Aker Kvaerner with major award for US power plant

28 December 2006 - Aker Kvaerner has been awarded a limited notice to proceed by the Ohio Valley Electric Corporation (OVEC) for a new environmental control system at the Kyger Creek power plant. The facility is located in Cheshire, Ohio, and Aker Kvaerner’s portion of the project is approximately USD 105 million.

The Aker Kvaerner unit Aker Kvaerner Songer Inc. will be the major construction general contractor for retro-fitting a Flue Gas Desulfurization system installation which will reduce sulfur dioxide (SO2) emissions at the Kyger Creek facility. The plant is owned and operated by OVEC. American Electric Power (NYSE: AEP) is serving as overall project manager. The scope of work will consist of civil, mechanical and superstructures as well as associated outage work. The project duration is approximately 30 months.

Aker Kvaerner has performed two successful major power plant air pollution control projects within 100 miles of the new project in the last five years.

Martinus Brandal, Aker Kvaerner ASA’s President and CEO states “We are extremely pleased with the confidence that OVEC and American Electric Power have put in Aker Kvaerner. Health safety and the environment is a core value within Aker Kvaerner and this project allows us to participate in the client’s overall environmental program which supports Aker Kvaerner’s Just Care(TM) HSE program.”

OVEC was organized in October 1952 by 15 sponsoring utilities. Parent companies of the sponsoring utilities are Allegheny Energy, Inc. (NYSE: AYE); American Electric Power (NYSE: AEP); Buckeye Power, Inc.; Duke Energy Corp. (NYSE: DUK); DPL, Inc. (NYSE: DPL); E.ON AG; FirstEnergy Corp. (NYSE: FE); and Vectren Corp. (NYSE: VVC).

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 24 000 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 50 000 employees and NOK 80 billion revenues. Aker owns 50.01 percent of Aker Kvaerner, and the group is also a major European shipbuilder and a significant participant in the fisheries industry.

Oil, Gas, Process & Energy. The Oil, Gas, Process & Energy business area of Aker Kvaerner executes technology development, facility services and engineering and construction services for industries as diverse as Oil & Gas Onshore and Offshore Developments, Chemicals & Polymers, and Mining & Metals. We deliver a full spectrum of capital development projects and life-cycle services through a portfolio of global businesses. With an annual turnover of US $1.3 billion, The Oil, Gas, Process & Energy (OGPE) business area of Aker Kvaerner employs more than 5,975 people operating worldwide.

Aker Kvaerner Songer is the union construction arm of Aker Kvaerner, which provides a full range of construction, maintenance and renovation services to the industrial sector. Its services are characterised by the highest standards of safety, quality, teamwork, innovation and cooperation, thus enabling us to respond to the needs of our customers and deliver on-time and in-budget performance. Direct hire union construction, maintenance and renovation services are provided to the power, steel, chemical, petro-chemical, and other industrial sectors. In addition, Aker Kvaerner Songer provides construction management and project planning services to the above sectors on an international basis.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 36,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas).

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

Torbjørn Andersen

SVP Group Communications

Aker Kvaerner ASA

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