Shell extends Aker Kvaerner frame agreement for subsea technology

24 January 2006 - Shell UK Limited has extended its frame agreement with Aker Kvaerner Subsea by two years and expanded the scope to include Shell Norway. The value of the new contract is estimated to be approximately NOK 230 million. 24 Jan 06

The frame agreement is for the supply of subsea steel tube umbilicals and associated engineering personnel. The first project executed under the agreement will be the Howe Phase 2 project, which will use the same cross-section as the Merganser umbilicals. Under the existing agreement, signed in 2001, Aker Kvaerner has delivered umbilicals for six Shell projects in the British and Dutch sectors of the North Sea including Scoter, Pelican, Howe, Merganser, K15/K7 and K8.

“Frame agreements help promote an optimal way of working: alignment in the pursuit of HSE excellence; incorporation of lessons learned for efficient execution, resulting in shorter delivery times; and close dialogue on future needs, so we can allocate capacity for Shell,” says Raymond Carlsen, executive vice president Aker Kvaerner Subsea.

The steel tube umbilicals will be manufactured at Aker Kvaerner Subsea’s facility in Moss, Norway.

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.

Aker Kvaerner Subsea is a leading provider of a complete range of surface and subsea solutions for the oil and gas industry - from concept screening and design through manufacturing, fabrication and commissioning. Aker Kvaerner Subseas’ ability as a world-wide total system provider is backed by a wide portfolio of products which are maintained for the complete life of field. Aker Kvaerner Subseas’ capability is available for both new and existing fields either as individual activities or complete packages. Eureka Pump Systems, as part of Aker Kvaerner Subsea, has extensive project, engineering and production resources offering specialised pumping technology and products to the offshore, FPSO and subsea markets world wide. Eureka Pump Systems also serves the global subsea market with a complete range of Subsea Boosting products.

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

Renee Mead

Communications Manager

Aker Kvaerner Subsea

Contact via E-mail