Kvaerner signs framework agreement with Statoil for Njord A

4 April 2016 - Kvaerner has signed a framework agreement with Statoil, on behalf of Partners, for upgrading of the Njord A semi-submersible platform. At the same time, Statoil has made the first call-off from the framework agreement with an estimated value of NOK 120 million.

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"We are proud to have been awarded this project in tough competition. We believe it is a result of our extensive efforts to increase competitiveness, and it demonstrates a trust in our ability to deliver complex projects on time", says Jan Arve Haugan, President & CEO of Kvaerner.

Due to insufficient structural integrity for future operations and drilling, the Njord A Platform will be towed to shore in 2016. In addition, the yard-stay period will be used for a general upgrade of the platform.

The project framework agreement (PFA) signed by Statoil and Kvaerner is based on a project execution plan, where Statoil at key milestones has the option to call-off the execution of further phases. The options for further scope of work include yard stay at Kvaerner Stord prior to final investment decision, execution of EPC phase for platform upgrade and various modifications and services to Statoil.

The first call-off from the frame agreement was made today for the front-end engineering and design of the project (FEED). Engineering will be executed by Aker Solutions MMO as a subcontractor in an integrated team with Kvaerner.

Njord A was originally delivered by today's Kvaerner at Stord in 1997.

ENDS

For further information, please contact:

Media: Odd Naustdal, Head of Communications West Norway, Kvaerner, Mob: +47 905 76 079

Investor Relations: Ingrid Aarsnes, VP IR & Communications, Kvaerner, Mob: +47 950 38 364

About Kvaerner:
Kvaerner is a leading provider of engineering, procurement and construction (EPC) services, and delivers offshore installations and onshore plants for upstream oil and gas production around the world. Kvaerner ASA, through its subsidiaries and affiliates ("Kvaerner"), is an international contractor and preferred partner for oil and gas operators and other engineering and fabrication contractors. Kvaerner and its approximately 2 800 HSSE-focused and experienced employees are recognised for delivering some of the world's most amazing and demanding projects.

In 2015, the Kvaerner group had consolidated annual revenues of approximately NOK 12 billion and the company reported an order backlog at 31 December 2015 of NOK 14.3 billion. Kvaerner is publicly listed with the ticker "KVAER" at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com.

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