Magma Global Secures Funding to Support Growth Plans
Subsea carbon fiber pipe specialist Magma Global Ltd. announced Monday that it has successfully raised $60 million from Strategic Investment Capital Partners (SICP), and existing investors, to support its growth plans.
The funding will be used for the expansion of Magma’s manufacturing facility, which is expected to lead to a “fourfold increase” according to Magma CEO Martin Jones. Back in July, Jones told Rigzone that the company was constructing a new manufacturing hall at its UK base, which will include four new production lines. This construction is expected to be finished in February 2016, with production anticipated to begin by mid 2Q 2016.
Magma announced Sept. 14 that it had signed a joint development agreement with BP plc and Subsea 7 S.A., which focuses on the company’s six to twelve inch m-pipes for risers and jumper systems for deepwater environments. The development program, which is supported by the National Composites Center and Innovate UK, will run for 30 months and include a laminate, single load and combined load testing schedule.
Commenting on the new funding, Magma Global CEO Martin Jones said in a company statement:
“It is a tough market for our customers today and m-pipe is a key technology in helping reduce capex and opex costs for subsea exploration and production. This investment enables Magma to accelerate the expansion of our manufacturing facility, with a fourfold increase in our capability over the next two years to meet the increasing demand for m-pipe. For some time now the market has recognized that, unlike steel and non-bonded flexibles, m-pipe does not rapidly deteriorate over time through corrosion and chemical effects. Combined with its exceptional fatigue and erosion performance, this gives m-pipe a service lifetime far beyond other technologies.”
Earlier this summer, Magma revealed to Rigzone that the company was in the process of developing products for energy firms such as Statoil ASA, Royal Dutch Shell plc, Total S.A. and BP. The team at the company’s Portchester site was also working on building a four inch 20,000 psi jumper for Deepstar, which is a joint industry technology development project that is focused on advancing technologies “to meet its members’ deepwater needs to deliver increased production and reserves”, according to the Deepstar website. Deepstar members include BP, Chevron, ConocoPhillips, Maersk Oil, Statoil, Petrobras and BG.
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