Archer will no longer pursue offshore wind engineering, procurement and construction (EPC) projects and is considering a partial or full sale of its Archer Wind business following cost overruns and delays on the Culzean floating wind project in the UK North Sea.
The Culzean pilot project involves a 3 MW floating wind turbine designed to supply electricity to the Culzean oil and gas platform.
The floating wind pilot was one of the 13 Innovation and Targeted Oil & Gas (INTOG) offshore wind projects awarded seabed rights by Crown Estate Scotland in 2023, with TotalEnergies, the operator of the Culzean gas field, being the company that secured the rights.
Currently, the Culzean Floating Wind project is being led by NEO NEXT+ Energy, an independent UK oil and gas producer formed on 30 March 2026 through the merger of NEO Energy, Repsol UK, and TotalEnergies’ UK upstream business.
Archer Wind was responsible for delivering the floating wind system, including the floating foundation designed by Ocergy. Archer noted that its client is responsible for tow-out and offshore commissioning, while Archer is providing support under a reimbursable arrangement.
In its Q3 2026 update, the energy services company said the main deliveries for the Culzean project had been completed, with tow-out to the offshore site finished and commissioning ongoing.
However, commercial disputes with the client over variation orders and a claim against a subcontractor remain unresolved, according to Archer.
Speaking during the company’s earnings call, Archer CEO Dag Skindlo said changes to the project’s scope and deliverables initiated by the client had driven up costs and delayed the original schedule. He also said major welding defects at the fabrication subcontractor in Greece had delayed the project by more than five months and significantly increased costs. Archer is seeking compensation for the additional expenses.
Skindlo acknowledged that Archer had underestimated the project’s complexity and cost and had been too optimistic about resolving the commercial issues. The company did not disclose the amounts involved, citing ongoing negotiations with the client and subcontractor.
Archer said the delayed resolution of the Culzean commercial matters, alongside investments to support recently awarded contracts, contributed to net interest-bearing debt rising to approximately USD 525 million (around EUR 469 million). With recoveries uncertain in both timing and amount, the company will temporarily pause shareholder distributions. Its board plans to revisit the programme in early 2027 as leverage is expected to fall and the outstanding commercial matters become clearer.