Kvaerner Wins Contracts in Southeast Asia

Kvaerner has been awarded a significant contract by BP Exploration Operating Company Limited for Operation & Maintenance Support Services to the Nam Con Son Development in Vietnam. The total value of these services is estimated to be in the range of US $15-20 million. The Group also announced the extension of an existing O&M contract for Woodside Energy Limited, working on the Laminaria Northern Endeavour FPSO, situated on the NW Australian Shelf. The existing 3-year contract has been extended for a further 2 years, concluding in October 2004. The total value of the extension contract for Woodside is approximately US $20 million.

For BP in Vietnam, Kvaerner will provide services at both the offshore gas production platform and onshore facilities, which are located in Vung Tau, some 80 kilometers south east of Ho Chi Minh City. Kvaerner’s scope of work includes the provision of core team and ad-hoc personnel to carry out the initial set-up and continual management of the contract, campaign maintenance services, shutdown and major maintenance services, and modification services.

Graeme Shirreffs, KFM Operations Director said: “The Nam Con Son award is a major breakthrough in the development of our business in South East Asia – and it is a significant contract from one of the industry’s top blue-chip organizations. We see the market for KFM in Asia Pacific growing substantially over the next few years and we are now very well placed to build on our successes to date.”

The BP contract has been awarded to Kvaerner Facilities Management (KFM) which is Kvaerner’s unit for the Operation & Maintenance business in the Asia Pacific region. One of the key criteria in securing the contract was the ability to demonstrate an established track record in similar Operation & Maintenance contracts, combined with a strong regional capability. “Our previous experience in working with BP on projects such as the Harding Operation & Maintenance project and the BP/Petronas Acetyls project in Malaysia were important factors in helping us win this contract and this will ensure that our world-class safety culture is adopted by the project in Vietnam.” added Donald Kemp, Director of International Business for KFM. A further important factor in securing the project is Kvaerner’s partnership with Petroleum Technical Services Company (PTSC) of Vietnam. Kvaerner is developing comprehensive workshop facilities with PTSC at the Vung Tau offshore supply base area that will provide support for the Nam Con Son Project, as well as other future requirements. PTSC will also provide local personnel and other resources required for the project, such as training facilities and equipment.