Aker Maritime Sale Plans Halted

November 5, 1999

Aker Maritime ASA's parent company, Aker RGI, has halted plans announced earlier in the year to sell the company. Aker RGI, which holds 63 percent of Aker Maritime, said earlier this year that it was in talks to merge or form an alliance for the company. "The process linked to a possible sale of Aker RGI's shares in Aker Maritime is now ended," a spokesman for Aker Maritime said. He added that Aker is continuing to develop strategy to both improve operations and find a good industrial solution, which could include moving into oil and gas production on the Norwegian continental shelf (NCS). Norway's offshore industry has been hit by a downturn in investment in oil and gas projects following a plunge in oil prices last year. Last week, the Oil Ministry said it was not against Aker Maritime becoming a producer. The ministry said it had carried out an evaluation of the company based on technical and geological competence, security and environmental considerations and financial capacity. "Based on the general knowledge of the Aker Maritime company, it is the ministry's consideration that the company has a wide-ranging competence, which creates a good starting point to qualify for the right to become a license holder and operator on the NCS," Oil Minister Marit Arnstad said. Aker Maritime officials said in August that the company was considering a move into oil production and that it saw up to 100 minor oil prospects offshore Norway, which could be profitably developed and produced. The company's research indicates that small prospects would be commercially viable if moveable vessels were used for production. Once a reservoir was empty, the vessel could then go to another small development. At the time, Oil Ministry officials said Aker's proposals were interesting but the agency would have to make a review to see if the company qualified under strict criteria governing those admitted into Norway's petroleum sector. A ministry official said that Aker Maritime has limited operational experience, but that could be built up over time. He added that the company needed to "significantly strengthen" competence and experience in environmental issues before it could be considered for an operatorship. All assessments were based on development of marginal fields or those coming to the end of their lifetime, ministry officials said. - (Reuters)

Aker Maritime Sale Plans Halted

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