Aker Kvaerner will provide engineering and assistance to Statoil on the procurement and construction management for the upgrade of the group's Mongstad refinery, north of Bergen, Norway
Aker Kvaerner has signed a letter of intent with Statoil to provide the engineering, and assistance to Statoil on the procurement and construction management for the upgrade of the group's Mongstad refinery, north of Bergen, Norway. The value of the engineering contract to Aker Kvaerner is approximately EUR 8.7 million initially. In addition will come the value of the procurement and construction supervision as requested by Statoil during the construction phase.

The Aker Kvaerner scope includes the basic and detailed engineering, together with procurement and construction supervision assistance - executed from its offices in the Netherlands.

The Energy Integration project (EVM-RO) is strategically important for the refinery because of the substantial improvements to the energy efficiency of the Mongstad complex.

'Statoil is implementing the upgrade to strengthen the refinery position as an energy and environmentally-efficient supplier of refined petroleum products, and to further develop a robust and long-term competitive position for Mongstad as an industrial area,' says Egil Sael, vice president for business development in the Statoil manufacturing business cluster.

'This is the fifth project across Statoil refineries and chemical plants to be awarded to Aker Kvaerner in the last five years,' says Wim van der Zande, president of the Aker Kvaerner European Process business.

'We are very pleased to be involved in this project.

Our selection reflects the good working relationship we have established with Statoil and the strong track record we have accumulated in this market'.

Aker Kvaerner's order for the engineering contract was booked in December 2005.

The contract will be finalised during January 2006 and the project will commence 1st February 2006.

An application to the Norwegian authorities for the project was filed by Statoil in 2005.

Depending on the final permission and related conditions from the Norwegian authorities, Statoil will make the final decision whether to execute the full project in 2006.

In such case the engineering scope is expected to be completed by April 2007 and the completion of the refinery upgrade is scheduled for late 2008.

The energy project also includes a new combined heat and power plant and a new gas pipeline from the Kollsnes to Mongstad - both projects are being executed by third parties.