Aker Kvaerner Wins Contract from Hydro for Oseberg East

Hydro has signed a letter of intent with Aker Kvaerner for modification and upgrading of the Oseberg East platform in the North Sea. Aker Kvaerner will enable Oseberg East to start new drilling programs without assistance from a moored support drilling vessel. The platform upgrade is scheduled to be completed within November 2006. The contract was won in fierce competition, and its value is estimated to more than NOK 300 million.

Several Aker Kvaerner companies will cooperate on the contract. Aker Kvaerner Offshore Partner in Bergen will be responsible for engineering, procurement and prefabrication onshore, as well as offshore installation of approximately 850 tons of equipment on the platform. The installation includes a new mud module, a new 5.25 mega watt power package with transformer, and a local utility room. The scope of work also includes preparations on the Oseberg East platform before the new equipment can be installed. These preparations includes installation of 130 tons of mechanical equipment and various piping and steel reinforcements.

Maritime Hydraulics in Kristiansand will carry out the mud module engineering, while Aker Kvaerner's specialized module yard, Kvaerner Egersund, will fabricate and assemble the 730 tonnes module. Engineering and procurement activities will start immediately, while the fabrication of the module will start in June 2005. The mud module will be delivered on a barge ready for tow out in May 2006.

Aker Kvaerner Elektro will perform all the work within the electro, automation and telecommunication disciplines.

All the necessary tie-ins for the new equipment will be installed on the Oseberg East platform already during the planned revision shut-down next summer. This will enable Aker Kvaerner Offshore Partner to install the mud module and additional equipment without consequences for the production activities on the platform during the summer and autumn of 2006.