General – decommissioning
Aker Solutions and AF Gruppen have signed a Letter of Intent (LOI) to merge the two firms’ existing offshore decommissioning operations.
They’ve agreed to merge the offshore decommissioning operations into a 50/50 owned company with the goal of creating a leading global player for environmentally friendly recycling of offshore assets.
“By establishing a pure, focused player dedicated to unleashing global decom potential, the parties will make a significant contribution towards a sustainable, green transition of the offshore sector,” Aker Solutions said.
The transaction is expected to be completed during the second half of 2021 and is subject to due diligence and regulatory approvals by the Norwegian Competition Authorities (NCA).
Commenting on the agreement, Kjetel Digre, chief executive officer of Aker Solutions said: “By combining Aker Solutions’ offshore, engineering and project execution capabilities with AF Gruppen’s decommissioning and construction capabilities, we aim to increase customer efficiency throughout the decommissioning process and maximize the total recycling potential.”
“The company will be uniquely positioned to offer integrated end-to-end services from well plug and abandonment to planning, removal, dismantling and recycling at its own environmental base. Sustainability and circular economy ambitions will be key focus areas for the new entity, and we see increased activity in the market for decommissioning and recycling moving forward.”
Amund Tøftum, CEO of AF Gruppen said: “Our ambition is to establish a unique recycling player, positioned to offer a total decommissioning solution for the global offshore recycling market. The two parties have complementary strengths and capabilities, with potential to build a global offshore recycling powerhouse. Furthermore, the new entity will deliver on the green, circular ambitions outlined in the UN’s sustainable development goals.”
Further, Aker Solutions said that the offshore decommissioning market has a vast untapped potential globally, with approximately 10,000 operational platforms.
