Swissco Buys MODU, Service Rigs Provider Scott and English Energy for $225M

Commenting on the transaction, Alex Yeo, CEO of Swissco, said: “The Acquisition will combine the expertise, know-how and track record of a leading marine service provider with the sourcing capabilities and industry connections of a fast-growing international rig owner in the offshore oil and gas industry. Riding on the robust momentum in the offshore oil and gas sector, the synergies between the two businesses will diversify the earnings base for the Company while providing it with stable, recurring income. Swissco will now have opportunities to grow beyond its traditional OSV operations. More importantly, this development will enhance long-term value for our shareholders.”

Scott and English Energy: A fast-growing international mobile offshore drilling units and service rigs owner helmed by industry veterans with illustrious track records and deep, extensive relationships with major players in the oil & gas industry

Highlighting Scott and English’s background, Chua Wei Teck, CEO of Scott and English, said: “As an emerging player in the international offshore oil and gas sector, we are backed by industry veterans with illustrious track records. We have deep, extensive relationships with oil majors and possess strong knowledge and understanding of the sector. With these solid connections, we are able to rapidly source and acquire interests in quality assets.

Within a short span of time, we were able to acquire and charter out offshore drilling and service rigs to national oil majors in key markets such as Latin America, where governmental reforms are driving an increase in exploration and production spending. We were also able to secure long-term bare-boat charter contracts, which last about five years on average, with these oil majors. We believe this is a testament to our strong relationships with these oil majors and our knowledge, as well as our ability to thrive in this sector.”

Scott and English intends to acquire additional rigs to fuel its future growth, either through majority ownership or through joint-venture partnerships with reputable companies.

Strategies and Future Plans

Given the continuing demand for energy, oil prices are expected to be sustained at a high level over the longer term. As National Oil Companies (NOCs) push forward with aggressive drilling programs in deeper waters, rig demand remains strong in all major global markets and across different types of rigs.

“We are in the midst of an upcycle for rigs with a construction boom and increased utilization of rigs leading to favorable rates for such assets,” Chua said. “Scott and English plans to tap into opportunities that provide generous returns in short pay-back periods.”

Scott and English’s growth plans include: