Akastor ASA: DDW Offshore Secures Two Contracts with International Oil Company

Akastor ASA, a Norway-based oil-services investment company, has announced that its subsidiary, DDW Offshore, has secured two significant contracts with an international oil company. These contracts, valued at an undisclosed amount, are expected to contribute to Akastor's revenue and earnings in 2024.

The first contract involves the conversion of a 14,145 dwt chemical tanker, Voyageur Spirit, into a floating production storage offloading (FPSO) unit, renamed FPSO Petrojarl Kong. This project took over 1,000 workers 14 months to complete and is a testament to DDW Offshore's expertise in complex conversions and upgrades of energy assets. The second contract entails the conversion of a 150,939 dwt shuttle tanker, Nordic Brasilia, into a floating storage and offloading (FSO) vessel, renamed FSO Yamoussoukro.

Both FPSO and FSO units will operate on Baleine Phase 2, a vast oil and gas field in the waters off Côte d’Ivoire in West Africa. These projects align with Akastor's strategic goals and long-term value creation plans by expanding its portfolio of industrial holdings and other investments in the oil and gas sector.


The potential impact of these contracts on Akastor's share price and overall market performance in 2024 is positive, as they demonstrate the company's ability to secure significant projects in the competitive offshore oil and gas market. Additionally, these contracts contribute to DDW Offshore's existing portfolio and long-term growth strategy by expanding its presence in West Africa and further cementing its reputation for complex conversions and upgrades.


However, there are key risks and challenges associated with these contracts, such as potential delays, cost overruns, and changes in market conditions. To mitigate these risks, DDW Offshore must maintain strong project management, ensure the quality of its work, and remain adaptable to changing market demands. By successfully executing these contracts, DDW Offshore can further enhance its reputation and secure additional business opportunities in the future.