Aker BP hands out framework contracts to Aker Solutions and Kvaerner

Norwegian E&P player Aker BP has awarded framework contracts to Aker Solutions and Kvaerner for as many as 10 years for each contract. 

Aker BP explained on Friday that the intent of the entered framework agreements is that the company in its field development projects develops and executes work by using a more integrated project delivery model; a “Platform Alliance” for each project.

Aker BP Senior Vice President (SVP) Projects, Olav Henriksen, said: “Our goal is to work more efficiently alongside the suppliers, as well as to minimise the total time it takes to deliver the final product. We want to work as one integrated team and with the same incentives to reduce costs and to remove non-value added activities.”

Both contracts, announced by their respective winners on Friday, are for six years, with an option for four additional years. Regarding the value of deals for both companies, it depends on how much work Aker BP calls for under the agreements.

Aker Solutions said it will provide engineering and procurement services for new offshore field installations to Aker BP. The scope is for a range of fixed facilities from small wellhead platforms to complete oil and gas field centers and the work starts this month.

The agreement covers work in all project phases and includes early-phase studies, front-end engineering and design (FEED), detail engineering and follow-on engineering. The work will mainly involve Aker Solutions’ employees in Oslo and Stavanger.

“We’re pleased to build on our relationship with Aker BP with this key contract and look forward to working together to drive efficiencies and maximize value,” said Luis Araujo, chief executive officer of Aker Solutions.

Kvaerner’s role

On the other hand, Kvaerner’s framework contract covers construction and hook-up of fixed offshore platforms, including topsides and steel jacket substructures. The first project is expected to be the Valhall West Flank normally unmanned installation.

Under Aker BP’s management, Kvaerner and the other alliance members will work integrated, with a “One for All – All for One” mind-set, Kvaerner explained.

With the frame agreement, Kvaerner’s role in the alliance will include fabrication of jackets and topsides for fixed platform installations. In the agreement, hook-up and commissioning assistance is also defined as a key Kvaerner role in upcoming projects.

Jan Arve Haugan, President & CEO of Kvaerner, said: “For Kvaerner, to become a strategic alliance partner with Aker BP opens up significant business opportunities.  Our role in the alliance means that we can leverage the expertise and capabilities from Kvaerner’s entire organisations at Stord, in Verdal and at Fornebu. The agreement is also an important driver for further development of new solutions, such as Kvaerner’s Subsea on a Stick concept for small, cost effective unmanned platforms.”

Valhall West Flank

Aker BP has also entered into a separate framework agreement with Heerema Marine Contractors for transport and installation of facilities offshore (Transport & Installation – T&I), including Call-off for transportation and installation on Valhall West Flank. This framework agreement is not included in the planned Alliance model.

According to Aker BP, Valhall Flank West will be developed through a normally unmanned installation (NUI). The goal is to submit the Plan for Development and Operation (PDO) in the second half of 2017.

Offshore Energy Today Staff