Aker Kvaerner Wins Ormen Lange Contract

Norsk Hydro has awarded Aker Kvaerner the first Ormen Lange gas terminal contract. The contract value is approximately NOK 2 billion. In 2006 top manning will be around 800 persons.

The EPC Contract covers engineering, procurement and construction activities for the gas reception and export area in Nyhamna on the North West coast of Norway. It also includes the slug catcher, the flare tower and emergency shut down valves for the Ormen Lange gas terminal.

Aker Stord has signed the contract on behalf of several Aker Kvaerner companies, including Aker Kvaerner Engineering and Technology, Aker Verdal and Aker Kvaerner Elektro. The engineering and procurement activities start immediately in Oslo, while the construction activities in the yards at Stord and in Verdal will start in May/June 2005.

Design and construction of onshore plants for the oil and gas industry is an important growth area for Aker Kvaerner. The group has won several similar contracts in the past few years. At present Aker Kvaerner is involved in two projects for Statoil: Upgrading and extension of the Karsto gas terminal near Stavanger in Southern Norway and installation/hook up on Statoil's first plant for liquid natural gas (LNG) at Melkoya near Hammerfest in Northern Norway.

As in several other projects Aker Kvaerner will cooperate with sub-contractors in Poland for delivery of steel sections and piping. Polish sub-contractors will start their fabrication for Ormen Lange in May 2005.

When the untreated well stream from Ormen Lange arrives at Nyhamna, it will be routed to a reception facility for liquid slugs, known as a "slug catcher". Liquid slugs in the pipeline from the gas field could otherwise damage the process plant. Aker Verdal is going to construct this slug catcher and install it at the Ormen Lange plant in Aukra.

Aker Stord will assemble the largest and most complicated pipe racks in its large, moveable assembly hall, and transport them to Aukra on a barge in January 2006 where the pipe racks will be installed. Mechanical installation work on Aukra starts in October 2005. The gas reception and export area of the Ormen Lange's Gas terminal shall be mechanical complete in February 2007.

Ormen Lange is the largest gas field under development on the Norwegian continental shelf. It is located 100 km off the northwest coast of Norway at a water depth of 850 to 1,100 meters.