AF Gruppen

Regulatory Filings • Aug 28, 2017

Strategic step towards Decommissioning at Port of Dundee

Strategic step towards Decommissioning at Port of Dundee

Forth Ports Limited and AF Offshore Decom UK today 28th August 2017

announce signing of the head of agreement with the intent to

establish a new joint venture, AF Dundee, which will lay the

foundations of creating a UK North Sea oil and gas decommissioning

hub in the city of Dundee, with its nucleus at the port.

AF Offshore Decom UK, a subsidiary of AF Gruppen, is one of the

North Sea's most respected and prominent decommissioning

contractors. AF Gruppen owns and runs AF Vats Environmental Base in

Norway, the North Sea's most advanced facility for decommissioning

offshore installations.

The Port of Dundee, is optimally placed to accommodate a significant

share of North Sea decommissioning work due to its proximity to many

UK North Sea oil and gas assets, rail and road links, port

facilities, its on-site supply chain and the city's skilled

workforce.

The Port of Dundee, which is owned by Forth Ports, is currently

installing a £10m quay extension which will feature the UK's

strongest quayside, specifically designed to equip the port to

handle the large-scale loads demanded during decommissioning

operations.

AF Offshore Decom UK has an outstanding track record of more than 15

years in the execution of North Sea's most challenging

decommissioning projects, such as Ekofisk 2/4T, Statoil H7/B11,

CNR's Murchison and many more.

The agreement will not lead to site investments in fixed

installations for AF Gruppen.

Charles Hammond, Chief Executive of Forth Ports, said:

"This is great news for the city, for the local economy and for the

port. Our vision is to position Dundee as a major decommissioning

centre for the North Sea and to ensure that customers gain access to

an efficient, cost effective decommissioning solution. Partnering

with such an established and respected organisation as AF Offshore

UK will most certainly enable this vision."

Bengt Hildisch, President of AF Offshore Decom, said:

"AF Offshore Decom is pleased to find a partner that shares the same

vision and goals as us; to develop and operate a safe and cost

efficient Disposal yard in the UK. We have been seeking for the

right opportunity that enables us to build and expand our

capabilities to the UK and create a sustainable solution together

with our Yard in Norway for the whole North Sea."

Ends

28th August, 2017

For further information:

EVP Offshore AF Gruppen: Amund Tøftum, tel. +47 920 26 712

Director, AF Offshore Decom: Bengt Hildisch, tel. +47 900 84 944