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Aker Kvaerner awarded MEG contract with Reliance


9 November 2006 - Aker Kvaerner has signed a contract with Reliance Industries Limited for the design and delivery of a monoethylenglycol (MEG) reclamation system for Reliance’s KG-D6 gas project. The total estimated contract value for Aker Kvaerner is approximately USD 25 million.

The scope to be performed by the Aker Kvaerner subsidiary, Aker Kvaerner Process Systems, includes engineering services, technical services, license agreement and supply of key equipment.

Large quantities of MEG are used to prevent hydrate formation in the gas pipelines during transport of gas from the offshore wellheads to the onshore facility at Kakinada in India. In this process, the MEG is polluted with water and salts from the gas reservoir, production chemicals and various particles.

The MEG technology developed by Aker Kvaerner will condition the MEG at the onshore facility by removing water, salts and other undesirable constituents, enabling continuous re-use of the MEG in a closed loop.

The gas production is dependent on MEG injection. The MEG system is therefore designed with a very high overall reliability. Aker Kvaerner has delivered several MEG reclamation systems to international clients in recent years, and is currently the worlds leading supplier of these systems.

“Technology gives us a competitive advantage. Reliance’s recent contract awards confirm the importance of maintaining our strategic focus on R&D (research & development),” says Martinus Brandal. “We will continue to use technology as a differentiator in several key areas.”

“The award of this contract confirms Aker Kvaerner’s strong position in Reliance’s KG-D6 project and that our MEG technology is well positioned in all areas of the international oil and gas market”, says Per Harald Kongelf, President of Aker Kvaerner Process Systems.

Engineering has commenced in Aker Kvaerner Process Systems office in Norway. Detailed engineering and fabrication management will soon be started up by Aker Kvaerner’s entity, Aker Kvaerner Powergas in India. The delivery is scheduled for third quarter 2008.


For further information, please contact:

Investor relations:
Lasse Torkildsen, VP Investor Relations, Aker Kvaerner, Tel: +47 67 51 30 39

For further information about sourcing and potential subcontracts for this project, please contact Bjørn E. Klepsvik, tel.: +47 22 94 51 63

Notes to Editors:

Injection of monoethylenglycol, MEG, to prevent hydrate formation has become the industry standard for unprocessed gas transport on the sea floor. Removal of water, salts and particles is crucial to the reliability of these systems. In addtion to water, oil and solids removal, one of the most important parts of the gas threatment is the removal of sulphur, connonly referred to as gas sweetening.

Aker Kvaerner has over 20 years experience in designing and manufacturing og gas processing plants for a broad cross-section of processess and clients, including both offshore and onshore gas sweetening and dehydration, including membranes, amine and glycol based systems. Aker Kvaerner Process Systems have developed a technology as a solution to the high salt content in the produced water on the Statoil Åsgard B field installed in 2000. A similar onshore plant has also been developed for BP for their Shah Denize project in Azerbaijan.

AKER KVÆRNER ASA, through its subsidiaries and affiliates (“Aker Kvaerner”), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals, Power Generation and Pulp & Paper. The Aker Kvaerner group is organised into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities.

The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 41.4 billion and employs approximately 23 000 people in more than 30 countries.

Aker Kvaerner is part of the Aker Group (, a leading multi-industry powerhouse with more than 50 000 employees and NOK 80 billion revenues. Aker owns 50.01 per cent of Aker Kvaerner, and the group is also a major European shipbuilder and a significant participant in the fisheries industry.

Aker Kvaerner Process Systems is a supplier of selected process equipment for treatment of well stream, oil, gas, produced water and solids for the upstream oil and gas industry. The main product lines are mainly based on own proprietary/novel technology within, Wellstream Separation, Heavy crude treatment, Gas Conditioning, MEG Reclamation and Regeneration, Sulphate removal, VOC recovery and Sand Management Systems.

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages


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