The firm will utilise the investment to grow in the medium term, with an aim to regain its status as one of the world’s major international oil and gas suppliers
Drilling and downhole solutions provider Varel International Energy Services (VIES) has secured a multi-million-dollar from investment a private equity firm, Blue Water Energy.
The firm said that it will utilise the investment to grow in the medium term, with an aim to regain its status as one of the world’s major international Oil & Gas suppliers.
It will also explore potential international growth prospects and merger & acquisition opportunities in the completions products market, as the number of wells and the length of projects continues to increase across the world.
VIES will look to consolidate highly fragmented completions market
Derek Nixon has been selected as the new chief executive officer and president of VIES to oversee the company’s new direction.
Additionally, the firm will also look to consolidate the highly fragmented completions market, mainly in the US, India and the Middle East.
Jim Nixon, who has previously worked 16 years as a CEO of Varel, will become the non-executive chairman of the company.
VIES CEO Derek Nixon said: “Partnering with Blue Water Energy gives us the impetus to really drive growth across the company. Our aim is to restore Varel to the top of the industry.
“The new leadership team and I are extremely motivated to take the company in a new direction. The business will be built around customer’s needs, quality products and exceptional performance.
“There will inevitably be a shift in strategy as we look to take full advantage of international growth opportunities, especially in India and the Middle East. We have a very open attitude to the future of the company, including being acquisitive in those markets.”
VIES is the parent company of Varel, which is a global supplier of drilling solutions focused on the oil and gas industry, and Downhole Products (DHP), which specialises in well construction and well completions.
The investment enables Blue Water Energy, which has over $2.5bn under management across two funds, to grow its portfolio to 23 companies.