Maersk Drilling and Maersk Supply Service, both part of Danish shipping group A.P. Moller-Maersk, said on Thursday that they will establish a joint venture to provide decommissioning services to oil and gas operators. The joint investment is approximately USD 20 million for the first years of operations. The JV will cover work scopes such as plug and abandonment of wells, towage of floating units and removal of subsea infrastructure.
The joint venture will be headquartered in Denmark and headed by Lars Banke, who will be joining from Total in June. A corporate brand for the venture will be established in the coming months. In the North Sea alone over 400 fields are expected to have stopped production at an estimated cost of USD 56bn.
“With the growing need for decommissioning mature fields, governments and oil and gas operators are looking for experienced partners to manage and perform this challenging task. By leveraging the strong track record of the two companies, as well as our complementary asset base and competencies, we can lower the risk and reduce the overall cost for the customers,” said Jørn Madsen, CEO of Maersk Drilling.
The joint venture plans to provide the full end-to-end process of decommissioning in the longer term. Establishing the joint venture will not impact Maersk’s ongoing work to seek new ownership structures for each of the partner companies, the companies said through a press statement.
“By combining our marine knowledge and experience from recent decommissioning projects, we can provide oil and gas operators bundled solutions with one point of contact for the majority of decommissioning work scope. With the experience and asset base brought to the jv by both companies, and the team to see it through, I am confident that the decommissioning jv can offer attractive and flexible solutions to the market,” says Steen S. Karstensen, CEO of Maersk Supply Service.
Sea News, April 12