Kvaerner To Acquire Enercon Engineering

Kvaerner, the Anglo-Norwegian engineering and construction Group announced that it has entered into an agreement to acquire Enercon Engineering, Inc., a Houston-based design, engineering and project management company, employing close to 100 people. Enercon's activities are focused on projects, particular in deep waters, in the Gulf of Mexico.

"This acquisition is a further step in the strategy to increase our presence in regions where we will see growth in the future, said Jan T. Jorgensen, Chief Executive of the Kvaerner Oil & Gas business activities. Combined with our present field development and engineering resources in Houston, this acquisition will significantly strengthen Kvaerner's relationship with companies operating in the global deepwater market out of Houston," he said.

Enercon Engineering Inc. has a strong track record in the Gulf of Mexico. Since its inception it has successfully completed more than 150 projects, more than a half of them in the Gulf of Mexico. These include several deepwater projects, among them, the detailed design and engineering for the jacket of the fourth deepest fixed platform in the world, located at a water depth of 1,130 feet in the Gulf of Mexico.

The current field development staff of Kvaerner Oil & Gas in Houston and Enercon Engineering will be merged into one organisation. All key personnel of Enercon have committed to stay with the new company, and further strengthening of the competence of the new entity will be sought by the sourcing of expertise from other parts of the Group's global oil and gas activities. Together with Kvaerner's other engineering resources located in Houston, serving the petrochemical and chemical industries, Kvaerner will have a total of 700 engineers in this region and a further 400 people employed in Kvaerner Oilfield Products fabrication activities.

The purchase price to be paid by Kvaerner for Enercon is US $13-15 million. The final price will be dependent on the financial results of the unit achieved in the years 2001 to 2005.