On June 30, 2005 Abbot announced the proposed acquisition of Prosafe Drilling for a consideration of NOK 900 million (£75.4 million) and a related placing to raise approximately £20 million (before expenses). The proposed acquisition was subject to certain conditions including Abbot conducting a satisfactory inspection of the Rubicon rig, the only modular drilling and well workover rig in the North Sea. The inspection of the Rubicon rig has now been completed to Abbot's satisfaction, as have all other conditions.
Following the completion of the acquisition, Prosafe Drilling will be integrated into Abbot's principal subsidiary, KCA Deutag.
Abbot also announces that, through KCA Deutag, its existing North Sea offshore platform drilling contract with BP has been extended for a further three years, to April 2008.
The contract will cover five platforms, Magnus, Miller, Bruce, Andrew and Harding, and is valued at approximately £30 million, with KCA Deutag continuing to provide a range of drilling, maintenance and engineering services.
In addition, Abbot announces that, again through KCA Deutag, it has secured contracts with a value in excess of US$ 100 million, for both new and existing clients, for land drilling in Russia, West Africa, the Middle East, Asia and Europe. These contracts, together with the BP North Sea contract extension, brings the total of contracts gained in 2005 to in excess of US$ 350 million.
Alasdair Locke, Executive Chairman of Abbot, commented: "The completion of the acquisition of Prosafe enhances our position in the North Sea and provides us with the opportunity to offer a complete portfolio of platform drilling and engineering services to the major oil companies in the whole of the North Sea.
I am delighted that, having been in detailed discussion with BP for some months, our exemplary safety record and long-term commitment to a valued client has been recognised and rewarded.
I am also pleased with our international contract wins which demonstrate our ability to gain additional mandates by providing excellent service in a competitive marketplace."
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