Norwegian offshore service operator Aker Solutions has teamed up with contractor and manufacturer AF Gruppen to dismantle and recycle decommissioned oil platforms, writes AF Gruppen in a press release.

The two companies will set up a joint "recycling and decommissioning company." AF Gruppen adds that the company will have an order backlog of approximately NOK 2.5bn (EUR 240m).

"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," says CEO of Aker Solutions Kjetel Digre and adds:

"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."

The ownership of the company, which seeks to become a leading global player for environmentally friendly recycling of offshore assets, will be split 50/50 between Aker Solutions and AF Gruppen.

The transaction is expected to be completed in the second half of 2021 and is subject to due diligence and approval from the competition authorities.

English Edit: Christoffer Østergaard

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