Aker Kvaerner to Supply Subsea Equipment for Vilje Project

Norsk Hydro has awarded Aker Kvaerner the contract for supply of subsea equipment for the Vilje subsea project at the Norwegian continental shelf which will be a tie-back to Marathon's Alvheim production vessel. The contract value is approximately US $20 million.

Aker Kvaerner's subsea company Kvaerner Oilfield Products (KOP), will deliver engineering, procurement and construction of two wellhead and subsea production tree systems, two production guide bases, protection structures, production control system, tie-in and connection systems and future expansion. Design, fabrication and testing will be carried out by KOP's project team located in Lysaker, Tranby and Egersund in Norway and in Aberdeen, UK, through 2005 and 2006 with delivery between December 2005 and April 2006.

The contract is based upon the frame agreement for subsea equipment between Norsk Hydro and KOP. The Vilje project will be run in parallel with the newly awarded Fram Ost development. Both of these developments are representing an expanding market of cost-effective tie-back solutions for marginal fields to existing or developing processing facilities and infrastructure in the North Sea. The synergies between the two projects will also result in technology improvements that will be used for this project as well as future prospects.

The Vilje field, PL036, is located in the North Sea and will be tied back to the Alvheim production facilities 19 km away. The selected concept for development of Vilje is a two satellite well daisy chained arrangement with approximately 50 m separation. Vilje is a small oil field with reserves of around 50 million barrels of oil and production start is planned for February 1, 2007.