Andfjord Salmon Group has submitted a compensation claim exceeding NOK1 billion ($99 million) against its main contractor, AF Hæhre and Contur.
The claim relates to alleged grossly negligent performance and wilful breach of the civil works contract for the company's land-based aquaculture facility at Kvalnes, Andøya, Norway.
The claim seeks recovery of incurred costs attributed to the contractor's execution of construction methods, insufficient cost control, and inadequate project management.
It reflects previously communicated budget revisions, including a NOK500 million increase in capital expenditure announced on May 28.
Andfjord Salmon stated that while the construction method itself is "sound", the issues stem from the contractor's inability to deliver within the agreed cost framework. Consequently, the company has withheld further payment of invoices to AF Hæhre and Contur.
Despite the dispute, Andfjord Salmon confirmed that ongoing fish farming operations remain unaffected. Recent releases of smolt into pools K0 and K1 have proceeded successfully with high survival rates. Pool K3 is reportedly close to completion.
The company is engaging with potential new contractors to complete the next two pools, K2 and K4, which are required by the spring or summer of 2026. Andfjord Salmon estimates mobilisation costs of approximately NOK20 million to replace the current contractor but expects the change to have a non-material effect on production plans.
