Re Contract

RNS Number:5982G
Kvaerner PLC
9 July 2001



Kvaerner wins key oil and gas contract from Shell, in China

LONDON, 9 JULY 2001: Kvaerner, the Anglo-Norwegian engineering and
construction Group, today announced that it has been awarded a key contract by
Shell Exploration (China) Limited (SECL).  Kvaerner will provide Front End
Engineering Design (FEED) and detailed engineering of the onshore gas
gathering, processing and transmission system, for the Changbei Gas Field in
the People's Republic of China.

Hassan Basma, managing director of Kvaerner E&C's Singapore office, said:
"This is a significant win for Kvaerner.  We believe that Kvaerner's ability
to demonstrate a competitive service capability from a multi-office
environment was one of the key factors in securing this contract.  Our
advanced 'virtual office' systems will play an important role in ensuring the
smooth execution of the project in accordance with the fast-track schedule
requirements."

Initial work on the project will be carried out by Kvaerner's Singapore office
on an integrated task force basis, within a very fast-track schedule of just
three months. This phase involves conceptual design work and preparation of a
cost estimate that will form part of SECL's submission for an overall
development programme.  Kvaerner will work closely with a Chinese Design
Institute to ensure that local regulations and engineering practices are
incorporated into the FEED.  Kvaerner's Beijing office will also be involved,
assisting with local procurement, logistics studies and construction advice. 

Following a final investment decision, the latter part of the work will be
executed from Kvaerner's Beijing office and will comprise completion of the
basic design/drawings, placement of orders for long- lead items, and
finalisation of the EPC contract for execution of the complete project.


For further information:  In the UK, Paul Emberley, Vice President, Group
Communications, Kvaerner PLC: [phone] or [phone] or
[e-mail]  or Vanessa Mourant, Communications Manager,
Kvaerner E&C: [phone] or [phone] or 
[e-mail] or in Singapore, Hassan Basma, Managing Director,
Kvaerner E&C, Singapore: [phone] or  [e-mail] or visit
the Group web-site at http://www.kvaerner.com 

Notes to editors:

1. 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.  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.

2. The E&C business area of Kvaerner specialises in the provision of process 
technology, design, engineering, project management, procurement and
construction to a number of industrial sectors on a worldwide basis: chemicals
and polymers, pharmaceuticals, oil and gas, water, energy, nuclear, minerals,
mining, steel and transportation.  Kvaerner's breadth of capability is unique
among its competitors.  It offers the complete range of services that are
necessary to realise global projects from conception to start-up.  These
services include a portfolio of advanced process technologies, research and
development, test work, a full range of engineering studies (including
bankable feasibility and environmental studies), total project management,
engineering and design, procurement, construction and maintenance services.   
Kvaerner E&C employs more than 9,000 people operating from over 30 offices
worldwide.