Aker Kvaerner Signs Deal with Aker Oilfield Services

Aker Kvaerner has signed a letter of intent with Aker Oilfield Services and is set to expand its subsea service offering by providing equipment and personnel to the world's first deepwater Subsea Equipment Support Vessel (SESV). The contract, to commence latest 2010, is worth approximately US $60 million over an initial five year period.

As part of the deal, Aker Kvaerner's subsea business area will develop specially designed installation equipment for subsea trees as well as support tools for subsea interventions. In addition, Aker Kvaerner Subsea in Brazil will provide an offshore team to operate and conduct onboard installation and testing operations of subsea trees and associated equipment. Onshore support will be provided from Aker Kvaerner Subsea's Rio das Ostras base, in Brazil.

The contract between Aker Kvaerner Subsea and Aker Oilfield Services is a result of the latter entering a 5 + 5 year contract with Brazil's national oil company, Petrobras, to supply and operate a deepwater intervention vessel, called SESV, which is tailored for water depths up to 2000 meters.

"The cooperation agreement with Aker Oilfield Services adds another string to our subsea bow," says Raymond Carlsen, executive vice president, Aker Kvaerner Subsea. "We will now be able to support quicker and more cost effective installations of subsea trees. Time savings on maintenance operations is another benefit."

"This partnership is also a great example of how we can successfully combine the strengths and capabilities of the wider Aker family," adds Carlsen.

The SESV will undertake a broad range of services related to subsea equipment intervention - traditionally performed by deepwater drilling rigs. It comprises new solutions for effectively handling, testing, retrieving and installing subsea trees and related equipment in a safe and efficient manner in a challenging operating environment. This method provides up to 80 percent time saving on deep water subsea operations compared with conventional rig-based operations.

Aker Oilfield Services is part of Aker and owned by Aker Kvaerner, Aker and DOF Subsea.