Aker Solutions — Regulatory Filings 2022

Dec 16, 2022

Aker Solutions Secures Multiple Contracts with Aker BP - Record High Order Intake

Aker Solutions Secures Multiple Contracts with Aker BP - Record High Order Intake

December 16, 2022 - Following Aker BP and its partners' submission of plan for

development and operation (PDO), Aker Solutions and alliance partners today sign

contracts for the field development projects Yggdrasil (formerly NOAKA), Valhall

PWP-Fenris and Skarv Satellites. For Aker Solutions, these projects will

combined represent close to NOK 50 billion of order intake in the fourth quarter

of 2022, which will be the company's highest ever quarterly order intake. For

the company, these contracts are expected to generate about 50,000 work-years

including ripple effects to subcontractors and others.

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Photo: Aker BP

"This record-high order intake will ensure high activity-levels and

predictability at all Aker Solutions' locations throughout Norway, as well as

many of our international locations involved in these projects for years to

come, in accordance with the authorities' temporary incentive program. It also

demonstrates that we are delivering on our strategy and growth targets, and

through these projects, we will have the opportunity to continue developing for

a more sustainable future, investing in personnel, digitalization, yard

facilities and project capabilities," said Kjetel Digre, chief executive officer

of Aker Solutions.

"These contracts combined is the largest value of contract awards in a single

quarter in Aker Solutions history. It demonstrates our solid track-record,

strong capabilities and our ability to deliver large and complex projects with

solid project execution. It is also a testimony to the success of our well

-proven alliance models. Through the alliance models, we ensure win-win

solutions and the best possible collaboration and resource-utilization in the

execution phase. In addition, there will be strong collaboration with deliveries

from other key sub-suppliers, including Worley Rosenberg in Stavanger, Leirvik

AS at Stord and AS Nymo in Arendal," said Digre.

These projects will be executed through Aker BP's successful alliance models;

the Fixed Facilities Alliance, the Modification Alliance and the Subsea

Alliance, where Aker Solutions work together with partners Aker BP, Subsea 7,

Siemens Energy and ABB Norway. A key element of the alliance model is to secure

a significant proportion of local deliveries in the projects. Creating activity

for the Norwegian supplier industry was also an important prerequisite for the

temporary stimulus program adopted by the Norwegian authorities. Today's award

is an unequivocal response to that expectation and will create very large ripple

effects throughout the Norwegian industry, both directly at yards and

engineering offices in several parts of Norway, but also at a multitude of

subcontractors, suppliers and service providers.

To safeguard project execution, as well as preparing for increased activity on

upcoming renewable projects, Aker Solutions will continue to invest in

employees, digitalization, yard facilities and project capabilities. The

majority of upcoming investments will be at the company's yards in Norway, to

upgrade the facilities and prepare for the future. At Aker Solutions' yard in

Verdal, the company will invest in a robotized and automated production line to

safeguard execution and schedules for these important projects through

significantly increased productivity and HSSE performance.

Aker Solutions will also continue to strengthen its digitalization efforts

through these projects. As a part of the Yggdrasil project execution, the

digital collaboration project between Aker BP, Aker Solutions, Cognite and Aize

will continue. This digitalization program is developing solutions for the

Yggdrasil-area to improve field developments and offshore operations, with the

aim to create the next generation field development model.

Yggdrasil, incl. Hugin A, Hugin B, Munin and Fulla (formerly NOAKA - North of

Alvheim, Krafla, Askja, Fulla)

Topsides and Jackets

· Scope: Engineering, Procurement, Construction (EPC) and offshore hook-up of

the 28,000 tons Hugin A PdQ production platform (formerly called NOA PdQ,

includes production, utility, wellbay and living quarters), and its 20,500 tons

steel jacket substructure. The work will be executed in the Fixed Facilities

Alliance consisting of Aker BP, Aker Solutions and Siemens Energy.

· EPC and offshore hook-up of the 2,100 tons Hugin B (formerly Frøy) normally

unmanned wellhead platform and its 4,700 tons jacket substructure.

· Timelines: Fabrication of the Hugin A jacket will start in the third quarter

of 2023 and fabrication of the Hugin A platform topside will start in the fourth

quarter of 2023. Delivery of the jacket is scheduled for 2025 and the topsides

in 2026.

· Fabrication of the Hugin B wellhead platform is planned to start in the

first half of 2024, with delivery of the jacket planned for 2025 and the

topsides in 2026.

· Fabrication: The Hugin A topside will be assembled at Aker Solutions' Stord

yard. The platform will be the largest topside ever assembled at the Stord yard.

In addition, there will be deliveries from Egersund, Verdal and Sandnessjøen, as

well as subcontractor Leirvik AS at Stord.

· The Hugin B wellhead platform and its jacked substructure will be fabricated

at Aker Solutions' yard in Verdal.

· Value: Aker Solutions will book an order intake of around NOK 22 billion

related to these contracts in the fourth quarter 2022, in the Renewables and

Field Development segment.

Subsea

· Scope: the complete subsea production system for the Yggdrasil field

development (formerly called NOAKA), including 40 standardized vertical subsea

trees, VectusT 6.0 based control system modules, topside control systems, nine

off six-slot templates and manifolds, wellheads and associated tie-in systems.

It will also include eight static umbilicals with a total length of about 90

kilometers. The work will be executed in the Subsea Alliance consisting of Aker

BP, Aker Solutions and Subsea 7.

· Fabrication: will mainly involve manufacturing in Norway and Brazil, with

deliveries also from UK and Malaysia, as well as subcontracting of steel

templates.

· Timeline: manufacturing is planned to start in the first half in 2023 with

final deliveries planned in 2028.

· Value: Aker Solutions will book an order intake of close to NOK 7 billion

related to this contract in the fourth quarter 2022, in the Subsea segment.

· The subsea scope to be delivered for the Yggdrasil (formerly NOAKA) and

Skarv field developments is likely to also lead to significant future subsea

lifecycle service work for the company.

Valhall PWP - Fenris (formerly King Lear)

Topsides and Jackets

· Scope: EPC and offshore hook-up of the 15,500 tons Valhall production- and

wellhead platform (PWP) including its 9,500 tons steel jacket substructure as

well as a 1,100 tons bridge.

· The work will be executed in the proven alliance model with Aker BP and ABB

Norway.

· EPC and offshore hook-up of the 2,600 tons Fenris unmanned wellhead platform

and its 2,900 tons steel jacket substructure.

· Timelines: Engineering to start in December 2022. Fabrication of the Valhall

PWP topside and its jacket are planned to start in the fourth quarter of 2023,

with the delivery of the jacket in 2025 and the topsides in 2026.

· Fabrication of the Fenris unmanned wellhead platform is planned to begin in

the second quarter of 2023, with delivery of the jacket in 2024 and topsides in

· Fabrication: The Valhall PWP platform will be assembled at Aker Solutions'

Stord yard, with fabrication deliveries from Sandnessjøen and subcontractors

Worley Rosenberg in Stavanger and AS Nymo in Arendal.

· The Fenris unmanned wellhead platform, its jackets substructure, and the

jacket substructure for Valhall PWP will be fabricated at Aker Solutions' Verdal

yard.

· Value: Aker Solutions will book an order intake of around NOK 15 billion

related to these contracts in the fourth quarter 2022, in the Renewables and

Field Development segment.

Subsea

· Scope: manufacturing and delivery of three umbilicals with a total length of

about 50 kilometers.

· Fabrication: the umbilicals will be fabricated at Aker Solutions'

manufacturing site in Moss, Norway.

· The work will be executed in the proven alliance model with Aker BP and

Subsea 7.

· Value: Aker Solutions will book an order intake of around NOK 500 million in

the fourth quarter 2022 related to this contract in the fourth quarter 2022, in

the Subsea segment.

Modification

· Scope: modification work of the existing Valhall field center to enable the

tie-in of the Valhall PWP- and Fenris platforms to the existing facilities such

as process, power and utilities. The work will be executed in the Modification

Alliance consisting of Aker Solutions and Aker BP.

· Timeline: Prefabrication work is planned to start up at Aker Solutions' yard

in Egersund starting in the fourth quarter of 2023. This will be followed by a

longer offshore phase including several Turnarounds in the coming years.

· Value: Aker Solutions estimates the contract value at around NOK 2 billion

and has already included this order intake in today's separately announced award

of the extended frame agreement from Aker BP in the Electrification, Maintenance

and Modifications (EMM) segment.

Skarv Satellite project

Subsea scope

· Scope: the complete subsea production system for the Skarv Satellites

project including 7 standardized vertical subsea trees, VectusT 6.0 based

control system modules, topside control systems, three off four slot template

and manifolds, one cluster manifold, wellheads and a large number of tie-in and

connection systems. It will also include one dynamic and five static umbilicals

with a total length of about 60 kilometers. The work will be executed in the

Subsea Alliance consisting of Aker BP, Aker Solutions and Subsea 7.

· Fabrication: will mainly involve manufacturing in Norway and Brazil, with

deliveries also from UK and Malaysia and subcontracting of steel templates in

Poland.

· Timeline: Final deliveries planned during the first half of 2025.

· Value: Aker Solutions will book an order intake of around NOK 3 billion in

the fourth quarter 2022 related to this contract, in the Subsea segment.

· The subsea scope to be delivered for the Yggdrasil (formerly NOAKA) and

Skarv field developments is likely to lead to significant future subsea

lifecycle service work for the company

Modification scope

· Scope: modification work of the existing Skarv FPSO to enable the tie-back

and integration of the Skarv Satellites project, to be connected to the existing

infrastructure. Aker Solutions has signed a letter of intent (LOI) with Aker BP

to initiate engineering and procurement related to long-lead items for this

topside modification scope, with the intention to convert to a full EPCI

contract to be awarded during 2023. The scope will be executed in the

Modification Alliance consisting of Aker Solutions and Aker BP.

· Timeline: The initial interim phase is planned from December 2022 until the

second quarter of 2023.

· Value: Aker Solutions estimate the contract value at around NOK 100 million

related to this interim phase and has already included this order intake in

today's separately announced award of the extended frame agreement from Aker BP

in the EMM segment. Further to this, Aker Solutions estimates that a contract

award of the full EPCI scope could be worth around NOK 2 billion, which could

potentially be awarded during mid-2023.

The contracts will be formally signed in a ceremony at Aker BP's head office

today, Friday December 16, 2022. As per normal, they are subject to regulatory

approvals by relevant Norwegian petroleum and energy authorities.

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 15,000

people in more than 20 countries.

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