Offshore decommissioning contract in the British sector of the North Sea

abarrelfullabarrelfull wrote on 22 Aug 2012 10:16

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AF Gruppen has today signed an interim agreement with Shell U.K. Limited (Shell) regarding the decommissioning of 6 platforms from the Indefatigable gas field. This field is located in the British sector of the North Sea.

The commitment under this interim agreement is limited to preparatory work. Negotiations on the final contract are ongoing and execution of the final contract is subject to Project Final Investment Decision by Shell. The value of the full contract scope is expected to be around 230 MNOK. AF Decom Offshore, part of AF Gruppen’s environmental business, will carry out the offshore lift preparations and onshore dismantling activities for the Inde Decommissioning project.

Preparatory work is underway for the offshore platform decommissioning activity due to start in early 2009. The project is scheduled for 3 years.
As part of the work, AF Decom Offshore is set to recycle around 13,000 tonnes of steel and equipment from the Inde structures.

The location of the onshore dismantling activities will be the subject of a separate announcement.

- This is the fifth decommissioning project AF Gruppen has undertaken offshore, and the second in the British sector of the North Sea. The agreement strengthens our strategic target of delivering environmental services, and is recognition of our competence in dismantling and recycling offshore steel structures internationally. The contract forms the basis for further growth in our environmental business in the North Sea, says Pål Egil Rønn, CEO of AF Gruppen.

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