The merged entity will be equally owned by Aker Solutions and AF Gruppen.
It will offer integrated end-to-end services from well plug and abandonment to planning, removal, dismantling, and recycling
Aker Solutions CEO Kjetel Digre said: “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 joint company, which will have approximately $288.7m (Nkr2.5bn) of order backlog, will aim to increase the percentage of materials recycling from the decommissioned offshore platforms.
AF Gruppen CEO Amund Tøftum said that the two Norwegian firms have complementary strengths and capabilities, with the potential to build a global offshore recycling powerhouse.
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Tøftum added: “Furthermore, the new entity will deliver on the green, circular ambitions outlined in the UN’s sustainable development goals.”
The transaction, which is subject to due diligence and regulatory approvals by the Norwegian Competition Authorities (NCA), is expected to be completed in the second half of this year.