Re Contract

RNS Number:2634P
Abbot Group PLC
02 September 2003


                                                                2 September 2003


              Abbot Awarded US $250 m Platform Drilling Contract by
                      SEIC, Offshore Sakhalin Island, Russia


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.


Abbot Group plc ("Abbot") announces that its international drilling subsidiary
KCA DEUTAG has been awarded a preliminary works agreement by Sakhalin Energy
Investment Company Ltd. ("SEIC") relating to the provision of platform drilling
services for the development of the Sakhalin II Phase 2 Development, offshore
Sakhalin Island, Far East Russia.


This agreement, which is effective from 1 June 2003, is expected to lead to the
award of a formal contract in the near future, with an estimated value of
approximately US$250 million.


The contract requires KCA DEUTAG to carry out platform drilling services for a
primary contract duration of 7 years, with immediate effect, on the Molikpaq
platform, together with the platform drilling services on the Lunskoye-A
("LUN-A") and Piltun B ("PA-B") platforms, scheduled for 2005 and 2006
respectively.


An additional scope of work requires KCA DEUTAG to provide engineering support
to SEIC's design contractor for the LUN-A and PA-B drilling facilities. The
focus of this support will be on the operability and maintainability of these
new drilling facilities, which include several major safety improvements
including the provision of mechanised drill floor handling arrangements and
advanced drilling control systems designed to protect personnel from potential
safety hazards.


Alasdair Locke, Executive Chairman of Abbot commented:


"Sakhalin Island is a key development area for KCA DEUTAG and we are extremely
pleased to continue our operations on the Molikpaq platform, and to expand this
scope to include the two new facilities LUN-A and PA-B. The seven year contract
term will allow us to invest in the training of our Russian personnel and
achieve a level of Russian involvement in excess of 70%."


"This contract complements our existing contract with Hyundai Heavy Industries
(HHI) for the Sakhalin-1 Project in the Russian Far East, announced in late
2002, and further confirms KCA DEUTAG as being a major international drilling
contractor for offshore field development projects."


Notes to Editors

In May 2003 SEIC announced its positive investment decision for the Lunskoye
development with a commitment of approximately US $10 billion to allow for the
development of the Phase 2 Project and represents the largest single foreign
investment in Russia to date.

SEIC is the Shell-led operating company for the Sakhalin II production-sharing
agreement (PSA). The shareholders in SEIC are: Shell Sakhalin Holdings B.V, 55%;
Mitsui Sakhalin Holdings B.V., 25% and Diamond Gas Sakhalin B.V., a Mitsubishi
company, 20%.


For further information:

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








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