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

People & Company News

Georgia Hooks Trident Seafoods

Trident Seafoods has opened a $40 million production and distribution center in Carrollton, Ga., providing 175 full-time jobs and the capacity to produce 50,000

Intermarine Opens Office in Ecuador

Intermarine, LLC, a transporter of project, breakbulk and heavylift cargo, announced it has opened an office in Quito, Ecuador.   The new office will operate

Harkand: Expanding the Fleet, Growing a Global Business

International inspection, repair and maintenance (IRM) company Harkand aims to be a $1 billion company. MR’s Tom Mulligan recently met with John Reed, the company’s CEO,

Contracts

ME Production Receives Two Scrubber Orders

ME Production subsidiary Marine Exhaust Technology has been awarded a new contract for the DFDS vessel Finlandia sailing on the route Rosyth-Zeebrugge. The scrubber contract includes design,

Asia-N.Europe Box Rates Jump 26 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped by 26 percent to $591 per 20-foot container (TEU) in the week ended on Friday,

CMA CGM-led Consortium Win Box Terminal Bid

The consortium formed by CMA CGM, Bolloré and CHEC won the bid process initiated by the Cameroonian government Following the bidding procedure initiated by the Cameroonian government,

 
 
Maritime Contracts Naval Architecture Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.5762 sec (2 req/sec)