Aker Solutions & AF Gruppen to Merge Decommissioning Business
Norwegian Engineering and construction groups Aker Solutions and AF Gruppen have signed a Letter of Intent 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." The joint company will have an order backlog of approximately NOK 2.5 billion (USD 290 million).
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.
According to Aker Solutions, the recycling of steel from decommissioned oil platforms represents a significant contribution to reducing greenhouse gas emissions compared with ordinary steel production.
According to the companies, the business concept is based on solving a significant societal challenge by removing and recycling decommissioned oil platforms.
Further, Aker Solutions said that the offshore decommissioning market has a vast untapped potential globally, with approximately 10,000 operational platforms.