Statement re Sale to Yukos

RNS Number:1685N
Kvaerner PLC
15 November 2001


Kvaerner agrees final terms for sale of activities to Yukos - subject to
lender's approval

LONDON, 15 NOVEMBER 2001: Kvaerner, the international engineering and
construction Group, and Yukos Oil, the Russian Oil company, today announced
that they have agreed final terms for the sale of activities known as
'Kvaerner Hydrocarbons' and 'Kvaerner Process Technology', to Yukos Oil of
Russia.  The total consideration for the sale amounts to US$100 million, of
which US$50 million is expected to be paid immediately, following an earlier
deposit payment of US$5 million.  The balance of US$45 million will be paid to
Kvaerner on 30 November 2001.  

"Yukos Oil has, by its willingness to accelerate the final negotiations of
this agreement, again made an important contribution to resolve Kvaerner's
financial problems - and its need for short-term liquidity," said Kristian
Siem, President & CEO of Kvaerner.

Completion of the sale is dependent on approval from the Group's lenders. The
completion is necessary to secure the Group's immediate requirement for
working capital - and work is in progress to secure the appropriate approvals
during the course of the day.


For more information: 

Paul Emberley, Vice President Group Communications: [phone] or 
[phone] or [e-mail]
 
Note 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.  Kvaerner is a Norwegian
registered business, but has a London, UK-based international headquarters. 
The Group has annual revenues of more than US$6 billion, with some 35,000
permanent staff located in some 35 countries throughout Europe, Africa, Asia
and the Americas.