CCB AS and Vestbase AS have established a new company in the Kristiansund region

As an element of the commercial interests of NSG and CCB in the rig maintenance market, CCB and Vestbase have jointly established a company that will offer and carry out maintenance and modification projects for the rig market in Central Norway. The new company is named Mid-Nor Yard Service and is owned 50/50 by Vestbase and CCB. With the overlying ownership structures, the company is thus owned 75% by NorSea Group.

Background for founding the company

Rig maintenance (IRM) and corresponding services are areas of major significance in NorSea Group's long-term strategy. The establishment of the company thus supports the strategy of the Group and CCB to follow the customer along the coast and offer the respective business areas at the locations where we are represented.

At present, no other companies are offering this type of service in Central Norway, and the market (number of rigs/vessels) in the area is strongly indicative of an increase in demand in the near future.

CCB and Vestbase have been co-operating in the execution of rig projects since 2006. For the owners of the company, it has been a natural choice to manifest this working relationship by establishing a separate company to take the concept several steps further. This will increase the level of activity, which in turn enhances the marketshares and profitability of the companies/Group in the future.

Business model

A detailed business plan has been prepared for the company, which especially during the start-up phase will provide important framework conditions for the further reinforcement and development of the company.

Mid-Nor Yard Service will offer turnkey services involving inspection, repairs, refurbishment and maintenance of drilling/oil rigs and other floating facilities.

The company's primary advantages include its location close to the market, excellent facilities, capacity to perform and level of quality, The goal is to be the most competitive provider of shipyard services in this market in Central Norway.

Vestbase Averøy, currently under development, will serve as the primary location for the company. (More information on this can be found at www.vestbase.com/averoy.) The company will also be able to offer projects at Vestbase and/or other locations in Central Norway.

Management systems, work processes, contract documents, organisational structure, etc. will be based upon established models, procedures and routines at CCB.

The operating model will primarily be based upon the use of existing resources from the companies that will own it - such as infrastructure, personnel, equipment, systems, etc.

The company will be project-based and will be organised and staffed accordingly. Staffing for administrative functions in the projects will primarily take place by contracting resources from the owners, Vestbase and CCB, and secondarily by contracting from external companies.

Administrative support functions and the like will be taken care of by Vestbase through a management agreement with Mid-Nor Yard Service.

The company's goal is to carry out its first rig maintenance projects in 2015, and then to successively increase their size and complexity with an eye towards being able to perform more substantial class survey work before 2018.

Representatives

The company's Board will consist of 3 representatives from CCB and Vestbase respectively, where the Managing Director of CCB, Kurt Andreassen, will serve as the Chairman.

The general manager of the company will be Stein Arve Olsen, who at present is employed as the Technical Manager at Vestbase.

Company vision

"We have prepared a vision for the company that we are quite proud of – and which contains tangible and challenging elements that will help us steer a steady course in the future development of the company," says Stein Arve Olsen, General Manager of Mid-Nor Yard Service.

Mid-Nor Yard Service AS –

"Innovative and trustworthy – with complete solutions"

Visiting address: Risavika Havnering 14, 4056 Tananger Phone: +47 40 00 43 21

© NorSea Group AS 2017