Kentech acquires SNC-Lavalin's oil and gas business
Published by Nicholas Woodroof,
Completion is anticipated in the first half of 2021 subject to regulatory approvals and satisfaction of customary closing conditions.
Kentech Group is a privately-owned specialist services and solutions firm for the energy industry. It operates in three key areas: engineering and projects; commissioning and start-up services; and turnaround, maintenance and modifications. The company is backed by the global energy investment firm, Blue Water Energy.
The prospective acquisition includes the people and assets brought together through SNC’s acquisition of Kentz and other energy services businesses, and would create a company that can provide full asset lifecycle services to the energy industry. It increases Kentech’s geographical footprint and the number of employees to over 10 000. The company will have a backlog of US$1.1 billion.
The combined roster of blue-chip clients includes ADNOC, BP, Chevron, ExxonMobil, KOC, Qatar Petroleum, Saudi Aramco and Shell, as well as petrochemicals firms INEOS, LyondellBasell and Nova Chemicals.
John Gilley, CEO of Kentech Group, said: “By investing now, we are strategically positioning Kentech as a leading energy services firm to take advantage of the next cycle of growth in the sector. We are accelerating our growth strategy by several years by acquiring additional expertise, a wider global reach, and improving our technical differentiation but importantly, never compromising on our operational and geographical agility which is paramount for our joint key clients.”
“Also, we are actively addressing the challenges of the global energy transition and this acquisition has given us an entry point to realise our long-held ambitions to become a significant player in this space. It is an area of business that our clients will be investing heavily in.”
By acquiring SNC-Lavalin’s oil and gas business, Kentech will provide the full suite of services through the lifecycle of an asset - from design and build, commissioning and start-up, through to modification, maintenance and turnaround, as well as decommissioning services.
Gilley added: “What excites me the most about this acquisition is the prospect of combining, and in some cases reuniting, the professional men and women of our two companies and working with them to reset and transform our way into a very bright future.”
“With presence in key countries in the Americas, Europe and the Caspian, the Middle East & Africa and the Asia-Pacific region, this transaction enables the company to deliver its best in class services to clients across all global energy markets."
Read the latest issue of Oilfield Technology in full for free: Oilfield Technology's November/December 2020 issue
The November/December issue of Oilfield Technology begins by reviewing the state of the North Sea before moving on to cover a range of topics, including Drilling Technologies, Deepwater Operations, Flow Control.
Contributors come from Varel Energy Solutions, Gyrodata, Clariant Oil Services, Drillmec and many more.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/11022021/kentech-acquires-snc-lavalins-oil-and-gas-business/
You might also like
Rystad Energy: M&A boom in South East Asia to see US$5 billion of upstream assets for sale
Southeast Asia will be a hotbed for upstream mergers and acquisitions (M&A) in the next two years, with more than US$5 billion of assets up for grabs, Rystad Energy research shows.