Aker Solutions, Saipem Ace $2.6B in Contracts for Kashagan Devt

Kashagan Field
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Aker Solutions in partnership with Saipem has been awarded two significant contracts from Agip KCO for the hook-up work of the Phase I development of the Kashagan field in the Caspian Sea. The total contract value for Aker Solutions' portion of the two contracts is US $1.6 billion.

Additionally, Saipem has been awarded a new offshore contract in Kazakhstan, as part of the experimental program of the Kashagan field development, located in the northern part of the Caspian Sea, for the production of crude oil and associated gases by an artificial offshore facilities system denominated Block D and Block A. Saipem's portion of the contract is worth approximately US $1 billion.

One of Aker Solutions' contracts includes the offshore hook-up, commissioning assistance, onshore pre-fabrication, all logistic support and inshore hook-up work. The other contract includes engineering and job carding for prefabrication and installation and vessels preparation. The contracts will be split in separate work packages, as has been the case for the early work on this field development. Aker Solutions' work will be completed by the end of 2011 with further ongoing commissioning assistance in 2012.

Saipem's marine activities will be carried out using five barges converted into temporary living quarters and offices, as well as temporary barges, which Saipem refurbished and prepared according to the preliminary contract signed with Agip KCO in 2007. The activities will be completed by 2012.

"I am very pleased to announce that we have signed the hook-up contracts for the Kashagan field. It is a significant milestone for
Aker Solutions' international operations and demonstrates our strong foothold in the Caspian region. We have played a significant role in developing this field since 2004 and these hook-up contract awards demonstrate that we have succeeded in actively positioning ourselves for this target project in one of the world's richest regions of natural resources," said Simen Lieungh, president and CEO of Aker Solutions.

The awarded hook-up contracts are the follow-ups of the letter of intent and preliminary agreements signed between Agip KCO, Aker
Solutions and Saipem in March 2007 for the early work activities for the hook-up.

Contract party from Aker Solutions is Aker Solutions Contracting AS for the field hook-up contract, and Aker Engineering and Technology AS for the engineering and job carding contract.

The Kashagan field, 80 km southeast of Atyrau is the first large-scale offshore petroleum development in Kazakhstan. The Kashagan field extends over an area of approximately 75 km x 45 km and is named after a 19th century Kazakh poet from Mangistau. The Kashagan field is considered one of the most important oil field discoveries in the past 40 years.

About NCOC

The North Caspian Operating Company (NCOC BV) acts on behalf of seven co-venture consortium partners as the operator appraising and developing the hydrocarbon assets of eleven offshore blocks defined under the North Caspian Sea Production Sharing Agreement (PSA) of 1997.

Assets within the 5 600 square kilometer PSA area include the Kashagan field, 80 km south-east of Atyrau, the first large-scale offshore petroleum development in Kazakhstan which should reach a plateau of 1.5 million barrels per day. Other assets include the
Kalamkas, Aktote and Kairan fields.

NCOC is incorporated in the Netherlands with offices in Astana and Atyrau. All consortium members hold equity in accordance with their respective participating interests in the venture.

Approximate equity interests of the consortium partners are: KMG 16.81%, Eni 16.81%,, ExxonMobil 16.81%,, Shell 16.81%, Total 16.81%, ConocoPhillips 8.40%, INPEX 7.56%.

About Agip KCO

Agip KCO NV, a subsidiary of Eni SpA, performs operations under the North Caspian Sea Production Sharing Agreement dated as of 1997 under an agency agreement with North Caspian Operating Company B.V.

Agip KCO N.V. is responsible for the execution of Phase I (Experimental Program) of Kashagan offshore oil field development including achieving first commercial production, complying with the strictest international standards for safety and environmental

In addition, Agip KCO NV is responsible for the project execution for the onshore facilities of Phase II of the Kashagan development.

About Aker Solutions role in the Kashagan field development Aker Solutions has played a significant role in the Kashagan field development; both in the Experimental Program headed by Agip KCO and in the full field development phase headed by North Caspian Operating Company (NCOC).

In the Experimental Program Aker Solutions has constructed and fitted several modules and carried out hook-up work. In joint venture with WorleyParsons and CB&I, Aker Solutions has a front end engineering and design (FEED) contract for the Phase II full field development of the Kashagan field.


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