TRANSACTION DETAILS

6 March 2008

PSN (Production Services Network) announced the acquisition of Tartan Engineering Ltd. of Calgary, Alberta, strengthening its presence in the Western Canadian market and doubling PSN Canada's headcount.

Tartan Engineering is a private, Canadian-owned company specializing in engineering, procurement, construction and management in the energy and utilities industries. The 30 year old company boasts over 7,000 successful projects in Canada, with specific expertise in crude oil, natural gas, pipelines, power and water. PSN was formed when CEO Bob Keiller and his management team completed an award-winning $280 million (US$) management-buy-out from KBR, part of the Halliburton group, nearly two years ago. It is a major global service contractor to oil, gas and other process industries and is one of the top ten largest private Scottish companies with revenue over $1.2 billion (US$). PSN Canada has a well established engineering hub in St. John's, Newfoundland and Labrador, supporting existing customers in the Canadian Atlantic provinces.

Ali Green, PSN's Business Development Director, said: "This acquisition provides PSN with a solid platform for future growth in the Canadian market. Tartan Engineering's philosophy to employ the best, develop new technologies and provide their customers with innovative solutions, reflects PSN's core values of innovation, relationships, integrity and people. We are delighted to welcome 150 new employees to PSN's global network of 8500."

Bob Keiller, PSN CEO, said: "The size and scope of the Western Canadian market matches any that we've seen around the world. Western Canada represents a fantastic international source for growth in the oil and gas sector and establishing a presence in this market is critical to PSN's global strategy. This acquisition combines PSN's experience managing the world's largest, most complex oil and gas projects, with Tartan's specific expertise in Western Canada. We are very excited about the chapter ahead."

Dieter Kromm, Tartan Engineering's CEO, said: "Tartan Engineering is a company with a long, successful history of delivering projects for Canadian and international clients. We are thrilled to become part of a company that offers expertise in engineering, procurement and construction, in addition to commissioning, maintenance and decommissioning. This comprehensive approach is rare in Western Canada."

"We will enjoy the opportunity to grow in ways not previously possible and tackle larger, more complex, contracts. We will benefit from, and add to, the transfer of expertise around PSN's global network. Joining this network also offers Tartan employees great opportunities for technical and managerial career development. We are keen to be an integral part of the PSN growth story."