Petrofac, the UK-based oil and gas facilities service provider, has acquired production technology specialist Caltec for an initial consideration of GBP15 million, payable in cash, subject to adjustment for surplus cash at completion.
Further consideration of, in aggregate, up to GBP15 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, supplies products aimed at the enhancement of production from mature fields. These include the Wellcom system which reportedly boosts production flowrates by lowering wellhead pressures, and the I-SEP system which allows the partial separation of gas, oil, water and solids.
Through the acquisition of Caltec, Petrofac will be able to offer production boosting and partial separation as further tools in its production enhancement capability. These technologies are expected to allow access to difficult, marginal oil and gas reserves.
Gordon East, managing director of Petrofac facilities management, said: 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.