Aker Solutions gets $114M Kristin Sør deal from Equinor

Norwegian engineering firm Aker Solutions has signed a letter of intent with compatriot oil major Equinor for the delivery of a subsea production system to the Kristin Sør oil and gas satellite fields in the North Sea.

Aker Solutions said on Friday that the contract value was about
NOK 1 billion ($114.3 million), with options for some additional work. The
intention is to start work during 2021 and to complete the delivery in the
first half of 2023.

The Kristin Sør development consists of the fields Lavrans and Kristin Q, both satellites to the existing Kristin platform. The planned scope will include a subsea template with four of Aker Solutions’ standardized vertical subsea trees for the Lavrans Centre.

The delivery will also comprise a manifold for the Kristin Q
field, to be installed in the Kristin Q template which Aker Solutions delivered
in 2007.

Kjetel Digre, CEO of Aker Solutions, said: “With improved technical solutions and cost levels for subsea technology, development of satellite fields is attractive for several oil companies.

“This is also a responsible approach to utilizing marginal resources with a minimum of new installations. We see that an increasing number of our subsea projects are related to such satellite projects“.

The standardized subsea tree developed by the company
enables shorter time from project start to first oil. The standardized tree is
designed with Vectus control systems and reduced use of steel.

These improvements contribute to 50 per cent reduced weight
as well as reduced costs, simplified installation and operations.

“This award demonstrates that our standardized solutions are competitive and have the flexibility to also be applied on fields with demanding temperature and pressure conditions. We have over time cooperated closely with Equinor in the development and optimization of such equipment, and we are pleased to continue this close collaboration in the new Kristin Sør project“, Digre added.

The Kristin Sør project will include deliveries from Aker
Solutions in Tranby, Egersund, and Ågotnes in Norway, Curitiba in Brazil,
Reading in the UK, and Port Klang in Malaysia. The manufacturing of the subsea
trees will take place at the facility in Curitiba. At peak, around 220
employees from the various locations will work on the project.

The high-pressure, high-temperature Kristin gas-condensate
field is located in the Norwegian Sea, off the coast of mid-Norway. The development
is done by operator Equinor and partners Petoro, Vår Energi, and Total.

The contract award for Kristin Sør is subject to a final investment decision and final regulatory approval. According to Aker Solutions, the new order will be booked in the fourth quarter of 2020 in the Subsea segment.

To remind, Aker Solutions and Kvaerner last month completed a merger whereby Aker Solutions absorbed all the assets, rights, and obligations of Kvaerner. As a consequence and Kvaerner has been dissolved.