Apollo to Acquire Majority Stake in OEG

Asset manager Apollo Global Management has agreed to acquire a majority stake in offshore service provider OEG from funds managed by the Power Opportunities strategy of Oaktree Capital Management, LP and other investors.

The transaction is subject to the satisfaction of certain closing conditions, including regulatory approvals, and is expected to close in the second quarter, OEG said in a news release. Financial terms of the deal were not disclosed.

OEG describes itself as a scaled provider of core services across the offshore energy ecosystem, delivering development and operations solutions to oil, gas and wind end markets for more than 50 years.

The company said it owns and operates one of the world's largest fleets of cargo carrying units with more than 75,000 units, enabling the transportation of essential cargo to and from offshore energy installations. Further, OEG's Renewables segment is a global, integrated provider of key technical solutions and services to the offshore wind sector.

OEG CEO John Heiton said, “Since our company's founding, we have worked hard to establish OEG as a global leader in delivering core services throughout the offshore energy value chain. As energy producers across Europe and around the globe continue to invest in the energy transition, we are committed to expanding and enhancing our capabilities as a key partner. We look forward to working with Apollo as we enter this new and exciting chapter for our business and remain focused on supporting our customers with the same quality service they have come to expect”.

Wilson Handler, Partner at Apollo, said, “[Heiton] and team have built OEG into a global leader and trusted provider of offshore equipment and services, with an integrated business model that has scaled across cycles. We see a tremendous opportunity to invest in the company's future growth as secular tailwinds drive demand for services enabling efficient energy production and renewable power. Bringing to bear the scale of Apollo's integrated platform and deep expertise in energy services, we look forward to working with the talented team at OEG to unlock value for its various stakeholders and loyal customer base via organic and inorganic channels”.

Asia Pacific Contract

In January, OEG said it secured a new contract with an undisclosed “major national operating company” in the Asia Pacific region.

Under the terms of the agreement, OEG will supply a mix of high-specification cargo carrying units to support a deepwater drilling campaign, according to an earlier news release.

The company said it plans to mobilize from the region to and from customer-specified worksites.

John Aw, OEG’s Regional Director in Asia Pacific, said, “Our team is proud to achieve this award which reflects a high level of trust from our customer, in our capability to deliver and exceed expectations. OEG’s strength in the Asia Pacific region is underpinned by the experience and knowledge of our people and our access to a robust and high-quality local [cargo carrying unit] fleet that meets international standards for quality and safety”.

“With the expected increase in exploration and production activities across Asia Pacific we are looking forward to further growing our capability, whilst continuing to deliver exceptional quality across our CCU standard units, standard units with bespoke fittings, and custom build-for-sale units, ensuring that our customers will benefit from reduced risk and increased operational efficiency.”

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