In the first two days of the week, Aker Solutions (OSE: AKSO) has already communicated two major orders and some acquisitions in Norway. The first contract was for Ichthys gas-condensate field umbilicals awarded to Aker Solutions by the main EPCI contractor of the field McDermott International (NYSE: MDR). The value is around 440 million NOK. This was followed on Tuesday by a 485 million Mono Ethylene Glycol (MEG) reclamation plant order on the said Ichthys field for an LNG Project. It was awarded by Technip (Euronext: TEC).
Aker Solutions also announced the acquisitions of Subsea House and SSH Engineering from Subsea Holding AS. Together the two five-year old subsea tools and products developers employ about 40 people in Stokke, Vestfold county, Norway. The companies together developed a state-pf-the-art subsea products testing facility which is involved in the deal. It has test bunkers and large test pits with overhead crane capacity. Aker Solutions is happy to also get the experienced personnel and plans to recruit some 50-100 more people in a two-year window to further expand in Stokke as a part of a wider company strategy to bet on the growth of subsea business. The acquisition is expected to complete during Q3 subject to to approval from the Norwegian Competition Authority. Financial details were not disclosed.
Showing posts with label AKSO. Show all posts
Showing posts with label AKSO. Show all posts
Wednesday, 18 July 2012
Wednesday, 27 June 2012
Aker Solutions gets a long-term frame agreement with ExxonMobil
Aker Solutions (OSE: AKSO) said it has been chosen by ExxonMobil Exploration and Production Norway AS, a subsidiary of Exxon Mobil (NYSE: XOM), to handle engineering, procurement, construction and installation (EPCI) for ExxonMobil’s operated assets Balder, Jotun A, Jotun B and Ringhorne on the Norwegian continental shelf. The fixed duration is five years with two additional five-year options. Aker Solutions says the agreement gives Aker Solutions a great deal of predictability. The contract value was not disclosed but obviously it is very material. The companies have been working together for almost 15 years.
Sunday, 17 June 2012
Svalin field development plan submitted
Statoil ASA (OSE: STL, NYSE: STO, 57%), as the operator and its partners Petoro AS (30%) and ExxonMobil E&P Norway (subsidiary of Exxon Mobil Corporation (NYSE: XOM), 13%) submitted Svalin field development plan to the Ministry of Petroleum and Energy in Norway on Friday. The development solution is a tie-back to Grane platform, which lies about six kilometres south-west at a depth of ~125 metres. The estimated investment is 4.5 billion NOK. Svalin M discovery will be producing through a well drilled from Grane platform while Svalin C will have a six-kilometre long subsea flowline connection. The estimated startup is in late 2013 – 2014 with the aim of daily aggregate production of 100 000 boe by 2014.
Svalin field, which was discovered originally in 1992 (Svalin C) with further discoveries in 2008 (Svalin M), (license PL 169) is located in Block 25/11 in the North Sea between Grane and Balder fields. It is estimated to contain 75 million boe (12 million standard cubic metres) in similar quantities in the two structures. Aker Subsea AS, the subsea group of Aker Solutions (OSE: AKSO) has been given the contract for subsea production system and pipeline where as marine operations are to be performed by Subsea 7 (OSE: SUBC).
Grane platform is a traditional fixed jacket with 40 well slots and has thus far been serving Grane oil field which has been producing since 2003 and has an estimated field life of 25 years with reserves up to 700 million boe. There will be some modifications to enable Grane platform to handle gas from Svalin. The Svalin development will mitigate the decline of oil and gas processed on the platform.
Svalin field, which was discovered originally in 1992 (Svalin C) with further discoveries in 2008 (Svalin M), (license PL 169) is located in Block 25/11 in the North Sea between Grane and Balder fields. It is estimated to contain 75 million boe (12 million standard cubic metres) in similar quantities in the two structures. Aker Subsea AS, the subsea group of Aker Solutions (OSE: AKSO) has been given the contract for subsea production system and pipeline where as marine operations are to be performed by Subsea 7 (OSE: SUBC).
Grane platform is a traditional fixed jacket with 40 well slots and has thus far been serving Grane oil field which has been producing since 2003 and has an estimated field life of 25 years with reserves up to 700 million boe. There will be some modifications to enable Grane platform to handle gas from Svalin. The Svalin development will mitigate the decline of oil and gas processed on the platform.
Tuesday, 5 June 2012
Aker Solutions wins Statoil early stage contract awards
Aker Solutions (OSE: AKSO) got the contract from Statoil (OSE: STL, NYSE: STO) it had been hoping for, early phase studies for all of its recent major discoveries in the Norwegian Continental Shelf, the Shrgard and Havis fields in the Barents Sea and the Johan Sverdrup (Aldous/Avaldsnes) discovery in the North Sea. The contract values are not disclosed but they are clearly important and were a priority for this year.
Aker Solutions will be one of several vendors performing a concept study for the Skrugard and Havis fields. A screening of potential scope will be done on behalf of Statoil. The company feels that Barents Sea development with floating installations in a harsh environment belongs to its core competence and it is continuously increasing its presence in Northern Norway. On the Johan Sverdrup Aker Solutions will do a feasibility and screening study.
Aker Solutions will be one of several vendors performing a concept study for the Skrugard and Havis fields. A screening of potential scope will be done on behalf of Statoil. The company feels that Barents Sea development with floating installations in a harsh environment belongs to its core competence and it is continuously increasing its presence in Northern Norway. On the Johan Sverdrup Aker Solutions will do a feasibility and screening study.
Thursday, 19 April 2012
Aker Solutions has started the week fast
Aker Solutions (OSE: AKSO) continued its big move up this week. This comes on the heels of a major announcement on Tuesday noting that the company has entered into long-term heavy well intervention and light drilling services on the NCS with Statoil (OSE: STL, NYSE: STO). This 8 year contract contains options for three additional two-year periods and the initial period is valued around 1.9 billion USD.
The works will be performed from a new build Category B well intervention rig which aims to fill the gap between conventional drilling rigs and light well intervention units. The company is calling this vessel based intervention service concept a game-changer. Statoil feels that this can improve well recovery rates. The rig is expected to be in service by H2 2015 and the company is currently negotiating EPC contract to build it.
On Monday Aker Solutions said it had received a jack-up drilling equipment contract from Yantai CIMC Raffles Offshore Ltd to supply a complete drilling equipment package for a new rig. The contract value wasn’t disclosed. There are options for three more of these 2000E jack-up designs.
The works will be performed from a new build Category B well intervention rig which aims to fill the gap between conventional drilling rigs and light well intervention units. The company is calling this vessel based intervention service concept a game-changer. Statoil feels that this can improve well recovery rates. The rig is expected to be in service by H2 2015 and the company is currently negotiating EPC contract to build it.
On Monday Aker Solutions said it had received a jack-up drilling equipment contract from Yantai CIMC Raffles Offshore Ltd to supply a complete drilling equipment package for a new rig. The contract value wasn’t disclosed. There are options for three more of these 2000E jack-up designs.
Tuesday, 28 February 2012
Aker Solutions gets EPCIC contract from Statoil
Aker Solutions (OSE: AKSO) won a replacement and upgrading order from Statoil (OSE: STL, NYSE: STO) for drilling equipment and systems on the Snorre A platform in the North Sea. The estimated value of the contract is 1 billion NOK.
The upgrade will extend to technical lifetime up to 2040 and keeps capacity as it is. The contract includes engineering, procurement, construction, installation and commissioning assistance. There will be plenty of projects related to extending the lifetime of existing fields in the North Sea in the coming years.
The upgrade will extend to technical lifetime up to 2040 and keeps capacity as it is. The contract includes engineering, procurement, construction, installation and commissioning assistance. There will be plenty of projects related to extending the lifetime of existing fields in the North Sea in the coming years.
Monday, 27 February 2012
Songa gains as Statoil picks option for two more rigs
Songa Offshore SE (OSE: SONG) received an order from Statoil ASA pertaining to the options for two further newbuild "cat D" semisubmersible rigs specified in the LOA for the first two-rig order from the company last summer. The contract value is 2.66 billion USD for a period of eight years. Statoil has options for extensions for extra 12 years per rig four years at a time. The delivery is expected in 2014/2015.
Like the first two, these rigs will be built by Daewoo Shipbuilding & Marine Engineering Co (DSME) at 570 million USD each. The drilling package will be delivered by Aker Solutions (OSE: AKSO). The drigs will be similar in design with the allowing to the possibility to interchange parts and crew.
Statoil enters into the contracts to improve recovery from existing fields on the Norwegian continental shelf. The costs of drilling and well completion can also be lowered. One of the rigs will be used on Norne, Heidrun and Åsgård licences with the other joining Statoil’s strategic fleet in year-round operations in the Barents Sea.
Songa Offshore situation has been pretty challenging and as was mentioned in connection with the Q4 report, the company needs to add to its liquid assets by Q3 this year. These new contracts were seen as increasing the likelihood of that situation being solved as well.
From H2 2012 onward Songa Offshore will operate three semisubmersible rigs from Statoil and with these four further rigs coming in later, Statoil obviously also has an interest in Songa’s continued success. Statoil has provided bridge financing to Songa for 20% of the down payment to DSME. Songa was up more than 10% on Friday.
Like the first two, these rigs will be built by Daewoo Shipbuilding & Marine Engineering Co (DSME) at 570 million USD each. The drilling package will be delivered by Aker Solutions (OSE: AKSO). The drigs will be similar in design with the allowing to the possibility to interchange parts and crew.
Statoil enters into the contracts to improve recovery from existing fields on the Norwegian continental shelf. The costs of drilling and well completion can also be lowered. One of the rigs will be used on Norne, Heidrun and Åsgård licences with the other joining Statoil’s strategic fleet in year-round operations in the Barents Sea.
Songa Offshore situation has been pretty challenging and as was mentioned in connection with the Q4 report, the company needs to add to its liquid assets by Q3 this year. These new contracts were seen as increasing the likelihood of that situation being solved as well.
From H2 2012 onward Songa Offshore will operate three semisubmersible rigs from Statoil and with these four further rigs coming in later, Statoil obviously also has an interest in Songa’s continued success. Statoil has provided bridge financing to Songa for 20% of the down payment to DSME. Songa was up more than 10% on Friday.
Saturday, 18 February 2012
Aker Solutions guides strong growth
Oil services company Aker Solutions (OSE: AKSO) releasedQ4 2011 and full-year accounts on Friday. Fourth quarter revenues of 11.6 billion NOK are an 18% improvement. EBITDA rose by nearly 30% to topple one billion NOK (9% EBITDA margin). Quarterly order intake was 7.9 billion. The result reflects the current strong oil and gas sector market and operational improvements.
In 2011 revenue growth reached 9.3% resulting in 36.5 billion NOK in total revenues. Net profit climber marked to 5.3 billion. The two billion net profit growth is explained by the Process & Construction (P&C ) business divestment to Jacobs Engineering Group Inc in the beginning of the year, which resulted in over 2 billion gain and demerger of Kvaerner (OSE: KVAER). There was also a 757 million NOK gain from the transaction of Aker Marine Contractors to Ezra Holdings Ltd.
Operating margin was down half a percent for the year. Q4 EPS was 2.50 and full-year 19.37 on the above mentioned one-off gains. The Board Of Directors suggests a dividend of 3.90 NOK per share (2.75 in 2010). The dividend policy is to return 30-50% of net profit to shareholders either as dividends or in share buy-backs.
Current order backlog is 41.4 billion. Aker Solutions aims for 9-15% annual growth until 2015 and seeks to improve margins by 3-4%. The company sees supplier capacity as a constraint on growth and worries about inflation. The short term market outlook is strong with high tender activity. In Aker Solutions’ view increased demand has not yet fully shifted into prices. Investors were overjoyed by the strong short and medium term outlook and pushed the stock up over 21% to 96 NOK at close.
In 2011 revenue growth reached 9.3% resulting in 36.5 billion NOK in total revenues. Net profit climber marked to 5.3 billion. The two billion net profit growth is explained by the Process & Construction (P&C ) business divestment to Jacobs Engineering Group Inc in the beginning of the year, which resulted in over 2 billion gain and demerger of Kvaerner (OSE: KVAER). There was also a 757 million NOK gain from the transaction of Aker Marine Contractors to Ezra Holdings Ltd.
Operating margin was down half a percent for the year. Q4 EPS was 2.50 and full-year 19.37 on the above mentioned one-off gains. The Board Of Directors suggests a dividend of 3.90 NOK per share (2.75 in 2010). The dividend policy is to return 30-50% of net profit to shareholders either as dividends or in share buy-backs.
Current order backlog is 41.4 billion. Aker Solutions aims for 9-15% annual growth until 2015 and seeks to improve margins by 3-4%. The company sees supplier capacity as a constraint on growth and worries about inflation. The short term market outlook is strong with high tender activity. In Aker Solutions’ view increased demand has not yet fully shifted into prices. Investors were overjoyed by the strong short and medium term outlook and pushed the stock up over 21% to 96 NOK at close.
Saturday, 21 January 2012
Luno and Draupne field development plans unfolding
Luno field operator and 50% owner Lundin Norway AS, a subsidiary of Lundin Petroleum AB (STO:LUPE)), announced that field development plan for the Luno field is starting to be put in place. The oil field is located in production license PL 388 in the North Sea offshore Norway, The license also covers Tellus discovery. Other partners are Wintershall Norge (a subsidiary of world’s leading chemical company BASF SE from Germany) with 30% stake and RWE Dea Norge AS (a subsidiary of RWE Dea AG which in turn is a subsidiary of German electric power and natural gas public utility RWE AG) with 20% portion.
Light oil was discovered in the field several years ago and subsequent appraisal wells have extended recoverable reserves. There is a detailed description of the early work done on the field at offshore-technology.com. Lundin expects 90,000 barrels of oil per day (bopd) peak production. Luno contains 186 million barrels of proven and probable oil equivalents (MMboe). The field is expected to start producing in late 2015.
Lundin is in negotiations with Det norske Oljeselskap ASA (OSE: DETNOR), the operator at Draupne field on license PL001B, which is located 8 kilometres northwest of Luno, for a unitized development plan. A coordinated development solution for the two fields was requested by The Ministry of Petroleum and Energy. The Ministry’s rationale was that both society and licensees can expect substantial savings from such a solution and made the companies aware that development and operation plans would not be accepted without such an agreement in place.
Partly processed oil and gas would be transported to Luno platform from Draupne field for stabilization and export. Lundin expects that an agreement will be conducted shortly. Draupne field is expected to produce 143 million barrels of oil and gas. Luno platform design capacity will accommodate in excess of 120,000 bopd when Draupne production is combined with Luno’s. The licensees at Draupne are DETNOR (35%), Statoil (OSE:STL, 50%) and Bayerngas Norge AS (owned in decreasing order by Bayerngas GmbH, Stadtwerke München, Swissgas and TIGAS-Erdgas, 15%).
Engineering, procurement and construction (EPC) company Kvaerner (OSE: KVAER) was awarded Luno field jacket EPC contract worth approximately 1.1 billion NOK by Lundin. Kværner will deliver a steel jacket weighing some 14 500 tonnes executed by Kvaerner's yard in Verdal. The engineering starts immediately and fabrication will start in Q4 2012 with expected delivery in the spring of 2014. .
Historic Kværner name returned to prominence after a few year hiatus after a spin-off from Aker Solutions. Kværner had been around for nearly 150 years before it started a period of rapid expansion acquiring several companies in different fields. This caught up to the company when the economy turned sour upon the collapse of the dot-com bubble in the beginning of the previous decade, and it was forced to merge with rival Aker ASA or face bankruptcy.
Total capital costs for Luno field are expected to be around 4 billion USD (nearly 24 billion NOK). This includes the processing platform on a jacket, the wells and export pipelines tied to existing infrastructure (to the Grane oil pipeline). Rowan Companies Inc has a contract to provide a Rowan Stavanger jack-up rig to the area to drill the Luno development wells at an average day rate of about 340 000 USD (2 million NOK+) in between June 2013 and November 2016 to drill 15 wells. Contracts for marine installation and topside are expected to be awarded soon.
Draupne operator DETNOR has contracts in place for front-end engineering and design (FEED) study of Draupne development with Aker Solutions (OSE: AKSO) and a 400 million USD 3-year drilling contract (extendable for 7) with Maersk Drilling (a subsidiary of A.P. Moller - Maersk Group (OMX: MAERSK A, OMX: MAERSK B) for newbuild jack-up rig, XL Enhanced 2, which is designed for use in ultra harsh environment and is currently under construction in Singapore scheduled to be delivered in 2014.
Light oil was discovered in the field several years ago and subsequent appraisal wells have extended recoverable reserves. There is a detailed description of the early work done on the field at offshore-technology.com. Lundin expects 90,000 barrels of oil per day (bopd) peak production. Luno contains 186 million barrels of proven and probable oil equivalents (MMboe). The field is expected to start producing in late 2015.
Lundin is in negotiations with Det norske Oljeselskap ASA (OSE: DETNOR), the operator at Draupne field on license PL001B, which is located 8 kilometres northwest of Luno, for a unitized development plan. A coordinated development solution for the two fields was requested by The Ministry of Petroleum and Energy. The Ministry’s rationale was that both society and licensees can expect substantial savings from such a solution and made the companies aware that development and operation plans would not be accepted without such an agreement in place.
Partly processed oil and gas would be transported to Luno platform from Draupne field for stabilization and export. Lundin expects that an agreement will be conducted shortly. Draupne field is expected to produce 143 million barrels of oil and gas. Luno platform design capacity will accommodate in excess of 120,000 bopd when Draupne production is combined with Luno’s. The licensees at Draupne are DETNOR (35%), Statoil (OSE:STL, 50%) and Bayerngas Norge AS (owned in decreasing order by Bayerngas GmbH, Stadtwerke München, Swissgas and TIGAS-Erdgas, 15%).
Engineering, procurement and construction (EPC) company Kvaerner (OSE: KVAER) was awarded Luno field jacket EPC contract worth approximately 1.1 billion NOK by Lundin. Kværner will deliver a steel jacket weighing some 14 500 tonnes executed by Kvaerner's yard in Verdal. The engineering starts immediately and fabrication will start in Q4 2012 with expected delivery in the spring of 2014. .
Historic Kværner name returned to prominence after a few year hiatus after a spin-off from Aker Solutions. Kværner had been around for nearly 150 years before it started a period of rapid expansion acquiring several companies in different fields. This caught up to the company when the economy turned sour upon the collapse of the dot-com bubble in the beginning of the previous decade, and it was forced to merge with rival Aker ASA or face bankruptcy.
Total capital costs for Luno field are expected to be around 4 billion USD (nearly 24 billion NOK). This includes the processing platform on a jacket, the wells and export pipelines tied to existing infrastructure (to the Grane oil pipeline). Rowan Companies Inc has a contract to provide a Rowan Stavanger jack-up rig to the area to drill the Luno development wells at an average day rate of about 340 000 USD (2 million NOK+) in between June 2013 and November 2016 to drill 15 wells. Contracts for marine installation and topside are expected to be awarded soon.
Draupne operator DETNOR has contracts in place for front-end engineering and design (FEED) study of Draupne development with Aker Solutions (OSE: AKSO) and a 400 million USD 3-year drilling contract (extendable for 7) with Maersk Drilling (a subsidiary of A.P. Moller - Maersk Group (OMX: MAERSK A, OMX: MAERSK B) for newbuild jack-up rig, XL Enhanced 2, which is designed for use in ultra harsh environment and is currently under construction in Singapore scheduled to be delivered in 2014.
Sunday, 15 January 2012
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.
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.
Wednesday, 6 July 2011
Songa Offshore receives LOA from Statoil
Norwegian-Cypriot drilling contractor Songa Offshore (OSE: SONG) announced that it’s subsidiary has received a letter of award from Statoil (OSE: STL, NYSE: STO) for two new build semisubmersibles with firm 8 year terms for each. The order contains an option to extend the term to 20 years. Statoil also has an option for two additional rigs.
The firm term of the awarded contract will provide 2.47 billion USD of revenue to Songa and escalation provisions will contribute to a higher contract value upon commencement in 2011. The rigs should be up and running in the Troll-license in 2014.
Rig construction work will be done at the Daewoo Shipbuilding & Marine Engineering Co., Ltd’s yard in South-Korea and Aker Solutions(OSE: AKSO) was selected as the supplier of the drilling equipment by Songa. Aker Solutions already commented on an order from DSME the day before yesterday.
Contract was expected and markets were satisfied with the terms as Songa gained mildly on Tuesday’s trading. The possibility to further strengthen the relationship with Statoil coupled with increased earnings visibility are other positives to take home from the deal. Statoil's chief procurement officer Jon Arnt Jacobsen said the following on their release: “Through joint efforts we intend to rejuvenate the rig fleet on the NCS and ensure that we use the right rig for the right purpose."
The firm term of the awarded contract will provide 2.47 billion USD of revenue to Songa and escalation provisions will contribute to a higher contract value upon commencement in 2011. The rigs should be up and running in the Troll-license in 2014.
Rig construction work will be done at the Daewoo Shipbuilding & Marine Engineering Co., Ltd’s yard in South-Korea and Aker Solutions(OSE: AKSO) was selected as the supplier of the drilling equipment by Songa. Aker Solutions already commented on an order from DSME the day before yesterday.
Contract was expected and markets were satisfied with the terms as Songa gained mildly on Tuesday’s trading. The possibility to further strengthen the relationship with Statoil coupled with increased earnings visibility are other positives to take home from the deal. Statoil's chief procurement officer Jon Arnt Jacobsen said the following on their release: “Through joint efforts we intend to rejuvenate the rig fleet on the NCS and ensure that we use the right rig for the right purpose."
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