AF Gruppen Signs LOI with Venture North Sea for UKCS Contract

AF Gruppen has signed a letter of intent with Venture North Sea Oil Limited regarding the decommissioning of a loading buoy at the Kittiwake oilfield on the British continental shelf.

The contract has a value of MNOK 160. The letter of intent includes options for minor work when the decommissioning is finished. The business unit AF Decom Offshore will carry out the project.

AF has carried out several decommissioning projects offshore since we finished the decommissioning of the Ekofisk tank. The agreement with Venture North Sea Oil Limited will further increase our competence and strengthen AF Decom Offshore`s position as a main supplier of offshore decommissioning services, says Pål Egil Rønn, CEO of AF Gruppen.

The loading buoy is located on the British continental shelf and weighs more than 4,000 tons and is 90 meter high. The loading buoy, in addition to a smaller subsea installation, shall be released from its anchor pile and towed to AF Gruppen's decommissioning plant at Vats, Haugesund.

Preliminary work will start immediately, while work offshore will take place in June and July 2008. The dismantling will be completed during 2008.