China: Aker Solutions Signs First Subsea Contract with CNOOC

Aker Solutions has signed a subsea contract with the state-owned oil company China National Offshore Oil Corporation (CNOOC) to supply a subsea production system for the Yacheng 13-4 gas field.

Both parties inked the contract at an official signing ceremony at Zhanjiang, China.

The contract, valued at approximately USD 20 million, is the first subsea production system contract Aker Solutions has signed with CNOOC. It marks a successful entry into China’s subsea market.

The field development is located in the north of South China Sea, approximately 72 kilometres southwest of Sanya City, Hainan Province of the People’s Republic of China. The field’s water depth is approximately 90 metres.

Scope of work covers engineering, manufacturing and delivery of three subsea wellhead systems, three gas producing subsea trees, control systems, subsea distribution system and installation support services.

Deliveries are expected to begin in the third quarter of 2011.

At the contract signing ceremony, Dave Hutchinson, President – Subsea Asia Pacific, Aker Solutions said: “We are thankful to CNOOC for giving us the opportunity to prove our subsea capabilities, and thrilled to be delivering in a country with high ambitions for increased energy production in the years to come. With more than two decades of industrial experience in this field, we can assure CNOOC that their project will be in highly capable hands”.

The project will be delivered out of Aker Solutions high-tech subsea manufacturing centre in Port Klang, Malaysia. This is the only facility in the world where a complete subsea production system can be manufactured in one location.

The contract party is Aker Solutions Malaysia Sdn Bhd.

Aker Solutions ASA, through its subsidiaries and affiliates (“Aker Solutions”), is a leading global provider of engineering and construction services, technology products and integrated solutions. Aker Solutions’ business serves several industries, including oil & gas, refining & chemicals, mining & metals and power generation. The Aker Solutions group is organised in a number of separate legal entities. Aker Solutions is used as the common brand/trademark for most of these entities.

Aker Solutions’ parent company is Aker Solutions ASA. Aker Solutions has aggregated annual revenues of approximately NOK 54 billion and employs approximately 22 000 people in about 30 countries.

Aker Solutions is part of Aker, a group of premier companies with a focus on energy, maritime and marine resource industries. The Aker companies share a common set of values and a long tradition of industrial innovation. As an industrial owner controlling 40.27 percent of the shares in Aker Solutions through Aker Holding AS, Aker ASA takes an active role in the development of Aker Solutions.

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Source:AkerSolutions , November 25, 2010;