Aker and DOF to Build Oilfield Services Unit with Own Resources

Aker Innovation and DOF Subsea have decided to continue to build Aker Oilfield Services without other co-owners at this time.

Since the establishment of Aker Oilfield Services, announced Friday, 2 March 2007, Aker Innovation and DOF Subsea have met with potential outside investors in Norway, the UK, and the United States.

"Feedback from investors has been clearly favorable regarding our new company and its market outlook," said Per-Ola Baalerud, Managing Director of Aker Oilfield Services, "but investors are also clearly marked by recent stock-market turbulence in their decisions."

Mr. Baalerud now returns to Oslo to continue building Aker Oilfield Services. The company's expertise is helping oil companies increase oil recovery rates from subsea wells in existing fields. Current plans are to build a fleet of up to six advanced vessels equipped to take on specialized maintenance and intervention tasks at subsea wells at water depths of up to 2,500 meters.

Aker Oilfield Services has entered into an agreement with Aker Yards to build vessels, which will be operated by DOF Subsea. Aker Kværner will deliver advanced equipment and services to the new company. In a market with substantial, and growing demand for such subsea well services, the vessel newbuilding contracts with Aker Yards for delivery of quality ships in 2010 are valuable to Aker Oilfield Services.

The total capital requirements of Aker Oilfield Services approach US$1 billion. This funding will consist of approximately 30 percent equity. Aker Innovation and DOF Subsea are contributing the equity needed to build up the company. The agreed ownership of Aker Oilfield Services is: Aker Innovation, 75 percent; DOF Subsea, 25 percent.

"Our mission is to build premier companies in industries where we have strong knowledge and execution capabilities, and Aker Oilfield Services is right on target," said Leif-Arne Langoy, Aker ASA Board Chairman and CEO. "Most likely, we will eventually invite outside investors to join as co-owners of Aker Oilfield Services, but for now, we are particularly pleased to continue to develop the new company in partnership with DOF Subsea."

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