Aker Solutions becomes ConocoPhillips’ main MMO supplier in Norway
- Business & Finance
Aker Solutions’ maintenance, modifications and operations (MMO) business in Norway secured two contracts for work at North Sea fields operated by ConocoPhillips.
The award comes shortly after Aker Solutions lost a bid to perform modification and maintenance services for Statoil’s fields in Norway. At the time, the company said the loss of Statoil’s contract would have serious implications for the company’s MMO business in Norway.
On Monday, Aker Solutions received a framework agreement for a fixed period of five years to become ConocoPhillips’ main supplier of maintenance and modifications work offshore Norway.
The agreement may be extended by up to three years and covers work on all installations at the Ekofisk and Eldfisk fields offshore Norway, starting in February, Aker Solutions informed on Monday.
According to the company, the contract value depends on how much maintenance and modifications work is undertaken over the next five years and could range between NOK 1 billion and NOK 3 billion ($115.2M – $345.6M) in that period. The range neither represents a minimum nor a maximum amount but serves to illustrate a realistic, yet uncertain range, the company explained.
Aker Solutions was also one of three companies awarded a contract to compete for work on large, complex modifications projects at these fields. This contract has the same fixed period and option as the framework agreement.
“We’re very pleased to secure these two major agreements with ConocoPhillips, which build on the strengths of our operations in Norway and our expertise in complex modifications,” said Luis Araujo, chief executive officer of Aker Solutions.
Work on both contracts will be managed and executed by Aker Solutions’ MMO unit in Stavanger and fabrication yard in Egersund. The agreements will also provide work for offshore employees.
“The Ekofisk and Eldfisk installations comprise one of the largest maintenance and modifications portfolios offshore Norway and these contracts will help secure jobs in key parts of our Norwegian MMO business,” said Per Harald Kongelf, head of Aker Solutions’ Norwegian operations.