Aker books Total extension, updates on cost cutting

Offshore staff

FORNEBU, Norway Aker Solutions has landed a multi-year contract extension from Total days after it announced a sizeable award to deliver umbilicals to Petrobel’s Zohr field.

The scope of work, valued at more than NOK 400 million ($49.3 million), is to provide maintenance and operations services at the Elgin and Franklin fields in the UK North Sea.

The company also provided an update on its goal to boosting cost-efficiency by at least 30% as part of a broader effort to strengthen its competitiveness amid current market challenges. The subsea specialist said it was “making good progress.”

Aker said: “[a] quarter of the targeted improvement will be achieved this year, helping to achieve potential annualized cost-savings of at least NOK 9 billion [$1 billion] by the end of 2017, based on the 2015 cost base and work volumes. The improvements are expected to speed up next year as longer-term processes take hold.”

Speaking at the week’s investor’s presentation, Aker Solutions CEO Luis Araujo said the company was simplifying how it worked and standardizing its products and services in its efforts to realize its goals.

“These efforts are supporting our margins and we are winning new work through increased collaboration with customers and industry participants on key projects and technology,” Araujo said.

Aker Solutions’ recent collaborators include Baker Hughes, ABB, MAN Diesel & Turbo, and Saipem.

06/08/2016

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