New Subsea Company Raises Financing for Expansion

A newcomer to the global subsea oil and gas sector is setting up a large scale operation in Aberdeen.

Oceanteam Power & Umbilical, an independent operating company of Oceanteam Power & Umbilical AS in Norway, has established its operational centre in Aberdeen and is embarking on a major drive into the global subsea market. The company is being headed up by managing director Jon Mears and will specialize in subsea installation and construction for the oil and gas and renewable industries.

Oceanteam Power & Umbilical AS has successfully raised finance to fund its expansion into the subsea installation service market through the successful completion of a private placement of shares in a share issue of NOK 240 million. The transaction was substantially oversubscribed. The new shares are being issued and the company will be listed at the Norwegian OTC- list immediately. Market capitalization for the company is expected to be around NOK 600 million

The placement will finance equipment and the first two vessels for subsea trenching and construction services and working capital for the further development of Oceanteam Power & Umbilical.

Currently employing 40 people, Oceanteam Power & Umbilical is anticipating a turnover of £20 million in its first year with the workforce expected to increase to around 70. They have just taken a long-term lease on 4500 square feet of modern office space in the city's Waterloo Quay.

"We are gearing up for rapid growth," says managing director Jon Mears who has 30 years experience in the subsea oil and gas sector. "With the explosion of susbea work and a shortage of both vessels and equipment, Oceanteam Power & Umbilical aims to fill a gap in the market by providing vessels and cable lay spreads for subsea installation and construction. In addition to our experienced project management teams, we will also offer trenching machines and new generation pipeline, flexible, umbilical and power product lay spreads."

Oceanteam has commissioned the build of a flexible product installation vessel - the North Ocean 101 - for delivery in Q3 2007 and also exercised its build option on a second highly versatile construction/installation vessel - the North Ocean 102.