An Engineering, Procurement, Construction and Management (EPCM) contract for modifications and projects at the Ormen Lange/Nyhamna onshore facilities has been awarded to Kvaerner (OSE: KVAER) by A/S Norske Shell. The six-year (with a two plus two year option to extend) framework agreement is worth an estimated 6 billion NOK for the initial duration.
The contract is the largest of its kind in Norway this year. Shell appreciated Kvaerner’s HSE performance history and values continuity. The Nyhamna gas plant processes natural gas from Ormen Lange gas field in Møre Basin on the Norwegian Sea. Kvaerner had major contracts for the initial construction of the facilities almost 10 years ago and that work was completed in 2007. This project is a new challenge as the plant will stay in full production.
Front end engineering and design will start immediately and the project is expected to generate value for the next five to ten years. Kvaerner is up almost 8% with 15 minutes left in today’s session.
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