Rheinhold & Mahla Wins Hammerfest ISO Contract

On behalf of its partners in the Snøhvit license, Statoil has awarded Rheinhold & Mahla Industrier AS the contract for insulation, scaffolding, and surface treatment (ISO) in the operation phase of the onshore Hammerfest LNG plant. The estimated value of the contract is NOK 300 - 400 million, including options.

The ISO contract for the onshore Snøhvit gas plant at Melkøya near Hammerfest runs until Dec. 31, 2010, with three options for 2-year extensions.

Rune Skeie, project manager for Snøhvit Operations, welcomes R&M Industrier and looks forward to a long and good partnership. R&M will be a central player in the overall operations of the LNG plant.

”In the selection process Statoil emphasized, among other things, the fact that the contractor will set up business in Hammerfest,” Skeie said.

R&M will emphasize training and use of local labor under the contract, and has among other things signed a collaboration agreement with the local company Hammerfest Maritime Service (HMS).

Snøhvit is the first development in the Norwegian sector of the Barents Sea and the first LNG (liquefied natural gas) plan in Europe. Unprocessed well stream from the subsea installations on the field will be brought to Hammerfest LNG for processing and shipment when the plant comes onstream in 2007. Statoil is operator for the development and operation of Snøhvit.