Kvaerner Oil Gas News

Agreement has been reached between Kværner and its largest shareholder, Aker Maritime, on a comprehensive industrial and financial solution for the Kværner group. This solution means that Kværner will secure additional equity through share issues and through the merger of Aker Maritime's core business with Kværner Oil & Gas. It builds on the main lines of the modified Yukos plan presented by Aker Maritime last week. Kværner's other large shareholder, Russia's Yukos Oil, has announced its support for the new solution and has withdrawn its original proposal. Negotiations are continuing with the bank coordinating committee on modified lending terms, and agreement on a recommended solution is expected within 24-48 hours.

DeepStar, a group consisting of 10 leading deepwater operators, has awarded Aker Kvaerner a contract for a study to develop a semisubmersible production platform for use in coming ultra-deepwater field developments. The study was won in competition with a number of deepwater floater expertise contractors, and Aker Kvaerner was awarded the contract based on the company's leading experience with deepwater floaters. DeepStar wants to get a credible solution for future developments in ultra-deep water depths down to 10 000 feet. In addition to the development of the floating platform itself, the scope includes other critical aspects such as design of the risers that will bring the oil and gas from the well to the surface. It also includes installation methods for mooring systems and risers.

Kvaerner today announced that it has reached agreement with its largest shareholder, Aker Maritime, on a comprehensive industrial and financial solution for the Kvaerner Group. Kvaerner Oil & Gas. It builds on the principles of the modified Yukos plan presented by Aker Maritime last week. Yukos Oil, has announced its support for the new solution. * A merger of Aker Maritime and Kvaerner Oil & Gas. Aker Maritime is valued at NOK 3.6 billion, including NOK 800 million in debt. issues. * A Directed Equity Issue of at least NOK 2 billion. book-building. * A Rights Issue for Kvaerner shareholders, as of December 14. per share as the directed Equity Issue. The agreement between Aker Maritime and Kvaerner involves the merger of Aker Maritime's core operations with those of Kvaerner Oil & Gas.

Kvaerner, the international engineering and construction group, announced that consents have now been secured from all creditors that are party to the debt restructuring in the group. The remaining key condition in the overall refinancing of the Kvaerner Group has thereby now been fulfilled. The other key elements in the refinancing scheme, a Directed Offering subscribed at the end of November 2001, and a Rights Offering, to be subscribed later this month, are proceeding according to plan. Formal closing of the debt restructuring and the Directed Offering are expected to take place tomorrow, and the Group’s internal cash pooling system will thereafter be fully operational.

the Norwegian shelf. The order, which is to be awarded to Kvaerner Oilfield Products, will be worth in excess of $110 million, and will involve the supply of equipment from Kvaerner companies in the USA, the UK, and Norway. Klepsvik, President of Kvaerner Oilfield Products Group, the specialist subsea subsidiary. The scope for the project includes the delivery of wellheads, valve-trees and subsea production control systems for ten wells. Four, 4-slot wellhead templates are also included. will assemble the wells at its Tranby site outside Oslo, Norway. The templates will be built at Kvaerner's yard in Egersund, Norway, where integration testing of the wellhead equipment will also be undertaken.

Kvaerner, has launched a new company with 18,000 employees in 17 countries and on five continents. The new company, to be known as 'Aker Kvaerner', will supply products, services, technology and solutions worth NOK 20 billion a year to the global oil and gas industry. Aker Kvaerner is the result of a merger between Aker Maritime and Kvaerner Oil & Gas, and forms one of four business areas within the Kvaerner Group. Subsidiaries of Aker Kvaerner have already won contracts totalling NOK 15.5 billion since the start of 2002, almost doubling the Group's order backlog in just over two months. The many companies embraced by the new organisation…

Kvaerner's Chief Executive Kjell Almskog rejected any merger of Kvaerner Oil & Gas with offshore supply firm Aker Maritime. "That has not been and is not an issue on the agenda," Almskog reportedly said after meeting with Trade Minister Grete Knudsen to discuss last week's raid of one-fourth of Kvaerner. Kjell Inge Roekke, through his 63 percent-owned Aker Maritime, had surprised Kvaerner management by buying shares, options and rights issues corresponding to about 26 percent in Kvaerner. Some analysts have interpreted Roekke's move as part of a plan to merge Aker Maritime with Kvaerner Oil & Gas, following several previous failed attempts by Kvaerner to buy Aker Maritime.

Kvaerner's chief official Kjell Almskog reportedly said a possible union between Kvaerner's Oil & Gas division and Aker Maritime is an exciting prospect but only theoretical, after the company announced that the two firms have common interests and a complementary spectrum of products. Aker Maritime's majority shareholder, Aker RGI, has said that it is looking for a potential partner or buyer of Aker Maritime.