Latest news from Aker Solutions

Thursday, July 2nd, 2009

Karl Erik Kjelstad has been appointed executive vice president and member of the executive management team in Aker Solutions. Kjelstad will lead the development of the strategic initiative related to oilfield services and the company's fleet of marine vessels.

"I am very pleased about Karl Erik Kjelstad joining our team. Our ambition is to become the number one player within light well intervention through our acquisition of Aker Oilfield Services. Kjelstad has a unique experience and very strong competence that I believe will be vital to our success in this area of our operations," says Simen Lieungh, President and CEO of Aker Solutions.

Kjelstad will report directly to the CEO, and will work directly with Aker Oilfield Services and our marine partner DOF to realise the potential of recent investments.

Kjelstad (born 1966) comes from the position of Senior Partner & President, Maritime Technologies of Aker ASA. He has been with the Aker group since 1998. Kjelstad was President & CEO of Aker Yards ASA from January 2003-June 2007. Prior to joining Aker, he held the position as senior consultant at PA Consulting Group. >From 1992 to 1996 he held various management positions in the TTS Group. Kjelstad is Chairman of Aker Philadelphia Shipyard ASA, Aker Oilfield Services Ltd, and Aker DOF Deepwater. Kjelstad holds a Master of Science (M.Sc) degree in Marine Engineering from the Norwegian University of Science and Technology (NTNU). As of 31 December 2007, Kjelstad holds 2 500 shares in the company, and has no stock options. Kjelstad is a Norwegian citizen. He has been elected for the period 2006-2008.

Kjelstad will begin his position in Aker Solutions by the end of the third quarter this year.

Aker Solutions boosts manufacturing capacity for surface products

Aker Solutions is today officially opening its significantly modernised and expanded manufacturing facility for surface trees and wellheads in Batam, Indonesia. The expansion is part of Aker Solutions' long-term strategy to increase its presence in the rapidly growing oil and gas markets in the Asia Pacific region.

Aker Solutions has invested USD 17 million into the expansion and upgrade of the Batam manufacturing centre. As a result, manufacturing capacity for production and assembly of surface wellheads and trees has increased by more than 50 percent.

Building space at the site has been expanded from 4 200 to 11 200 square metres to cover a new administrative building with full management support, machine workshop with 11 new machines, test and assembly workshop as well as a new warehouse. In total, the Batam site area has expanded to 21 800 square metres.

Surface trees and wellheads is production equipment that is being used either onshore or at surface production platforms in shallow waters offshore.

"Our business for surface products, which are manufactured at Batam, has achieved a 25 percent revenue growth annually over the past years. It is a cost efficient operation," says Egil Martinussen, president - Asia Pacific, Aker Solutions. "With the expansion and modernisation of our facility completed, it is now able to meet the expected market growth"'

The expansion of Batam's manufacturing facility was completed in 500 000 man-hours with zero loss time incidents (LTI). This was achieved on the back of the plant's existing two million man-hours of zero LTI. Aker Solutions has been present in Batam, Indonesia since 1995.

Speaking at the official opening of the Batam facility, Egil Martinussen said Aker Solutions has had ambitious expansion plans since 2007 to establish and ramp up its facilities in Indonesia, Malaysia, Australia and Vietnam.

In addition to these four locations, Aker Solutions already has a solid presence with additional service bases for surface products located in Singapore, Thailand, India, China, Nigeria and Middle East.

Martinussen says: "We have a solid network of facilities for subsea and surface products in this region. This puts us in a very favourable position when it comes to supporting our customers. Even though we are a company with a global footprint, a key focus is always local presence and support. The expansion of our Batam facility is a testament to the latter".

The Asia Pacific region is expected to be one of the fastest growing markets in the oil and gas industry in the coming years. In anticipation of this, Aker Solutions has over the past three years invested approximately USD 130 million in new facilities and upgrades of existing ones.

The first was the establishment of a state-of-the-art manufacturing centre in Malaysia in 2007. This is the only facility in the world where a complete subsea production system can be manufactured in one location. This was followed by the establishment of a new service and test facility in Perth, Australia, and a new service base in Vietnam, last year.

"The long-term outlook for the subsea industry, as well as surface products, is very good. The investments over the last couple of years mean that we are very well prepared for an upturn in these markets," concludes Martinussen.

Aker Solutions earns top OSHA safety honour in US

Aker Construction Inc., part of Aker Solutions, today announces that it has earned Star membership in the prestigious Voluntary Protection Programs of the U.S. Department of Labor's Occupational Safety and Health Administration. The Star certification relates to the site-based project Aker Construction Inc is delivering for Longview Power, LLC in Maidsville, West Virginia in the United States.

Aker Construction Inc. is the primary contractor for the 769-MW coal-fired power station being built for Longview Power, LLC, owned by GenPower Holdings, L.P. More than 60 percent of the work is now complete, and scheduled for operation in early 2011, it will be one of the cleanest coal-fired power plants in the US.

The Voluntary Protection Programs (VPP) of the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) promotes effective worksite-based safety and health, encouraging management, labor, and OSHA to establish cooperative relationships at workplaces that have implemented a comprehensive safety and health management system. Approval into VPP is OSHA's official recognition of the outstanding efforts of employers and employees who have achieved exemplary occupational safety and health. Star certification is the pinnacle classification for VPP participation.

Aker Construction Inc. first initiated VPP Star application in March 2008 to ensure optimal worker safety and establish a partnership with OSHA. The approval process included a review of Aker Construction Inc.'s management commitment and employee involvement with safety programs, a worksite analysis, hazard prevention and control measures, and safety and health training plans. The company submitted documents to support these criteria and hosted a four-day onsite tour by government officials, a detailed document review, and both formal and informal interviews.

"We are extremely proud of this accomplishment," says Bruce Kingsbury, Aker Construction Inc.'s Vice President of HSE. "It signals our people's belief in the highest priority for worker health and safety. Aker Construction Inc. is committed to maintaining this status by keeping average reportable incident rates below the national average and continuing to develop best practices and innovative safety procedures throughout the plant's construction."

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing a safe and healthful workplace for their employees. OSHA's role is to assure the safety and health of the U.S.'s working men and women by setting and enforcing standards; providing training, outreach and education; establishing partnerships; and encouraging continual improvement in workplace safety and health. For more information, visit www.osha.gov.

Aker Wirth: A new name and identity

Earlier this year, Wirth became a fully controlled subsidiary of Aker Solutions, a Norwegian owned company. Today, Wirth Maschinen- und Bohrgeräte-Fabrik GmbH changes its name to Aker Wirth GmbH, reflecting the change of ownership and the successful integration into Aker Solutions that has taken place since the acquisition.

"Our acquisition of Wirth complements and expands our customer offering. Aker Solutions is now one of only two suppliers in the world of complete drilling packages. In addition, the acquisition of Wirth's mining and construction expertise strengthens our presence in the process and construction markets," says Per Harld Kongelf, executive vice president of Aker Solutions. "Furthermore, we are happy, that Christoph Kleuters has accepted to continue in his position as Chief Executive Officer."

Collaboration

For more than two decades Wirth has been successfully collaborating with Aker Solutions on drilling packages. By formalising this connection through acquisition, the goal is to strengthen the existing collaboration and expand it to all of Aker Solutions drilling activities globally. The collaboration will also be extended to Wirth's mining and construction division to the benefit of Aker Solutions' process and construction activities.

"We share a passion for technology and have been collaborating for over two decades on successful drilling projects," says Christoph Kleuters, CEO of Aker Wirth. "Our transition to Aker Wirth reinforces our commitment to our customers and employees and strengthens our position in the global market."

Value in the name

"The Wirth name is a valuable asset and will live on in the legal entity name and product names of the company," says Per Harald Kongelf.

As of today, building signage, machine labelling, corporate brochures and marketing materials now all reflect the name change and new look and feel of Aker Wirth.

About Aker Wirth

Aker Wirth is one of the leading equipment suppliers, serving the energy sector for oil and gas drilling products as well as mining and civil construction products for the industry.

For more than 110 years, Aker Wirth has been supporting the establishment of a modern and efficient development of natural resources and infrastructure, promoting growth and improving the standard of living around the world.

As part of the change Wirth's subsidiaries' names will also reflect the change in ownership as follows:

· Wirth SCS Singapore Pty into Aker Wirth SCS Singapore Pty.

· Wirth Mgt. Inc. into Aker Wirth Mgt. Inc.

· Wirth International LLP into Aker Wirth International LLP

· Wirth Australia Pty into Aker Wirth Australia Pty

Aker Wirth is a fully controlled subsidiary of Aker Solutions AS, a global provider of engineering and construction services, technology products and integrated solutions.

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