Kotug makes largest acquisition in its history to meet rising demand for OSVs
Dutch operator Kotug International has entered into an agreement to acquire Dubai-based Seaways international, an owner and operator of offshore support vessels providing offshore marine services to the global energy industry. This is the largest acquisition in Kotug’s history.
Announcing the acquisition on Tuesday, Kotug described it as an important milestone to strengthen its position in global offshore markets.
Furthermore, the intended acquisition of Seaways marks the largest in Kotug’s history and is part of its strategy to expand its business in assisting worldwide floating facilities such as FSO, FPSO, FLNG, FSRU and SPM Terminals. In addition, it will further consolidate the position of Kotug in this niche market that is expected to grow as new offshore floating projects emerge in response to rising energy demand, the company explained.
Seaways owns and operates a fleet that comprises DPS-2 capability AHTs, Fast Crew Suppliers (Crew Boats for Passenger Transportation) and Cargo Barges, and also provides terminal management services.
Headquartered in Dubai, the family-owned company has a primary focus on West Africa. The acquisition will enable Kotug to pursue its mission to provide sustainable towage and related services to the maritime industry. When it comes to Kotug’s growth in the towage services, it is worth reminding that the company in April 2018 became the majority owner of KT Maritime Services Australia, a provider of towage operations, after acquiring Teekay’s stake.
Ard-Jan Kooren, President & CEO of Kotug International: “The acquisition of the renowned Seaways will mark an important milestone for Kotug. It fits our strategy to expand our (offshore) operations worldwide to meet the increasing demand for offshore support vessels.
“Over the last years, we have already heavily invested in offshore support vessels and people. The integration of the services and assets of the two leading companies will bring compelling synergy opportunities, leading to more efficient operations and enhancing significant value creation for our global customers. It strengthens our presence in West Africa and paves the way to enter other emerging markets.”
The acquisition is expected to be completed in the second half of 2022 and both companies will now work on customary governmental and other approvals, with the aim of completing the transaction within July 2022.
Captain Ashish Nijhawan, Managing Director of Seaways International: “Since its incorporation 27 years ago, Seaways has built itself into a reputed offshore maritime company with a proven track record and a knowledgeable and experienced team. Kotug is an ideal fit for our people and our customers. I feel confident that this acquisition enhances Seaways, her dedicated onshore/offshore staff, and for her to grow into Kotug’s (new) business areas globally.”