Aker Solutions signs Draugen electrification contract

February 7, 2023 – Following the Letter of Intent announced on December 15, 2022, Aker Solutions confirms it has now signed the contract for the Draugen project with OKEA. The contract is of substantial¹ value. 

Reference is made to the stock exchange announcement on December 15, 2022, regarding the LOI with OKEA for the Draugen Electrification project. 

OKEA has selected Aker Solutions as the main contractor for Engineering, Procurement, Construction, and Installation (EPCI). The project will involve major modifications of the existing platform to enable power from shore. As a result of this, the emissions from Draugen are estimated to be reduced by as much as 200,000 tons of CO2 per year. 

“Replacing the current power generation from gas turbines at the offshore platform and instead electrifying these from shore will enable production of oil and gas from Draugen with significant reductions in CO2 emissions. Lifetime-extension of these platforms are of crucial importance for the increasing need for energy and energy security in Europe,” said Paal Eikeseth, executive vice president and head of Aker Solutions' Electrification, Maintenance and Modifications (EMM) business.

Lifetime-extension of this important field can result in 20 years of production and value creation.

“Being awarded this important electrification contract is a true testament of our strong track-record and leading solutions for decarbonizing oil and gas production. Reduction of climate footprint is very high on the agenda for our customers and the strong competence across our organization is a true enabler of our customer’s success in this area,” said Eikeseth.

The project has started up and are scheduled to be completed in 2026. The project is managed from Aker Solutions’ offices in Trondheim in Mid Norway. Several Aker Solutions offices will be engaged in the engineering phase, and the construction will be executed at the company’s yard in Egersund.
 
“Aker Solutions in Mid Norway has unique competence in technical disciplines and project execution that will be utilized for the electrification of these assets,” added Eikeseth.

Aker Solutions will recognize an order intake of around NOK 2.5 billion in the first quarter of 2023 in the EMM segment.

¹Aker Solutions defines a substantial contract as between NOK 2.5 billion and NOK 4.0 billion.

ENDS