Kvaerner to perform Edvard Grieg offshore hook-up and commissioning assistance

7 September 2012 - Lundin Norway AS has confirmed an option in the Edvard Grieg topside contract for Kvaerner to perform the offshore hook-up and commissioning assistance. Estimated value is NOK 525 million.

Kvaerner was in May awarded a contract by Lundin Norway AS to perform engineering, procurement and construction (EPC) of the topside for the Edvard Grieg platform, with an estimated contract value of NOK 8 billion. Lundin Norway AS has now confirmed an option in the contract to perform offshore hook-up and commissioning assistance, which will add approximately NOK 525 million to the contract value.

The topside has a total weight of 21 000 tonnes and consists of a main topside module, a combined living quarter and utility module, a process module and a flare tower. Final delivery is set to April 2015.

As announced in January, Kvaerner will also deliver the steel jacket for the Edvard Grieg platform under a separate EPC contract. The jacket weighs 14 500 tonnes and will be delivered from Kvaerner's yard in Verdal in the spring of 2014, approximately one year before the topside is due to be delivered.

The Edvard Grieg field is an oil field located in the North Sea. First production is expected in late 2015, with a forecast gross peak production of approximately 90,000 barrels of oil per day (bopd). The oil will be processed and transported in a new pipeline to the Grane area and further via the Grane oil pipeline to the Sture terminal for offloading. Lundin Norway AS is the operator and has a 50 per cent working interest in the Edvard Grieg field. Wintershall and RWE Dea hold a 30 per cent and a 20 per cent interest, respectively.

Contract partner for the topside is Kvaerner subsidiary Kværner Stord AS.

ENDS

For further information, please contact:

Media:
Odd Naustdal, Communication Manager, Kvaerner, Tel: +47 53 41 81 03, Mob: +47 905 76 079.
 
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 of more than NOK 23 billion on 30 June 2012. 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.