Subsea 7 Scoops Up Swagelining Ltd.
Norway’s Subsea 7 has acquired U.K.-based Swagelining Ltd., which specializes in polymer lining technology, the company said Aug. 10.
The acquisition builds upon their partnership focused on designing and installing reeled and bundled polyethylene-lined water injection flowlines in the North Sea for operators and developments.
“Subsea 7 and Swagelining have a shared vision of the potential that polymer lining could have in future subsea engineering and construction projects, with a focus on extending the application of polymer lined flowlines,” Subsea 7’s Vice President of Technology Thomas Sunde said in a statement. “The acquisition of Swagelining Ltd. will enable Subsea 7 to enhance its flowline and riser technology portfolios, and supports Subsea 7’s commitment to develop and apply technologies that reduce cost, enhance production and extend field life.”
About 50 people work for Swagelining.
Shelf Subsea Buys Fugro’s Asia Pacific Subsea Services Business
Australia-based Shelf Subsea Pty Ltd, has purchased Fugro’s subsea services business in the Asia-Pacific for $15.53 million and a 25% equity stake in Shelf Subsea.
Shelf Subsea, formed in 2015, will gain one owned ship, three chartered vessels and 18 ROVs. The company also will take over Fugro’s subsea offices in Perth, Australia, and Singapore, and add 285 Fugro employees to its rolls.
The divestment is another step in its strategy to focus on its core survey and geotechnical businesses, the Netherlands-based Fugro said in a statement.
Fugro reduced its workforce by 585 people in first-half 2016 as it navigates through the offshore slump. The company has indicated that it plans more job losses.
Chevron Elects Two New Board Members
Dr. Dambisa Moyo and Dr. Wanda Austin have been elected Chevron Corp.’s board of directors, the company said Aug. 9.
Moyo’s appointment is effective Oct. 11. She will serve on the company’s Audit Committee. Austin’s appointment is effective Dec. 1; she will serve on the company’s Board Nominating and Governance Committee and Public Policy Committee.
Moyo, who has a doctorate in economics and is an economist, is the founder and has been the CEO of Mildstorm LLC since 2015. Austin, who holds a doctorate in engineering, has served as president and CEO of The Aerospace Corp. since 2008 and holds an adjunct research professor appointment in the University of Southern California’s Viterbi School of Engineering.
Transocean Buys Out Transocean Partners
Transocean Ltd. has agreed to acquire Transocean Partners LLC in a deal that would give it ownership interests in two drillships and an ultradeepwater semisubmersible currently owned by Transocean Partners.
On Aug. 1 Transocean Ltd. said it agreed to acquire all of the outstanding common units of Transocean Partners that it does not already own in a share-for-unit merger transaction, according to a news release. If Transocean Partners’ common unitholders approve the transaction and customary approvals and conditions are granted, the deal could close in fourth-quarter 2016, resulting in Transocean Partners being 100% owned by Transocean.
Transocean said it already has committed to voting in favor of the merger.
“We are excited about this merger, as it provides significant and immediate benefits to Transocean in the form of simplified administration and governance, tangible cost savings and improved liquidity,” Transocean CEO Jeremy Thigpen said in a statement. “The contemplated all-equity transaction is entirely consistent with Transocean’s current liquidity objectives.”
If the deal goes through as planned, Transocean will have indirectly acquired the 51% ownership interests in Transocean Partners’ Discoverer Inspiration drillship, the Discoverer Clear Leader drillship and the Development Driller III ultradeepwater semisubmersible, the release said.
“Transocean Partners common unitholders will benefit from a premium to the current unit price and receive shares in an entity with significant financial flexibility, a demonstrated access to capital and meaningfully improved market liquidity of its shares,” said Transocean Partners CEO and CFO Kathleen McAllister. “Additionally, we expect that common unitholders also will benefit from Transocean’s significantly larger and more diverse fleet and its industry-leading contract backlog.”
Subsea 7 Earnings Fall In 2Q
Subsea 7 reported on July 28 that its second-quarter 2016 earnings dropped by 29% to $961 million as the industry recovers from challenging times.
“Financial performance continued to be impacted by the industry downturn with diminishing activity levels as planned work was completed and client investment in oil and gas production remained low,” Subsea 7 CEO Jean Cahuzac said in a statement.
The results were delivered following news in June that the company was taking additional cost reduction steps. These include reducing workforce of 9,200 people to about 8,000 by early 2017 and removing up to five vessels from its active fleet.
Cahuzac, however, noted that the company’s adjusted EBITDA of $280 million and margin of 29% “reflected good execution and reduced risk profiles and costs on certain projects as offshore phases progressed.”
The U.K.-based company saw its active vessel utilization jump to 82% in the second quarter compared to 71% in the prior quarter. The rise was attributed to the progression of several offshore projects, an uptick in seasonal work in the North Sea and two vessels returning to work after being stacked.
“Subsea 7’s order intake was $1.6 billion, including approximately $1.3 billion related to the Beatrice wind farm project and a pipeline bundle solution for the Callater project, both offshore U.K.,” Cahuzac said. “Order backlog at the end of June was $7.1 billion, $0.6 billion higher than at the start of the quarter.”
Copus Becomes CEO of Subsea Data Provider Getech
Subsea data and risk management services provider Getech Plc has appointed Jonathan Copus as CEO, effective immediately, the company said Aug. 3.
Copus succeeds Raymond Wolfson, who stepped down from the board on July 31.
Most recently, Copus was CFO at Salamander Energy Plc, which was acquired by Ophir Plc in 2015. Copus also previously worked as an exploration geologist at Royal Dutch Shell and as an E&P sell-side equity analyst at several companies including Investec and Deutsche Bank.
Mexico’s Deputy Energy Minister For Hydrocarbons Will Step Down
Mexico’s deputy energy minister for hydrocarbons, Lourdes Melgar, a key player behind the country’s three-year-old energy reform, will step down from her post at the end of the week, two sources with knowledge of the decision said on July 27.
Melgar, who previously served as deputy energy minister for electricity, will leave the government as it continues to implement the reform, including a series of oil auctions designed to lure investment and reverse a decade-long slide in crude production.
The reform ended national oil company Pemex’s decades-long monopoly and clears the way for private companies to begin operating on their own.
Oceaneering Completes Meridian Ocean Services Acquisition
Oceaneering International Inc. has completed its acquisition of Meridian Ocean Services, which conducts surveys on mobile offshore drilling units and floating production systems using ROVs.
The surveys satisfy the underwater inspection in lieu of drydocking (UWILD) requirements of all major classification societies, according to a news release.
“We are pleased to have closed this transaction with Meridian, which will add talent and expertise allowing us to further penetrate the UWILD market, which is a very logical adjacency,” Oceaneering President Rod Larson said in a statement. “The addition of Meridian is complementary to our ROV, diving, asset integrity and tooling services businesses and will provide a comprehensive solution for our customers.”
PressureFab Ltd. Appoints Joint Administrators
Blair Nimmo and Tony Friar of KPMG LLP were appointed joint administrators of PresureFab Ltd. on July 28 at the request of its director. They also were appointed as joint administrators of its parent company, Twickler Industries Ltd., and a further four group companies.
Dundee-based PressureFab is a designer and manufacturer of specialist rig topside and subsea equipment and considered to be Scotland’s largest offshore container manufacturer. Despite an annual turnover of £5.3 million (US$6.8 million) as recently as the year ending Jan. 31, 2015, the company has been significantly impacted by the oil and gas downturn. A sharp fall in revenues has resulted in unsurmountable cash flow difficulties, ultimately leading to the administration appointment.
Over the past 18 months the group has reduced costs in an attempt to mitigate the effects of reducing activity levels, with headcount reducing from a peak of about 100 in 2015, with the remaining 42 employees made redundant shortly before the group entered administration.
The joint administrators will be helping the employees to claim their entitlements and will enlist their support, where appropriate, in realizing the assets across the group.
Blair Nimmo, head of restructuring for KPMG in the U.K., said, “PressureFab Ltd. is the latest firm to fall victim to challenging trading conditions in the oil and gas sector. As client orders were cancelled or postponed, the number of new business enquiries reduced significantly, leaving the company with no option other than to cease trading.”
Geeta Thakorlal Appointed President Of Intecsea
Advisian has appointed Geeta Thakorlal to the position of president for INTECSEA, effective immediately. Thakorlal succeeds Neil Mackintosh, who will take on the role of executive vice president of global sales and marketing for Advisian.
Incoming president Thakorlal has more than 30 years of management and professional services experience, the last 25 years of which have been in the international oil and gas sector, predominantly in upstream for greenfield and brownfield offshore and onshore projects. She previously served as global head of INTECSEA’s Offshore Select business and senior vice president for the INTECSEA Australia/New Zealand region. Thakorlal has in-depth knowledge of leading businesses in a variety of roles and situations, spanning technical, commercial and operational experience.
Outgoing president and industry veteran Mackintosh has successfully led INTECSEA since 2014, with a focus on repositioning the company in the market and building deeper client relationships. In his challenging new role as executive vice president, Mackintosh will lead all marketing and sales efforts across Advisian and will be a key member of the Advisian and WorleyParsons leadership teams.
—Reuters & Staff Reports
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