Aker Solutions Bags North Sea Conoco Deal



Aker Solutions Bags North Sea Conoco Deal
Aker Solutions has secured a three-year contract extension to an existing framework agreement for work at North Sea fields operated by ConocoPhillips.

Aker Solutions announced Friday that it has secured a three-year contract extension to an existing framework agreement for work at North Sea fields operated by ConocoPhillips.

Under the deal, the company will continue as ConocoPhillips’ main supplier of maintenance and modifications work offshore Norway. Work will be managed and executed by Aker Solutions’ office in Stavanger and fabrication yard in Egersund and the agreement will also provide work for the company’s offshore employees.

The contract, which runs from January 2021 until the end of 2023, will be booked as order intake in the third quarter of 2020. Aker Solutions noted that the value of the new deal will be determined by future call-offs for maintenance and modifications work and stated that it could range between $33.2 million (NOK 300 million) and $77.5 million (NOK 700 million) per year. This range does not represent a minimum or maximum amount, however, and is subject to change, Aker Solutions outlined.

“We look forward to delivering new projects and services to one of the largest maintenance and modifications portfolios offshore Norway,” Kjetel Digre, the chief executive officer of Aker Solutions, said in a statement posted on the company’s website.

Back in July, Aker Solutions revealed that it had secured a five-year contract extension from ExxonMobil Canada Properties for the provision of engineering, procurement and construction services for the Hebron platform located offshore Newfoundland. In June, the company signed a two-year contract extension for maintenance and modifications for Aker BP's Ula, Skarv, Valhall and Tambar fields offshore Norway.

Aker Solutions a global provider of engineering, design, production systems and services to the oil and gas industry. The business employs 13,000 people in 20 countries around the world, according to its website.

On July 17, Aker Solutions revealed that it had entered into a merger plan with Kvaerner ASA. The name of the new company will be Aker Solutions ASA. Aker Solutions has called for an extraordinary general meeting to be held on September 25 where the approval of the merger is on the agenda.

To contact the author, email andreas.exarheas@rigzone.com



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