Aker Kvaerner upholds the already made claims on approximately NOK 650 million for compensation of extra work to BP under the contract, while BP is claiming approximately NOK 550 million as compensation for costs incurred as a result of the pile refusal and liquidated damages for the delay. Aker Kvaerner's assessment is that the dispute will have no financial effect on the accounts.

Aker Kvaerner has previously informed about the dispute in the annual reports for 2003 and 2004. Note 15 from the annual report for 2004, says:

"Valhall
A subsidiary entered into a contract with BP for the procurement and construction of the jacket for a water injection platform on the Valhall field in the North Sea. The installation was delayed due to pile refusal, and rectification work was necessary to complete the installation. The jacket was successfully installed in August 2003. BP has reserved the right to claim back the additional costs related to rectification work if it is determined that the pile refusal was caused by circumstances falling under the group's scope of liability. In addition, BP has reserved the right to claim penalty payments as a result of delayed delivery."

Although the parties have exchanged writs to the arbitration tribunal as the agreed next step in a formal process, the parties will continue the negotiations to find an amicable solution.

ENDS

 

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

Stein Inge Liasjø, Vice President Communications, Aker Kvaerner. Tel: +47 67 51 30 94, Mob: +47 464 02 353

Investor relations:
Lasse Torkildsen, Vice President IR, Aker Kvaerner. Tel: +47 67 51 30 39,
Mob: +47 911 37 194

 

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, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. The Aker Kvaerner group is organised into two principal business streams, namely Oil & Gas and E&C, each consisting 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. Aker Kvaerner has aggregated annual revenues of approximately NOK 35.6 billion and employs approximately 22,000 people in more than 30 countries.

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