Aibel awarded another billion-kroner contract – renewables and electrification now account for 60% of order backlog

2021-11-26

Ratos company Aibel has been awarded another major contract with Equinor valued at more than NOK 4 billion. The contract pertains to engineering, procurement, construction and installation (ECPI) for the partial electrification of the Oseberg Field Centre and Oseberg South. The contract also includes an upgrade of the gas processing capacity at the Oseberg Field Centre. As part of this project, Aibel will continue to play a central role in decarbonising Norwegian oil and gas production.

The contract was awarded following Aibel’s completion of the front-end engineering and design (FEED) of the project, which aims to maximise gas exports from Oseberg and at the same time establish a solution for electrification of the gas compressors. This will reduce CO2 emissions from offshore production by more than 320,000 tonnes per year from 2025. 

 

“The contract was secured only a few days after Aibel was awarded four major Equinor contracts with a total value of around NOK 5 billion. This means that Aibel has signed contracts for almost NOK 10 billion this week. Naturally, as an owner, we are pleased with this development, particularly since Aibel is going from strength to strength in its transformation towards renewables in its order backlog, enabling long-term sustainable value creation,” says Christian Johansson Gebauer, President Business Area Construction & Services, Ratos.

 

The Oseberg contract means that, for the first time, the share of renewables in Aibel's order backlog is greater than the oil and gas share. Renewables now account for 60% of the order backlog of approximately NOK 14 billion. This is a milestone in Aibel’s ongoing transformation.

 

The extensive project execution work will be carried out at Aibel’s offices in Bergen and Stavanger, with support from the offices in Haugesund and Oslo. The project will start up immediately and is scheduled to be ready for production in the summer of 2025 and fully completed in the summer of 2026.

 

“This week, Aibel has consolidated its position as the leading supplier of solutions for electrification of offshore and onshore production and processing plants. We are proud to play a central role in the work to decarbonise Norwegian oil and gas production. The Norwegian oil and gas industry has an ambition to realise a 40% reduction in CO2 emissions from the shelf by 2030. With this contract, Aibel will be able to make a significant contribution to achieving this goal,” says Mads Andersen, President and CEO of Aibel.

 

The contracts are conditional upon the customary approval by the authorities.

 

For further information:
Christian Johansson Gebauer
President Business Area Construction & Services, Ratos
+46 8 700 17 00
 

Mads Andersen
President and CEO, Aibel AS
+47 982 96 501

 

 

About Ratos:
Ratos is a business group consisting of 12 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2020, the companies have approximately SEK 34 billion in sales. Our business concept is to develop companies headquartered in the Nordics that are or can become market leaders. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People.