Statoil selects Aker Kvaerner for Mongstad refinery upgrade

ZOETERMEER, 12 January 2006: Aker Kvaerner has signed a letter of intent with Statoil to provide the engineering, and assistance to Statoil on the procurement and construction management for the upgrade of the group’s Mongstad refinery, north of Bergen, Norway. The value of the engineering contract to Aker Kvaerner is approximately EUR 8.7 million initially. In addition, will come the value of the procurement and construction supervision as requested by Statoil during the construction phase. 12 Jan 06




Aker Kvaerner’s scope includes the basic and detailed engineering, together with procurement and construction supervision assistance - executed from its offices in the Netherlands. The Energy Integration project (EVM-RO) is strategically important for the refinery because of the substantial improvements to the energy efficiency of the Mongstad complex.

“Statoil is implementing the upgrade to strengthen the refinery’s position as an energy- and environmentally-efficient supplier of refined petroleum products, and to further develop a robust and long-term competitive position for Mongstad as an industrial area,” says Egil Sæl, vice president for business development in Statoil’s manufacturing business cluster.

“This is the fifth project across Statoil’s refineries and chemical plants to be awarded to Aker Kvaerner in the last five years,” says Wim van der Zande, president of Aker Kvaerner’s European Process business. “We are very pleased to be involved in this project. Our selection reflects the good working relationship we have established with Statoil and the strong track record we have accumulated in this market.”

Aker Kvaerner’s order for the engineering contract was booked in December 2005. The contract will be finalised during January 2006 and the project will commence 1st February 2006. An application to the Norwegian authorities for the project was filed by Statoil in 2005. Depending on the final permission and related conditions from the Norwegian authorities, Statoil will make the final decision whether to execute the full project in 2006. In such case the engineering scope is expected to be completed by April 2007 and the completion of the refinery upgrade is scheduled for late 2008.

The energy project also includes a new Combined Heat and Power plant and a new gas pipeline from the Kollsnes to Mongstad - both projects are being executed by third parties.

Investor relations: Lasse Torkildsen, Vice President, Group Communications, Aker Kvaerner. Tel: +47 67 51 30 39

Suppliers: For further information about sourcing and potential subcontracts for this project, please contact Statoil.

1. 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, Pharmaceuticals & Biotechnology, 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 35.6 billion and employs approximately 22,000 people in more than 30 countries.

Aker Kvaerner is part of the Aker Group (www.akerasa.com), a leading multi-industry powerhouse with more than 40 000 employees and NOK 60 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.

2. AK Process is a trading name of Aker Kvaerner Netherlands B.V., a wholly owned subsidiary of AKER KVAERNER ASA and the legal entity responsible for the execution of the work. AK Process serves the chemicals and polymers, refining and onshore oil & gas industries. It provides the full life cycle of a project from concept studies, through to design, engineering, project management, delivery of process technologies, procurement, construction and maintenance services. As a pure project execution/EPC specialist, AK Process can provide customers with strategic ’one-off’ services or full turnkey solutions under a single project management control. It works with its customers in the development of major technological innovations, having participated in the conceptualisation and implementation of ideas, which are the foundation for world-class production facilities.

3. Statoil is an integrated oil and gas company with 25,400 employees and activities in 31 countries.
Its total revenues in 2004 came to NOK 306.2 billion. The group is operator for 60 per cent of all Norwegian oil and gas production, and its international production is rising steeply. One of the world’s biggest sellers of crude oil, Statoil is also a major supplier of natural gas in the European market and has substantial industrial operations. The oil refinery at Mongstad near Bergen in western Norway is a modern, highly-upgraded facility with an annual capacity of 10 million tonnes. Ranked as the largest refinery in Norway, it is medium-sized in a European context.

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

Contact Information

Vanessa Mourant

Communications Manager

Aker Kvaerner

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