Thursday 16 May 2019

AF Gruppen's subsidiary AF Offshore Decom creates the company Fairfield Decom together with the leading players in offshore removal and recycling Heerema Marine Contractors and Decom Energy. Headquartered in Aberdeen, the new business combines the knowledge of an experienced operator with the expertise of the world's leading offshore removal and recycling contractors. In this way, a unique operator is created with comprehensive solutions for late-life operations and removal and recycling missions on the UK continental shelf.

The British Continental Shelf is the largest of the global offshore removal and recycling markets, with GBP 1.5 billion in expected average annual investments over the next eight years. Fairfield Decom represents a long step towards a more innovative and sustainable industry for offshore removal and recycling. Customers will benefit from a new business model, designed to reduce the complexity and number of contracts, and deliver operational efficiency, cost effectiveness, and predictability that contribute to the 35% cost reduction goal, a goal set by Oil and Gas Authority UK. Fairfield Decom's customers will benefit from having direct access to the expertise, knowledge, and assets of the three partners while allowing Fairfield Decom to lead, integrate, and then perform late-life operations and removal and recovery operations.

AF Offshore Decom is a specialized contractor who has developed and carried out assignments for the removal and recycling of offshore installations over the past 15 years. Heerema has over 50 years of experience in the transportation, installation and removal of all types of offshore facilities, including fixed and floating structures in shallow, deep and very deep water for offshore oil, gas and wind industry. Decom Energy is the first fully outsourced late-life operator in the North Sea, and with its subsidiary Fairfield Energy, has come a long way in removing and recovering the Greater Dunlin area.

Graeme Fergusson, CEO of Fairfield Decom, commented: - We have built strong business relationships with AF Offshore Decom and Heerema as contract partners in the removal and recycling of Dunlin's platform tires, and as alliance partners in removal and recycling. The three companies have outstanding experience in removal and recycling, but more importantly, our business methods and core values are highly compatible. Our background as an operator means that we understand what E&P players want - an integrated solution that is technically robust, commercially creative and which is a safe, cost-effective and environmentally friendly solution.

Bengt Hildisch, CEO of AF Offshore Decom, emphasizes the importance of the new company: - AF Offshore Decom is very pleased to have found partners with the same goals as us. The establishment of Fairfield Decom represents an important next step in the business model for removal and recycling. It is a response to the demand from Oil and Gas Authority UK to create new business model models that reduce complexity and increase efficiency - next generation decommissioning.

Koos-Jan van Brouwershaven, CEO of Heerema, comments on the following:

- Heerema is proud to be part of this unique new business. Three leading players in the global market for removal and recycling have teamed up to provide a smarter and cheaper solution for the removal and recycling of offshore installations. As an experienced offshore contractor, Heerema is constantly looking for opportunities to further strengthen our position in the international offshore market through innovation, pro-activity and reliability. Fairfield Decom is a good example of how we meet these ambitions. "

The establishment of the joint venture is subject to approval from Norwegian competition authorities.