Aker Solutions has signed a sizeable letter of intent with Heerema Marine Contractors for decommissioning work related to the Heimdal and Veslefrikk fields, offshore Norway.
The scope includes reception, dismantling and recycling of three offshore installations from the Heimdal and Veslefrikk fields. The total weight of these installations is around 68,000 metric tons, and the objective is to recycle about 98% of all the materials. Aker Solutions has extensive decommissioning experience and specialises in environmentally safe dismantling and recycling of offshore installations. This award confirms the company’s strong offering related to recycling projects.
“Decommissioning is a growing market, and in tonnage, this will be our largest decommissioning project since we recycled the Frigg oil and gas platforms about 15 years ago,” says Sturla Magnus, executive vice president and head of Aker Solutions’ topside and facilities business. “We are pleased with this new award which demonstrates that our strong focus on safe operations and capability to deliver a high degree of recycling is being recognised in the market.”
Heimdal is an Equinor-operated gas and condensate field in the Northern part of the North Sea, which has been in operation since 1985. The plan is to decommission the field, including removing, dismantling and recycling the main platform topsides and jacket. Heerema will be the main contractor for the decommissioning offshore, with Aker Solutions as the subcontractor for the recycling work when the installations arrive to shore. Aker Solutions’ scope includes the topsides, jacket and bridge of the Heimdal riser platform for which Equinor is the technical service provider on behalf of the operator Gassco. Assignment of the riser platform part of the scope is subject to Heerema being awarded the riser platform contract after expiry of a mandatory standstill period required prior to contract award.
Veslefrikk is an Equinor-operated oil field in the Northern parts of the North Sea which has been in operation since 1989. On the Veslefrikk field, Aker Solutions’ scope is to dismantle and recycle the wellhead platform Veslefrikk A as well as a subsea pre-drilling template.
The Heimdal and Veslefrikk platforms will be recycled at Aker Solutions’ decommissioning facilities at Eldøyane in Stord, Norway. Early-phase engineering will begin in 2022 and the structures are currently anticipated to arrive at Stord between 2024 and 2026, with project completion in 2027. At peak, the project is expected to involve around 100 employees in Aker Solutions.
The award will be booked as order intake when the contract is finally signed later this year, in the Renewables and Field Development segment.
Note: Aker Solutions defines a sizeable contract as being between NOK 200 million and NOK 700 million.