Oaktree Invests in Aberdeen-Based Integrated Subsea Services

US-based Oaktree Capital Management has invested in Aberdeen-based subsea oil and gas business, Integrated Subsea Services (ISS). This strategic investment will provide ISS with access to specialised vessels helping the company to capitalise on the current thriving global subsea market.

Oaktree becomes the major shareholder in ISS, having acquired shares previously owned by Lloyds. Oaktree also are the owners of Iremis Offshore, who own and operate dive support vessels.

Under the deal, ISS will gain access to a number of vessels in the current Iremis fleet including the recently delivered diving support vessels Iremis Da Vinci and Iremis Atlantis.

ISS supports offshore operators with specialist diving and remotely operated vehicle (ROV) services along with survey services provided by wholly-owned subsidiary, Andrews Survey.

The rapidly expanding company owns and operates a modern fleet of 23 ROVs all capable of providing deepwater, advanced field construction, inspection and drill support services world-wide.

Mr Herd, Managing Director of ISS, said: “In this currently very tight market, access to these vessels will give us a vital competitive edge. Combined with our impressive trackrecord, can-do culture and experienced personnel, this will ensure we meet existing client demand for our services, exploit new opportunities and significantly fast-track our ambitious global expansion plans. This exciting, strategic deal for ISS is not only good news for existing and potential customers but also opens up new opportunities for all our personnel around the world. The management will remain in place, spear-heading the growth plans and working closely with Iremis and Oaktree.”

This is Oaktree’s first transaction in Aberdeen and its second in the global oil and gas market. The investment group has offices in Los Angeles, New York and London.

Nicolas Mouté from Oaktree Capital Management said: “The acquisition of ISS is both a natural and a powerful step in our strategy of developing class-leading Inspection, Maintenance and Repair subsea services on an international basis. By joining assets together with quality services, Iremis and ISS will be able to offer a broader array of services to suit clients’ requirements. Oaktree is strongly committed to the IRM sector of the offshore industry, and has plans to grow further in that direction”.

Commenting on the transaction which was brokered by Simmons & Co, Nick Dalgarno, managing director for Simmons & Co in Aberdeen said: “This new partnership will allow ISS access to specialised vessels which will become an integral part of the company’s growth strategy. From a Simmons perspective, it represents another high profile local deal following hot on the heels of our Nessco-Rignet deal and was a great opportunity to work with Ian and Bruce again following our initial involvement with ISS at the time of Bank of Scotland’s investment in the business in 2008.”

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Subsea World News Staff , July 26, 2012; Image: ISS