Aker Solutions and KGNT Holding Form a JV to Target O&G Opportunities in Kazakhstan

Aker Solutions and the Kazakh company KGNT Holding has established a 50/50 joint venture, Aker Caspian. The company is targeted for servicing the offshore oil and gas industry in the Kazakhstan sector of the Caspian Sea.

It will offer a wide scope of services to offshore field development and maintenance and modification projects as well as fabrication services for onshore plants in Kazakhstan.

Aker Caspian will own, manage and operate a fabrication yard in Aktau, located next to the largest sea port of Kazakhstan. The parties have already secured the land area and made financial commitments to start the yard development in parallel with forthcoming scheduled offshore projects in Kazakhstan. Aker Solutions builds on its worldwide resources and know-how within engineering and fabrication for the oil and gas industry when entering this new phase in its operations in Kazakhstan.

Furthermore, Aker Caspian is part of developing a training centre in Aktau for personnel from the oil and gas industry in accordance with international standards.

– Aker Caspian represents an integral part of our strategy for the Caspian region. We recognise that, similar to other countries, local content is a key element for successful penetration of oil and gas markets in their early developing phases. Local content is also increasingly important in a land-locked Caspian Sea. Through our longstanding presence in the region, we have established a close relationship with KGNT Holding. In partnership, we are committed to develop a local knowledge base in the region by creating interesting and challenging job opportunities, says Jarle Tautra, executive vice president in Aker Solutions.

The Kazakhstan offshore oil and gas market is an emerging market that can become one of the world’s most attractive regions. Although vast in size, the market revolves around a few projects – one of these being the Kashagan field development.

Aker Caspian will offer the following services to offshore oil and gas field developments: fabrication and construction (C); engineering, procurement and construction (EPC); engineering, procurement, construction and installation (EPCI); terminal and base services in Aktau sea port area, hook up and commissioning services. All Kazakhstani projects corresponding to the abovementioned services Aker Solutions and KGNT Holding will execute by Aker Caspian JV.

KGNT Holding is a privately owned by Kazakh citizens, leading industry group of companies within the maritime and oil and gas industry in Kazakhstan. It embraces onshore and offshore engineering, project management support services, marine transport and flotels and pipeline- and storage engineering. The group’s engineering company is one of the leading engineering companies in Kazakhstan and offers services within design, project management and engineering related to the lifecycle of oil and gas projects onshore and offshore as well as integrated solutions both to oil and gas and to oil and chemical industries. The group’s offshore construction company is the first privately owned hundred percent Kazakh company to enter and successfully operate in the market of operation and maintenance of the marine vessels in the North Caspian Sea. It owns a service fleet of 10 new build first class vessels and is currently building five new shallow draft icebreaking tug boats and has a strong client base including Agip KCO, Saipem Kazakhstan Branch and Enka Insaat ve.

Aker Solutions history in the Caspian region dates back to 1977 when Aker Rauma Oy delivered the first semi-submersible drilling rig Dada Gorgut to Baku and has been involved in several successful offshore and onshore developing projects in the Kazakhstan, Azerbaijan and Russian sectors of the Caspian Sea. From 2004 and to date Aker Solutions is a key player on the Kashagan field development project through the completed engineering, procurement and fabrication contract of several modules, the ongoing offshore hook-up and commissioning project as well as the ongoing full field FEED development contract.

Aker Solutions ASA, through its subsidiaries and affiliates (“Aker Solutions”), is a leading global provider of engineering and construction services, technology products and integrated solutions. Aker Solutions’ business serves several industries, including oil & gas, refining & chemicals, mining & metals and power generation. The Aker Solutions group is organised in a number of separate legal entities. Aker Solutions is used as the common brand/trademark for most of these entities.

Aker Solutions’ parent company is Aker Solutions ASA. Aker Solutions has aggregated annual revenues of approximately NOK 54 billion and employs approximately 22 000 people in about 30 countries.

Aker Solutions is part of Aker, a group of premier companies with a focus on energy, maritime and marine resource industries. The Aker companies share a common set of values and a long tradition of industrial innovation. As an industrial owner controlling 40.27 percent of the shares in Aker Solutions through Aker Holding AS, Aker ASA takes an active role in the development of Aker Solutions.

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Source: Akersolutions, August 12, 2010: