Aker Kvaerner Wins Dalia Subsea Contract

TotalFinaElf E&P Angola has awarded Aker Kvaerner an order to proceed for delivery of the subsea oil production system for the Dalia project in Block 17 offshore Angola. Worth in excess of NOK 2 billion (USD 300 million), the scope covers engineering, procurement and fabrication of all required subsea production equipment.

Aker Kvaerner's subsidiary Kvaerner Oilfield Products (KOP) is specializing in advanced subsea systems and will deliver 67 christmas trees and wellheads systems, nine manifolds, two work-over systems and all related connection systems.

The deliveries will be based on various call-offs, starting with a 42 trees base case and various options. The contract also includes assistance to the operator during installation, maintenance and life of field support. This scope is not included in the contract value given above.

The Dalia field is located in water depths of between 1,200 and 1,500 meters, 135 kilometers offshore Angola. Aker Kvaerner announced the pre-engineering contract for the project in September 2002. Installation of the first subsea equipment is scheduled for the end of 2004. The field is planned to come on stream during the second half of 2006.

The project will be managed from Kvaerner Oilfield Products offices in Oslo, Norway. Significant parts of the project will be handled in Luanda, in the offices of the AK&S joint venture between Aker Kvaerner and the Angolan engineering company Soapro. The manufacturing of the subsea christmas tree components will take place in KOPís factory in Houston, USA. The assembly of the trees will be carried out in Tranby near Oslo. Controls components manufacturing and assembly are to be carried out in KOP's plant in Aberdeen, UK. As part of the Angolan content, a service and maintenance base will be established in Angola. Furthermore, manufacturing of six manifolds and related seabed support systems will be carried out in the Lobito Sonamet yard, a joint venture between the Angolan national oil company Sonangol and the offshore service company Stolt Offshore. Training of Angolan employees is a vital element of the project. "Together with our other recent contracts, this award confirms again Aker Kvaerner's position as a leading supplier of advanced subsea systems. The Dalia contract represents Aker Kvaerner's break-through for deliveries in the very demanding market offshore Africa," said Raymond Carlsen, President of KOP.

"We are committed to the success of the project and the development of Angolan involvement based on transfer of technology. Our main aim now is to live up to the expectations of TotalFinaElf and Sonangol, both during the delivery phase and through the whole life of this field," he added.


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