Energy service firm to divest

Norwegian energy service firm Aker Solutions has announced plans to divest parts of its business and also unveiled a new chief executive.

It aims to “spin off ” its wind development and carbon capture and storage arms to create two separate Oslo-listed companies.

Aker said it had taken “strong positions” in both markets, which were likely to generate value in a world transitioning to low-carbon at speed.

But the two businesses have better prospects as standalone companies than as part of an integrated oilfield services group, the group added.

Aker, which employs more than 600 people in Aberdeen, has hired Kjetel Digre as its new chief executive, taking over from Luis Araujo on August 1.

“Aker said it had taken ‘strong positions’ in both markets”

Mr Digre most recently held the role of senior vice-president of operations and asset development at joint venture Aker BP.

He will lead an enlarged Aker group following a merger with fellow Norwegian energy service firm Kvaerner, with whom it has a shared history spanning decades.

Both companies are partly owned by an industrial investment company controlled by Norwegian billionaire Kjell Inge Rokke.

If shareholders approve the merger, Aker will have around 15,000 employees in 50 locations globally.

At the start of this year Aker had about 16,000 employees and Kvaerner 2,800.

Aker said both companies had started making capacity and cost reductions prior to the merger in response to lower commodity prices.