Aker Kvaerner Wins Maintenance Work on BP's NCS Platforms

Aker Kvaerner Offshore Partner has signed a letter of intent with BP Norway for a framework contract for maintenance and modification work. It includes all BP-operated platforms on the Norwegian Continental Shelf. The non-exclusive contract will come into force from March 1, 2005 and run for two years. The contract has an option for three extensions, each for two years. Estimated yearly value for the contract is NOK 150-200 million.

The maintenance and modification contract with BP will contain studies, engineering, pre-fabrication, installation offshore, commissioning and documentation. The agreement includes the Valhall center (five platforms) plus the two flank platforms in the North and the South, the three Ula platforms, Hod and Tambar.

Aker Kvaerner Elektro will be an important collaborating partner for AKOP within the electro, automation and telecommunication disciplines.

Aker Kvaerner Offshore Partner has had the maintenance and modification responsibility for BP's Norwegian platforms since 1999, but for one year at a time. BP has now chosen to go for a two year EPCI contract with three options, each of two years. Aker Kvaerner Offshore Partner won the new framework contract in fierce competition, where health, environment and safety results, price and project execution models were considered. The extent of maintenance and modification work on BP's platforms has varied from year to year, but the manning requirement has for the last years been between 60 and 80 persons onshore and the same number offshore.

"We are very satisfied to have signed this Letter of Intent with BP Norway," says Mr. Tore Sjursen, President of Aker Kvaerner Offshore Partner.

"This confirms that we are competitive within our core businesses - and that we keep our substantial part of the maintenance and modification market. We have started an extensive improvement project in Aker Kvaerner Offshore Partner, which will contribute further to improve our competitiveness. Simultaneously we are developing our range of services, to be able to offer our customers new and better solutions," says Mr. Sjursen.