Aker Kværner Forms FPSO Operations Entity

Aker Kvaerner and the Norwegian ship owner Aktieselskabet Borgestad ASA established a new company named Aker Borgestad Operations AS, combining expertise within oil field processing and marine operations. The new company will operate oil and gas production vessels on behalf of Aker Floating Production, a company which owns several Floating Production Storage and Offloading (FPSO) units. This business model allows Aker Floating Production to remain focused on developing business, leveraging Aker Kvaerner and Borgestad, which both have operations of assets as part of their core business. The Aker Kvaerner company Aker Kvaerner Operations AS and Aktieselskabet Borgestad ASA will each own 45 per cent of the shares in Aker Borgestad Operations, while Aker Floating Production ASA and Aker Yards ASA will own 5 per cent each. Aker Floating Production has so far acquired three tankers which will be converted to FPSOs. The company plans to develop and own a minimum of four FPSO's. It has selected the jointly established company as their partner to undertake the responsibility for the operation of the vessels. The companies behind Aker Borgestad Operations have experience related to oil and gas processing, marine operations and optimisation, Health, Safety and Environment (HSE) issues, and this will form the basis for the operations services to Aker Floating Production. Aker Borgestad Operations will be established with head office in Brevik, Norway. Gard Madsen from Borgestad is appointed Managing Director.