Drilling Riser Contract Awarded To Aker Kvaerner

Aker Kvaerner has won a contract for the delivery of a complete deepwater marine drilling riser system with buoyancy package and associated equipment. The client, who is undisclosed, has also signed an agreement to buy an additional buoyancy package for a drilling riser system it purchased from Aker Kvaerner in 2007. Total contract value is approximately USD 50 million.

The marine drilling riser system, to be used for a drillship, will come at a length of 7500 feet. It will be manufactured and delivered out of Aker Kvaerner's subsea manufacturing centre in Malaysia. Delivery is scheduled for Q2 2010.

Buoyancy modules will be manufactured by Phoenix Polymers International, a company which Aker Kvaerner acquired a controlling 50 per cent stake in June 2007.

"We are one of the market leaders in the drilling riser segment," says Svein Haug, senior vice president for Umbilical & Riser in Aker Kvaerner. "Our new high tech manufacturing centre in Malaysia has been a key driver in capitalising on the boom in the worldwide rig market. Furthermore, we have recently opened a new drilling riser manufacturing facility in Brazil, which will enable us to grab an even larger share of the market."

The contract is booked as order intake for Aker Kvaerner's subsea business area in Q1 2008.