Global Energy Development said it has conditionally agreed to purchase 11 offshore subsea service vessels and a barge vessel as it seeks to adopt a new business strategy focusing on the subsea oilfield services sector.
Global will acquire three vessels from Everest Hill Group through the purchase of all of the issued shares in three vessel-owning companies.
Additional eight vessels, a barge vessel and other equipment will be acquired through the purchase of all of the issued shares in two vessel-owning companies from McLarty Capital Partners, Caleura Limited and Alan Quasha.
All vessels are said to be currently located in Louisiana USA with access to the offshore oil and gas fields in the Gulf of Mexico.
The acquisitions will mark a fundamental change in Global’s business strategy as these transactions are the company’s first step into the global subsea industry.
“The company seeks to make counter-cyclical investments within the global subsea industry that will enable it to capitalise on future recoveries in the oil price and related increased requirements for offshore support services,” GED said on Monday.
Global has also proposed to change name to Nautilus Marine Services to reflect new business strategy.
Following completion of the transactions the company’s business should be the provision of subsea oil services through the use of the vessels acquired. Such services would include, but will not be limited to, platform and pipeline inspections, underwater welding and burning and other underwater oil support services.
Global has also appointed John Payne as director of operations. Recently, Payne held positions as chief operating officer at Aubin and as interim chief executive officer at Hallin Marine.
Mikel Faulkner, chairman of the company, said:
“We are very pleased to have committed to these acquisitions of the offshore service vessels in the Gulf of Mexico. This represents the company’s first step towards delivering on the company’s new strategy of increasing shareholder value by targeting investment and acquisition opportunities in the subsea services sector with the potential for significant upside.
We are also delighted to welcome someone of John’s experience to the Global management team. He is a good strategic fit for the business and his knowledge and experience will be of immense benefit as we embark on this new business strategy, especially considering his long and successful track record in the off-shore energy marine sector.”