The contract was awarded by Statoil on behalf of Gassco AS, operator for the complex, and the Gassled partnership, which owns most of Norway's gas transport infrastructure.

The main elements of the job are excavation work, concrete work, in-ground installations, module foundations, and construction of various process buildings for the Kårstø Expansion Project (KEP 2005). Road construction and temporary work in connection with transportation of heavy equipment are other elements of the contract.

Construction starts in August this year and the work will continue until October 2004. About half of the workforce employed by Veidekke and its sub-contractors will be recruited locally. At peak production, a workforce of about 230 will be employed on the project.

The contract value is just over NOK 200 million.

"Veidekke is already represented at the Kårstø processing complex through a maintenance contract which runs until September 2006. We are therefore very pleased that we have been awarded this new contract, which is of great importance to the employment situation in the district," says Mr. Ove Nedrebø, District Manager of Veidekke's district office in Haugesund.

For further information, please contact:

Klaus Hansen, Director Special Projects,

Veidekke Entreprenør AS, mobile + 47 909 88 267

Ove Nedrebø, District Manager,

Veidekke Entreprenør AS, mobile + 47 957 02 906

Eldgrim Ødemotland, Section Manager,

Veidekke Entreprenør AS, mobile + 47 920 28 560