Archer signs offer to buy DeepWell from Moreld
Offshore services provider Archer Limited has signed an offer letter with Moreld laying out principle terms to purchase 100 per cent of the shares in DeepWell AS.
Archer said on Monday that the contemplated transaction was subject to due diligence, negotiation of the transaction documentation, closing conditions, and regulatory approvals.
Moreld is an industrial group created through the merger of a collection of service companies with roots in the North Sea offshore energy sector.
The industrial group consists of 23 companies such as Global Maritime, Vryhof Group, Aluminium Offshore, Origo Solutions, and DeepWell.
As for DeepWell, it is a Norwegian well intervention company focused on mechanical wireline and cased hole logging services.
It is headquartered in Avaldsnes, Norway, and has some 200 employees and a revenue of NOK 355 million ($42.8 million) in 2020. As previously agreed, Archer will also take over Equinor wireline services scope from DeepWell starting 1 May 2021.
Namely, Equinor awarded Archer Integrated Services, in alliance with Welltec Oilfield Services, Schlumberger, and Altus Intervention a five-year contract for the provision of integrated wireline services in the North Sea back in January 2021.
Archer CEO Dag Skindlo said: “An acquisition of DeepWell would secure Archer’s access to a modern fleet of electric wireline units, as well as enable participation in the vessel-based light well intervention market.
“Strengthening our equipment fleet, broadening our low carbon-low emission solutions, and continuing our track record for service quality are all key aspects of our strategy on the NCS. We are impressed by DeepWell’s team and look forward to continuing this process with them”.
In recent company news, Archer Limited has secured a long-term frame agreement with oil firm ConocoPhillips earlier this month for the provision of wireline services on the Norwegian Continental Shelf.
At the time the company said that this deal made it the largest mechanical intervention company on the NCS.