Aker Kvaerner Deepwater contract for GOM

Monday, October 24, 2005
Chevron, with partner Kerr-McGee, has awarded Aker Kvaerner, Inc. the semisubmersible hull and mooring system contract for their Blind Faith project in the Gulf of Mexico. The contract has a total value of approximately $120 million. Aker Kvaerner's scope of work includes engineering, procurement, construction and transportation. The award is a recognition of the deepwater competence in Aker Kvaerner. The Blind Faith platform to be located in the Mississippi Canyon 650 block, approximately 162 miles southeast of New Orleans is part of the ultra-deepwater Gulf of Mexico in 6,500 feet water depth. This contract award follows more than one year of concept studies, pre-FEED (front-end engineering design) studies and a FEED study for the Blind Faith project by Aker Kvaerner's Deepwater Business unit. "This contract award represents a breakthrough for Aker Kvaerner's deepwater business," says President and CEO, Inge K. Hansen. This development will utilize Aker Kvaerner's Deep Draft Semisubmersible (DDS) concept which has been conceived specifically for the application of steel catenary risers in the ultra-deepwater and current-heavy Gulf of Mexico environment. The DDS represents an evolution of the strong Aker Kvaerner semisubmersible lineage. "Aker Kvaerner has a track record within the delivery of floating offshore platforms second to none. The new contract is a recognition of our competence within the deepwater segment. We consider the Gulf of Mexico to be the most competitive deepwater market in the world and of strategic importance to Aker Kvaerner," says Hansen. The Blind Faith semisubmersible will be delivered using several Aker Kvaerner entities such as Aker Kvaerner, Inc., Aker Kvaerner Verdal, Aker Kvaerner Engineering & Technology and Aker Marine Contractors. This delivery model allows control over the entire value chain. President of Aker Kvaerner's deepwater business, Risto Neuvo, says "The Blind Faith project utilizes the best Aker Kvaerner combined global experience, resources and competence in Houston and Norway, such as concept development and project management in Houston and detail engineering, procurement and fabrication in Norway. This, along with our proven execution model, ensures a predictable delivery to Chevron." The execution phase of the project will be initiated immediately with Aker Kvaerner to deliver the DDS hull to a Gulf of Mexico integration yard in June 2007.
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