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Contract for Kårstø expansion

July 3, 2003, 10:45 CEST

A contract worth just over NOK 700 million relating to the KEP2005 expansion project at the Kårstø processing complex north of Stavanger has been awarded to Norway’s Aker Stord yard.

Open the KEP2005 web -site >> (in norwegian only)

Covering mechanical installation and fabrication of equipment packages, this job has been placed by Statoil on behalf of Kårstø operator Gassco.

Work on the contract is due to begin in August and will be completed in the summer of 2005.

”Aker Stord has won this contract against stiff competition from other Norwegian and international suppliers,” reports Statoil project director Knut Magne Vågen.

”It’s gratifying that Norwegian industry has proved competitive for this job, and that Aker Stord submitted the best overall tender.”

KEP2005 will equip the Kårstø complex to receive and process rich gas from Statoil’s Kristin development in the Norwegian Sea.

In addition, the NOK 5.74 billion project will expand ethane recovery capacity by more than 50 per cent. Work is due to be completed by 1 October 2005, when Kristin comes on stream

Kårstø already processes rich gas from fields in the Norwegian Sea and the Tampen area of the North Sea, as well as condensate from the Sleipner area further south.

Output from the complex includes liquefied petroleum gases – propane and butanes – as well as ethane, naphtha and stabilised condensate (light oil).

Sales (lean) gas is exported by pipeline to continental Europe and the UK, and Kårstø ranks as the bigggest European facility of its kind and the third largest in the world.

The Kårstø processing complex and the KEP2005 expansion project are owned by the Gassled partnership.

The owners in Gassled are: ConocoPhillips, Eni Norge, Esso Exploration and Production Norway/Mobil Development Norway, Norsea Gas, Norsk Agip, Norsk Hydro Produksjon, Petoro, Shell International Pipelines, Statoil and Total E&P Norge.

Open the KEP2005 web -site >> (in norwegian only)