AF Offshore Decom, a company within AF Gruppen, has signed a contract with Ithaca Energy for the engineering, receipt, cleaning, dismantling, and recycling of a floating storage unit (FSU) from the U.K. sector of the North Sea.
The vessel has a total weight of approximately 24,000 metric tons and will be received at AF Environmental Base Vats in 2026.
Contract value is in the range of $37 million to $42.2 million (NOK 350-400 million), according to AF Offshore Decom.
“We are very pleased to have been awarded a second major contract by Ithaca Energy following the award of the FPF-1 asset in December 2025. As a result of the awards, AF Environmental Base Vats will receive close to 50,000 tons of floating production and storage facilities from Ithaca Energy in 2026.
“The two units will, after initial preparations, be loaded onto our yard in a combined float over and load in operation, consistent with earlier similar projects at AFEBV. The units will be cleaned, dismantled and thereafter the steel will be repurposed, upcycled and recycled creating several circular material solutions for the agriculture, construction and civil industries in the Nordic region,” said Lars Myhre Hjelmeset, EVP Offshore at AF Gruppen.