OSLO - Norwegian oil services group Aker Solutions said Monday it had won two contracts for the Kashagan oil field in Kazakhstan together with Italian group Saipem, with Aker's share totalling 1.6 billion dollars (1.2 billion euros).
The contracts were awarded by AGIP-KCO, a subsidiary of Italian group Eni that is in charge of the experimental phase of the Kashagan offshore field until the end of 2012.
The contracts cover the hook-up work between the offshore field in the Caspian Sea and the mainland.
"These hook-up contract awards demonstrate that we have succeeded in actively positioning ourselves for this target project in one of the world's richest regions of natural resources," Aker Solutions chief executive Simen Lieungh said in a statement.
Production in the Kashagan oil field is expected to begin in October 2013 at the latest, with an expected level of 1.5 million barrels per day.
"The Kashagan field is considered one of the most important oil field discoveries in the past 40 years," Aker Solutions said.
The project includes Kazakh state-owned group Kazmunaigas, Eni, French group Total, ExxonMobil of the US and Anglo-Dutch group Shell, which all hold 16.81-percent stakes.
ConocoPhillips of the United States holds 8.4 percent and Inpex of Japan 7.56 percent.
The contracts announced by Aker Solutions on Monday were the confirmation of a letter of intent signed in March 2007.
The news sent Aker Solutions share soaring on the Oslo stock exchange.
In midmorning trades, the issue was up by 7.29 percent in an overall market down by 0.23 percent.