Aker Kvaerner and Statiol Sign Frame Agreement

Aker Kvaerner has signed a letter of intent with Statoil ASA to enter a five-year frame agreement for the delivery of subsea production systems and related operational services. The agreement will make Aker Kvaerner's subsea division a preferred supplier to deliver complete subsea solutions to Statoil's new field developments as well as additional equipment to new and existing fields. The frame agreement for aftermarket services is valid for new fields.

The agreement for delivery of subsea production systems is awarded for a five year period with an optional period of two (2) x two (2) years. The contract for operational services will run for five years.

"This is an extremely important contract for us," says Raymond Carlsen, executive vice president, Aker Kvaerner Subsea. "Statoil and Aker Kvaerner are two companies that for many years have played a leading role in developing new subsea technologies for the global oil and gas industry. We have already worked in partnership with Statoil for a number of years and look forward to building on this relationship."

The extent of the frame agreement is first and foremost to cover Statoil's needs on the Norwegian continental shelf. However, the agreement can also be made applicable to field developments in other areas of the world.

Raymond Carlsen added: "Aker Kvaerner has for many years been a major player on the Norwegian continental shelf. We believe this experience, coupled with our extensive subsea know-how from the world's deepwater regions as well as other areas with harsh climatic conditions, makes us a good match for a leading operator like Statoil."

The contract between Statoil and Aker Kvaerner is expected to be signed - and made effective - in the second half of September 2007.