Marine Log

June 1, 2006

NASSCO-built tankers to be Smart FPSOs

Aker Floating Production has today acquired two tankers, the "Polar Alaska" and the "Polar California," for $55 million en bloc.

Both tankers were built at NASSCO and have an approximate storage capacity of 1.3 million barrels.

Last month Aker Floating Production announced the acquisition of a third tanker, the "Oriental Tiger," for USD 25.2 million.

"Aker Floating Production is off to a good start and the interest for the Aker Smart FPSO from oil companies is strong," commented President and CEO of Aker Floating Production Svein Olsen.

"The three tankers that we have acquired are ideally suited for conversion into Aker Smart FPSOs. They are in excellent condition which will result in a lower than expected conversion cost," commented President and CEO of Aker Floating Production Svein Olsen.

Aker Floating Production plans to build, own and operate a fleet of a minimum four Smart FPSOs.

The Smart FPSOs will be converted from existing tankers based on a flexible modular design.

Aker Floating Production says it standardizes through modularization where each function is planned and prepared for on dedicated locations. It says its design allows functions to be added offshore--making the FPSOs able to grow together with the needs of our clients.

"We have made some functions so flexible that they are common for most applications," says the company. "Our oil separation train is one example together with flexible utility systems. This allows us to start building our FPSOs before we have secured a lease contract--giving our clients an opportunity to produce earlier."

Aker Smart FPSO Technology is expected to generally meet the requirements of the high growth benign shallow to deepwater areas.