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The award follows Aker Kvaerner Australia's successful completion of the preliminary engineering and detailed planning leading to BP achieving full sanction late last year.
Working in an alliance with BP, the new contract has Aker Kvaerner Australia responsible for overall project management, detailed engineering, the procurement of all equipment and bulk materials, plus the tender and award and subsequent management of construction sub-contracts. The project is scheduled to produce on specification product by June 2005.
The alliance form of the contract has BP and Aker Kvaerner Australia sharing the risk and reward of performance against both cost and schedule. Outside of this sharing in the total outcome of the project, Aker Kvaerner's contract has a value of AUD 8 million.
BP Kwinana Managing Director, Ms Kathleen Lucas, said "Our decision to use Aker Kvaerner Australia for the subsequent implementation phase of the project was underpinned by the success of this preceding work. This was independently assessed by world benchmarking company IPA, with an excellent FEL score of 4.25 (a frequently used measure to predict project success).
Ms Kathleen Lucas, also said "Aker Kvaerner Australia has a long track record of delivering exceptional outcomes for BP in Australia. Their appointment was further justified on their proven ability to provide a total project solution involving integrated engineering, procurement and construction management services (EPCM), and our ability to work together to again deliver world benchmark performance."
Aker Kvaerner Australia Managing Director, Mr Tom Quinn, said, "BP's decision to award us the EPCM contract is recognition of our breadth and depth of engineering, procurement and construction management people and systems."
"It is tremendously pleasing that we have another example of repeat business with a valued customer and we look forward to delivering further excellent results for BP during the implementation phase", he said.
The BP Kwinana Clean Diesel Project is on track to comply with new Australian Government regulations covering diesel product specifications involving investments for BP of approximately AUD 60 million. The project must be operational in time to provide the new product at the point of sale by 1 January 2006.
ENDS
For further information please contact:
Business Development:
Mike Entwistle, Associate Director Downstream, Aker Kvaerner Australia. Tel: +61 3 9272 3158
Mike Entwistle, Associate Director Downstream, Aker Kvaerner Australia. Tel: +61 3 9272 3158
Media:
Torbjorn Andersen, VP Group Communications, Aker Kvaerner. Tel: +1 713 270 3618
Torbjorn Andersen, VP Group Communications, Aker Kvaerner. Tel: +1 713 270 3618
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.
The Oil, Gas, Process & Energy (OGPE) business area of Aker Kvaerner specialises in the provision of process technology, design, engineering, project management, procurement and construction. With an annual turnover of US$1.14 billion, the OGPE business employs more than 5,400 people operating worldwide. It offers the complete range of services that are necessary to realise global projects from conception to start-up. These services include a portfolio of advanced process technologies, a full range of engineering studies (including bankable feasibility and environmental studies), total project management, engineering and design, procurement, construction, commissioning and maintenance services.
Aker Kvaerner Australia is a leading project management and engineering contractor, providing industrial clients throughout the oil & gas, refining, chemicals, power, non-ferrous metals, iron ore and steel industries with design and project management services and innovative technology solutions. Aker Kvaerner Australia is organised as a subsidiary under the business area Oil, Gas, Process & Energy.
This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com
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