Kiewit Corporation

Kiewit Corporation

August 18, 2005 09:30 ET

Kiewit Completes SeaRose FPSO; Production Facility Is Largest Lump Sum, EPC Project Completed in Newfoundland

MARYSTOWN, Newfoundland--(CCNMatthews - Aug 18, 2005) -

Kiewit Corporation announces the completion of the SeaRose FPSO (floating production, storage and offloading) vessel for Husky Energy. Once the vessel completes its sea trials, it will proceed to the White Rose oil field in the Grand Banks region, 350 km southeast of St. John's, Newfoundland.

Under a lump sum, engineering-procure-construct (EPC) contract, Aker Maritime Kiewit Contractors (AMKC), a Kiewit sponsored joint venture, fabricated and installed the vessel's 16 modules. The contract is the first of its type to be completely engineered and assembled in Newfoundland. During peak construction periods, more than 1,000 personnel worked to complete the contract at Kiewit's fabrication facilities in Marystown.

"Successfully completing the SeaRose FPSO on time and within budget represents the type of complex and challenging project that the Kiewit Energy Group was recently formed to handle," says Tom Shelby, President of Kiewit Energy Group, Inc. "With our extensive fabrication facilities at Marystown; Ingleside, Texas; and Edmonton, Alberta we will continue to contribute to the development of significant projects in the energy industry."

The SeaRose FPSO, with an initial contract value of USD $395 million, has a peak production capacity of 100,000 barrels of oil per day. It has been designed to separate oil, water and gas from the crude oil and then store the processed oil before it is offloaded to shuttle tankers.

Its 16 pre-fabricated modules, weighing between 100 and 1,200 tons, include oil separation equipment, three 28-megawatt power generation units, three water injection pumps, five gas compression units and a 311-foot (95-meter) flare tower. The project required careful orchestration of lifts of the facility's modules onto the 900-foot (272-meter) hull, to maintain weight-balance and construction sequence requirements. A land-based crawler crane was chosen for these lifting tasks, which had to be scheduled during favorable conditions during the summer months. A football field-size concrete pad was poured for the crane to travel on. The pad was substantially reinforced to accommodate the weight of the crane when fully loaded with the heaviest module.

The logical and sequential nature of construction sequence demanded the tight scheduling of activities. "This is a great accomplishment for the offshore fabrication industry in Newfoundland," says Louis Chapdelaine, President of Kiewit's Canadian subsidiary, Peter Kiewit Sons' Co. "We completed over 88 percent of the fabrication person-hours for the project in Newfoundland. This project demonstrates the capabilities of the workforce available in the Province. With the successful completion of the SeaRose FPSO project, we are in an enviable position as the only contractor in North America to have completed a lump-sum EPC FPSO project of this magnitude on time and under budget."

About Kiewit Corporation

Kiewit Corporation and its subsidiaries comprise one of the largest and most respected construction, engineering and mining organizations in North America. With more than 30 offices in the U.S. and Canada, Kiewit operates the largest privately owned fleet of equipment in North America. Kiewit operates fabrication facilities in Marystown, Newfoundland; Edmonton, Alberta; Ingleside, Texas and Seattle, Washington. For more information, see www.kiewit.com.

About Kiewit Energy Group, Inc.

Kiewit Energy Group, Inc., a subsidiary of Kiewit Corporation, is headquartered in Houston, Texas, with offices in Calgary, Alberta. Kiewit Energy subsidiaries include: Kiewit Energy Company, Kiewit Energy Canada Corp., Kiewit Industrial Co., Kiewit Offshore Services Ltd. and Bibb & Associates. Kiewit Energy Company provides EPC construction services to the petrochemical/refining and LNG industries. Kiewit Energy Canada Corp. serves the needs of the Canadian oil and gas markets, including clients in the oil sands of northern Alberta. Kiewit Industrial builds power plants and provides construction services to the petrochemical, refining and alternative fuel markets. Kiewit Offshore Services is the leading fabricator of offshore top-sides and modules in the Gulf of Mexico. Bibb & Associates provides engineering and design services to the power market.

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