Norway: Oceaneering Enters Agreement to Acquire AGR Field Operations

Norway Oceaneering Enters Agreement to Acquire AGR Field Operations

Oceaneering International, Inc. announced that its wholly owned Norwegian subsidiary, Oceaneering AS, has entered into a definitive agreement to acquire AGR Field Operations (AGR FO) from AGR Group ASA and FieldCo Invest AS. AGR FO, headquartered in Bergen, Norway, is a provider of inspection, maintenance, subsea engineering, and field operations services, principally to the oil and gas industry.

The acquisition price is expected to be approximately $240 million, or 1.365 billion Norwegian Kroner, including acquired debt. The transaction is anticipated to close by the end of 2011, subject to approval by the Norwegian Competition Authority, which is expected. Oceaneering intends to fund the acquisition with cash and debt from its revolving credit facility.

Oceaneering believes AGR FO is Norway’s largest asset integrity management service provider on pipelines, offshore production platforms, and onshore facilities. AGR FO has developed subsea technology to perform internal and external inspections of flexible and rigid flowlines and risers. This includes an ROV-deployed deepwater ultrasonic piping inspection tool.

AGR FO also has a substantial operating presence in Australia, with offices in Melbourne, Brisbane, and Perth from which it operates and maintains offshore and onshore oil and gas production facilities. Additionally, the company provides subsea engineering services and operates an offshore logistics supply base in Darwin.

The transaction is anticipated to be completed by the end of 2011, and for 2012 Oceaneering expects the acquisition to add approximately $10 million of net income. The newly acquired operations should generate about $200 million in revenue and $20 million of operating income in 2012, after roughly $5 million of depreciation and amortization expense. Oceaneering also expects to incur around $2 million of transaction costs associated with this acquisition in 2011.

M. Kevin McEvoy, President and Chief Executive Officer, stated, “We are pleased to have entered into an agreement to acquire AGR FO. As a result of this pending acquisition, we are increasing our estimate of Oceaneering’s 2012 EPS to a range of $2.45 to $2.65 from $2.35 to $2.55.

“AGR FO will significantly increase our Inspection business, particularly in Norway, and provide us subsea inspection tooling to offer in other geographic markets in the future. AGR FO’s Australian operations will be reported in our Subsea Projects segment.

“AGR FO employs over 800 personnel worldwide, and we are looking forward to the contribution they will make to our operations and growth. We are expecting business synergies to develop as we integrate AGR FO’s operations into Oceaneering.”

Subsea World News Staff , November 23, 2011;  Image: Oceaneering

Share this article

Follow Subsea World News

One thought on “Norway: Oceaneering Enters Agreement to Acquire AGR Field Operations”

Comments are closed.

Events>

<< Feb 2016 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 1 2 3 4 5 6

FPSO Europe Congress

 

Pursuing Cost-Optimization & Project Excellence across Europe’s FPSO Value Chain!

Launched to great success in 2015, the FPSO Europe Congress is set to return on 24-25 February 2016 in London for yet another exciting gathering of Europe’s leading oil operators, FPSO contractors, EPCs, shipyards and solution providers to discuss the most topical and critical FPSO developments in the North Sea, Latin America, Brazil and West Africa market.

 

Why Attend the 2nd Annual FPSO Europe Congress?

  • Discover how FPSO leaders are embracing the new realities of a low oil price environment – what are the strategies to adopt in pursuit of viable economical FPSO projects?
  • Brainstorm with industry experts on innovative FPSO engineering, construction and technology breakthroughs leading to significant CAPEX and OPEX savings
  • Review, refine and optimize your existing FPSO operations – how can we enhance oil recovery and extend FPSO asset lifetime?
  • Learn from FPSO experts on the ins-and-outs of delivering successful FSPO projects in North Sea, West Africa, Latin America and Brazil – how can we comply with local content and form effective native partnerships?
  • Engage and form sustainable partnerships with European-based oil companies and FPSO contractors that are leading offshore E&P and FPSO projects in the region

 

2016 FPSO Distinguished Speakers Include:

  • Curtis Lohr, Stones Project Manager, Shell
  • David Hartell, Senior Development Manager, Premier Oil
  • Terry Hughes, Project Director, Tullow Oil
  • Sid Sircar, Facilities Delivery Manager – Catcher Development, Premier Oil
  • Michael Wyllie, Group Technology Director, SBM Offshore
  • Chris Brett, President, Teekay Offshore
  • Puneet Sharma, Vice President, MODEC
  • Eirik Barclay, CEO, Yinson Production

 

The FPSO Europe Congress 2016 is proud to bring you an updated program offering fresh perspectives, creative solutions and critical market intelligence fundamental to FPSO business sustainability as we discuss just HOW and WHAT you can do in pursuit of a viable, efficient and safe FPSO strategy.

For more information please visit the website at http://goo.gl/uvYsrk or email rani.kuppusamy@fpsonetwork.com

 

read more >

Topsides Platforms & Hulls

Topsides, Platforms & Hulls Conference & Exhibition is the offshore industry’s only event dedicated to the topsides, platforms and hulls…

read more >

The 16th North Sea Decommissioning Conference

The 2016-programme has been composed to shed light on the effect of the current low oil-price environment on the decommissioning market…

read more >

Substructures for UK Offshore Wind

Design, construction and installation

Optimising offshore substructures is one of the key challenges for reducing LCOE. Foundation designers have produced a variety of different solutions: monopiles, GBS, jackets, suction buckets and floating foundations. Looking at U.K. projects – different soils, water depths,fabrication timelines and installation challengescreate many questions for the industry to solve. We’re entering uncharted territory; projects arelarger, farther and more complex than ever completed.

Now is the time to have a close look at lessons learnt and define the room for improvement for the U.K. wind industry.

More Info

read more >