Contract for Topsides and Hull Definition Engineering on Alvheim

NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION IN OR INTO THE UNITED STATES.


"The Alvheim project is one of the very few potential new North Sea field developments to be started in 2004 and thus an important project for the oilservice industry. It also marks the entry of Marathon as an operator on the Norwegian shelf. We are pleased to be working for them and are looking forward to learn from this new relation," says executive vice president Simen Lieungh in Aker Kvaerner.


Marathon is the Alvheim area operator, holding a 65 percent working interest. ConocoPhillips has a 20 percent working interest, and DNO holds the remaining 15 percent. The Alvheim field comprises the Kneler and Boa discoveries and the previously undeveloped Kameleon discovery.


The Odin multipurpose shuttle tanker will be modified to an FPSO once a plan for development and operation is approved. Marathon and its partners plan to submit an impact assessment to the Norwegian regulatory authorities for the Alvheim development in early March and a plan of development and operation by midyear. Approval of the plan of development and operation is anticipated by the third quarter, and first production is expected during 2006.


The Odin vessel was built in 2001. It was the last vessel in a series of four. Two of the previously delivered vessels have been modified to FPSOs by Aker Kvaerner operating respectively in UK North Sea (Pierce) and South China Sea (Lufeng). The Alvheim project and Aker Kvaerner will benefit from this experience as well as experience from other FPSOs delivered.


The FEED contract is signed by Aker Kværner Engineering & Technology AS, a company within the Aker Kvaerner group.


ENDS


For further information, please contact:
Media:
Geir Arne Drangeid, SVP Group Communications, Aker Kværner ASA Tel: +47 913 10 458
Investor relations:
Tore Langballe, VP Group Communications, Aker Kværner ASA, Tel: +47 67 51 31 06


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 spans a number of industries, including Oil & Gas production, Refining & Chemicals, Pharmaceuticals & Biotechnology, Mining & Metals, Power, Pulping and Shipbuilding. Aker Kvaerner has aggregated annual revenues of approximately USD 6 billion and employs around 28,000 employees in more than 30 countries. The Aker Kvaerner group consists of many separate legal entities, constituting their own separate identities. Aker Kvaerner is used as the common brand or trademark for most of these entities


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 Kvaerner Engineering & Technology AS
has about 800 employees and their main office is located at Lysaker near Oslo. The company has extensive experience and competence within development of technology and concepts, in addition to execution of larger projects. AKET has been involved in the development of most oil- and gas fields on the Norwegian Continental Shelf. The company has also played an active role in several terminal and onshore projects in Norway. AKET is presently involved in several international projects based on their competence and products, such as LNG terminals.


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


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