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Aker Solutions — Regulatory Filings 2018
Apr 5, 2018
3531_iss_2018-04-05_e01a9ff2-2e59-4b32-8f84-949f2c767775.html
Regulatory Filings
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Aker Solutions and Kvaerner Secure Letter of Intent for Johan Sverdrup Phase II Work
Aker Solutions and Kvaerner Secure Letter of Intent for Johan Sverdrup Phase II Work
April 5, 2018 - Aker Solutions and Kvaerner together secured a letter of intent
for modifications of the riser platform and field center of the Statoil-operated
Johan Sverdrup development, Norway's largest oil find in more than three
decades.
The contract value is NOK 3.4 billion and will be split equally between the two
companies, which formed a joint venture to carry out the work for the second
phase of the North Sea development. At peak, this is estimated to involve about
2,000 employees at both businesses and their sub-suppliers.
The work includes engineering, procurement, construction and installation of a
utility module for the platform that will help boost production from the field
to 660,000 barrels of oil equivalents a day, starting in 2022. It also entails
modifications of the field center and integration of a second processing
platform to the center.
"We've worked closely with Statoil since the earliest phases of the project to
significantly reduce costs and boost the efficiency of this landmark
development," said Aker Solutions Chief Executive Officer Luis Araujo. "Now we
are delighted to also team up with Kvaerner on the project's next phase."
The work will start this quarter and be completed in 2022, involving more than
450 Aker Solutions employees in Stavanger, Egersund and offshore Norway. The
5,000 metric-ton module will be built at Kvaerner's yard in Stord.
Aker Solutions earlier this year completed front-end engineering and design
(FEED) for phase two of the development, including for the module and work to
integrate this with the riser platform. The FEED work was secured last year as
part of a 10-year framework engineering agreement for Johan Sverdrup that was
awarded to Aker Solutions in 2013.
Kvaerner has been involved in the development since 2014, delivering the utility
and living quarter topsides, the three largest and most complex steel jacket
substructures as well as offshore hook-up of the riser platform together with
Aker Solutions.
Johan Sverdrup is estimated to hold 2.1 billion to 3.1 billion barrels of oil
equivalents. It's expected to produce up to 660,000 barrels of oil equivalents a
day when fully developed in 2022, equal to about a quarter of current domestic
output. Production is slated to start in late 2019 and is predicted to last for
about 50 years. Statoil is operator for the development, which spans three
licenses. Other partners include Lundin Norway, Petoro, Maersk Oil and Aker BP.
The order will be booked in the second quarter.
ENDS
Note to Media:
Statoil invites the press to attend the contract signing from 10:00 CEST today
at its offices in Fornebu, Norway. Please meet up in the reception at 9:40 the
latest. Aker Solutions Chief Executive Officer Luis Araujo and Executive Vice
President Knut Sandvik will participate with representatives from Statoil and
Kvaerner.
Media Contacts:
Bunny Nooryani, tel: +47 67 59 42 71, mob: +47 480 27 575, e-mail:
Stina Kildedal-Johannessen, tel: +47 55 22 28 00, mob: +47 934 12 301, e-mail:
Investor Contact:
Fredrik Berge, tel: +47 22 94 62 19, mob: +47 450 32 090, e-mail:
Aker Solutions is a global provider of products, systems and services to the oil
and gas industry. Its engineering, design and technology bring discoveries into
production and maximize recovery. The company employs approximately 14,000
people in about 20 countries. Go to http://akersolutions.com for more
information on our business, people and values.
This press release may include forward-looking information or statements and is
subject to our disclaimer, see http://akersolutions.com
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.