AGM Statement

RNS Number:0794L
Abbot Group PLC
14 May 2003


Chairman's AGM Statement

14 May 2003



Abbot Wins Major Contracts in Azerbaijan and Angola Valued at
US $345 Million


The Abbot Group is the largest offshore platform drilling contractor in the UK
sector of the North Sea, one of the largest international land drilling
operators outside North America, and a world leader in drilling rig design,
construction and operation.

At the Annual General Meeting of Abbot Group plc ("Abbot") held at 11:00 today,
the Executive Chairman, Alasdair Locke, commented:

"I am happy to report that the progress we made in 2002 has continued into the
current year. As reported below, we have been awarded three significant
contracts in two of our key development areas, making us market leader in the
Caspian region together with the award of an additional contract giving us
further penetration into the important West African offshore market.

On 27 March, we announced that KCA DEUTAG, our international drilling
subsidiary, had been awarded an interim arrangement by BP, effective from 1
January, which will lead to a formal 5 year contract to carry out platform
drilling services on the Central Azeri platform, offshore Azerbaijan. The
estimated value of the contract is US $75 million, and drilling operations are
scheduled to commence in mid 2004.

Today, I am delighted to announce that KCA DEUTAG has been awarded a further
interim arrangement, again by BP, which will to lead to contracts for platform
drilling services on the West Azeri and East Azeri platforms. The estimated
value of these contracts is US $150 million and the primary duration will be 5
years from commencement of drilling operations in 2005 and 2006 respectively.
KCA DEUTAG will commence the recruitment and training of the drilling crew
personnel during 2003.

The formal signing of these three contracts is expected to take place within the
next week.

Under a separate contract with BP, a KCA DEUTAG project team of approximately 60
engineers is currently completing the design of the West and East Azeri drilling
facilities.

With the award of these three contracts, which complements our existing Chirag 1
platform contract, KCA DEUTAG will become the largest independent drilling
contractor in the Caspian area, both offshore and onshore. The contracts also
confirm the benefits to Abbot of its long-term investment in Azerbaijan, which
began in 1996.

In addition, I am also delighted to announce that KCA DEUTAG has been awarded a
major contract by Cabinda Gulf Oil Company ("CABGOC"), a Chevron Texaco
subsidiary operating offshore Angola. This significant contract, valued at $120
million, is the first to be awarded to KCA DEUTAG in Angola. The contract
involves the engineering design, construction, commissioning and operation of a
high specification, new build platform rig for CABGOC's Benguela Belize field
development which is part of Chevron Texaco's deep water development offshore
Angola. The installation of the rig will be followed by a 5 year operation and
maintenance period. Drilling operations are expected to commence by the end of
2005.

Overall, the high level of confirmed utilisation of KCA DEUTAG's marketable rigs
and opportunities for further contract awards, when combined with our strong
balance sheet and our drive for greater operating efficiencies, confirms my
belief that we shall show a significant improvement in results for the current
year."


For further information:

Alasdair Locke                 Peter Willetts
Executive Chairman             Justin Griffiths
Abbot Group plc                Tavistock Communications Limited
Tel: [phone]             Tel: [phone]


Note to Editors:

KCA DEUTAG is one of the largest international drilling contractor outside of
the Americas operating on 38 platform rigs in the UK North Sea and Germany, and
owns or operates 38 land rigs in mainland Europe, Libya in North Africa, Oman,
U.A.E. and Iran in the Middle East, as well as in Pakistan, Thailand, Brunei,
Nigeria and Russia.

The company is focussed on long-term drilling contracts and has significant
forward visibility into 2004/2005, and these Azeri and Angolan contracts will
further enhance this portfolio with their forward visibility into 2007 and
beyond.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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