Kværner Sells EPC Center Houston

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Kværner announces today the signing of an agreement to sell its on-going downstream focused operations and related assets of the entity known as EPC Center Houston to IHI E&C International Corp, a US subsidiary of the Japanese company IHI Corporation (IHI)  Kværner retains and will further develop all of its other businesses in North America, both the Houston based Kværner Field Development business focusing on offshore field development projects and Kværner North American Construction providing construction services and maintenance in the unionized areas of North America.

Kværner has signed an agreement to divest the assets and the on-going operations of EPC Center Houston for an undisclosed amount. All rights and obligations under contracts for executed projects will be retained by Kværner. Closing of the transaction is expected during the third quarter of 2012.

Kværner’s EPC Center Houston and IHI have since 2004 cooperated closely as joint venture partners, successfully developing a business focused on the delivery of LNG terminals and oil and gas processing facilities in North America. The new company comprises 170 employees including contract personnel and will continue to be based in Houston.

"We are pleased to see that our joint venture partnership on several major projects in North America has enabled the establishing of a new organisation, positioning itself for further growth", says Jim Miller, Executive Vice President for the downstream business in Kværner.

Only the on-going operations of EPC Center Houston are divested.  Kværner will keep all of its other businesses in North America; including the upstream orientated Houston based Kværner Field Development office. The Houston office focuses on offshore oil and gas projects and is specialised within concept selection and conducts global engineering for semi-submersible and tension leg platforms as part of Kværner’s International business area. Kværner will also keep the Kværner North American Construction (Union Construction) operations in the US and Canada. The business being divested has no involvement in the Longview project as this is a part of Kværner North American Construction’s responsibility.

"For both of the remaining operations, we have identified opportunities which we are already actively pursuing. We will grow our engineering presence in Houston as part of our international delivery model for offshore projects and further develop our construction activities in unionized areas for our onshore operations", says President & CEO in Kværner, Jan Arve Haugan.

About Kværner

Kværner is a specialised provider of engineering, procurement and construction (EPC) services for offshore platforms and onshore plants. Kværner ASA, through its subsidiaries and affiliates ("Kværner"), is an international contractor that plans and realises some of the world’s most demanding projects as a preferred partner for upstream and downstream oil and gas operators, industrial companies and other engineering and fabrication contractors.

About IHI Corporation

IHI is a global engineering, construction and manufacturing company with approximately 27.000 employees in more than 10 manufacturing centres in Japan, 18 branches and sales offices in Japan, 14 offices and 142 subsidiaries worldwide.