KCA Deutag Furthers Presence in S. East Asia with GTB Acquisition
KCA Deutag announced it has acquired Global Tender Barges Pte Ltd (GTB) by increasing its shareholding from 10 to 100%.
GTB based in Singapore owns three self-erect tender barges, the Global Emerald, Global Jade and Global Sapphire, which KCA Deutag has operated on behalf of GTB, since early 2008, under a management services agreement providing drilling operations, maintenance, procurement and other services connected with the offshore operations.
The transaction will contribute to KCA Deutag approximately US $115 million of annual revenues with substantial EBITDA and will further strengthen the financial profile of KCA Deutag.
The Global Emerald is currently on contract to Brunei Shell Petroleum until 1Q 2012 and the Global Sapphire to Petronas, Malaysia until 2014. The Global Jade has recently demobilized from a long term contract with Total in Indonesia and is bid on a number of long term contracts. The company is finalizing negotiations with one client and expects to be in a position to announce further contract awards in the coming few weeks.
The acquisition increases the scale of KCA Deutag's mobile offshore drilling units (MODU's) division, supplementing its three owned jackups and its other management contract on Triumph Drilling's self-erect tender rig, the Searex IX. It further strengthens KCA DEUTAG's presence in the strategic South East Asia and Mexican markets.
Holger Temmen, KCA Deutag's Chief Executive Officer commented, "This deal is a natural evolution for KCA Deutag, to acquire the remaining 90% equity, in assets that we have operated successfully on behalf of GTB for the last three and a half years. The three rigs have an excellent order backlog and bidding activity in the barge sector remains high, with a number of exciting long term opportunities in South East Asia and West Africa that may also justify investing in newbuild units. We are particularly pleased to be strengthening our relationship with three strategically important clients with whom we already have existing operations.
"South East Asia is attracting very large investments from our major oil company clients and provides exciting growth opportunities for companies in the oilfield services sector. KCA Deutag wish to substantially grow its presence in the region, both in the offshore, land drilling and engineering sectors. In addition to our barge activities, we currently operate our land rig T201 for Brunei Shell Petroleum and are currently executing a Front End Engineering Study for the drilling facilities on Woodside's Browse Field development offshore Western Australia for which we also hope to compete for the long term operations and maintenance contract."