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Product category: Oil, Gas, Petrochemical Industry News
News Release from: Aker Kvaerner Oil and Gas
Edited by the Processingtalk Editorial Team on 24 January 2008

North Sea framework agreement with Shell

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Aker Kvaerner has signed a five-year partnership with Shell UK and Norske Shell covering the provision, installation, commissioning and life-of-field support of subsea control systems in the North Sea

The framework agreement is signed for an initial five year period, with five optional one-year extensions It could be worth between GBP20 and 30 million over the first five years

The contract encapsulates their existing solid working relationship, which has been running since the late 1970s.

The deal brings the Aker Kvaerner Subsea controls delivery and service, including aftermarket services, into one contract arrangement to ensure maximum efficiency in supporting Shell projects.

Remi Birkeland, senior vice president for controls in Aker Kvaerner Subsea, said: "The agreement means Shell will get a sustained, across-the-board service to meet their current operational requirements.

Delivering such a broad scope of services needs a single focal point and this agreement avoids the inefficiences of one-off contracting.

This is the latest agreement for Aker Kvaerner Subsea where a major operator can bring our services into play at any time, with short notice, calling upon the specific resources in question.

The agreement means we have in place a close, long-term relationship that reflects the commercial imperatives of our client.

It guarantees high quality operational performance, and underpins our 'preferred partner' status in the market".

Delivery of the terms of the agreement will be managed from the Aker Kvaerner Subsea Aberdeen operations, where the global management of the controls systems organisation is located.

The Aberdeen office supervises subsea controls operations in Australia (Perth), Brazil (Curitiba), Malaysia (Kuala Lumpur and Port Klang), Norway (Oslo) and the US (Houston).

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