Aker Solutions secures multiple contracts with Aker BP

Source: press release, 16 December 2022

Yggdrasil, including Hugin A, Hugin B, Munin and Fulla (formerly NOAKA – North of Alvheim, Krafla, Askja, Fulla)
Yggdrasil, including Hugin A, Hugin B, Munin and Fulla (formerly NOAKA – North of Alvheim, Krafla, Askja, Fulla) (illustration: Aker BP)

Following Aker BP and its partners’ submission of plan for development and operation (PDO), Aker Solutions and alliance partners will sign contracts for the field development projects Yggdrasil (formerly NOAKA), Valhall PWP-Fenris and Skarv Satellites. For Aker Solutions, these projects will combined represent close to NOK 50 billion of order intake in the fourth quarter of 2022, which will be the company’s highest ever quarterly order intake. For the company, these contracts are expected to generate about 50,000 work-years including ripple effects to subcontractors and others.

“This record-high order intake will ensure high activity-levels and predictability at all Aker Solutions’ locations throughout Norway, as well as many of our international locations involved in these projects for years to come, in accordance with the authorities’ temporary incentive program. It also demonstrates that we are delivering on our strategy and growth targets, and through these projects, we will have the opportunity to continue developing for a more sustainable future, investing in personnel, digitalisation, yard facilities and project capabilities,” says Kjetel Digre, chief executive officer of Aker Solutions.

“These contracts combined is the largest value of contract awards in a single quarter in Aker Solutions history. It demonstrates our solid track-record, strong capabilities and our ability to deliver large and complex projects with solid project execution. It is also a testimony to the success of our well-proven alliance models. Through the alliance models, we ensure win-win solutions and the best possible collaboration and resource-utilisation in the execution phase. In addition, there will be strong collaboration with deliveries from other key sub-suppliers, including Worley Rosenberg in Stavanger, Leirvik AS at Stord and AS Nymo in Arendal,” says Digre.

These projects will be executed through Aker BP’s successful alliance models; the Fixed Facilities Alliance, the Modification Alliance and the Subsea Alliance, where Aker Solutions work together with partners Aker BP, Subsea7, Siemens Energy and ABB Norway. A key element of the alliance model is to secure a significant proportion of local deliveries in the projects. Creating activity for the Norwegian supplier industry was also an important prerequisite for the temporary stimulus program adopted by the Norwegian authorities. The award is an unequivocal response to that expectation and will create very large ripple effects throughout the Norwegian industry, both directly at yards and engineering offices in several parts of Norway, but also at a multitude of subcontractors, suppliers and service providers.

To safeguard project execution, as well as preparing for increased activity on upcoming renewable projects, Aker Solutions will continue to invest in employees, digitalisation, yard facilities and project capabilities. The majority of upcoming investments will be at the company’s yards in Norway, to upgrade the facilities and prepare for the future. At Aker Solutions’ yard in Verdal, the company will invest in a robotised and automated production line to safeguard execution and schedules for these important projects through significantly increased productivity and HSSE performance.

Aker Solutions will also continue to strengthen its digitalisation efforts through these projects. As a part of the Yggdrasil project execution, the digital collaboration project between Aker BP, Aker Solutions, Cognite and Aize will continue. This digitalisation program is developing solutions for the Yggdrasil-area to improve field developments and offshore operations, with the aim to create the next generation field development model.