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Aker Solutions and AF Gruppen merge decommissioning units

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Oilfield Technology,


Aker Solutions and AF Gruppen have signed a Letter of Intent (LOI) to merge the two companies’ existing offshore decommissioning operations into a 50/50 owned company.

The transaction is expected to be completed during the second half of 2021, subject to regulatory approvals.

The new unit will aim to recycle as much of the materials from decommissioned offshore platforms as possible. In recent years, AF Offshore Decom has achieved a source separation rate of 94% for the structures for recycling, where the main component is metal. Reusing steel results in 70% less CO2 emissions than ore-based production, which corresponds to an emission reduction of 1 kg CO2 per kilo of recycled steel. In 2020, AF Offshore Decom demolished and facilitated the recycling of approximately 22 000 t of steel, corresponding to a reduction of alternative CO2 emissions of 22 000 t.

"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 maximise the total recycling potential. 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," said Kjetel Digre, CEO of Aker Solutions.

"Our ambition is to establish a unique recycling player, positioned to offer a total decommissioning solution for the global offshore recycling market. The two parties have complementary strengths and capabilities, with potential to build a global offshore recycling powerhouse. Furthermore, the new entity will deliver on the green, circular ambitions outlined in the UN’s sustainable development goals," said Amund Tøftum, CEO of AF Gruppen.


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Oilfield Technology’s second issue of 2021 starts with a report from KPMG that examines the outlook for the Scottish oil and gas sector. The rest of the issue is dedicated to articles covering the offshore supply chain industry, offshore asset integrity, expandable liner technology, advances in drilling, data security, flow control, EOR and methane emissions.

Exclusive contributions come from Tata Steel, EM&I Group, 3X Engineering, Enventure Global Technology, Varel Energy Solutions, Adrilltech, Tendeka and more.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/01072021/aker-solutions-and-af-gruppen-merge-decommissioning-units/

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