By Dominic Chopping

Aker Solutions ASA said Thursday that it has signed a letter of intent with Heerema Marine Contractors for decommissioning work related to the Heimdal and Veslefrikk fields, offshore Norway.

The company said the contract is "sizable," which it defines as being between 200 million and 700 million Norwegian kroner ($23.8 million-$83.2 million).

The scope includes reception, dismantling and recycling of three offshore installations from the Heimdal and Veslefrikk fields. The total weight of these installations is around 68,000 metric tons, and the objective is to recycle about 98% of all the materials, it said.

Both Heimdal and Veslefrikk are Equinor-operated oil-and-gas fields in the northern part of the North Sea and have been in operation since the 1980s.

The Heimdal and Veslefrikk platforms will be recycled at Aker Solutions' decommissioning facilities at Eldoyane in Stord, Norway. Early-phase engineering will begin in 2022 and the structures are currently anticipated to arrive at Stord between 2024 and 2026, with project completion in 2027, it said.

The award will be booked as order intake when the contract is finally signed later this year.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

03-18-21 0539ET