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Formation of Augean North Sea Services

We are pleased to announce a joint venture with Scomi Oiltools (Europe) Limited (“Scomi”) to take a controlling stake in a new company formed from the existing operational assets of Scomi in the UK.  A new company, to be called Augean North Sea Services (“ANSS”), will provide waste management services to offshore operators in the North Sea.

The joint venture will build upon the existing relationship between us and Scomi for the treatment of drill cuttings from offshore oil and gas exploration, using our thermal treatment and disposal facilities at Port Clarence and Scomi’s offshore waste management resources, based in Aberdeen.

By combining these activities through ANSS, the new venture will have the capability to source, contain, treat, recycle and ultimately dispose of offshore wastes for its customers through an integrated waste management supply chain.

The joint venture will operate assets transferred from Scomi’s existing UK operations, based at sites in Aberdeen and Lerwick in Shetland. These assets include offices and industrial premises, which will provide a base for managing and storing wastes, a large waste treatment and storage facility at Pocra Quay in Aberdeen and specialist equipment used in the management and transportation of waste materials from North Sea drilling platforms.

In addition, 40 experienced employees based in Aberdeen will transfer from Scomi into ANSS to manage and operate the venture.

ANSS will provide services to existing Scomi customers and progressively develop its activities and services over the next 12 months. At the core of the operation will be drilling waste management on the offshore platforms, supported by onshore treatment of drill cuttings (provided through a service contract with the existing facility at Port Clarence) and treatment and disposal of other wastes from service vessels utilising the specialist treatment and storage facility at Pocra Quay.

In setting up the joint venture both parties expect to benefit from current and future opportunities to manage offshore waste whilst providing access to the emerging market for the decommissioning of redundant offshore structures and naturally occurring radioactive materials (NORM), which are expected to grow over the next 10 years.

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