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AH001 is located on the Amerada Hess operated Ivanhoe/Rob Roy fields, 110 miles north-east of Aberdeen.
The installation also processes and exports oil from the Renee and Rubie fields, operated by Talisman. Aker Kvaerner Operations has been providing complete onshore support for the platform since October 2003, but the new deal will entail much greater involvement. Aker Kvaerner Operations specialises in managing the production operations, while subcontracting maintenance and modification work. Offshore, Aker Kvaerner Operations will seek to retain key skills and knowledge of platform personnel currently employed by Amerada Hess.
The extended arrangements and the targeted performance enhancements are regarded as being key to extending the AH001's working life beyond its previously anticipated shutdown date at the end of 2005. Aker Kvaerner Operations' Managing Director, Tore Nedregaard says the contract is a significant development for Aker Kvaerner Operations: "We concentrate on operations management and have developed an efficient business model that has proved to significantly cut overall costs of operating platforms.
"As North Sea fields reach maturity, the prospect of handing over operations responsibility to a company like us will be increasingly attractive. In this respect, we believe Amerada Hess is at the leading edge of what we think will be the industry norm in the future."
Amerada Hess and partner Talisman will retain ownership of the Ivanhoe and Rob Roy fields as well as the platform itself. George Hubbard, Operated Production Manager, Amerada Hess said: "The Ivanhoe-Rob Roy field development represents an outstanding success story for Amerada Hess and its partners. Originally estimated to contain recoverable reserves of 88 million barrels and last for 10 years, we have recently produced our 180 millionth barrel, and are approaching 15 years in production. We are therefore pleased that we can push the production phase out even further, building on the existing relationship with have with Aker Kvaerner Operations to maximise the value of the asset and the reserves recovered."
Aker Kvaerner Operations, one of the five Aker Kvaerner companies with UK headquarters in Aberdeen, was established in January 2003. The company opened its Aberdeen offices in August of that year, joining its sister companies, Aker Kvaerner Offshore Partner Ltd, KOP Ltd, Kvaerner Process Systems Ltd and Maritime Hydraulics.
ENDS
For further information, please contact:
Media:
Paul Davis, Tel: +44 (0)1224 632277
Paul Davis, Tel: +44 (0)1224 632277
Investor relations:
Tore Langballe, Vice President, Aker Kvaerner, Group Comms. Tel: +47 67 51 31 06
AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner span a number of industries, including Oil & Gas production, Refining & Chemicals, Mining & Metals, Power, Pharmaceuticals & Biotechnology, and Pulping. Aker Kvaerner has aggregated annual revenues of approximately USD 4.5 billion and employs around 22,000 employees in more than 30 countries. The Aker Kvaerner group consists of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities. The parent company in the group is Aker Kværner ASA.
MMO Europe (Maintenance, Modifications and Operations) is responsible for the Aker Kvaerner's MMO competencies and capacities, serving the Norwegian and UK Continental Shelf, and supporting selected international initiatives. The core competencies are turn-key deliveries offshore modifications, long term on- and offshore modification and maintenance contracts, inspection, operation and operations support, offshore removal and de-construction and subsurface advisory. MMO Europe has approximately 6,000 employees, including 2,600 engineers.
Aker Kvaerner Operations has been established to develop and sustain long term relationships with oil and gas companies and operators in the North Sea. Our focus is to establish a business model that will deliver a fresh outlook and a new cost and operations structure in the post plateau North Sea production environment. Our goal is to contribute to maximising the economic recovery of oil and gas in the North Sea. Aker Kvaerner Operations continue to see the North Sea as a significant upside opportunity in terms of social responsibility, environmental management and sustained economic recovery
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