Kårstø job for Veidekke

June 12, 2003, 14:00 CEST

A contract worth about NOK 200 million for construction work at the Kårstø processing complex north of Stavanger has been won by Veidekke Entreprenør AS.

This job embraces civil works, module foundations and various process buildings for the Kårstø expansion project (KEP2005).

It has been awarded by Statoil on behalf of Gassco, operator for the complex, and the Gassled partnership which owns the bulk of Norway’s gas transport infrastructure.

Work under the contract is due to begin in August and will continue until the autumn of 2004. About half the workforce deployed by Veidekke and its sub-contractors will be local.

"This is the first construction contract for KEP2005 and it represents a milestone in the project," says project director Knut Magne Vågen.

KEP2005 will equip Kårstø to receive and process rich gas from Statoil’s Kristin project in the Norwegian Sea, and expand ethane production capacity at the complex by more than 50 per cent.

Costed at NOK 5.74 billion, the development is due to be completed by 1 October 2005. That coincides with the start of production from Kristin.