Aker Solutions — Regulatory Filings 2020

Dec 17, 2020

Aker Solutions Wins Contracts for Both Onshore Plant and Subsea System for Northern Lights CO2 Storage

Aker Solutions Wins Contracts for Both Onshore Plant and Subsea System for Northern Lights CO2 Storage

December 17, 2020 - Aker Solutions has been awarded a contract by Equinor for

delivering the new CO2 receiving facilities Northern Lights outside Bergen,

Norway. The company has also won a contract from Equinor to deliver the subsea

equipment for injecting captured CO2 into a reservoir for permanent storage. In

total, the new contracts have a value of about NOK 1.3 billion. Work will start

in January 2021 and the deliveries will be completed within the first part of

Northern Lights is part of the Norwegian government's Longship project for

establishing full scale CO2 capture, transport and storage facilities in line

with the country's international climate agreements. Aker Solutions has

previously been engaged as a subcontractor for the carbon capture and storage

(CCS) technology company Aker Carbon Capture in early phase work to plan a CO2

capture facility at Norcem's cement factory in Brevik, Norway.

The intention for the Longship project is that CO2 captured from the cement

manufacturing process in Brevik can be transported by ship to the new receiving

terminal in Øygarden outside Bergen. At the receiving terminal, CO2 is stored

intermittently before being injected into subsea geological structures via a

subsea pipeline. With the new contract for Equinor, Aker Solutions is involved

in both the carbon capture and the storage part of this value chain.

"We see that our customers, not the least among the oil and gas operators, are

increasingly taking steps to contribute to a significant reduction of climate

gas emissions. Aker Solutions' strategy is to be the supplier that will enable

both customers and the society to accelerate the transition to sustainable

energy production. This will include solutions for enabling oil and gas

production and other industrial processes such a cement manufacturing to operate

with minimum emissions, for example by use of carbon capture and storage. Our

goal is that low-carbon solutions and renewable business will count for 1/3 of

our revenues in 2025, and 2/3 in 2030. Hence, we are very pleased that Equinor

has awarded us these strategically important contracts," said Aker Solutions CEO

Kjetel Digre.

The NOK 1.05 billion contract for the onshore facility includes engineering,

procurement and construction (EPC). The engineering will be carried out by Aker

Solutions in Fornebu, Norway. The work at the site in Øygarden will involve

employees from several locations, primarily from Fornebu and Stord. The pre

-fabrication?for the?onshore facilities will be done at?Aker Solutions' yard?at

Stord?before site installation.?The scope for the onshore facility includes

facilities at the jetty for import of?CO2?from ships, storage tanks for

intermediate storage of CO2 and?process systems for gas conditioning and subsea

injection.

The EPC contract for the subsea equipment is awarded?as a call-off under the

framework agreement signed?with Equinor?in 2017. The value of this contract is

around NOK 250?million. The work will start?in January 2021?with installation

and completion in 2023. The scope includes delivery of one subsea tree, one

wellhead, one flow base, and control systems. The contract also includes options

for equipment for future wells. The work will be executed at several Aker

Solutions facilities both in Norway and globally.

Aker Solutions expects that around 250 employees will be involved in delivering

the onshore and subsea installations. Including ripple effects to subcontractors

and others, the new contracts will create work for approximately 1,000 people.

The contract for the onshore plant will be booked as order intake in the fourth

quarter of 2020 in the Renewables and Field Development segment. It is expected

to be formally signed on January 5, 2021.

The subsea equipment contract will be booked as order intake 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

subject to our disclaimer, see https://akersolutions.com

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

-12 of the Norwegian Securities Trading Act.