Oil services firm AGR is to split off its field management and exploration businesses into two separate companies.
The Oslo-listed firm will demerge its AGR Petroleum Services business, which employs more than 80 people at its Aberdeen base, with the company’s assets and obligations transferred to a new holding company.
The exploration and production operations of the company, which has licences in Israel and is looking for E&P licences in Cyprus and Ghana, would remain a seperate entity.
The new company, or Newco, which would hold the non E&P assets would be valued at £37million, with the deal – subject to approval by AGR’s bondholders – to be backdated to the beginning of January.
The news comes after AGR revealed last week it had appointed Alpha Corporate Finance to conduct a review of the petroleum services business, following the successful spinoff of AGR’s Enhanced Drilling arm last year.
“In order to, inter alia, strengthen its focus on both businesses and create a more flexible structure for the benefit of all stakeholders in the group, AGPS wishes to separate the E&P Business from the Petroleum Services Business,” the company said.
“The business operations of the AGR Group will be carried out as currently conducted, with Newco as the new holding company for the AGR Group companies involved in the Petroleum Services Business and AGPS as the holding company for AGR Group’s interests in the E&P business.”
The Petroleum Services arm in Aberdeen has managed a number of significant projects around the world, including drilling for Desire and Rockhopper in the Sea Lion and Liz prospects off the Falkland Islands.
Last year it picked up an £18million deal to provide well-management support for Genel’s work off the African coasts.
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