ShawCor And Nord Stream AG Unable To Agree On Pricing And Other Terms For Nord Stream Pipeline Project


    TORONTO, Feb. 18 /CNW/ - ShawCor Ltd. (TSX: SCL.A, SCL.B) advises that
its Bredero Shaw division does not now expect to participate in the pipe
coating for the Nord Stream pipeline project. Nord Stream AG has announced
that it will enter into a letter of intent with EUPEC PipeCoatings S.A. by the
end of February for the supply of concrete weight coating and logistics
services for the Nord Stream pipeline. Bredero Shaw and Nord Stream were
unable to agree on project pricing and certain contractual terms for this
project. Bredero Shaw understands that the pricing at which the pipe coating
work will be awarded is below the level it requires to obtain a satisfactory
financial return and ensure timely and adequate execution, given the scope and
risks associated with meeting Nord Stream's requirement that the project be
executed through new greenfield facilities in Germany and Finland. Further
information regarding the Nord Stream announcement can be found on the Nord
Stream web site (

    ShawCor Ltd. is an energy services company specializing in products and
services for the pipeline and pipe services and the petrochemical and
industrial segments of the oil and gas industry. The company operates through
six divisions with over sixty manufacturing and service facilities located
around the world.

    Bredero Shaw, ShawCor's largest division, is the global leader in pipe
coating solutions. The division provides specialized coating systems and
related services for corrosion protection, insulation and weight coating
applications on land and marine pipelines including highly engineered
corrosion and insulation systems for deepwater applications.

    This new release contains forward-looking information within the meaning
of applicable securities laws. Words such as "may", "will", "should",
"anticipate", "plan", "expect", "believe", "predict", "estimate", and similar
terminology are used to identify forward-looking information. This forward
looking information is based on assumptions, estimates and analysis made in
light of the company's experience and its perception of trends, current
conditions and expected developments, as well as other factors that are
believed by the company to be reasonable and relevant in the circumstances.
Forward-looking information involves known and unknown risks, uncertainties
and other factors which may cause actual results, performance or achievements
to be materially different from those predicted, expressed or implied by the
forward-looking information. The risks and uncertainties include, among other
things, changes in global economic activity and changes in energy supply and
demand which impact on the level of drilling activity and pipeline
construction; political, economic and other risks arising from international
operations; compliance with environmental, trade and other laws; liability
claims; fluctuations in foreign exchange rates and fluctuations in raw
material prices, as well as other risks and uncertainties that are more fully
described in the company's Annual Information Form, annual and quarterly
reports and in other reports and filings made with securities regulatory
authorities and available at

For further information:

For further information: Gary S. Love, Vice President, Finance and CFO,
Telephone: (416) 744-5818, e-mail:, website:

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ShawCor Ltd.

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