Letter of Intent Signed

RNS Number:5950F
Kvaerner PLC
20 June 2001


Kvaerner Philadelphia Shipyard set to secure first major order:  Keystone
signs US$240 million Letter of Intent for four ships 

PHILADELPHIA, 20 JUNE 2001: Kvaerner, the Anglo-Norwegian engineering and
construction Group, today announced that it has received a Letter of Intent
from Keystone Shipping Company of Pennsylvania, USA, for the construction of
four handy sized (40,000 dwt) clean product carrier vessels.  The total value
of the award amounts to approximately US$240 million.  The vessels, the first
scheduled to be delivered in 2003, are to be built at the new state-of-the-art
shipyard in Philadelphia, formally opened today by Tom Ridge, the Governor of
the Commonwealth Pennsylvania, and John Street, Mayor of Philadelphia.  The
new shipyard is the most advanced such facility in America.

 "In more ways than one, we're building for the future." said Ron McAlear,
President of Kvaerner Philadelphia Shipyard.  "With the completion of this
yard - we're creating new jobs by launching the re-birth of shipbuilding in
this city.  Today's announcement of an agreement with Keystone is a solid
expression of confidence in this facility."

Based on today's Letter of Intent the parties will now enter into negotiations
with the objective of establishing a final contract.  A final contract will be
subject to MARAD Title XI or other equivalent financing arrangements.


For further information:  Paul Emberley, Vice President, Group Communications,
Kvaerner PLC: [phone] or [e-mail] or Ron McAlear,
President & CEO, Kvaerner Philadelphia Shipyard: [phone] or
[e-mail]

Note to editors: Kvaerner is a world-class Anglo-Norwegian engineering and
construction Group.  It meets the needs of its customers by adding value to
their business - through the provision of innovative, cost-effective solutions
- for challenges in the hydrocarbons, process and metals industries.  The
Group's activities are currently organised in two core business areas: E&C
(Engineering and Construction), and Oil & Gas.  The Group also has interests
in Shipbuilding, and the provision of equipment for the Pulping industry. 
Kvaerner is a Norwegian registered business, but has a London, UK-based
international headquarters.  The Group has annual revenues in excess of US$6
billion, with some 35,000 permanent staff located in almost 35 countries
throughout Europe, Asia and the Americas.  In North America, Kvaerner employs
some 8,000 people.