Another Large Ormen Lange Contract to Aker Kvaerner

Ormen Lange, Norwegian Sea
(Click to Enlarge)
Hydro intends to give Aker Kvaerner the main installation contract for the new Ormen Lange onshore plant on the north west coast of Norway. A letter of intent was signed by Hydro and Aker Kvaerner today. The contract value is approximately NOK 4,3 billion.

The main installation contract is Aker Kvaerner's third large contract for the Ormen Lange project. The first contract with a contract value of NOK 1 billion was awarded in March 2003, and it comprised front-end and detailed engineering, procurement and construction management support. In July 2004 the second contract was awarded, comprising engineering, procurement and construction of the import and export area on the Ormen Lange onshore plant. The contract value was NOK 2 billion.

"Ormen Lange has become an extremely important project for Aker Kvaerner. On Ormen Lange we will build on the great competence and broad experience that we have gained through several decades in the oil and gas business," says Aker Kvaerner's Executive Vice President for Field Development Europe, Mr. Simen Lieungh.

"Aker Kvaerner has cooperated closely with Hydro on many large offshore projects. The three contracts connected to the production of the large Ormen Lange gas reservoir, give us an opportunity to develop this cooperation further," says Mr.Lieungh.

Aker Stord is Hydro's contract partner for the main installation contract. The sister company, Aker Kvaerner Elektro, will also play an inportant role. Aker Kvaerner Elektro will do all the electrical installation and automatisation work on the onshore plant, approximately 350 man-labour years. Aker Kvaerner Engineering and Technology is doing the engineering and procurement work.

Aker Kvaerner is going to install the process plant and connected utility systems which is the central part of the Ormen Lange onshore plant. The construction work in the central area of the plant will start on 1 December 2004, while subcontractors for steel and piping will commence the prefabrication next spring. The installation work will start in May 2005, and the plant will be mechanical complete within 1 February 2007.

For Aker Kvaerner, the new Ormen Lange contract means a work scope of 3,000 man-labour years. Top manning to execute this contract is expected to be 2,200 persons in 2006.

"The onshore oil and gas processing market is becoming increasingly important to us, and this contract confirms our strong position," says Aker Stord's Managing Director, Mr. Nils Arne Hatleskog. During the last 14 months, Aker Stord has won four large installation contracts for the Karsto, Snohvit and Ormen Lange onshore plants in Norway.

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