Houston-based C-Automation Inc. is expanding its oilfield service offerings with the purchase on March 26 of Proserv’s worldwide drilling services business formerly known as TIC.
According to a release from Aberdeen-based Proserv, the companies agreed to the transaction, though didn’t disclose the financial terms of the deal.
The transaction consolidates Proserv’s drilling services offering following a strategic review of the control technology company’s portfolio of services across the drilling, production, decommissioning and renewables markets, said Davis Larssen, chief strategy officer for Proserv.
“We have been in the process of reviewing and adapting our development plan and we are committed to focusing exclusively on our core controls technology as we move forward,” Larssen said in a statement.
As for C-Automation, the transaction is expected to more than double the company’s staff of service technicians and significantly broaden the customer base that it serves, according to the Proserv release.
C-Automation currently provides manufacturing and field services specializing in pressure control systems. The company’s CEO, Mike Gould, called its purchase from Proserv a “critical component” of a longer-term global growth strategy.
“We have consistently prided ourselves on our custom manufacturing and field service capabilities, and this acquisition provides us a unique opportunity to accelerate entry into new markets and strengthen our capacity to serve our customers’ complex drilling needs,” Gould said in a statement.
As a part of the sale agreement, Proserv and C-Automation will work in partnership to provide their customers with shared products and services. Proserv will supply its drilling controls products, including its Gilmore branded valves and field-testing equipment, while C-Automation will provide welding, electrical, piping, flushing and tubing services.
C-Automation currently has facilities in Saudi Arabia, Brazil and in West Texas in Midland and Odessa. Proserv operates in more than 60 countries around the world with roughly 1,200 employees.
Oil prices fell on Dec. 23 after an increase in U.S. drilling activity, but held near recent three-month highs on hopes for a trade deal between the United States and China.
Oil held near 2019 highs on March 20, supported by tightening U.S. stocks and declining output from key producers due to OPEC production cuts and U.S. sanctions on Iran and Venezuela.
Benchmark oil prices edged higher on March 27, boosted by further disruptions to Venezuela's crude exports which have helped tighten global inventories in recent weeks.