25 July 2008
Petrofac Acquires Production Engineering Specialist
Petrofac, the international oil & gas facilities service provider, confirms that it has acquired Eclipse Petroleum Technology Limited (“Eclipse”), a specialist production engineering company, for a total consideration of £7 million, comprised of £6 million in cash and £1 million to be satisfied with 158,177 Ordinary Shares which will vest in two years’ time. Further consideration in cash and shares will be determined by the level of future profitability and in no event will exceed an aggregate total of £16 million.
Eclipse, founded in 1999, now has approximately 50 employees operating from five offices worldwide comprising: Aberdeen, London, Stavanger, Houston and Dubai. Its life-of-field services include; field development, production modelling and optimisation, well life cycle risk management and petroleum engineering functional consulting.
Eclipse now forms part of Petrofac Facilities Management and creates production engineering capability in the business. The acquisition comes some 18 months after Petrofac acquired a 51% interest in well operations management consultancy SPD, and the services provided by these two specialists will now enable Petrofac to take greater responsibility for production operations activities.
Gordon East, managing director of Petrofac Facilities Management commented: “The acquisition of Eclipse represents an important development for Petrofac as we add new and complementary services to our portfolio and set out to maximise the strong synergies that exist within the two organisations. Eclipse brings a wealth of knowledge, capability and know-how to Petrofac in the area of production engineering, together with an extensive customer portfolio. Its teams are currently fully utilised on external business but we do have plans to very quickly engage them on some of our key projects.”
Stuart Girling, managing director of Eclipse commented: “As a specialist production engineering business Eclipse has successfully worked on projects with Petrofac in the past, and this deal brings together a strong set of complementary skills for our customers. Being part of the Petrofac organisation presents tremendous development opportunities for both the business and our people. We are looking forward to achieving our growth aspirations for Eclipse as part of the group and have no doubt we will benefit from Petrofac’s operational and financial strength.”