Aker Kvaerner Wins Subsea Contract for Independence Project

Anadarko Petroleum and Dominion Oil and Gas has awarded Aker Kvaerner the subsea umbilical and production control contract for their Independence Development. The contract has a value of approximately US $110 million. A key element of the contract is the supply of approximately 180 kilometers of steel tube umbilicals. This is the largest individual umbilical contract ever awarded.

The fields are located in up to 9,000 feet of water and are located in the Atwater Valley, Lloyd Ridge, and Desoto Canyon areas in the Gulf of Mexico. The new deepwater development will utilize several advanced technologies developed by Aker Kvaerner's subsea company, Kvaerner Oilfield Products (KOP). The new solutions increase safety and efficiency and offers lower power requirements.

The Independence subsea umbilical system makes a step change in deepwater steel tube umbilical technology, using KOP's carbon fiber rod enhanced steel tube umbilical design. It confirms KOP's position as the leading supplier of steel tube umbilicals worldwide. The umbilical system will be manufactured and delivered out of KOP's umbilical plant in Mobile, Alabama. Delivery is scheduled to end in 2006.

As part of the scope, KOP will deliver 12 control modules to be mounted on subsea Christmas trees, and two control modules for subsea manifolds. Included in the contract is also a lease agreement under which Kvaerner Oilfield Products provides an integrated control system for well intervention and workover.

Raymond Carlsen, Executive Vice President - Subsea, stated, "Independence is one of the largest and most challenging developments in the Gulf of Mexico. This award signifies Aker Kvaerner's continued leadership position in the market for advanced subsea solutions. It is also an important affirmation of our investment in our Mobile, Alabama umbilical plant and industrial complex."

The Independence Hub, Mississippi Canyon Block 920, is the host for an initial 16 subsea wells belonging to the Atwater Valley Producers consortium which includes Anadarko's Jubilee, Spiderman, Atlas, Vortex and Mondo NW fields, Dominion's San Jacinto field and Kerr-McGee Oil and Gas Corporation's Meganser field. Future expansion is expected.


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