NORMAL WORK RESUMES AT CONSTRUCTION SITE

The Azerbaijan International Operating Company (AIOC) confirms that today representatives of the management of AUIOC, the State Oil Company of the Azerbaijan Republic (SOCAR) and McDermott Caspian Contractors, Inc. (MCCI), AIOC’s construction contractor for platform topsides at the Heydar Aliyev Baku Deep Water Jackets Factory ( BDJF) fabrication yard, had a follow up meeting to further review issues raised by MCCI employees on November 22.

It was agreed during the meeting that employees shall be offered: a bonus of one month’s salary payment for successful completion of West Azeri platform topsides, a 20% salary increase effective from December 2005, an increase of not less than 12% to be effected from January 1, 2006 as part of the annual salary review process.

In addition, a number of working groups will be set up to investigate and help the management of MCCI address the other issues raised by employees. The decision has been communicated to employee representatives and normal work will resume as of today’s night shift.