Re Contracts

RNS Number:9325O
Kvaerner PLC
19 December 2001


Kvaerner wins two deepwater contracts from Petrobras in Brazil worth US$13
million

LONDON, 19 DECEMBER 2001: Kvaerner, the international engineering and
construction Group, today announced that it has been awarded two deepwater
contracts from Petrobras in Brazil.  The first contract is for the supply of
twelve subsea Xmas Trees for operation in water depths of 2,000 metres.  The
second contract is for the development of a Workover System to be used for
subsea installations in up to 3,000 metres of water.   The total value of the
two contracts amounts to US$13 million.

For the Xmas Trees, Kvaerner Oilfield Products' scope in Brazil includes
procurement, project management, fabrication, engineering and manufacture. 
Including a previous order for eleven Xmas Trees from the same customer,
Kvaerner's Brazilian operation will be supplying Trees to Petrobras at the
rate of one to two per month until mid 2003.  The first Tree from the most
recent order will be delivered in July 2002 and will be installed on the East
Albacora Field in the Campos Basin. 

Following the supply to Petrobras of the world's first subsea Xmas Tree
designed for 3000 metre water depths, Kvaerner has been awarded a contract to
develop a Workover System consisting of riser, terminal head,
electro-hydraulic controls, umbilicals and service line. This system will be
used for subsea installation and well intervention/workover and will cater for
both existing and future Petrobras systems. 

The contract will be project managed and partially engineered and manufactured
in Brazil, with some work related to the electro-hydraulic controls being
undertaken by Kvaerner Oilfield Products in the UK.  This contract is for the
first phase of a co-operation agreement between Kvaerner and Petrobras for
front-end engineering and design. The second phase, the fabrication of a
prototype, is planned to start in the third quarter of 2002. 


For further information:

Roger Trett, Vice President, Commercial, Kvaerner Oilfield Products: +44 
(0)20 7559 6004 or Marcelo Taulois, President, Kvaerner Oilfield Products,
Brazil: [phone] or Paul Emberley, Vice President Group Communications:
[phone] or  [phone] or [e-mail]

Notes to editors:
Kvaerner is a world-class engineering and construction Group. The Group's
activities are organised in two core business areas: E&C (engineering and
construction), and Oil & Gas.  It also has interests in shipbuilding and the
provision of services to the pulping industry.  The Group has annual revenues
of more than US$6 billion, with some 34,000 permanent staff located in more
than 30 countries throughout Europe, Africa, Asia and the Americas. 

Kvaerner Oilfield Products is a fully integrated company that provides a
complete range of surface and subsea services for the oil and gas industry,
from front-end studies and engineering through fabrication to installation,
maintenance and operational support. These services can be provided for new
and existing fields either as individual projects or complete packages,
including life-of-field services.