24 May 2006
Engineering specialist to the oil and gas industry, Labtech Modular Engineering, part of the ABZ Group, has enhanced its engineering capability with the construction of the world's first automated hydrogen sulphide gas separation unit for the oil and gas industry.

The unit was built at the company's base in Altens, Aberdeen, for M-I SWACO and represents one of Labtech's largest ever projects to date. It will be deployed for Agip KCO on a man-made island in the Caspian Sea.

The unit is an industry first in that it allows for the safe removal of harmful hydrogen sulphide gas from the well test flowback fluids without having to flare it off, thereby creating environmental benefits as a result of the reduction in emissions.

The 120 sq metre package is made up of 10 modules, which will be used for the storage and processing of fluids and solids produced from test well activities. The primary function will be to separate the material into its constituents - hydrogen sulphide gas, oil, solids and water.

Design of the unit was done by M-I SWACO and the construction by Labtech and included the installation of all equipment, the design and installation of a ventilation system and the installation of safety equipment. The unit took nine months to build and all parts were fully assembled and tested in Aberdeen before dismantling and transportation to the Caspian.

Andy Bruce, managing director of ABZ Group, said: "The creation of such a complex package and on such a large scale, expertly handled by project manager Norman Porter and his team, is an indication of the enhanced level of engineering capability that we are able to deliver. We are already recognised as specialists in the design, manufacture, repair, refurbishment and hire of containerised and skid mounted equipment, but this unit really takes our capabilities onto a greater level.

"We anticipate that the impact of this unit on the global oil and gas industry and the environment will be profound. Labtech has enjoyed a long-standing relationship with M-I SWACO and we would look forward to the creation of more of these units in the future."

Dr. Reg Minton, Vice President of Business Development for M-I SWACO, said: "This H2S Treatment Unit reflects the growing complexity and sophistication of waste management and fluid treatment systems in use in the Oilfield. Labtech's professional project management and responsiveness to changing Customer specifications meant that the earliest possible delivery was achieved and field delivery met the project requirements. The unit has now been fully commissioned without incident and is ready for live fluid treatment."

-Ends-

Notes to Editors:
Labtech Modular Engineering, established in 1983 and acquired by ABZ Group in May 2005, is dedicated to excellence in modular engineering and specialises in the design, manufacture, repair, refurbishment and hire of containerised and skid mounted equipment. Labtech is acknowledged for producing high quality products that are well suited to operation in highly arduous and hazardous conditions and are approved by many of the major operators in the oil and gas industry as a supplier of choice. The company's modules are deployed in the world's major oil and gas regions - offshore and onshore - including the North Sea, Australia, Japan, the Former Soviet Union, the Middle East, Brazil and West Africa. The cabins are designed to suit a range of operations including engineering cabins, laboratories, logging units and MWD cabins. The welding habitats are effectively a module within a module and are used for the welding of coiled tubing offshore, in a safe, controlled environment, without the need of hot work permits. Labtech Modular Engineering employs 80 people in Blackness Road, Altens, Aberdeen, Scotland. Further information can be obtained from the company's website www.labtechgroup.co.uk

ABZ Group was formed in May 2005 with a commitment to creating a diverse group of companies focused on providing an extensive range of products and capabilities to service the oil and gas sector internationally. Formed by Bob Forbes and Andy Bruce, who between them have more than 40 years experience in the oil and gas sector, ABZ is funded by Aberdeen Asset Management Private Equity and Royal Bank of Scotland.

Based in Houston, TX, M-I SWACO, which is jointly owned 60% by Smith International, Inc. (NYSE, PSE:Sii) and 40% by Schlumberger Limited (NYSE:SLB), is a leading supplier of drilling, reservoir drill-in, completion and production fluids products/systems and solids control and waste management services and equipment to the world wide petroleum industry.

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© Press Release 2006