Aibel awarded major Equinor contract in Hammerfest, Norway

2020-09-02

Aibel has been awarded a contract to increase capacity for gas extraction and in a next step work to reduce CO2 emissions from the Snøhvit field, a natural gas field on the Norwegian continental shelf outside Hammerfest. Equinor has awarded the contract to Aibel through the parties in Snøhvit Unit *.

The contract is a so-called FEED contract (Front-end engineering), for modification of the Hammerfest LNG plant. The value of the contract is estimated at NOK 140 million. In addition, the contract includes an option for each of the sub-projects for an execution phase including engineering, procurement, construction and installation (EPCI) for compression and electrification. The value of the options is of major size**.

Aibel’s task in the FEED phase consists of two parts: The first sub-project involves the construction of an onshore compression station at the Hammerfest LNG plant. The second sub-project is related to investigating electrification of the Hammerfest LNG plant to minimize the Snøhvit carbon footprint.

"We are excited to become part of further development of the future LNG plant at Melkøya outside Hammerfest, where we already have a long and good track record from our modification and maintenance contract," says Aibel’s President and CEO Mads Andersen.

"We are very pleased that Equinor has chosen us as a partner for important projects on the Norwegian Continental Shelf for the third time in a short period of time," the CEO continues, referring to this summer's award of the electrification of Gina Krog and Sleipner as well as the portfolio agreement for Oseberg.

"We are proud that Aibel is once again gaining confidence from Equinor to contribute to the transition to a cleaner and more sustainable business on the Norwegian Continental Shelf," says Christian Johansson Gebauer, Head of Business Area Construction & Services at Ratos.

The project will be managed from Aibel's office in Asker, and around 80 employees will participate in the FEED phase. Start-up takes place immediately, with the scheduled delivery of the FEED in April 2021.

*The Snøhvit Unit partners are: Equinor Energy AS (operator), Petoro AS, Total E&P Norge AS, Neptune Energy Norge AS and Wintershall Dea Norge AS.

**Aibel uses the term "major size" on contracts where the value of Aibel’s scope is higher than NOK 2.5 billion.

LNG stands for Liquefied Natural Gas.

 

For further information, please contact:
Christian Johansson Gebauer, Head of Business Area Construction & Services, Ratos, +46 8 700 17 00
Helene Gustafsson, Head of IR and Press, Ratos, +46 8 700 17 98, helene.gustafsson@ratos.se

About Ratos:
Ratos is a business group consisting of 12 companies divided into three business areas: Construction & Services, Consumer & Technology and Industry. In total, the companies have SEK 38 billion in sales and EBITA of SEK 1.8 billion. Our business concept is to develop mid-sized companies headquartered in the Nordics that are or can become market leaders. We enable independent mid-sized 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.