AF Gruppen takes strategic position in the UK offshore decommissioning market
AF Gruppen’s subsidiary AF Offshore Decom is joining forces with the leading offshore decommissioning players Heerema Marine Contractors and Decom Energy, to launch a new company: Fairfield Decom. Headquartered in Aberdeen, this new venture combines the knowledge of a highly experienced operator with the expertise and capabilities of the world’s leading offshore decommissioning contractors. Through this step, a unique late-life operations and decommissioning operator is created, providing an all-encompassing solution for offshore oil and gas assets, primary in the UK Continental Shelf.
With an average £1.5 billion annual projected expenditure over the next eight years, the UK Continental Shelf is the largest of the global offshore decommissioning markets. Fairfield Decom represents a major leap towards a more innovative and sustainable offshore decommissioning industry. Customers will benefit from a new business model, designed to reduce complexity and the number of contractual arrangements, deliver operational efficiency, cost-effectiveness and predictability contributing to the 35% cost reduction targets set by the Oil and Gas Authority in the UK. Fairfield Decom’s customers will benefit by having direct access to the expertise, capabilities and assets brought together via AF Offshore Decom, Heerema Marine Contractors and Decom Energy, as Fairfield Decom is able to manage, integrate and then execute end-to-end late-life and decommissioning activities. This is what we call ‘next generation decommissioning’.
AF Offshore Decom is a specialised contractor that has been developing and executing solutions for the removal and recycling of offshore installations for the past 15 years. Heerema has over 50 years of experience in transporting, installing, and removing all types of offshore facilities, including fixed and floating structures in shallow, deep, and ultra-deep waters for the offshore oil, gas and wind industries. Decom Energy is the first fully outsourced end-to-end late-life and decommissioning operator in the North Sea, with its subsidiary Fairfield Energy, well-advanced in the decommissioning of the Greater Dunlin Area.
Graeme Fergusson, Managing Director of Fairfield Decom comments: ”We have built a strong business relationship with AF Offshore Decom and Heerema as contracting partners in the Dunlin topsides removal and as alliance partners for integrated decommissioning business opportunities. The three companies have unrivalled experience in decommissioning and there is great alignment in terms of our responsible approach to business and our core values. Our operator background mean that we understand what the E&P community wants - an integrated solution that is technically robust, commercially creative and that delivers a safe, cost-effective and environmentally-sound solution.”
Highlighting the importance of the new company, Bengt Hildisch, Managing Director of AF Offshore Decom comments: “AF Offshore Decom is very pleased to collaborate with partners who are aligned with our goals. The establishment of Fairfield Decom represents an important step change in the decommissioning business model. It responds to the call from the UK regulator, the Oil and Gas Authority, to create new business delivery models to reduce complexity to support the ‘next generation decommissioning’.”
In support of the new venture, Koos-Jan van Brouwershaven, CEO of Heerema comments: “Heerema is proud to be part of this unique new venture. Three leaders in the global decommissioning market have joined forces, providing a smarter and cheaper approach to decommissioning and recycling offshore structures. As an experienced offshore contractor, Heerema is constantly seeking opportunities to further strengthen our position in the international offshore market through innovation, pro-activity and reliability. Fairfield Decom is a great example of how we are achieving those ambitions.”
The creation of the joint venture is subject to approval of the Norwegian competition authorities.
For further information:
Bengt Hildisch, MD AF Offshore Decom, +47 900 84 944
Morten GrongstadCEO+47 991 53 firstname.lastname@example.org
Amund TøftumEVP Offshore and Building Norway+47 920 26 712Amund.Toftum@afgruppen.no
Director of communications+47 930 02 email@example.com
About AF Gruppen ASA
AF Gruppen is a leading contracting and industrial group. The purpose of our business is to create value for our customers, owners, employees and society at large. We are proud of our good financial results, but every bit as important are the non-financial values that we create every day. A safe working environment for our employees and sub-contractor personnel, new services that help solve society’s environmental challenges and ethical business operations that create security for our customers. This in turn provides us with the opportunity to create additional value for our owners.
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