Aker Kvaerner to Manage AH001 Platform for Hess

Aker Kvaerner Operations and Amerada Hess have reached an agreement that will extend the life of four North Sea fields.

Extending the current scope of its support role with Amerada Hess, Aker Kvaerner Operations is to become the 'Duty Holder' for the AH001 platform, assuming management responsibility for the installation's day-to-day operations. The contract will run until the end of the platform's working life.

AH001 is located on the Amerada Hess operated Ivanhoe/Rob Roy fields, 110 miles north-east of Aberdeen. The installation also processes and exports oil from the Renee and Rubie fields, operated by Talisman. Aker Kvaerner Operations has been providing complete onshore support for the platform since October 2003, but the new deal will entail much greater involvement. Aker Kvaerner Operations specializes in managing the production operations, while subcontracting maintenance and modification work. Offshore, Aker Kvaerner Operations will seek to retain key skills and knowledge of platform personnel currently employed by Amerada Hess. The extended arrangements and the targeted performance enhancements are regarded as being key to extending the AH001's working life beyond its previously anticipated shutdown date at the end of 2005. Aker Kvaerner Operations' Managing Director, Tore Nedregaard says the contract is a significant development for Aker Kvaerner Operations: "We concentrate on operations management and have developed an efficient business model that has proved to significantly cut overall costs of operating platforms.

"As North Sea fields reach maturity, the prospect of handing over operations responsibility to a company like us will be increasingly attractive. In this respect, we believe Amerada Hess is at the leading edge of what we think will be the industry norm in the future."

Amerada Hess and partner Talisman will retain ownership of the Ivanhoe and Rob Roy fields as well as the platform itself. George Hubbard, Operated Production Manager, Amerada Hess said: "The Ivanhoe-Rob Roy field development represents an outstanding success story for Amerada Hess and its partners. Originally estimated to contain recoverable reserves of 88 million barrels and last for 10 years, we have recently produced our 180 millionth barrel, and are approaching 15 years in production. We are therefore pleased that we can push the production phase out even further, building on the existing relationship with have with Aker Kvaerner Operations to maximize the value of the asset and the reserves recovered."

Aker Kvaerner Operations, one of the five Aker Kvaerner companies with UK headquarters in Aberdeen, was established in January 2003. The company opened its Aberdeen offices in August of that year, joining its sister companies, Aker Kvaerner Offshore Partner Ltd, KOP Ltd, Kvaerner Process Systems Ltd and Maritime Hydraulics.