Energy services company Wood has completed the sale of Amec Foster Wheeler’s UK North Sea operations to WorleyParsons for a cash consideration of £227 million.
To remind, Wood completed its previously announced acquisition of Amec Foster Wheeler on October 9. On the same day, an agreement was made between Amec Foster Wheeler and WorleyParsons for the sale of the majority of AFW’s UK North Sea operations.
In 2016, the business contributed revenues of £740 million and trading profit of £43 million to Amec Foster Wheeler. It consists of the majority of Amec Foster Wheeler’s UK upstream oil and gas business located in the UK and serving UK customers, excluding its commissioning business, qedi. The sale was one of the conditions that Wood had to fulfill in order to resolve competition concerns and complete its acquisition of Amec Foster Wheeler.
On Friday, October 27 Wood confirmed the completion of the sale of those operations, adding that the cash proceeds would be used to reduce net debt.
WorleyParsons on Monday also confirmed the completion of the acquisition of AFW Oil and Gas UK Limited, noting that the transaction enhances its global Maintenance, Modifications and Operations business. Namely, AFW has over 3,000 employees in seven offices in the UK and the Middle East and is a service provider within the MMO market on the UK continental shelf.
WorleyParsons pointed out that strategic benefits of adding AFW UK team to the group include robust entry for WorleyParsons into the UK North Sea as a profitable market leader; acceleration of WorleyParsons’ corporate strategy to build a world class global MMO capability in the Integrated Solutions business line; combines AFW UK’s capabilities and strong track record of global expansion with WorleyParsons’ global network which together will create a genuine global MMO business; and the addition of AFW UK’s execution capability, experience and mature systems and processes will support efficient global MMO execution.
“I look forward to welcoming our new colleagues as together we develop our plans for an exciting new future,” said Andrew Wood, CEO WorleyParsons.
Offshore Energy Today Staff