The main installation contract is Aker Kvaerner's third large contract for the Ormen Lange project. The first contract with a contract value of NOK 1 billion was awarded in March 2003, and it comprised front-end and detailed engineering, procurement and construction management support. In July 2004 the second contract was awarded, comprising engineering, procurement and construction of the import and export area on the Ormen Lange onshore plant. The contract value was NOK 2 billion.

"Ormen Lange has become an extremely important project for Aker Kvaerner. On Ormen Lange we will build on the great competence and broad experience that we have gained through several decades in the oil and gas business," says Aker Kvaerner's Executive Vice President for Field Development Europe, Mr. Simen Lieungh.

"Aker Kvaerner has cooperated closely with Hydro on many large offshore projects. The three contracts connected to the production of the large Ormen Lange gas reservoir, give us an opportunity to develop this cooperation further," says Mr.Lieungh.

Aker Stord is Hydro's contract partner for the main installation contract. The sister company, Aker Kvaerner Elektro, will also play an inportant role. Aker Kvaerner Elektro will do all the electrical installation and automatisation work on the onshore plant, approximately 350 man-labour years. Aker Kvaerner Engineering and Technology is doing the engineering and procurement work.

Aker Kvaerner is going to install the process plant and connected utility systems which is the central part of the Ormen Lange onshore plant. The construction work in the central area of the plant will start on 1 December 2004, while subcontractors for steel and piping will commence the prefabrication next spring. The installation work will start in May 2005, and the plant will be mechanical complete within 1 February 2007.

For Aker Kvaerner, the new Ormen Lange contract means a work scope of 3,000 man-labour years. Top manning to execute this contract is expected to be 2,200 persons in 2006.

"The onshore oil and gas processing market is becoming increasingly important to us, and this contract confirms our strong position," says Aker Stord's Managing Director, Mr. Nils Arne Hatleskog. During the last 14 months, Aker Stord has won four large installation contracts for the Karsto, Snohvit and Ormen Lange onshore plants in Norway:

ENDS

 

 

Media:
Torbjorn Andersen, Senior Vice President, Group Communications. Tel: +1 281 250 7286

 

Investor relations:
Lasse Torkildsen, Vice President, Investor Relations, Tel: +47 67 51 30 39

 

Supplier contact:
Svein Folgero, Procurement Manager, Aker Stord. Tel: +47 53 41 82 30

 

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 span a number of industries, including Oil & Gas production, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. Aker Kvaerner has aggregated annual revenues of approximately USD 4.5 billion and employs around 21,000 employees in more than 30 countries.

The Aker Kvaerner group consists 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.

 

Field Development Europe is a multidisciplinary and technology based organisation covering all technical and management functions for carrying out development of oil and gas fields world-wide, from wellheads to receiving terminal.

 

Aker Stord is Aker Kvaerner's assembly yard for modules and topsides for fixed and floating oil and gas production platforms. Aker Stord is within Aker Kvaerner responsible for multi discipline and mechanical construction contracts for onshore oil and gas plants in Norway. Within decommissioning of offshore structures Aker Stord has a special responsibility for methods and execution of topsides demolition.

 

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 1,700 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