Aker Wins $100 Million Operations & Maintenance Contract

Aker Floating Production's subsidiary Aker Borgestad Operations will be in charge of operations and maintenance of the FPSO Aker Smart 1 at India's MA field. The contract is with the Indian oil company Reliance Industries Limited.

The value of the five-year project is just more than U.S. $100 million. The contract with Reliance Industries includes options to extend the contract period.

"The contract marks the achievement of yet another milestone," says Aker Floating Production's President, CEO and Board Chairman of Aker Borgestad Operations Svein Olsen.

In May 2007, Aker Floating Production entered into a contract in excess of $750 million contract with Reliance for chartering of the Aker Smart 1 FPSO. The new contract with Aker Borgestad Operations expands the initial scope of work with Reliance to cover FPSO operations and maintenance. Under the contract, Aker Borgestad Operations will be in charge of both technical operations and FPSO operations for the production of oil, gas, and condensate from the MA field.

"The latest contract with Reliance adds significantly to our know-how and state-of-the-art expertise. It also brings us closer to assignments for our next two FPSOs, Aker Smart 2 and Aker Smart 3," says Mr. Olsen.

Aker Smart 1 will be deployed at the MA field, which is located at water depths of 1,000-1,400 meters, some 60 kilometers offshore eastern India. Production start-up will take place in two phases: oil production is scheduled for April 2008, and gas production will begin in the fall of 2008.

Aker Floating Production owns 50% of Aker Borgestad Operations. The remaining Aker Borgestad Operations shareholders are Aktieselskabet Borgestad (45%) and Aker Yards Brevik (5%).