AF Offshore Decom Secures NOK 350–400 Million Contract with Ithaca Energy for North Sea FSU Decommissioning

AF Offshore Decom Secures NOK 350–400 Million Contract with Ithaca Energy for North Sea FSU Decommissioning

(IN BRIEF) AF Offshore Decom, part of AF Gruppen, has secured a contract with Ithaca Energy to manage the engineering, receipt, cleaning, dismantling, and recycling of a 24,000-ton floating storage unit from the UK North Sea, with delivery to AF Environmental Base Vats scheduled for 2026. This follows a previous award in December 2025 for another Ithaca Energy asset, meaning nearly 50,000 tons of floating production and storage facilities will arrive at AFEBV in 2026 for decommissioning. The two units will be transferred to the yard through a combined float-over and load-in operation before being cleaned and dismantled, with recovered steel repurposed, upcycled, and recycled into circular material solutions for Nordic agriculture, construction, and civil industries. AF Gruppen leadership described the contract as further recognition of its expertise and commitment to sustainable offshore decommissioning.

(PRESS RELEASE) OSLO, 12-Feb-2026 — /EuropaWire/ — AF Offshore Decom, part of the AF Gruppen group of companies, has entered into a new agreement with Ithaca Energy for the complete end-of-life management of a floating storage unit (FSU) from the UK sector of the North Sea. The scope of work covers detailed engineering, safe receipt, cleaning, dismantling, and material recovery of the vessel, which has an estimated total weight of around 24,000 metric tons. The unit is scheduled to arrive at AF Environmental Base Vats (AFEBV) in 2026, where the decommissioning activities will take place. The contract is valued at approximately NOK 350–400 million, excluding VAT.

This latest award follows a previous contract granted by Ithaca Energy in December 2025 for the FPF-1 asset, reinforcing the ongoing collaboration between the two companies. Together, the two projects will result in nearly 50,000 tons of floating production and storage infrastructure being delivered to AFEBV in 2026 for responsible decommissioning and material recovery.

Once the vessels have been brought to the site, AF Offshore Decom will undertake initial preparations before executing a combined float-over and load-in operation to transfer the units onto the yard, an approach aligned with similar large-scale projects previously carried out at AFEBV. Following this, the structures will undergo thorough cleaning and dismantling processes, after which the recovered steel will be redirected into new uses through repurposing, upcycling, and recycling initiatives. These materials are expected to support circular solutions across sectors such as agriculture, construction, and civil engineering in the Nordic region.

Lars Myhre Hjelmeset, Executive Vice President Offshore at AF Gruppen, highlighted the significance of the contract, expressing satisfaction with being selected once again by Ithaca Energy. He noted that the combined volume of assets arriving in 2026 demonstrates strong confidence in AFEBV’s capabilities and emphasized the company’s commitment to delivering a sustainable, circular decommissioning solution for large offshore installations.

Media Contact:

Lars Myhre Hjelmeset
Managing Director
AF Gruppen
larsmyhre.hjelmeset@afgruppen.no
+47 970 39 084

SOURCE: AF Gruppen