Aker Kvaerner Secures North Sea Framework Agreement with Shell
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18 January 2008 - Aker Kvaerner has signed a five-year partnership agreement with Shell U.K. Limited and A/S Norske Shell ('Shell') covering the provision, installation, commissioning and life-of-field support of subsea control systems in the North Sea.
The framework agreement is signed for an initial five year period, with five optional one-year extensions. It could be worth between GBP 20 and 30 million over the first five years. The contract encapsulates the two companies' solid working relationship, which has been running since the late 1970s.
The deal brings Aker Kvaerner Subsea's controls delivery and service, including aftermarket services, into one contract arrangement to ensure maximum efficiency in supporting Shell's projects.
Rami Birkeland, senior vice president Controls, Aker Kvaerner Subsea, said: "The agreement means Shell will get a sustained, across-the-board service to meet their current operational requirements. Delivering such a broad scope of services needs a single focal point and this agreement avoids the inefficiences of one-off contracting.
"This is the latest agreement for Aker Kvaerner Subsea where a major operator can bring our services into play at any time, with short notice, calling upon the specific resources in question.
"The agreement means we have in place a close, long-term relationship that reflects the commercial imperatives of our client. It guarantees high quality operational performance, and underpins our 'preferred partner' status in the market."
Delivery of the terms of the agreement will be managed from Aker Kvaerner Subsea's Aberdeen operations, where the global management of the controls systems organisation is located. The Aberdeen office supervises subsea controls operations in Australia (Perth), Brazil (Curitiba), Malaysia (Kuala Lumpur and Port Klang), Norway (Oslo) and the US (Houston).
For further information, please contact: Media:
Endre Johansen, communications manager, Aker Kvaerner Subsea. Tel: +47 22 94 58 91, Mob: +47 416 10 605, E-mail: endre.johansen@akerkvaerner.com
Bill Phillips at the BIG Partnership. Tel. (01224) 578174 or 07970 544663.
Suppliers:
For further information about sourcing and potential subcontracts for this project, please contact: Harald Grieg Riisnaes, vice president, Global Supply Chain, Aker Kvaerner Subsea. Tel: +47 67 82 68 18
AKER KVAERNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals and Power Generation. The Aker Kvaerner group is organised in a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities.
The parent company in the group is Aker KVAERNER ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 50 billion and employs approximately 24 000 people in about 30 countries.
Aker Kvaerner is part of Aker (www.akerasa.com), a group of premier companies with a focus on energy, maritime and marine-resources industries. The Aker companies share a common set of values and long traditions of industrial innovation. As an industrial owner with a 40.27 per cent holding in Aker Kvaerner, Aker ASA takes an active role in the development of its holdings.
Aker Kvaerner Subsea is a leading provider of a complete range of surface and subsea solutions for the oil and gas industry - from concept screening and design through manufacturing, fabrication and commissioning. Aker Kvaerner Subsea's ability as a world-wide total system provider is backed by a wide portfolio of products which are maintained for the complete life of field. Aker Kvaerner Subsea's capability is available for both new and existing fields either as individual activities or complete packages.
