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Maersk Drilling and Maersk Supply Service in decommissioning jv

Maersk Drilling and Maersk Supply Service in decommissioning jv
Maersk Drilling and Maersk Supply Service are targeting the decommissioning market with a new joint venture.

The 50 – 50 joint venture will draw on the assets of both companies to offer bundled solutions for up to 80% of the decommissioning process of an oil field. It also builds on decommissioning work that both companies have done in the North Sea in 2016.

“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.

In the North Sea alone over 400 fields are expected to have stopped production at an estimated cost of $56bn.

“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.

The joint venture will be headquartered in Denmark and headed by Lars Banke who will be joining from Total in June. The two companies will make a joint investment in the new venture of $20m in the first year. A corporate brand for the venture will be established in the coming months.