Aker Kvaerner awarded large Ormen Lange contract

1 July 2004 - Hydro today awarded Aker Kvaerner the first lage Ormen Lange gas terminal contract. The contract value is approximately NOK 2 billion. In 2006 top manning will be around 800 persons.

The EPCcontract covers engineering, procurement and construction activities for the gas reception and export area in Nyhamna on the North West coast of Norway. It also includes the slug catcher, the flare tower and emergency shut down valves for the Ormen Lange gas terminal.

Aker Stord has signed the contract on behalf of several Aker Kvaerner companies, including Aker Kvaerner Engineering and Technology, Aker Verdal and Aker Kvaerner Elektro. The engineering and procurement activities start immediately in Oslo, while the construction activities in the yards at Stord and in Verdal will start in May/June 2005.

Design and construction of onshore plants for the oil and gas industry is an important growth area for Aker Kvaerner. The group has won several similar contracts in the past few years. At present Aker Kvaerner is involved in two projects for Statoil: Upgrading and extension of the Karsto gas terminal near Stavanger in Southern Norway and installation/hook up on Statoil's first plant for liquid natural gas (LNG) at Melkoya near Hammerfest in Northern Norway.

As in several other projects Aker Kvaerner will cooperate with sub-contractors in Poland for delivery of steel sections and piping. Polish sub-contractors will start their fabrication for Ormen Lange in May 2005.

When the untreated well stream from Ormen Lange arrives at Nyhamna, it will be routed to a reception facility for liquid slugs, known as a "slug catcher". Liquid slugs in the pipeline from the gas field could otherwise damage the process plant. Aker Verdal is going to construct this slug catcher and install it at the Ormen Lange plant in Aukra.

Aker Stord will assemble the largest and most complicated pipe racks in its large, moveable assembly hall, and transport them to Aukra on a barge in January 2006 where the pipe racks will be installed. Mechanical installation work on Aukra starts in October 2005. The gas reception and export area of the Ormen Lange's Gas terminal shall be mechanical complete in February 2007.

Ormen Lange is the largest gas field under development on the Norwegian continental shelf. It is located 100 km off the northwest coast of Norway at a water depth of 850 to 1,100 meters.

ENDS

For further information, please contact:
Media:
Geir Arne Drangeid, SVP Group Communications, Aker Kvaerner. Tel: +47 913 10 458

Stian Vemmestad, President. Aker Stord.. Tel: +47 53 41 87 04

Investor relations:
Lasse Torkildsen, Vice President, Aker Kvaerner, Group Comms. Tel: +47 911 37 194

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, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. Aker Kvaerner has aggregated annual revenues of approximately USD 4.5 billion and employs around 21,000 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.

Aker Stord is Aker Kvaerner's assembly yard for modules and topsides for fixed and floating oil and gas production platforms. Aker Stord is within Aker Kvaerner responsible for multi discipline and mechanical construction contracts for onshore oil and gas plants in Norway. Within decommissioning of offshore structures Aker Stord has a special responsibility for methods and execution of topsides demolition.

Aker Kvaerner Engineering and Technology has about 800 employees and their main office is located at Lysaker near Oslo. The company has extensive experience and competence within development of technology and concepts, in addition to execution of larger projects. AK E &T has been involved in the development of most oil- and gas fields on the Norwegian Continental Shelf. The company has also played an active role in several terminal and onshore projects in Norway. AK E&T is presently involved in several international projects based on their competence and products, such as LNG terminals.

Aker Verdal has developed a special competence in engineering and building large steel constructions and steel substructures (jackets) for the offshore oil industry. With 30 jacket deliveries since 1975, Aker Verdal has established a leading position in this area. The steel jacket weight range from 1,000 up to more than 20,000 tonnes, and height 70 to 215 meters. Since Aker Verdal was established in 1970, it has also delivered a wide range of floating and fixed installations to the oil industry in the North Sea. A total of 10 semi-submersible platforms of Aker H3 and H3.2 design were built in the period 1973 to 1982. Furthermore, a wide range of modules and decks, sub-sea templates, bridges, flare towers and a loading buoy is delivered. Nearly 730 employees represent a multitude of variety in age, know-how, gender and culture. This composition secures quality in decision making, contributes to innovation and yields higher productivity.

Aker Kvaerner Elektro is a complete EPC supplier of electrical, instrument and telecommunications (EIT) to customers in the oil and gas processing industry onshore and offshore. The company possesses wide experience and expertise in its field and have a staff of 1,700 dedicated professionals committed to delivering optimum solutions. Aker Kvaerner Elektro is geographically co-located with our customers, and our goal is to create trust and long-term relations through being reliable, competitive, deliver quality and meet our customers' expectations

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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