In the letter of intent, Agip Kazakhstan North Caspian Operating Company N.V. and Aker Kvaerner confirm their intentions to complete final negotiations and sign a contract for the work later this autumn. The work on the project starts immediately under an interim agreement.

"This project is an important stepping stone in Aker Kvaerner's North Caspian Sea strategy in general and for the Kazakhstan offshore market in particular," said executive vice president Simen Lieungh in Aker Kvaerner. Extensive field development will go on in the Kashagan field for the next 10 to 15 years.

"The North Caspian Sea, is a very attractive area for Aker Kvaerner. We have clear intentions on growing our business in the Kazakhstan-based oil and gas industry and will position ourselves to compete for hook up, maintenance, modifications and operations in the Kazakhstan market. As part of this, we will work with local parties on the current projects and seek new partners for future opportunities in the region," Mr Lieungh added. He emphasises that this award demonstrates Aker Kvaerner's position as a competitive contractor in the oil and gas industry.

The letter of intent covers fabrication, outfitting and testing of seven barge modules, including three oil separation barges, two gas dehydration and glycol regeneration barges, one emergency power generation and utilities barge and one fire fighting/sea water barge. All of them will be 95 metres long, 16 metres broad and 5.5 metres high. After delivery, they will be installed on pre-installed piles and hooked up in waters 4 to 6 metres deep, as part of the first phase of the Kashagan development project.

The barge hulls will be fabricated at the Aker Tulcea and Braila Yards in Romania. Six of the hulls will be towed to Kvaerner Egersund for outfitting and testing, while one will be towed to Astrakhan Korabel Yard in Astrakhan, for completion. They will all be transported on the Volga and Don rivers to the Caspian Sea.

The partners in the Kashagan project include Eni (Agip, operator), ExxonMobil, Shell, Total, British Gas each with 16.67 per cent interest, and ConocoPhillips and Inpex, with 8.33 percent each.

The contract will be 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:
Lasse Torkildsen, VP Investor Relations, Aker Kværner 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 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 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