Engineering Services Contract Established Between BP and Aker Kvaerner

Wednesday, August 25, 2004
Aker Kvaerner Netherlands B.V., part of the Aker Kvaerner Group, has received a letter of intent, based on Contract Terms currently being finalised, to perform Engineering, Procurement and Construction Management Services (EPCm) for major BP Petrochemical and Refining sites in Germany. Under this contract Aker Kvaerner will perform Engineering, Procurement services and Construction Management services for small and medium size projects at the BP sites in Gelsenkirchen, Köln, and Marl with an option for Lingen also to participate. The duration for this agreement is five years with the possibility of further extension in terms of locations and duration. "This is an important and strategic frame agreement for Aker Kvaerner," says Jarle Tautra, executive vice president in Aker Kvaerner. "This contract emphasises our strategic direction and our decision to be the contractor of choice for premier customers such as BP." BP is an industry leader in Germany. Number one in retail of automotive fuels, number two in crude processing capacity. The petrochemical production capacity of the sites taking part in the initiative amounts to more than 11 million tons of product per annum, which represents more than 60% of BP's production capacity in Europe. The contract, won after a detailed pre-qualification exercise and in competition between several international companies, forms part of BP's global initiative to improve its project execution performance in terms of capital productivity and EPCm efficiency. "The co-operation between our companies will support efficient execution of small and medium-sized projects and stimulate synergies across the sites engaged in the initiative. We will establish close co-operation with the BP sites and BP's corporate organization to give them our best engineering and project management support and further develop our competence and knowledge of the German refinery and petrochemical industry," adds Tautra.
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