The PBA, signed today in Aberdeen, also includes a commitment by the parties for the development of a long term agreement.

The agreement commits Aker Kvaerner Offshore Partner and SBS to developing the Greenhead base into a fully fledged decommissioning facility, similar to the  Eldøyane site in Norway. It also secures Aker Kvaerner Offshore Partner's access to important facilities in connection with the demolition and recycling of  platforms from the North Sea.

"We very much appreciate the way we have been received in Shetland, and we believe this agreement will be to the benefit of all parties, but especially the Shetland Islands," says Tore Sjursen, President of Aker Kvaerrner Offshore Partner, Stavanger. "The Greenhead base will be very important to us in our further efforts in the decommissioning and recycling of  platforms that have reached the end of their useful life."

Allan Wishart, Chairman of Shetland Decommissioning Company and Chief Executive of Lerwick Port Authority, comments: "This agreement with the leader in platform decommissioning  is a significant step forward in the development of Shetland's role in an evolving, long-term market with its potential for employment and other gains for the islands. The participation of Onyx reflects the emphasis placed on ensuring environmental standards are met."

Decommissioning is seen as a natural extension of Shetland's involvement with the offshore industry since the 1960s and Lerwick already has a track record of providing services and facilities for this market.

The Greenhead facility will supplement the specially constructed demolition plant which  Aker Kvaerner has at Eldøyane, Stord, on the west coast of Norway. Under the cooperation agreement, Aker Kvaerner's contribution will include knowledge and experience of this special branch of the oil industry. Aker Kvaerner Offshore Partner and their sister company Aker Stord have earlier removed and demolished the Odin platform on behalf of the Esso oil company from the Norwegian sector - and the 110,000 tons Maureen A-platform (Phillips UK) from the British sector. The recyling rate  for the two platforms reached 98 and 99 % respectively. Some of the equipment and  steel constructions were reused, but the majority was shipped to smelters for recycling.

The extensive Greenhead base is situated in sheltered waters on the east coast of Shetland where facilities include  a modern concrete quay, offices, workshops and large open spaces suitable for this type of work.

There is also an established, environmentally-friendly facility that converts general, non-hydrocarbon waste into  energy, which in turn supplies hot water to the heating of both the base and large parts of Lerwick.

The base is strategically located in relation to numerous mature fields on the Norwegian and British continental shelves.

ENDS

 

Tore Sjursen, President, Aker Kvaerner Offshore Partner, Stavanger. Tel: +47 971 72 851
Alf Terje Myklebust, Aker Kvaerner Business Partner. Tel: +47 917 53 442

Alan Wishart, Chairman, Shetland Decommissioning Company. Tel: +44 (0) 1595 692991.
Dick Mutch, Barker Mearns and Gill Public Relations. Tel: +44 (0) 1224 646311. (For SDC, SBS.)

 

AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner span a number of industries, including Oil & Gas production, Refining & Chemicals, Mining & Metals, , Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. Aker Kvaerner has aggregated annual revenues of approximately USD 4.5 billion and employs around 21,000 employees in more than 30 countries.The Aker Kvaerner group consists of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities. The parent company in the group is Aker Kværner ASA.

 

MMO Europe (Maintenance, Modifications and Operations) is responsible for the Aker Kvaerner's MMO competencies and capacities, serving the Norwegian and UK Continental Shelf, and supporting selected international initiatives. The core competencies are turn-key deliveries offshore modifications, long term on- and offshore modification and maintenance contracts, inspection, operation and operations support, offshore removal and de-construction and subsurface advisory. MMO Europe has approximately 6,000 employees, including 2,600 engineers.

 

Aker Kvaerner Offshore Partner AS is a turnkey contractor for the oil and gas industry. The company is engaged in front end studies, field development with new platforms and modifications to existing platforms, maintenance, modifications and operations contracts, field decommissioning and removal. Aker Kvaerner Offshore Partner covers all engineering disciplines, procurement, material administration and project management. The company has some 2,500 employees, including two subsidiary companies. Its head office is located in Stavanger, Norway.

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com

 

Lerwick Port Authority and SBS are partners in Shetland Decommissioning Limited, established in 2000 with the support of Shetland Islands Council and Shetland Enterprise. Established in the 1970s to provide facilities and services to the oil and gas industry, SBS has bases in Lerwick and in North-east Scotland, at Aberdeen and Edzell.

 

Onyx UK  is one of the UK's leading waste management companies operating in all of the industry sectors. Onyx UK is the regional subsidiary of the Onyx Group, Number 2 in the world for waste management and one of the leaders in industrial hazardous waste. With activities in 33 countries, Onyx employs 68,000 people worldwide, servicing 280,000 industrial customers who represent 66% of income from a global revenue of 5.9 billion Euros in 2003.  Onyx is the waste management arm of Veolia Environnement.

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