"In line with Halliburton's previously announced plan to divest non-strategic assets, executing this management buyout will help ensure continuity to Production Services' customers, which is of paramount importance," said Cris Gaut, Halliburton's executive vice president and chief financial officer.
Based in Aberdeen, the Production Services group delivers a range of support services to oil and gas exploration and production customers and has been in operation for more than 25 years. Its portfolio of support services includes asset management and optimization; brownfield projects; engineering; hook-up, commissioning and start-up; maintenance management and execution; and long-term production operations. Following the sale, the group will operate under the name Production Services Network (PSN).
Bob Keiller, the current managing director of KBR Production Services, will become the chief executive officer of PSN. "This is very exciting news for our customers and our 6,000 employees operating in over 20 countries," he said. "Being independent will allow us to be more responsive and flexible; we will transform a successful business into a major, international player in the industry."
Financing for the purchaser will be provided by the Bank of Scotland Integrated Finance. Although terms of the transaction are not disclosed, the transaction is expected to result in a pre-tax gain to Halliburton of approximately $100 million during the second quarter of 2006.
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