One of the contracts has been awarded by Hydro as  part of the Ormen Lange gas plant construction project.  This contract has an approximate value of NOK 43 million. The scope of work includes engineering, procurement and construction of a complete glycol based process unit. This includes testing and assembly of components, structure and electrical and instruments work. This complete system will remove dissolved salts from the Monoethyleneglycol (MEG) used in the transport pipeline from the subsea wells to the onshore process facility. Kvaerner Process Systems in Norway will execute the project and delivery will take place during summer 2005.

The second contract has been awarded by ConocoPhillips for their Brodgar gas and condensate reservoir on the UK continental shelf.  The reservoir water has a high salt content and Kvaerner Process Systems has been contracted to deliver technology, engineering and key components for the dewatering and desalting system. The contract value is approximately NOK 50 million.

Project management, engineering and procurement will be carried out in Norway in co-operation between Kvaerner Process Systems and Aker Kvaerner Engineering and Technology. ConocoPhillips and their contractor AMEC in Aberdeen will manage the assembly and construction. Pre-engineering is well underway and will be followed by detailed engineering and procurement. Follow-up of equipment deliveries and assembly will last throughout 2005 and 2006.

Both of the new process units will use monoethyleneglycol (MEG), which is used as an anti freeze solution used when transporting gas in pipelines on the seafloor. The process, patented by Kvaerner Process Systems, was originally developed for Statoil's Aasgard field in the Norwegian Sea.

 

ENDS

 

 

MEG Technology
Monoethyleneglycol (MEG) is a product added to the gas flow at the well heads to avoid hydrates in the pipelines. The hydrates are crystals formed in high pressure and low temperature gas flows, which have not been treated/processed prior to transportation. The hydrates may form and clog the pipelines. Monoethyleneglycol added to water will prevent hydrate formation clogging of the pipelines.

At the reclamation unit, MEG will be separated from the gas and cleaned for water, residues of hydro carbons, different salts and particles. The pure monoethyleneglycol is returned to the well head in a separate pipeline for reuse in a closed loop system.

The MEG processing is vital to all gas plants with subsea transport of unprocessed gas. If the MEG injection stops, the gas production will be in jeopardy. This applies both to the onshore Ormen Lange gas plant and the offshore Britannia platform.

MEG is a costly medium and large volumes are in circulation. It is therefore important to have a high recovery rate and high quality MEG treatment plants. Kvaerner Process Systems has designed an excellent product/system. The delivery of a MEG module to Åsgard B and the ongoing Shah Deniz delivery are important references for the design of equivalent systems to Hydro and ConocoPhillips.

 

Media:
Torbjørn Andersen, SVP Group Communications, Aker Kvaerner. Tel: +47 67 51 30 36
Per Harald Kongelf, President Kvaerner Process Systems, Tel.: + 47 67 83 78 20

Investor relations:
Lasse Torkildsen, Vice President, Aker Kvaerner, Group Comms. 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.

 

The Products and Technologies business area in Aker Kvaerner unites the product supply companies in the group to a strong global supplier of products and services to the upstream oil and gas industry. Key deliverables include drilling equipment and systems, wellstream process technology, vessel mooring equipment and offshore loading/offloading systems. Global after-sale services are provided, and other key services include well intervention technology & services and marine contracting.

 

Kvaerner Process Systems is a supplier of selected process equipment for treatment of well stream, oil, gas, produced water and solids for the upstream oil and gas industry, offshore as well as onshore. The main product lines are mainly based on own proprietary/novel technology within, wellstream Separation, Heavy crude treatment, Gas Conditioning, MEG Reclamation and Regeneration, Sulphate removal, VOC recovery and Sand Management Systems. Kvaerner Process Systems employs around 500 people world wide and is covering all the main oil and gas producing regions.

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