This lawsuit involves a study prepared by Kvaerner U.S. Inc. in 1997. The study addressed the feasibility of Equatorial's development of a copper mine near Tonopah, Nevada.
Aker Kvaerner is, of course, disappointed in the first instance finding in this case, and maintains that Kvaerner U.S. Inc. acted in a professional and proper manner in the performance of its work for Equatorial. Appropriate post-trial motions will be made, and if those are unsuccessful, it is anticipated that an appeal will be filed.
The project is insured under Aker Kvaerner's liability insurance program. In the event the verdict is upheld Aker Kvaerner currently estimate that approximately half of the amount will be covered by insurance.
In addition to this lawsuit, there remains an unresolved arbitration proceeding which was filed by Kvaerner U.S. Inc. against Equatorial to collect amounts due by Kvaerner U.S. Inc. for engineering and construction on the Equatorial copper mine. The arbitration proceeding has been held in abeyance pending resolution of the litigation and will now proceed.
For further information:
Media: Geir Arne Drangeid, Senior Vice President, Aker Kvaerner, Group Communications. Tel: +47 913 10 458. Email: geirarne.drangeid@akerkvaerner.com
Investor relations: Tore Langballe, Vice President, Aker Kvaerner, Group Communications. Tel: +47 67 51 31 06. Email: tore.langballe@akerkvaerner.com
Notes to editor:
Aker Kvaerner is a leading global provider of engineering and construction services, technology products and integrated solutions. Group activities span a number of industries, including Oil and Gas upstream and downstream, Process, Pharmaceuticals, Metals, Power, Chemical Pulping, Environmental and Shipbuilding. Aker Kvaerner is a multi-local group of businesses with nearly USD 6 billion of annual revenues and around 33 000 employees in more than 30 countries.