Kiewit-Akker finalizes Hebron GBS contract

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Kiewit-Aker Contractors has been awarded a $140-million contract to design the Hebron gravity base structure (GBS).

That front-end engineering and design work begins immediately.

Kiewit-Aker’s contract includes an option to provide more detailed engineering services and build the GBS at Bull Arm. Exercising that option will be up to ExxonMobil, operator of the $6-billion Hebron project.

Kiewit-Aker was sole bidder for the GBS work. It’s a 50-50 joint venture between U.S.-based Peter Kiewit Infrastructure and Norwegian-based Aker Solutions.

Peter Kiewit Infrastructure is a division of Peter Kiewit Sons’ Inc., which also owns the Marystown shipyard and the Cow Head fabrication yard.

Akker said site preparation at Bull Arm will begin once permits are received.

Per Harald Kongelf, executive vice president of Aker, said the contract “confirms our strong position within arctic technologies in general and gravity based structures (GBS) in particular. The GBS is one of our key products with a global and emerging market.”

Bull Arm, the fabrication yard designed to build the Hibernia GBS in the 1990s, is operated by provincially owned Nalcor Energy.

Nalcor also holds a 4.9 per cent ownership stake in the Hebron oilfield.

The other partners are ExxonMobil with 36 per cent, Chevron Canada with 26.7 per cent, Suncor Energy with 22.7 per cent, and Statoil Canada at 9.7 per cent.

Organizations: ExxonMobil, Aker Solutions.Peter Kiewit Infrastructure, Peter Kiewit Sons Suncor Energy

Geographic location: Hebron, U.S., Marystown Cow Head

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Recent comments

  • Jim
    November 12, 2010 - 12:17

    Norway and the US making the money off this contract. Nice work.

  • Working In Alberta
    November 11, 2010 - 22:12

    This is good news for the province overall. I am concerned though that the unions will sell us out again as they did at Long Harbour. Out there, my trade/craft is now making $25/hr., up $3/hr. from Hibernia wages. That's just disgraceful. Hopefully, there are enough intelligent people within the Kiewit-Aker group to recognize that they will need to compete with Alberta for skilled workers.

  • Bern Harty
    November 10, 2010 - 21:21

    Good news indeed that we will see the fourth oilfield developed and go into production of our coast and that the GBS will be constructed in the province at the Bull Arm site. When one reads the Hebron Benefits Agreement we have to be a bit apprehensive with the extent of other fabrication work that has been earmarked for the province. We must not be satisfied to just have the GBS constructed here along with a few other relatively small pieces of fabrication work,and most of the rest of the project done in other parts of the world. As was proven with the White Rose project, we have major fabrication facilities here in NL and the qualified workforce to do these types of projects. Husky set the "fabrication" bar for the White Rose project at a level that must not be lowered,and we must all be vigilant that this is not allowed to happen. All fabrication yards in the province can be filled with work for the duration of the Hebron project, and we should demand no less.

  • Hal Barrett
    November 09, 2010 - 13:53

    The award of the Hebron GBS contract to Kiewit-Acker is great news for Newfoundland and Labrador and now offers the opportunity for a larger Newfoundland content throughout the building process than was achieved from Hibernia. With respect to the Hibernia project, my recollection is of our failure to capitalize on insisting that the design, engineering and procurement requirements be done here in Newfoundland. This lack of determination resulted in our not achieving a much larger share of employment, providing construction materials, participating in module construction, and even more importantly, the opportunity to participate in the transfer of technology, design and engineering within our own community. This is especially important as this project relates to design and construction standards required for such a structure for our ice infested offshore enviornment not encountered in other jurisdictions. Government intervention will be necessary as industry is not normally inclined to look outside their own capabilities existing outside Newfoundland and Labrador. The benefits should not just come from royalties, but to a greater province-wide participation than that expected for the Bull Arm site.