Kjelstad Appointed Interim CEO of Aker Floating Production

Karl Erik Kjelstad has been appointed interim CEO of Aker Floating Production. The leadership change was decided as part of the Board's review of status and additional cost overruns associated with the conversion of the company's first oil production ship (FPSO).

President and CEO Svein Olsen, who has headed Aker Floating Production from before its 2006 stock-exchange listing, has left his position effective immediately.

"Our review shows that the FPSO will be delivered in the second quarter of the year as previously announced. Nevertheless, the Board has concluded that necessary measures should be implemented immediately," says Martinus Brandal, Chairman of the Board of Aker Floating Production.

"Project costs have risen significantly and repeatedly. It is important to handle these challenges as quickly as possible, and Mr. Kjelstad is already working on them," says Mr. Brandal.

Karl Erik Kjelstad joins Aker Floating Production from his position in Aker as President & Senior Partner in charge of the Maritime Technologies sector. He is on leave from this position until a new CEO of Aker Floating Production takes over. Mr. Kjelstad will continue to serve as a shareholder-elected board member on the boards of other Aker companies during this period; however, his other Aker responsibilities will be assumed by other members of Aker's management team.

"Aker Floating Production's Board expresses its gratitude to Aker for its decisive action in releasing core management resources to Aker Floating Production," says Mr. Brandal.