AF Gruppen ASA

End-to-end decommissioning contract

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AF Gruppen has, through its subsidiary AF Offshore Decom and in a joint venture (JV) with THREE60 Energy, been awarded a contract with bp to provide integrated decommissioning services for their Andrew field in the North Sea

Walter Thain fra THREE60 Energy and Graeme Fergusson i AF Offshore Decom
Walter Thain fra THREE60 Energy and Graeme Fergusson i AF Offshore Decom THREE60 Energy/AF

A first of its kind in the UK Continental Shelf, this contract will see the joint venture assume the role of decommissioning services partner. The JV will deliver post cessation of production (CoP) operations, well decommissioning, facilities / pipelines / topsides preparation, substructure and topsides disposal and subsea infrastructure removal. The JV will also work alongside the topsides removal contractor to ensure successful unified delivery of the full decommissioning scope.

The Andrew field is located 225 km northeast of Aberdeen and serves as a central hub for four subsea fields. The facility features a steel structure that integrates both drilling and production facilities, with the topsides weighing approximately 11,100 tonnes and the supporting structure around 7,600 tonnes. The Andrew area includes 17 platform wells, 8 subsea wells, 41 km of subsea bundles, 42 km of umbilicals, and 2,500 tonnes of subsea equipment. 

The project will be carried out under a long-term framework agreement. The estimated contract value at the time of contract award is up to NOK 4,000 million excluding VAT. AF Gruppen share of the activity will be approximately 30%. Order intake in AF Offshore Decom at contract award is NOK 250 million.

“AF Offshore Decom has for many years been an advocate for integrated decommissioning solutions and we are very proud to make the move from concept to execution together with our client bp and partner THREE60 Energy. This initiative responds to the call for new business delivery models aimed at reducing cost and complexity and supporting 'next generation’ decommissioning,” says Lars Myhre Hjelmeset, EVP Offshore at AF Gruppen.

Work is scheduled to begin immediately, with completion expected in 2031-2032.

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Walter Thain fra THREE60 Energy and Graeme Fergusson i AF Offshore Decom
Walter Thain fra THREE60 Energy and Graeme Fergusson i AF Offshore Decom
THREE60 Energy/AF
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The Andrew field is located 225 km northeast of Aberdeen and serves as a central hub for four subsea fields.
The Andrew field is located 225 km northeast of Aberdeen and serves as a central hub for four subsea fields.
bp
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