Kværner ASA: Kvaerner awarded major onshore contract for Shell
(Thomson Reuters ONE) -
19 April 2012 - Kvaerner has received a letter of award from A/S Norske Shell
for Engineering, Procurement, Construction and Management (EPCM) for
modifications and projects at the Ormen Lange/Nyhamna onshore facilities on the
west coast of Norway. The contract is a framework agreement with duration of six
years, and options for additional two plus two years. The estimated contract
value is NOK 6 billion, excluding options.
"This is a major onshore contract, and the largest of its kind in Norway this
year. We are proud to have won this important contract, which we believe
demonstrates a faith in our project execution model and ability to deliver
complete solutions to the client," says Kvaerner President & CEO Jan Arve
Haugan.
"Kvaerner has a strong HSE performance, which was an important factor in the
tender process. We are particularly pleased that key personnel with significant
experience from similar operations and projects will be made available for us by
Kvaerner", says A/S Norske Shell's Project Director Bernt Granås.
The Nyhamna gas plant processes natural gas from the Ormen Lange gas field
located in the Møre Basin in the southern part of the Norwegian Sea. The
contract scope includes all modifications and projects on the Ormen
Lange/Nyhamna facility and is established to meet the expected, significant
increased project activity over the next five to ten years. This includes the
facilities at Nyhamna for gas from new fields such as Linnorm and Aasta Hansteen
(formerly Luva).
Several locations involved
Front end engineering and design (FEED) will commence immediately. The FEED work
will take place integrated with Shell in their offices in Aberdeen, and is
expected to run until engineering starts at the end of 2012. Meanwhile, a site
team will be mobilized to begin some minor modification work at Nyhamna.
The project organisation will be located at several places. Engineering and
project management activities will be conducted by Kvaerner at Stord and
engineering and modification work will be delivered by Aker Solutions' offices
in Oslo, Kristiansund and Tromsø. When finalised, the sub-contract with Aker
Solutions is expected to represent approximately NOK 850 to 950 million. In
addition, a large number of suppliers from Mid Norway will be involved in
various project activities.
Once fully mobilized, at least 500 employees are expected to be working in
rotation on site at Nyhamna. In addition, more than 200 engineers and management
will be working on the contract throughout the period. Of these, around 80 will,
by the end of next year, be working out of Tromsø.
"It is our ambition to establish a presence in central and northern Norway, and
to strengthen our ties with companies and communities in these regions. The oil
and gas business is migrating north, and this contract will contribute to the
exciting developments in the Norwegian Sea and the Barents Sea," says Haugan.
"We are pleased that Kvaerner as part of this contract strengthens its presence
in Mid Norway and that they have chosen to locate much of the engineering work
through Aker Solutions' offices in Tromsø, which we hope will create significant
ripple effects in North Norway", says Granås.
Back to Nyhamna
This is not the first time Kvaerner will be present at Nyhamna. In 2003 and
2004 the company was awarded three large contracts for the initial construction
of the gas plant. Around 11 000 people were involved in the projects that lasted
from 2005 to 2007. The projects were completed on 30 November 2007, with good
HSE results and satisfied clients.
"We will benefit from our previous experience at Nyhamna. We know the site, the
facilities and have maintained contact with a number of suppliers in the area,"
says Kvaerner Executive Vice President Lars Eide.
Valuable experience
"In addition, we have gained valuable new experience from other onshore
projects, such as the Kollsnes gas plant upgrade, that will be very beneficial
once we get started at Nyhamna," says Eide.
Conducting work at a plant when in full production is fundamentally different
from working at facilities where production is halted or has not yet started. It
poses challenges both related to HSE, and to carrying out the work in a manner
that is not disrupting the everyday production.
"It is important with a delivery model that ensures an optimal balance of
prefabrication off site and work on site, as well as documented systems and an
uncompromising attitude towards HSE. We have the expertise and experience in
both respects," Eide concludes.
Contract partner is Kvaerner subsidiary Kværner Stord AS.
Press meeting
Media is welcome to a press meeting at 1 PM today (Thursday 19 April).
Representatives from both client and contractors will be present.
Location: Telenor-senteret, Snarøyvn 30, TelenorExpo, entrance D
ENDS
For further information, please contact:
Media:
Mariken Holter, SVP Corporate Communications, Kvaerner, Tel: +47 67 52 74 35,
Mob: +47 917 87 358.
Investor relations:
Ingrid Aarsnes, SVP Investor Relations, Kvaerner, Tel: +47 67 59 50 46, Mob:
+47 950 38 364
About Kvaerner:
With more than 3 200 HSE-focused and experienced employees, Kvaerner is a
specialised provider of engineering, procurement and construction (EPC) services
for offshore platforms and onshore plants. Kværner ASA, through its subsidiaries
and affiliates ("Kvaerner"), is an international contractor that plans and
realises some of the world's most demanding projects as a preferred partner for
upstream and downstream oil and gas operators, industrial companies and other
engineering and fabrication contractors.
In 2011, the Kvaerner group had aggregated annual revenues of more than NOK 13
billion and the company had an order backlog at 31 December 2011 of more than
NOK 10 billion. Kvaerner was publicly listed with the ticker "KVAER" at the Oslo
Stock Exchange on 8 July 2011. For further information, please visit
www.kvaerner.com.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Kværner ASA via Thomson Reuters ONE
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Datum: 19.04.2012 - 02:01 Uhr
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