Aker Kvaerner contract for completion of Snøhvit LNG project

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14 Apr 2005

Statoil and Aker Stord have signed a letter of intent for increased work scope including completion of the process barge for the Snøhvit project. The barge is due to arrive at Melkøya Island near Hammerfest in northern Norway at the end of July. The completion work is due to be finished by 15 August 2006, so that Statoil can start gas deliveries from Hammerfest LNG plant autumn 2006. The new contract is worth up to NOK 1 billion for Aker Kvaerner.
The extra work will be carried out by an organisation managed by Aker Stord, drawing on expertise from Aker Kvaerner Elektro for electrical/instrumentation work and the external partner Kaefer IKM for scaffolding, insulation, and surface treatment.

"Hook up and completion demands extensive experience and expertise from both project management and the operators doing the job," says Mr. Simen Lieungh, Executive Vice President of Field Development at Aker Kvaerner.

"This is one of Aker Kvaerner's key strategic areas, and also a capability we to an increasing extent successfully offer to the market in other geographic regions," says Lieungh.

Preparations for the completion work will start immediately. Aker Kvaerner and Statoil will cooperate in planning and preparing the work that has to be done after the process barge has arrived Melkøya. The process barge has been fabricated at Dragados yard in Cadiz, Spain. According to the plan the barge will be transported to the Melkøya island on a heavy-lift vessel this summer and towed into the dock there in July.

Aker Stord was awarded the main hook-up and installation contract on Melkøya in autumn 2003 and has been working at the plant for well over a year. At present, Aker Kvaerner has a workforce of 570 on Melkøya at any time. The expansion in the scope of work for Statoil means that Aker Kvaerner will have a large number of personnel (700-800) working at Melkøya through most of the first two quarters of 2006. A large part of the workforce will come from Aker Kvaerner's locations in Stavanger and Stord on the West coast of Norway and will be shuttled back and forth to shifts at Melkøya in northern Norway.

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