Aker Solutions and Kvaerner Secure Letter of Intent for Johan Sverdrup Phase II Work

April 5, 2018 - Aker Solutions and Kvaerner together secured a letter of intent for modifications of the riser platform and field center of the Statoil-operated Johan Sverdrup development, Norway's largest oil find in more than three decades.

The contract value is NOK 3.4 billion and will be split equally between the two companies, which formed a joint venture to carry out the work for the second phase of the North Sea development. At peak, this is estimated to involve about 2,000 employees at both businesses and their sub-suppliers.

The work includes engineering, procurement, construction and installation of a utility module for the platform that will help boost production from the field to 660,000 barrels of oil equivalents a day, starting in 2022. It also entails modifications of the field center and integration of a second processing platform to the center.

"We've worked closely with Statoil since the earliest phases of the project to significantly reduce costs and boost the efficiency of this landmark development," said Aker Solutions Chief Executive Officer Luis Araujo. "Now we are delighted to also team up with Kvaerner on the project's next phase."

The work will start this quarter and be completed in 2022, involving more than 450 Aker Solutions employees in Stavanger, Egersund and offshore Norway. The 5,000 metric-ton module will be built at Kvaerner's yard in Stord.

Aker Solutions earlier this year completed front-end engineering and design (FEED) for phase two of the development, including for the module and work to integrate this with the riser platform. The FEED work was secured last year as part of a 10-year framework engineering agreement for Johan Sverdrup that was awarded to Aker Solutions in 2013.

Kvaerner has been involved in the development since 2014, delivering the utility and living quarter topsides, the three largest and most complex steel jacket substructures as well as offshore hook-up of the riser platform together with Aker Solutions.

Johan Sverdrup is estimated to hold 2.1 billion to 3.1 billion barrels of oil equivalents. It's expected to produce up to 660,000 barrels of oil equivalents a day when fully developed in 2022, equal to about a quarter of current domestic output. Production is slated to start in late 2019 and is predicted to last for about 50 years. Statoil is operator for the development, which spans three licenses. Other partners include Lundin Norway, Petoro, Maersk Oil and Aker BP.

The order will be booked in the second quarter.

ENDS

Note to Media:
Statoil invites the press to attend the contract signing from 10:00 CEST today at its offices in Fornebu, Norway. Please meet up in the reception at 9:40 the latest. Aker Solutions Chief Executive Officer Luis Araujo and Executive Vice President Knut Sandvik will participate with representatives from Statoil and Kvaerner.

Media Contacts:
Bunny Nooryani, tel: +47 67 59 42 71, mob: +47 480 27 575, e-mail: bunny.nooryani@akersolutions.com

Stina Kildedal-Johannessen, tel: +47 55 22 28 00, mob: +47 934 12 301, e-mail: stina.kildedal-johannessen@akersolutions.com

Investor Contact:
Fredrik Berge, tel: +47 22 94 62 19, mob: +47 450 32 090, e-mail: fredrik.berge@akersolutions.com

Aker Solutions is a global provider of products, systems and services to the oil and gas industry. Its engineering, design and technology bring discoveries into production and maximize recovery. The company employs approximately 14,000 people in about 20 countries. Go to http://akersolutions.com for more information on our business, people and values.

This press release may include forward-looking information or statements and is subject to our disclaimer, see http://akersolutions.com

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.