Aker Solutions and Kvaerner will merge to strengthen their base in the global energy industry, both companies said in a statement obtained by The Energy Intelligence on Friday.
The two entities will join forces to create a new supplier company with a stronger position as a solid execution partner, enabling sustainable, low-carbon oil and gas production, and accelerating growth in renewable energy industries.
They have agreed to merge the companies based on the principle of equal parties.
The name of the new company will be Aker Solutions ASA.
Kjetel Digre has been appointed Chief Executive Officer of Aker Solutions, effective August 1, 2020, and will lead the combined company.
Kvaerner and Aker Solutions have for many years been successful suppliers to customers operating energy production facilities, especially to oil companies with oil and gas fields. Customers in this market are increasingly asking for solutions with reduced environmental footprint, and new customers ask for renewable energy solutions.
“By combining the two companies and their complementary resources, we will be able to deliver a more complete offering to a global energy industry,” says Leif-Arne Langøy, current chairman of Kvaerner and also proposed new chairman of Aker Solutions.
“The combined company will be a dedicated execution partner for delivery of complete projects for new energy production facilities, for example oil and gas production platforms or subsea systems, or offshore wind power installations,” says Kjetel Digre.
“The company will continue to finetune and improve our internal capacities, to ensure that we always have a sound capacity utilisation. In addition to our own capabilities, we will continue to collaborate closely with partners,” Digre adds.
Aker Solutions has developed technology and taken strong positions in markets for offshore wind and carbon capture, utilization and storage,” says Øyvind Eriksen, Chairman of Aker Solutions.
“However, it has become increasingly clear that these businesses represent value creation opportunities in a world transitioning to green solutions at accelerated speed and have more potential as stand-alone companies than as an integrated part of an oil service business.”
“Renewables and green technologies have entirely different value chains, customers, investor bases and sources of funding. Capitalizing and separating the offshore wind and CCUS business areas from Aker Solutions present a unique opportunity for growth and value creation,” says Eriksen.