Trading Statement

RNS Number:5221T
Abbot Group PLC
22 December 2003

22 December 2003


                 Trading Update - Year Ending 31 December 2003

                           North Sea Contract Win


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") is issuing the following trading update for the year
ending 31 December 2003.

2003 has been a highly successful year for the Group, during which we announced
some $670 million of offshore contract wins. Whilst these will make a positive
contribution in 2004, the real effect of these contracts will be seen from 2005
and 2006, with visibility of revenues through to 2011 and beyond.  These
contracts reinforce our strategy for long term internationalisation through the
development of production related drilling business in the key target markets of
the Caspian, Russia, Middle East and North and West Africa.

The land drilling fleet is also credited with a range of contract awards, which
will maintain the utilisation of our land rig fleet at a highly satisfactory 85%
or better for 2004.  We see further opportunities in a number of areas,
particularly Russia, which could see an expansion of the fleet, whilst at the
same time maintaining utilisation at these levels.

This supports our key strategy of developing business internationally, and we
are focusing our resources on the core areas, building on the solid foundations
of 2003.

In Iran the upgrade of two National Iranian Drilling Company owned rigs had
caused some problems, which are now fully resolved, with both rigs now operating
satisfactorily for a western oil company client.  We are, however, making an
exceptional close-out provision against this project of #3.2 million. The
Iranian market provides potential growth for our drilling operations, utilising
Group-owned assets.

The engineering division continues to work on a strong portfolio of projects,
which will lead to further drilling contract opportunities in Azerbaijan,
Sakhalin, and West Africa. These, with various other current investment
opportunities for our drilling division, should produce further growth potential
during 2004.

Our international business is continuing to show excellent prospects, although
the North Sea is currently looking less certain for the year ahead. In line with
recent industry indications, we see that North Sea activity in 2004 will be
reduced, although there are good signs of a recovery in 2005, for which we will
be well placed.

The recent changes of ownership of a number of assets from major operators to
new-entrant independents has resulted in a greater than expected interruption in
activity. At the same time, the current fiscal regime in the North Sea is
inhibiting investment in existing fields.

However, we are pleased to announce the recent award of a contract to KCA Deutag
by Venture Production plc for their Kittiwake platform.  This field was recently
purchased from Shell Expro and we anticipate some early activity for our
offshore division.

Although we have been affected by the negative impact of the significant
devaluation of the US dollar, we remain confident that the successes won in
2003, and our ongoing business will, excluding the exceptional Iranian
provision, enable us broadly to meet market earnings expectations for the year.

Alasdair Locke, Executive Chairman, commented:

"At present, with the continuing uncertainty regarding activity levels in the
North Sea, and the ongoing adverse impact of exchange rates, we believe 2004
will pose some challenges. The advent of new projects already booked, however,
and the range of significant opportunities available to us, means that we are
confident we are on track to maintain our growth in 2005, and to achieve our
target to double our 2002 company performance by 2007."


For further information:

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


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