Ramco Energy PLC 20 December 2005 Press Information 20th December 2005 RAMCO SELLS ITS OIL SERVICES DIVISION Ramco Energy plc (Ramco), the Aberdeen based independent exploration and production company, announces that it has concluded the sale of its Oil Services division for £14.1 million to a management buy-out team led by the Managing Director of that business, Stewart Cumming. The sale process for the division commenced earlier in the year and was led by Ernst & Young as part of a waiver agreement with Ramco's lenders. The management buy-out team supported by Edinburgh based Teasses Capital Limited, was the successful bidder in a competitive tender process. The proceeds of the sale after costs has enabled Ramco to repay the entire £12 million recourse loan it had secured against this business as a part of the finance package for the development of the Seven Heads Gas Field. A similar sales process for the disposal of Ramco's interest in the Seven Heads Gas Field continues and it is now expected that this transaction will not close until next year. Stephen Remp, Ramco's Executive Chairman said "We wish Stewart and his team every success in the future and thank all of the employees at Oil Services for their loyalty and hard work over the 28 years they have been a part of the Group. I am pleased that Stewart has agreed to remain on the Ramco board as a Non-Executive Director" Ramco Energy plc - Aberdeen Steven Bertram - Managing Director 01224 352200 College Hill - London Nick Elwes 020 7457 2020 Notes Ramco Oil Services which is headquartered at Badentoy Park in Aberdeen was founded in 1977. The company, has an annual turnover of £14 million, also has operations in Norway and Japan and a joint venture with Corus (BSR) in Hartlepool. Its customer base includes Shell Expro, BP, Chevron Texaco, Exxon Mobil, Tenaris, Itochu, Conoco Phillips and Statoil. Employing around 180 staff worldwide, the company operates in two business. Tubular Services This highly successful division of the business retains 80% of the North Sea market share for corrosion engineering and tubular maintenance. Its patented mobile pipe care units are located in Stavanger and Floro in Norway and Handa City, Japan. Ramco Oil Services is a partner in the world class "One Stop Shop" facility at Badentoy in alliance with Tuboscope Vetco and Hunting Oilfield Services. This comprises adjacent cleaning, coating, inspection, threading and storage facilities, which are unique to the North Sea. Ramco Oil Services manages Shell Expro's Offshore Tubular Services activities and, as lead contractor, is responsible for the handling, storage, cleaning, coating, inspection, repair and maintenance of all Shell's new and refurbished tubulars. Ramco Oil Services is also a partner in the joint venture company Badentoy Tubular Services in association with Hunting Oilfield Services (UK) and Sumitomo Corporation Europe plc. This company was created following the award of a five year, multi-million pound tubular management service deal by BP in 1999, which was recently extended until 2007. Pipeline Services BSR (British Steel Ramco) Pipeline Services (in which Ramco holds a 50% interest) has been operating from within Corus's pipe manufacturing mill in Hartlepool since 1988. BSR specialises in providing multi-layer pipe coatings, including polyethylene and polypropylene, as well as FBE (Fusion Bonded Epoxy Coatings), internal coatings and other pipeline services. This information is provided by RNS The company news service from the London Stock Exchange