Aker Solutions and Statoil Cancel Cat B Contract Accord

Aker Solutions ASA (AKSO) and Statoil ASA (STL) canceled a contract to build a Category B rig that was set to start operating in 2015 because of technical difficulties.

The “clarification surrounding” the contract is expected to help a planned spin-off of the oilfield services business unit, the Fornebu, Norway-based company said in a statement. The shares rose 0.6 percent to 87.25 kroner as of 9:16 a.m.

Aker Solutions will take a 375 million-krone ($62 million) charge in the second quarter and the charter period contract value of 11.2 billion kroner will be taken off the order backlog, company said. The order book totaled 71.7 billion kroner as of March.

“Aker Solutions and Statoil have together concluded that the project can’t be realised within the framework of the contract,” said Per Harald Kongelf, regional president for Norway at Aker Solutions. “The technological issues weren’t solved in the initial system definition phase of the project. We still believe in the concept of Cat B, but the technology needs more time to be developed.”

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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