Aker Kvaerner Wins Contract for South Pars Phases 9 & 10

Aker Kvaerner has won the project management contract worth approximately US $25 million for South Pars phases 9 and 10. This represents a breakthrough for Aker Kvaerner's engineering and management services in Iran - the country that holds the world's second largest oil and gas reserves. It is also a significant recognition of Aker Kvaerner's project execution skills. The work starts immediately and will last for approximately 4 years.

Aker Kvaerner will assist the national operator Pars Oil and Gas Company (POGC) in managing the USD 1.8 billion total contract (EPC) for the development project comprising phases 9 and 10 of the South Pars gas field located offshore Iran in the Persian Gulf. Aker Kvaerner has partnered up with the Teheran based, private engineering company Hirbodan for the contract. Hirbodan has strong track record of management for several major projects. The assignment will employ approximately 10 persons from Aker Kvaerner and 40 persons from Hirbodan.

Aker Kvaerner has a history as a product and technology supplier in Iran, providing processing equipment, drilling equipment and well heads. The new project management contract represents the first field development engagement for Aker Kvaerner in Iran.

"This is a good project for Aker Kvaerner. Our track record on executing large projects and the teaming up with a competitive Iranian partner were important winning factors for the contract", says Aker Kvaerner's Executive Vice President Mr. Simen Lieungh.

Facts about South Pars 9 and 10:
National Iranian Oil Company (NIOC) is developing the giant South Pars Gas field development project in a number of phases. The operator, POGC, is a subsidiary of NIOC. Phases 9 and 10 will have an output of 2 billion cubic feet gas per day. The EPC will be executed by a consortium lead by GS E&C in Korea, which has teamed up with two Iranian contractors, the Iranian Offshore Engineering and Construction Company and the Oil Industries Engineering & Construction Company.

The project comprises the following:

Part I) Offshore Platforms
Two unmanned wellhead platforms equipped with minimum production facilities. In addition, two relief platforms, each bridge-connected to the associated wellhead platform.

Part II) Subsea Pipelines
Two 32 inch pipelines with a capacity of 1 billion standard cubic feet per day. The pipelines will transport the unprocessed offshore hydrocarbon production from each wellhead platform to the onshore gas treatment plant.

Part III) Onshore Facilities
One gas treatment plant in Assaluyeh with capacity for 2 billion standard cubic feet per day, with its processing units, utilities production and distribution, general facilities and necessary buildings. After treatment the gas will be sent to the domestic gas network, and extracted condensate will be stored in tanks for export.