AGR Group Announces Internal Restructuring, Norway

AGR Group Announces Internal Restructuring, Norway

Following the successful refinancing of AGR Group, the Group’s two business areas, Petroleum Services and Drilling Services, are now financed separately.

This enables the two divisions to seek separate strategic alternatives with autonomous managements. Under the leadership of Åge Landro, EVP Petroleum Services and David Hine, EVP EDS-ORS, both divisions are ready to seek further growth as stand-alone companies.

As a part of this work, the Board will contemplate a legal demerger of the Group’s two divisions. Current Group CEO Sverre Skogen has decided to stand down as of 1 March 2013 after eight years with AGR. He will continue in his role as Chairman of AGR Energy.

Eivind Reiten, Chairman of AGR Group, said: “This is a landmark day in the 26-year history of AGR. Both Petroleum Services and Drilling Services have become significant global companies with ambitious growth strategies they can now go on to realise through autonomous management and independent financial structures.

“I would like to thank Sverre Skogen for his leadership and vision in growing the AGR business.”

Sverre Skogen said: “I believe the two AGR businesses occupy a unique place in the industry and have confidence in their leadership to fulfill potential in an exciting global marketplace.”

For the time being, Åge Landro will take on the role as Group CEO in addition to his position as head of AGR Petroleum Services.

Press Release, February 28, 2013