Marine Log

October 5, 2006

Aker Yards to build parcel tankers for Stolt

Aker Yards will today enter into a contract with the Stolt-Nielsen Transportation Group in Rotterdam (Netherlands) to deliver four innovative parcel tankers with stainless steel cargo tanks.

The specialized tankers are 182.72 meters long and 32.2 meters wide. All vessels are of the type Aker TCOPss 43000. They have a deadweight of 43,000 t. The total cargo capacity is 45,350 cubic meters.

The contract marks an important advance in Aker Yards's aim of repositioning its Merchant Vessels business towards construction of more specialized vessels.

The value of the contract is approximately $350 million.

Last week, Stolt-Nielsen Transportation Group announced it had ordered four 44,000 deadweight ton parcel tankers from SLS Shipbuilding Co. Ltd. in Korea, at an aggregate price of S340 million.

Delivery of the tankers ordered from Aker Yards is scheduled between the third quarter of 2008 and the fourth quarter of 2009 from Aker Yards in Floro, Norway.

The new contract follows the order of two parcel tankers of the same type by Stolt-Nielsen in 2005 to be delivered in 2007 and 2008.

The production of the ships will be split between Aker Yards, Floro and the Damen Shipyards Okean in the Ukraine.

The fore and aft sections of the ship will be built in the Ukraine.

The midship section will be built at the same time in Floro.

The fore section of the ship will be welded to the aft section, and then towed as a "small" ship to Floro.

When the fore and aft section arrives in Floro, it will be separated in the dry dock and then joined with the mid-section.

With a main engine (2-stroke diesel engine) output of 11,060 kW they reach a service speed of 15.0 knots. They will have optimized stainless steel tanks to fit with the owner's operational requirements and new hull lines with less resistance for lower fuel consumption. All stainless steel tanks are located in the midship area which reduces the weight of stainless steel considerably.

SNTG and Aker Yards will also sign a Letter of Intent regarding future cooperation, emphasizing research, design and development that capitalize on the unique strengths of the two companies.

Otto H. Fritzner, Chief Executive Officer of SNTG, said, "After a global review of shipyards, we are pleased to have reached these important agreements with Aker Yards. Today's announcements represent not only a significant element of SNTG's ongoing fleet replacement plan and growth strategy, but also a step toward what we hope will be a long-term relationship with Aker focused on mutually beneficial cooperation and development. Continued advancements in ship technologies, particularly those aimed at enhancing safety, reliability and environmental friendliness at a competitive price will be a priority of these cooperative efforts between Aker and SNTG."

"We are very pleased and proud to win this contract of a further four newbuildings for SNTG," said Karl Erik Kjelstad, President & CEO of Aker Yards. "This new order, in addition to the two ships of the same class from the order placed last year, is a great endorsement from SNTG of the world-class competencies and the project execution experience of the people of Aker Yards. The contract provides us with the opportunity to deliver innovation to a leading provider of safe transportation of highly demanding chemicals. It also confirms Aker Yards strategy with the acquisition of Kleven Floro, Kleven Design and the stake in Damen Shipyards Okean, in order to establish a strong position in the market for specialized tankers "

Aker Yards, Floro has been part of the Aker Yards group since August 2006.

The yard in Ukraine has been part of the Aker Yards group since August 2006 as a joint venture company with the Damen Shipyard Group.