AF Group expands further into oil and gas services

The AF Group (AFG) has signed a letter of intent with

Båtservice Holding to purchase 100% of the shares of

Båtservice Offshore Verft AS. The acquisition is part

of a plan by the AF Group to expand the services it

provides to the oil and gas market.

Båtservice Offshore currently provides maintenance

and modification services to the largest oil and gas

companies in Norway. The company has revenues of

approximately NOK 70 million. Båtservice Offshore is

located at Mandal's largest port and industrial area.

With its closeness to Kristiansand and Stavanger, the

area has become a part of the growing offshore

environment in southern Norway.

The AF Group has been providing services to the oil

and gas market for a number of years. Its main

activities have been connected with onshore

facilities such as Kårstø, Kollsnes, Mongstad,

Snøhvit and Ormen Lange. In addition, the AF Group is

the leading player in offshore decommissioning.

Through its wholly owned company Mollier, the AF

Group also has general agreements with Statoil and

ConocoPhilips to provide HVAC (Heating, Ventilation

and Air Conditioning) services. Båtservice Offshore

will become part of the AF Group's long-term plan of

becoming a major supplier of EPCIC (Engineering,

Procurement, Construction, Installation &

Commissioning) contracts.

"The AF Group has been focusing on the oil and gas

market for a number of years. Båtservice Offshore's

main strength is offshore engineering and mechanical

services. By combining this expertise with our own,

we are laying a foundation for developing more

integrated and customer-oriented solutions for the

oil and gas market," says Pål Egil Rønn, CEO of the

AF Group.

For further information:

CEO: Pål Egil Rønn, tel. + 47 90 95 77 13

EVP Civil Engineering: Arild Moe, tel. + 47 91 37 62

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