Aker Kvaerner Secures North Sea Agreement with Shell

Aker Kvaerner has signed a five-year partnership agreement with Shell U.K. Limited and A/S Norske Shell covering the provision, installation, commissioning and life-of-field support of subsea control systems in the North Sea.

The framework agreement is signed for an initial five year period, with five optional one-year extensions. It could be worth between GBP 20 and 30 million over the first five years. The contract encapsulates the two companies' solid working relationship, which has been running since the late 1970s.

The deal brings Aker Kvaerner Subsea's controls delivery and service, including aftermarket services, into one contract arrangement to ensure maximum efficiency in supporting Shell's projects.

Remi Birkeland, senior vice president Controls, Aker Kvaerner Subsea, said: "The agreement means Shell will get a sustained, across-the-board service to meet their current operational requirements. Delivering such a broad scope of services needs a single focal point and this agreement avoids the inefficiences of one-off contracting.

"This is the latest agreement for Aker Kvaerner Subsea where a major operator can bring our services into play at any time, with short notice, calling upon the specific resources in question.

"The agreement means we have in place a close, long-term relationship that reflects the commercial imperatives of our client. It guarantees high quality operational performance, and underpins our 'preferred partner' status in the market."

Delivery of the terms of the agreement will be managed from Aker Kvaerner Subsea's Aberdeen operations, where the global management of the controls systems organisation is located. The Aberdeen office supervises subsea controls operations in Australia (Perth), Brazil (Curitiba), Malaysia (Kuala Lumpur and Port Klang), Norway (Oslo) and the US (Houston).


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