KBR Completes Sale of Aberdeen-Based Production Services Business
KBR has completed an agreement announced in March 2006 to sell the Production Services group, part of the company's Energy and Chemicals division. KBR is the engineering, construction and services subsidiary of Halliburton "In line with Halliburton's previously announced plan to divest non-strategic assets, closing the sale helps to ensure continuity for Production Services' customers, which is of paramount importance," said Cris Gaut, executive vice president and chief financial officer, Halliburton.
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 over 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. The group now operates under the name Production Services Network (PSN).
Bob Keiller, the former managing director of KBR Production Services and now the chief executive officer of PSN, commented: "Completing the sale formalizes the very exciting news for our customers and our 6,000 employees operating in over 20 countries. We look forward to transforming a successful business into a major, international player in the industry."
Financing for the purchaser is provided by the Bank of Scotland
Integrated Finance. Under the terms of the agreement, KBR received a
purchase price of $280 million. The transaction resulted in a pre-tax
gain to Halliburton of approximately $100 million during the second
quarter of 2006.