Aker and Statoil Cancel Cat B Contract

MarineLink.com
Monday, June 24, 2013

Aker Solutions ASA and Statoil ASA have cancelled a contract for delivery of a semi-submersible rig capable of year-round well-intervention services on the Norwegian continental shelf.

The companies in April 2012 agreed Aker Solutions would build the Category B (Cat B) rig and use it to provide Statoil with a range of well-intervention and drilling services for an initial eight years, starting in 2015. The technology development needed to build the rig has since proven to be considerably more demanding than initially anticipated and the parties on June 24 mutually agreed to terminate the contract with immediate effect.

"Aker Solutions and Statoil have together concluded that the project can't be realized within the framework of the contract," said Per Harald Kongelf, regional president for Norway at Aker Solutions. "Unfortunately, the technological issues weren't solved in the initial system definition phase of the project. We still believe in the concept of Cat B, but the technology needs more time to be developed."

Well-intervention services are used to boost recovery rates from oil and gas production wells and have traditionally taken place on fixed platforms. Ships and rigs have in more recent years been developed to perform the same type of service on subsea wells where recovery rates have been much lower. Developing the subsea technology needed for Cat B to provide the required services in shallow waters proved to be particularly challenging.

"We made significant progress in developing Cat B," Kongelf said. "We will seek to use the experience we've gained to explore future possibilities for maturing and realizing this type of technology."

Each party will be accountable for its own project-related costs. Aker Solutions will in the second quarter book a one-off cost of NOK 375 million, of which NOK 355 million shall be recognized as an impairment of the investments in the Cat B project, while the remaining are operating costs. The charter period's contract value of NOK 11.2 billion will be removed from Aker Solutions' order backlog, which totaled NOK 71.7 billion at the end of March 2013.

The Cat B project was within the company's oilfield services business unit, which Aker Solutions has previously said it intends to spin off. The clarification surrounding the Cat B contract is expected to aid this process.

www.akersolutions.com

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Entries Sought for SHIPPINGInsight Award

Entries are now being accepted for the 2015 SHIPPINGInsight Award, which will be presented at the SHIPPINGInsight Fleet Optimization Conference & Exhibition, Oct.

Bollinger Appoints Sales VP

Bollinger Shipyards announces the promotion of Eric Bollinger to Vice President of Sales.   President and CEO Ben Bordelon made the announcement, stating, “Eric

Hyde Marine to Present on BWTS at Nor-Shipping

Company to Share Seamless Integration of Ballast Water Treatment System (BWTS); Experience in Retrofits for Small Footprint Installations at Nor-Shipping Maritime

Contracts

Bids Placed for Novy Port Icebreaker Contract

Seven companies submit bids for contract for Yamal Novy Port terminal icebreaker   The tendering process for the Yamal Novy Port terminal icebreaker design and build contract has kicked off,

Alewijnse Success at Damen Shiprepair Dunkerque

Electrical system integrator Alewijnse Marine Systems is celebrating the first anniversary of delivering electrical services and maintenance to vessels at Damen Shiprepair Dunkerque.

GE Gas Turbine to Power USCG Cutter

GE LM2500 gas turbine to power United States Coast Guard‘s eighth National Security Cutter   GE Marine reports that its LM2500 gas turbine will power the United

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Pod Propulsion Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1545 sec (6 req/sec)