Following
the Letter of Intent announced on December 15, 2022, Aker Solutions confirms it
has now signed the contract for the Draugen project with OKEA. The contract is
of substantial1 value.
Reference
is made to the stock
exchange announcement on December 15, 2022, regarding the LOI with OKEA for
the Draugen Electrification project.
OKEA has
selected Aker Solutions as the main contractor for Engineering, Procurement,
Construction, and Installation (EPCI). The project will involve major
modifications of the existing platform to enable power from shore. As a result
of this, the emissions from Draugen are estimated to be reduced by as much as
200,000 tons of CO2 per year.
“Replacing the
current power generation from gas turbines at the offshore platform and instead
electrifying these from shore will enable production of oil and gas from
Draugen with significant reductions in CO2 emissions. Lifetime-extension of
these platforms are of crucial importance for the increasing need for energy
and energy security in Europe,” said Paal Eikeseth, executive vice president
and head of Aker Solutions' Electrification, Maintenance and Modifications
(EMM) business.
Lifetime-extension
of this important field can result in 20 years of production and value
creation.
“Being awarded
this important electrification contract is a true testament of our strong
track-record and leading solutions for decarbonizing oil and gas production.
Reduction of climate footprint is very high on the agenda for our customers and
the strong competence across our organization is a true enabler of our
customer’s success in this area,” said Eikeseth.
The project
has started up and are scheduled to be completed in 2026. The project is managed
from Aker Solutions’ offices in Trondheim in Mid Norway. Several Aker Solutions
offices will be engaged in the engineering phase, and the construction will be
executed at the company’s yard in Egersund.
“Aker Solutions in Mid Norway has unique competence in technical disciplines
and project execution that will be utilized for the electrification of these
assets,” added Eikeseth.
Aker Solutions
will recognize an order intake of around NOK 2.5 billion in the first quarter
of 2023 in the EMM segment.
1Aker Solutions defines
a substantial contract as between NOK 2.5 billion and NOK 4.0 billion.