Kvaerner wins EPC contract for Hebron GBS project

12 March 2013 - ExxonMobil Canada Properties has released the option for Kvaerner's joint venture company Kiewit-Kvaerner Contractors to provide the full scope of engineering, procurement and construction (EPC) services for the Hebron Project gravity based structure (GBS). The contract value for Kvaerner's share of the full EPC contract is approximately USD 1.5 billion and includes work conducted to date on the Hebron project.

The authorization to proceed with the full EPC contract follows the substantial completion of the Front End Engineering and Design (FEED) and site preparation contract awarded 9 November 2010 and the authorization of 25 April 2012 to proceed with detailed engineering, procurement and construction (EPC) related services throughout 2012.

The work will be performed in Newfoundland and Labrador, Canada, with engineering in St. John's and construction at the Bull Arm fabrication yard. The completed GBS will be installed at the Hebron field on the Grand Banks in the Atlantic Ocean located 350 kilometers offshore from St. John's, Newfoundland and Labrador, Canada. First oil is anticipated by the end of 2017.

"We are very pleased that Kiewit-Kvaerner Contractors has been selected to deliver the Hebron GBS. This is a strategically important project for us and we believe it confirms our strong position within arctic technologies in general and gravity based structures (GBS) in particular", says Bjørn Gundersen, executive vice president in Kvaerner, responsible for concrete solutions.

Kvaerner has a long track record for offshore concrete structures, with a series of concrete structures, both fixed and floating designed, constructed and installed on the Norwegian Continental shelf between 1971 and 1993.  Recent offshore concrete projects by Kvaerner are substructures for two platforms, installed in 2005 east of Sakhalin in Russia for Sakhalin Energy, the Adriatic LNG terminal installed in 2008 outside Venice in Italy, and the Arkutun-Dagi GBS for the Sakhalin-1 project constructed in Nakhodka, Russia and delivered to Exxon Neftegas Limited in June 2012.

Kvaerner and Peter Kiewit Infrastructure have a long history of working together, including the White Rose Floating Production, Storage and Offloading system (FPSO) project for Husky Energy.
GBS contract parties are ExxonMobil Canada Properties and Kiewit-Kvaerner Contractors.

Picture illustrating Kvaerner's track record within concrete substructures can be downloaded here: http://www.kvaerner.com/pictures

 

Hebron GBS

GBS Key Quantities

Water depth: 93 m (mean sea level)

Height of GBS: 120 m

Diameter of GBS base: 130 m

Shaft diameter: 35 m

Concrete volume: 130,000 m3

Rebar (density approx. 325 kg/m3): 40,000 t

Post tensioning steel: 3,400 t

Steel skirts: 400 t

Mechanical outfitting
(Piping systems and structural steel): 5,500 t

Well slots: 52 

For further information, please contact:

Media:
Mariken Holter, SVP Communications, Kvaerner, Tel: +47 67 52 74 35, Mob: +47 91 78 73 58

Investor relations:
Ingrid Aarsnes, SVP Investor Relations, Kvaerner, Tel: +47 67 59 50 46, Mob: +47 95 03 83 64

About Kvaerner:
With more than 3 000 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 2012, the Kvaerner group had consolidated annual revenues of close to NOK 11 billion and the company had an order backlog at 31 December 2012 of more than NOK 21 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.