Operations in China SINOPEC

SSCS

SSCS has been supplying Type 12 and Type 25 frond mats to major Chinese oil and gas operators since 2006, which continue to be installed to rectify scour and provide permanent scour-protection for such assets as subsea pipelines and offshore platforms.

SSCS supplied frond mats to the Sinopec-owned and operated Shengli Field in Bohai Bay, China, approximately five miles off the east coast of Shandong Province, for a number of scoured and exposed pipelines.

This ongoing scour-protection project started in 2006, and since then approximately 1,000 SSCS frond mats have been installed to protect 30 pipelines and platform riser spools.

The frond mats that have been installed have proven to provide the required protection for the pipelines and riser pipeline spools at the Shengli Field, and as a result SSCS continues to supply mats each year for continuing works at the Shengli Field and to meet additional protection requirements that arise.

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