in the Asia Pacific region.

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 seven divisions with over seventy manufacturing and service facilities located around the world.

Bredero Shaw, ShawCor's largest division, is the global leader in pipe coating solutions and employs approximately 4,000 permanent and contract personnel located at offices and facilities in fifteen countries. 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.

Source: ShawCor Ltd.

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