The contract, which is expected to be signed within a few weeks, is turnkey, comprising engineering, procurement, construction, installation and commissioning (EPCIC). Statoil's contract partner will be Aker Kvaerner Offshore Partner in Stavanger, which will also draw on Aker Kvaerner Elektro's electrical, instrumentation and telecommunications expertise. The assignment includes prefabrication of a number of piping and steel structures, which Aker Kvaerner Offshore Partner will have made in Stavanger.

"The fact that we got those parts of the wide-ranging Statfjord Late Life programme that we wanted most of all is a great stimulus for our whole company," says Tore Sjursen, president of Aker Kvaerner Offshore Partner, which is one of the leading players in the operation, maintenance and modification of installations in the Norwegian offshore sector.

"This assignment gives us the opportunity to further develop the extensive expertise we have built up in upgrading operational platforms on the Norwegian continental shelf, and which we increasingly see opportunities to export to customers abroad," he says.

Preparations for the project start immediately and offshore work in six months' time. The modification work will take place while the platforms continue normal operations, and safety standards have at the same time to be maintained. This means that much of the work has to be done in two to three hectic weeks in the summer of the coming years, during the annual maintenance turnaround.

Aker Kvaerner Offshore Partner will establish its project organisation at its Buøy offices in Stavanger. Manning will peak during the annual turnarounds, but at other times will involve around 500 personnel, including both the onshore and offshore contingents.

"Statoil Late Life is Statoil's largest and most complex offshore conversion ever," says the company's project director Bjarne Bakken. "Good cooperation with the contractors, where we work together for positive safety results, will be crucial for success."

At present the platforms handle oil with associated gas, but will be converted to handle gas with associated oil. This will increase the recovery rate on Statfjord to around 70 per cent for oil and 75 per cent for gas, and maintain production until around 2020.

ENDS

Media:

Torbjørn Andersen, Senior Vice President, Group Communications, Aker Kvaerner ASA. Tel: +47 67 51 30 36, mobile +47 928 85 542;

Alf Terje Myklebust, Communications Manager, Aker Kvaerner. Tel: +47 917 53 442.

Investor relations:

Lasse Torkildsen, Vice President, Investor Relations, Aker Kvaerner ASA. Tel +47 67 51 30 39.

AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. The Aker Kvaerner group is organised into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities. The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 35.6 billion and employs approximately 22,000 people in more than 30 countries.

Aker Kvaerner Offshore Partner AS is a turnkey contractor for the on- and offshore oil and gas industry. The company is engaged in front end studies, field development with new platforms and modifications to existing platforms, maintenance, modifications and operations contracts, field decommissioning and removal. Further information is available at internet www.akerkvaerner.com. Offshore Partner has 2200 employees; 1400 engineers and administrative personnel and 800 labour. Total revenue year 2003 was 3,5 billion NOK. The head office is located in Stavanger with regional offices in Bergen and Trondheim. Offshore Partner hold two subsidiary companies, Aker Møre Montasje and Aker Inspection & Consulting.

Aker Kvaerner Elektro is a complete EPC supplier of electrical, instrument and telecommunications (EIT) to customers in the oil and gas processing industry onshore and offshore. The company possesses wide experience and expertise in its field and have a staff of 1,600 dedicated professionals committed to delivering optimum solutions. Aker Kvaerner Elektro is geographically co-located with our customers, and our goal is to create trust and long-term relations through being reliable, competitive, deliver quality and meet our customers' expectations.

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com