Vetco Wins Kollsnes Contract from Statoil

Vetco Aibel to deliver the new Flash Gas and Condensate Treatment Plant (KFGC) at Kollsnes, Norway. The installation will ensure high level of regularity and capacity at the Kollsnes gas processing plant.

The contract has a value of about US $120 Million.

Statoil has, on behalf of operator Gassco, announced their intention to award Vetco Aibel the contract for installation and testing of a new Flash Gas Compression Train and a new Condensate Treatment Train at Kollsnes. Kollsnes is an onshore gas processing plant presently handling the gas from the Troll field for export via pipelines to Europe. According to Statoil, this investment will increase the regularity and processing capacity at Kollsnes for a future possible handling of gas from its fields Troll, Kvitebjorn and Visund.

Formal signing of the contract is planned to take place early in December.

We are pleased that Statoil has awarded us this contract, says R. Rasmus Sunde, president and CEO of Vetco Aibel. We have a long and good track record for doing complex installation and M&M work on the Kollsnes plant where we just have passed 9 years without any Lost Time Incident (LTI). The Letter of Intent is representing recognition of our experience and knowledge, and it is strengthening our position as a leading supplier to onshore plants.

The scope of work comprises engineering, procurement, fabrication, construction, Mechanical Completion and delivery of Life Cycle Information documentation.

The project organization will be mobilized at Billingstad, Norway in November, fabrication will take place at Vetco Aibel's yard in Haugesund whilst installation at Kollsnes will commence summer 2007 with local own employees from Oygarden and Bergen region in addition to Haugesund. The manning will on top be around 350 persons, with an average of 200.

Project completion is scheduled for second quarter 2008.

Vetco Aibel has previously executed familiarization studies for the KFGC project together with its subcontractors Costain Oil, Gas and Process Ltd and Norconsult AS, and will continue this cooperation on this EPC contract.