Aker Solutions scores several important contracts

Aker Solutions (OSE: AKSO) has recently delighted investors with several large contracts. This helped to push its stock up by some 7% last week and about 17% within one month. In one year the stock is still down by around 30%.

Most recently the company said it was awarded a three-year frame agreement with independent oil and gas exploration and production company Talisman Energy Norge AS, a part of global upstream oil and gas company Talisman Energy Inc. from Canada. The agreement will include engineering, procurement, installation and commissioning (EPCI) for maintenance and modification of Talisman Energy’s projects on the Norwegian continental shelf.

The contract is valued an estimated 870 million with an option for six more years. The contract will bring work to Norway with Studies, EPCI, maintenance and modifications managed from Stavanger and prefabrication work some 60 kilometres away at the Egersund-yard. Talisman Energy is an important player in the North Sea and a significant opportunity worldwide.

Anadarko Petroleum, another giant oil and gas exploration player, is ordering eight steel rube umbilicals to deepwater offshore Lucius oil and gas field in the Gulf of Mexico. Aker Solutions with Aker Subsea Inc as the contract Party will provide project management, design, engineering, and manufacturing as well as all associated ancillary equipment for installation of two gas lift dynamic-, one gas lift infield-, three electro/hydraulic infield- and two electro/hydraulic dynamic production umbilicals.

The umbilicals will be manufactured in Aker Solutions’ Mobile, Alabama, USA factory. Aker Solutions is hoping to get business from Anadarko across many product lines and sees this order as a major step towards that goal. Final deliveries are expected in Q3 2013. The value of the contract was not disclosed.

Earlier on this week the company also said that Daewoo Shipbuilding & Marine Engineering from South Korea exercised its option for another deepwater CLIP riser drilling riser. The riser goes to Atwood Oceanics, Inc.'s ultra-deepwater drillship Atwood Advantage. Atwood Advantage will be able to reach depth of 12 000 ft and drilling depths of 40 000 ft and is expected to be completed in 2013. Delivery of the drilling riser system is set for Q1 2014. The value of this contract is about 48 million USD and it has been booked in Q4 2011 accounts.