Aker Solutions — Regulatory Filings 2021

Jul 6, 2021

Aker Solutions Awarded Subsea Gas Compression Contract

Aker Solutions Awarded Subsea Gas Compression Contract

July 6, 2021 - Aker Solutions has been awarded a major[1] contract from Chevron

Australia Pty Ltd to provide a subsea gas compression system for the Jansz-Io

field, offshore Western Australia. The company has booked around NOK 7 billion

as order intake in the second quarter of 2021 related to this contract.

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"Globally, this is the second subsea gas compression system delivered by Aker

Solutions and demonstrates our pioneering spirit to create value for our

customers. Our world-leading technology improves field recoverability while

offering carbon emission efficiencies compared to traditional compression

alternatives", said Kjetel Digre, chief executive officer of Aker Solutions.

The scope covers engineering, procurement and construction (EPC) of the all

-electric subsea gas compression system. It also includes interface

responsibility, and assistance during installation and commissioning. The subsea

gas compression system will include a complete compression station with three

compressor modules and two subsea pump modules, all-electric control systems and

actuators, structures including mud mats, high-voltage electrical power

distribution system, several spare modules and equipment and various associated

tooling.

"We are extremely pleased to be chosen for this major contract. This award

signifies a huge leap for our world-leading subsea gas compression technology.

Aker Solutions has been present in Western Australia for more than 20 years. We

look very much forward to working collaboratively with partners such as MAN

Energy Solutions on this major development. This award confirms our leading

position within subsea technology and system integration globally," said Digre.

The award follows completion of the front-end engineering and design

(FEED) (https://www.akersolutions.com/news/news-archive/2019/aker-solutions-wins

-feed-contract-for-subsea-compression-system-/) awarded in 2019. The work starts

immediately with delivery expected during 2025. The project will be managed from

Aker Solutions' headquarters in Fornebu, Norway. Client interface and

operational planning will be handled from Perth, Australia.

The Jansz-Io gas field was first discovered in April 2000 and is located around

200 kilometers offshore the north-western coast of Western Australia, at water

depths of approximately 1,400 meters. The Jansz-Io field is a part of the

Chevron-operated Gorgon project, one of the world's largest natural gas

developments.

Next Generation Compression Technology

The world's first subsea gas compression system was delivered by Aker Solutions

to Equinor's Åsgard field in Norway in 2015. The technology had been developed

through several years of strong in-house expertise and in close collaboration

with the customer and suppliers such as MAN Energy Solutions and ABB. The

technology has since been taken further, and the Jansz-Io Compression (J-IC)

project will have close to three times more compression power than the Åsgard

system at a comparable physical dimension and lower weights.

"Our world-leading subsea gas compression technology has demonstrated an

impressive system regularity of close to 100 percent, during its six years in

operation at Åsgard. This technology was a game-changer for the industry, by

significantly improving recovery rates, reducing costs and enhancing safety,

with a much smaller environmental footprint than the traditional alternative. We

have further improved the technology and are very excited to deliver the next

generation subsea gas compression system to Chevron. Continuous improvements

will be a focus to increase efficiency, optimize execution and maximize

potential," said Maria Peralta, executive vice president and head of Aker

Solutions' subsea business.

Reduced Carbon Footprint

Compared to the traditional alternative from a topside compression platform,

subsea gas compression is a low-carbon solution for the production of natural

gas. During the lifetime of a natural gas field, the pressure in the reservoir

will drop during production, and compression is the primary way to maintain the

production and enhance recovery. Compared to the alternative, subsea compression

represents a significant reduction in energy consumption and carbon emissions in

a lifecycle perspective. Placing the system close to the reservoir at the

seabed, with significantly higher pressure than at sea level, typically reduces

the energy consumption by about 20-60 percent per year.

The size and weight of the subsea system is significantly smaller than a

platform solution, which means a major reduction in steel and other materials.

It also reduces health and safety risk and eliminates the need for logistics and

transportation versus a normally manned platform. The system is all-electric,

which means no risk of hydraulic discharge to sea. This results in increased

cost-efficiency and lower carbon footprint versus a traditional topside platform

solution.

The Chevron-operated Gorgon Project is a joint venture between the Australian

subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25

percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and JERA (0.417

percent).

[1]Aker Solutions defines a major contract as being NOK 3.0 billion and above.

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 delivers integrated solutions, products and services to the

global energy industry. We enable low-carbon oil and gas production and develop

renewable solutions to meet future energy needs. By combining innovative digital

solutions and predictable project execution we accelerate the transition to

sustainable energy production. Aker Solutions employs approximately 14,000

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.