Aker Oilfield Services has been established to target the growing market for increased oil recovery services for subsea wells. The company will offer its customers subsea light well intervention services by means of both riserless and riser-based subsea well intervention systems.

Aker Oilfield Services will be a turnkey provider through having in-house access to the entire spectrum of hardware, software and personnel required to undertake subsea well intervention operations in water depths up to 2.500m. Aker Oilfield Services is also expected to introduce other value creating services based on technology being developed by Aker Kværner, hereunder light, medium and heavy well intervention techniques and light drilling technologies.

Additional services will be provided from Aker Oilfield Services' vessels in co-operation with DOF Subsea and includes cable / umbilical installation services, light subsea construction / maintenance and survey and inspection work.

The unfavorable development in the oil and gas reserves replacement ratio combined with the growing and ageing installed base of subsea wells result in a strong growth in the subsea well intervention market going forward. The Partners are strongly committed to supporting Aker Oilfield Services in order to become a global market leader in this segment.

In relation to this, Aker Oilfield Services has signed a contract with Aker Yards for building four high specification well intervention vessels for delivery in 2010 and 2011 as well as two options. The contract is subject to financing. In addition, Aker Oilfield Services has entered into various agreements with Aker Kværner covering subsea and well intervention equipment and personnel, and with DOF Subsea for vessel management and a conditional contract for charter of a vessel commencing 2009.

Aker Oilfield Services will have a total funding requirement of around USD 1 billion, financed with a combination of senior bank loan (approx 70 per cent), and new equity placed through a private placement (approx. 30 per cent).

The Initiators intend to subscribe for a substantial amount of the new shares offered in the private placement. The establishment and financing of Aker Oilfield Services is expected to be completed by mid March 2007.

ENDS

 

Media:
Torbjørn S. Andersen, SVP Group Communications, Aker Kvaerner. Tel: +47 67 51 30 36, Mob: +47 928 85 542

Investor relations:
Lasse Torkildsen, VP Investor Relations, Aker Kvaerner. Tel: +47 67 51 30 39

Career opportunities:
Visit http://www.akerkvaerner.com/Internet/CareerCentre

 

 

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 and Power Generation. The Aker Kvaerner group is organised in 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 50 billion and employs approximately 23 000 people in about 30 countries.

Aker Kvaerner is part of the Aker Group (www.akerasa.com), a leading multi-industry powerhouse with more than

55 000 employees and NOK 80 billion revenues. Aker owns 40.1 percent of Aker Kvaerner, and the group is also a major European shipbuilder and a significant participant in the fisheries industry.

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