Aker Solutions — M&A Activity 2020

Dec 11, 2020

Aker Solutions Awarded Subsea Contract for Kristin Sør

Aker Solutions Awarded Subsea Contract for Kristin Sør

December 11, 2020 - Aker Solutions has signed a letter of intent with Equinor

for the delivery of a subsea production system to the Kristin Sør oil and gas

satellite fields in the North Sea. The contract value is about NOK 1 billion,

with options for some additional work. The intention is to start work during

2021, and to complete the delivery in the first half of 2023.

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The Kristin Sør development consists of the fields Lavrans and Kristin Q, both

satellites to the existing Kristin platform. The planned scope will include a

subsea template with four of Aker Solutions' standardized vertical subsea trees

for the Lavrans Centre. The delivery will also comprise a manifold for the

Kristin Q field, to be installed in the Kristin Q template which Aker Solutions

delivered in 2007.

"With improved technical solutions and cost levels for subsea technology,

development of satellite fields is attractive for several oil companies. This is

also a responsible approach to utilizing marginal resources with a minimum of

new installations. We see that an increasing number of our subsea projects are

related to such satellite projects," said Kjetel Digre, chief executive officer

of Aker Solutions.

The standardized subsea tree developed by the company enables shorter time from

project start to first oil. The standardized tree is designed with VectusT

control systems and reduced use of steel. These improvements both contributes

approximately 50 percent reduced weight as well as reduced costs, simplified

installation and operations. The Kristin Sør concept solution is a result of

efficient collaboration with Equinor in the front-end phase in parallel with

research and development in the Tranby Technology Center.

"This award demonstrates that our standardized solutions are competitive and has

the flexibility to also be applied on fields with demanding temperature and

pressure conditions. We have over time cooperated closely with Equinor in the

development and optimization of such equipment, and we are pleased to continue

this close collaboration in the new Kristin Sør project," said Digre.

The new letter of intent is the latest step in Aker Solutions' engagement as a

key contractor since the greater Kristin area was first developed. The Kristin

Sør project will include deliveries from Aker Solutions in Tranby, Egersund and

Ågotnes in Norway, Curitiba in Brazil, Reading in the UK and Port Klang in

Malaysia. The manufacturing of the subsea trees will take place at the facility

in Curitiba. At peak, around 220 employees from the various locations will work

on the project.

The high-pressure, high-temperature Kristin gas-condensate field is located in

the Norwegian Sea, off the coast of mid-Norway. The development is done by

operator Equinor and partners Petoro, Vår Energi and Total. The contract award

for Kristin Sør is subject to a final investment decision and a final regulatory

approval.

The new order will be booked in the fourth quarter of 2020 in the Subsea

segment.

ENDS

Media Contact:

Torbjørn Andersen, mob: +47 928 85 542, email:

torbjorn.andersen@akersolutions.com

Investor Contact:

Fredrik Berge, mob: +47 450 32 090, email: fredrik.berge@akersolutions.com

Aker Solutions helps the world meet its energy needs. We engineer the products,

systems and services required to unlock energy. Our goal is to maximize recovery

and efficiency of oil and gas assets, while using our expertise to develop the

sustainable solutions of the future. Aker Solutions employs approximately 15,000

people in more than 20 countries.

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This press release may include forward-looking information or statements and is

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This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.