Kvaerner Awarded Petrobras Contract

Kvaerner has been awarded two deepwater contracts from Petrobras in Brazil. The first contract is for the supply of twelve subsea Xmas Trees for operation in water depths of 2,000 meters. The second contract is for the development of a Workover System to be used for subsea installations in up to 3,000 meters of water. The total value of the two contracts amounts to US$13 million.

For the Xmas Trees, Kvaerner Oilfield Products’ scope in Brazil includes procurement, project management, fabrication, engineering and manufacture. Including a previous order for eleven Xmas Trees from the same customer, Kvaerner's Brazilian operation will be supplying Trees to Petrobras at the rate of one to two per month until mid 2003. The first Tree from the most recent order will be delivered in July 2002 and will be installed on the East Albacora Field in the Campos Basin.

Following the supply to Petrobras of the world's first subsea Xmas Tree designed for 3000 metre water depths, Kvaerner has been awarded a contract to develop a Workover System consisting of riser, terminal head, electro-hydraulic controls, umbilicals and service line. This system will be used for subsea installation and well intervention/workover and will cater for both existing and future Petrobras systems.

The project will be managed and partially engineered and manufactured in Brazil, with some work related to the electro-hydraulic controls being undertaken by Kvaerner Oilfield Products in the UK. This contract is for the first phase of a co-operation agreement between Kvaerner and Petrobras for front-end engineering and design. The second phase, the fabrication of a prototype, is planned to start in the third quarter of 2002.