Offshore Logistics, Inc. Announces New Contract
LAFAYETTE, La. - Aug. 27, 2002 - Offshore Logistics, Inc. (NASDAQ: OLOG) announced today that its wholly owned subsidiary, AirLog International, Ltd., and its affiliate, Pan African Airlines (Nigeria), Ltd. (PAAN) have signed a five-year contract with the Nigerian National Petroleum Company/Chevron Nigeria Ltd (NNPC/CNL) Joint Venture) to provide helicopter services offshore Nigeria. The revenues for the five-year contract are estimated to be $100 million. The contract's primary term is five years.
The initial contract is for ten helicopters, which will include two (2) medium twin engine, IFR aircraft and eight (8) small single engine, VFR aircraft. These aircraft will be utilized to support facilities developed by Chevron and Texaco in Nigeria. The flight operations began July 1, 2002 under an interim arrangement. NNPC/CNL can add additional aircraft to this contract during the five-year term as their activities in Nigeria expand, as is expected.
George Small, Chief Executive Officer and President of OLOG, commented that, "This contract allows our group to further expand our operations in West Africa, which is an area that has been targeted by the international oil companies for significant growth over the next decade. We have had a long-standing relationship with Chevron in other areas of the world and we look forward to this new relationship with NNPC/CNL in Nigeria. We are also pleased about our affiliation with PAAN, which has more than 40 years of operating history in Nigeria."
Small continued, "This is the culmination of a three-year effort by our organization and exemplifies the commitment by our staff and management that makes OLOG the leader in our industry."
Offshore Logistics, Inc. is a major provider of helicopter transportation services to the oil and gas industry worldwide. Through its subsidiaries, affiliates and joint ventures, the Company provides transportation services in most oil and gas producing regions including the United States Gulf of Mexico and Alaska, the North Sea, Africa, Mexico, South America, Australia, Egypt and the Far East. The Company's Common Stock is traded on the NASDAQ National Market under the symbol OLOG.
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