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Aker Floating adds to India order



By Upstream staff 

Photo by Aker Floating Production


Norwegian offshore production owner and operator Aker Floating Production said today a charter deal with India's Reliance Industries had been expanded to $750 million from an original $600 million.

The deal with Reliance Industries for a five-year bare-boat charter of the group's first floating production, storage and offloading unit Aker Smart 1 was announced in January.

"The scope of work has increased significantly during this period," Aker Floating Production chief executive Svein Olsen said in a statement, Reuters reported. "This is a very large, important contract for us," he said.

Aker Floating Production said the parties had agreed to postpone the start-up of production to March 2008 from February to take account of the increased scope of the work.

Revenues will be generated by the project well ahead of the schedule set forth in the initial operating plan, it said.

Conversion of the tanker Polar Alaska, formerly owned by ConocoPhillips, into the Aker Smart 1 floater has already started at the Jurong Shipyard in Singapore.

Engineering group Aker Kvaerner, a sister company within the Aker group, said separately it had sealed a final deal to provide a complete subsea production system worth more than $300 million for the project.

Aker Kvaerner said it would book the contract as order intake for the second quarter of 2007.

Aker Floating Production shares closed flat at Nkr81 ($13.40) just before the announcement. Shares in Aker Kvaerner ended off 0.2% at Nkr143 in line with the Oslo bourse benchmark index.


Thursday, 10 May, 2007, 18:09 GMT  | last updated: Thursday, 10 May, 2007, 18:09 GMT

Smart 1: an artist's impression of Aker Floating Production's first unit
 

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