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    Decommissioning partners sign formal cooperation agreement

    News // October 27, 2005

    At a meeting in Lerwick, Shetland earlier this week, a formal cooperation agreement was signed by Aker Kvaerner, SBS Logistics Ltd, Onyx UK Ltd and Shetland Decommissioning Company for jointly tendering, developing and carrying out decommissioning projects in the future.

    At the same meeting the owners of Eldoyne, the decommissioning facility operated by Aker in Norway, also exchanged information on how the decommissioning facility at Stord developed and benefited the community and local businesses.

    The meeting was attended by consortium partners and representatives of Shetland Islands Council, Lerwick Port Authority and Shetland Enterprise.
    This latest cooperation agreement is a development of the partnership between the group of companies, led by Norwegian engineering giant Aker Kvaerner, which in October 2004 bid for and won the £250 million decommissioning contract to break up Total’s Frigg field gas installations in the North Sea, which straddle the boundary between the UK and Norwegian sectors. 

    Harald Gulaker, Managing Director of Aker Kvaerner Offshore Partner UK, based in Aberdeen, said: “We are very pleased to enter into such a long term agreement using the Greenhead Base for our future decommissioning projects in the northern UK sector. We see an increasing decommissioning market in the UK sector. Therefore it is of vital importance to us to have a first class onshore decommissioning yard strategically positioned on the UK side. The agreement we are now signing is building upon the specific agreement for the Frigg project, already in place, but this agreement paves the way for a longer term relationship between the parties.”

    Murdo Maciver, Director of SBS, Shetland, a partner in the Shetland Decommissioning Company, commented: “Decommissioning is a strong future growth area for SBS Logistics and Shetland and this latest cooperation agreement with our Frigg consortium partners signals our commitment to this lucrative market.

    “The expertise we will gain on the Frigg decommissioning project and the recent expansion of our Shetland hub with the lease of the Holmsgarth quayside and warehousing facility in Lerwick Harbour facility, will strengthen our position in this marketplace when bidding for further decommissioning contracts. We are already in the process of pre-qualifying for a number of other decommissioning jobs.”

    SBS is constructing a decommissioning pad and controlled discharge area at its Greenhead base, which has large new concrete quaysides that, along with ample open laydown and storage facilities, make it particularly suitable for the offloading and onshore dismantling of offshore structures.

    Speaking about the agreement, Onyx Chief Executive, Cyrille du Peloux, said: “We are delighted to be involved in this project and we are confident that our environmental and waste management skills can be fully utilised in this exciting new venture. We have vast experience in this sector and we look forward to working with our partners to provide an excellent service.”

    Onyx is heavily involved in offshore activities in both the UK and Norway and under a PPC permit will operate the new facility and provide specific waste separation and recycling services. 

    It is anticipated that more than 20,000 tonnes of steel and other materials will be shipped from the six Frigg platforms and will be shipped 125 miles into Lerwick for processing at the new facility with a target of achieving a recycling recovery rate of 98 per cent.



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