Offshore staff

OSLO, Norway -- BP has entered into final clarification with Aker Kvaerner with a view to awarding a contract for the steel substructure for the Valhall re-development project in the North Sea. Contract award is subject to a decision on the part of the partners to proceed and on governmental approval of the plan for development and operation (PDO). The PDO will be submitted to the authorities at the end of 1Q 2007. The contract value is approximately $73 million.

The main reason for developing a new field center at Valhall is subsidence on the existing field center. The partners also want to make operations more efficient. The new center will consist of an integrated processing and housing platform, which will become operative in 2010. The jacket will be installed one year ahead of this. With the new platform in place, the Valhall field will probably continue to be onstream until 2050.

The Aker Kvaerner Verdal fabrication yard in Mid-Norway will execute the project, which includes procurement and fabrication as well as load-out and sea-fastening of the steel jacket substructure and piles for fastening the jacket to the seabed.

The Valhall Re-Development jacket will be number 34 in the series of jackets delivered from Aker Kvaerner Verdal.

"The continuity in fabricating jacket structures combined with efficiency improving year by year has resulted in a very streamlined and efficient project execution model for this type of project and has made it possible to win in a tough international competition," says Bjørnar Skjevik, president of Aker Kvaerner Verdal.

The Valhall field lies in 75 m (246 ft) water depth in the Norwegian sector of the North Sea. BP Norge operates the field. Partners include Hess Norge AS, Shell Norge AS and Total E&P Norge AS.

2/28/2007