Kvaerner sells EPC Center Houston

12 July 2012 - Kvaerner announces today the signing of an agreement to sell its on-going downstream focussed operations and related assets of the entity known as EPC Center Houston to IHI E&C International Corp, a US subsidiary of the Japanese company IHI Corporation (IHI). Kvaerner retains and will further develop all of its other businesses in North America, both the Houston based Kvaerner Field Development business focusing on offshore field development projects and Kvaerner North American Construction providing construction services and maintenance in the unionized areas of North America.

Kvaerner has signed an agreement to divest the assets and the on-going operations of EPC Center Houston for an undisclosed amount. All rights and obligations under contracts for executed projects will be retained by Kvaerner. Closing of the transaction is expected during the third quarter of 2012.

Kvaerner’s EPC Center Houston and IHI have since 2004 cooperated closely as joint venture partners, successfully developing a business focused on the delivery of LNG terminals and oil and gas processing facilities in North America. The new company comprises 170 employees including contract personnel and will continue to be based in Houston.

“We are pleased to see that our joint venture partnership on several major projects in North America has enabled the establishing of a new organisation, positioning itself for further growth”, says Jim Miller, Executive Vice President for the downstream business in Kvaerner.

Only the on-going operations of EPC Center Houston are divested.  Kvaerner will keep all of its other businesses in North America; including the upstream orientated Houston based Kvaerner Field Development office. The Houston office focuses on offshore oil and gas projects and is specialised within concept selection and conducts global engineering for semi-submersible and tension leg platforms as part of Kvaerner’s International business area. Kvaerner will also keep the Kvaerner North American Construction (Union Construction) operations in the US and Canada. The business being divested has no involvement in the Longview project as this is a part of Kvaerner North American Construction’s responsibility.

“For both of the remaining operations, we have identified opportunities which we are already actively pursuing. We will grow our engineering presence in Houston as part of our international delivery model for offshore projects and further develop our construction activities in unionized areas for our onshore operations”, says President & CEO in Kvaerner, Jan Arve Haugan.

About Kvaerner

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.

About IHI Corporation 

IHI is a global engineering, construction and manufacturing company with approximately 27.000 employees in more than 10 manufacturing centres in Japan, 18 branches and sales offices in Japan, 14 offices and 142 subsidiaries worldwide. 

ENDS

For further information, please contact:

Media: Liv Monica Stubholt, SVP Communications, Kvaerner, Tel: +47 22 94 69 03, Cell phone: +47 916 50 523

Investor Relations: Ingrid Aarsnes, SVP Investor Relations, Kvaerner, Tel: +47 67 59 50 46, Cell phone: +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. Kvaerner 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