29 August, 2008
Petrofac, the international oil & gas facilities service provider, announces that it has acquired Caltec Limited (Caltec) for an initial consideration of £15 million, payable in cash, subject to adjustment for surplus cash as at completion. Further consideration of, in aggregate, up to £15 million will be payable in cash and/or shares over the next five years, subject to the achievement of certain agreed performance targets.
Caltec, majority-owned by its management and employees, is a specialist production technology company with products aimed at the enhancement of production from mature fields. These include the Wellcom system which boosts production flowrates by lowering wellhead pressures, and the I-SEP system which allows the partial separation of gas, oil, water and solids. In combination, these systems are capable of significant production, recovery and longevity improvements to mature fields.
Petrofac’s Operations Services division, in addition to the efficient and effective operation of production facilities, also seeks to identify and implement appropriate engineered improvements that enhance customers’ production, including the use of new technologies. Through the acquisition of Caltec, Petrofac is now able to offer production boosting and partial separation as further tools in its production enhancement capability. These technologies will allow significant production, reserves and field life improvements to be made and, through the planned extension of the technologies, access to difficult, marginal oil & gas reserves. Based in Cranfield, UK, Caltec has a longstanding association with Cranfield University and, with another office in Aberdeen, UK, Caltec has 18 employees.
Gordon East, managing director of Petrofac Facilities Management commented: “Caltec has developed innovative production enhancement technologies, which will further develop Petrofac’s capability in this area. It has an excellent reputation and team and we look forward to jointly developing further capability in this area to continue to add significant value to our customers.”
Dave Turley, managing director of Caltec commented: “We are really pleased to be joining Petrofac at this particular point in our development. As part of a larger organisation with numerous ongoing contracts, we believe we can very quickly demonstrate the benefit of our unique production boosting systems and inline process technology for customers operating within mature basins.”