Re Contract

RNS Number:5209I
Kvaerner PLC
15 August 2001

Kvaerner secures US$190 million construction contract for Calpine power plant
in California

LONDON, 15 AUGUST 2001: Kvaerner, the Anglo-Norwegian engineering and
construction Group, today announced that it has been awarded a contract valued
in excess of US$190 million by Calpine Corporation.  Kvaerner will provide
project management, supplementary engineering and procurement services, and
full construction for a 750 MW electric power facility being developed at
Calpine's Pastoria Energy Center, located near Bakersfield, Kern County,
California, USA.

Keith Henry, Chief Executive, Kvaerner E&C, said: "This is our third power
plant for Calpine.  We enjoy an excellent working relationship with Calpine -
and we're delighted to be selected for this new project.  In the energy sector
alone, this project also brings our total order book during 2001 - to almost
US$900 million."

The project management, supplementary engineering and project support for the
combined cycle power plant will be provided by Kvaerner E&C, San Ramon,
California, and certain aspects of the construction will be subcontracted to
Kvaerner Songer, Washington, Pennsylvania.  The facility is targeted for
commercial operation in summer 2003. Kvaerner began preliminary site work in
June 2001.

In the U.S., Kvaerner E&C is currently building a further five power plants
with a total capacity of more than 2,700 MW. Among these are Calpine projects
including the Baytown Energy Center in Texas (800 MW) and the Ontelaunee
Energy Center in Reading, Pennsylvania (540 MW).  These projects reflect
Kvaerner's commitment to meeting the engineering and construction needs of
energy suppliers in the U.S. and internationally.


For further information:  In the UK, Paul Emberley, Vice President, Group
Communications, Kvaerner PLC: [phone] or [phone] or
[e-mail] 
Vanessa Mourant, Communications Manager, Kvaerner E&C: [phone] or
[phone] or  [e-mail] 
or in the U.S., Jason Cohen, Kvaerner, San Ramon, CA: [phone] or
[e-mail] or Kvaerner, Terry Alderson, Washington, PA: +1 (724)
223 0800 or [e-mail]
or click on Group's web-site at http://www.kvaerner.com 

Notes 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.  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.  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