Successful Aker Kvaerner partnership wins another large LNG contract

Aker Kvaerner in joint venture (50/50) with Ishikawajima-Harima Heavy Industries (IHI) was awarded a contract for the engineering, procurement and construction of the Ingleside Energy Center regasification terminal in Ingleside, Texas, USA. The contract value to the Aker Kvaerner and IHI joint venture is USD 665 million. The project is expected to take approximately three years to complete, after Ingleside Energy Center elects to issue a Notice to Proceed. Construction is scheduled to begin the first quarter of 2007.

19 Jul 06

The Ingleside Energy Center LNG terminal will be the second large LNG regasification project to combine Aker Kvaerner’s expertise in regasification engineering and construction management for LNG facilities and IHI’s position as a market leader within design and manufacturing of LNG storage and processing systems in one integrated delivery model.

The design and engineering will be directed from Houston involving approximately 125 personnel from Aker Kvaerner and IHI. In addition, the project will employ a peak construction labor force of approximately 750.

"We are proud of our track record within the oil and gas and LNG regasification industry and our unique partnership with IHI for excellence in delivering LNG tanks and terminals" said John Siffert, President of Aker Kvaerner’s LNG business. "We look forward to working with Ingleside Energy Center which we believe will benefit from this exclusive collaboration between two leading global EPC project delivery companies with a proven delivery model"

Ingleside Energy Center, a subsidiary of Occidental Petroleum Corporation, was granted a Federal Energy Regulatory Commission (FERC) permit in July 2005. The facility will process approximately 1.0 billion cubic feet of gas per day.

Aker Kvaerner, Inc., the center of excellence in LNG regasification terminals and IHI Inc., the largest global supplier of LNG onshore storage tanks are the contract parties responsible for delivering the project. The consortium is a powerful alliance which draws on the best expertise of the partners to deliver an outstanding result for our customers and together brings over 35 years of combined experience in LNG storage and regasification.

ENDS

AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. The Aker Kvaerner group is organized into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities.

The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 41.4 billion and employs approximately 21 000 people in more than 30 countries.

Aker Kvaerner is part of the Aker Group (www.akerasa.com), a leading multi-industry powerhouse with more than 40 000 employees and NOK 62 billion revenues. Aker owns 50.01 per cent of Aker Kvaerner, and the group is also a major European shipbuilder and a significant participant in the fisheries industry.

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com

Oil, Gas, Process & Energy executes technology development, facility services and engineering and construction services for industries as diverse as Oil & Gas Onshore and Offshore Developments, Chemicals & Polymers, and Mining & Metals. We deliver a full spectrum of capital development projects and life-cycle services through a portfolio of global businesses. With an annual turnover of US $1.3 billion, Oil, Gas, Process & Energy (OGPE) business area of Aker Kvaerner employs more than 5,975 people operating worldwide.
Aker Kvaerner, Incorporated is the Center of Excellence for GoM offshore, LNG regasification, gas processing, methanol and polymers and power generation: providing engineering, procurement, construction management and project management for clients worldwide.

IHI ( Ishikawajima-Harima Heavy industries Co. Ltd.) is the joint venture partner on the Cameron LNG Terminal project and the largest global supplier of LNG onshore storage tanks / terminals and a leading supplier of other LNG technology and machinery. IHI has delivered over 100 LNG tanks globally over the past thirty years. Demand for LNG is rapidly increasing worldwide and the growth in construction of new LNG exporting and receiving terminals is expected to continue. IHI intends to expand its LNG related business with these experiences and technologies into this global prospective market. Additional information about IHI can be reviewed on their website http://www.ihi.co.jp

Contact Information

Donna Rougeaux

Manager Corporate Communications

Aker Kvaerner Oil, Gas, Process & Energy

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