Lime Rock co-founder John Reynolds has been named the new chairman of oil well specialists Archer, with former Halliburton production president David King confirmed the company’s new chief executive.
Saad Bargach is to remain as a director of the Norwegian drilling services firm after his departure from the chairman’s seat was confirmed today.
Reynolds, an oil industry analyst who founder investment firm Lime Rock in 1998, will take over from Bargach as the company looks to improve its financial position. Earlier this year it sold off its US rental and tubular division for $244million to pay down its existing debt.
King will take over as full time chief executive from Fredrik Halvorsen, who has been interim CEO at Archer for 18 months. He left Halliburton in 2010, after a 32-year spell with the company, to become an independent consultant.
“We clearly have short term challenges linked to present oversupply of capacity in the US domestic oil service market, but I see solid business opportunities for our services, including our technology in the global oil & gas market,” said King.
“It is going to be a lot of hard work where all business areas will have to be thoroughly reviewed, but I am ready to roll up the sleeves, and together with all its employees make Archer into a reliable and profitable major oil service company.”
Archer, which has UK offices in Aberdeen, Newcastle and London, had suffered heavy losses in recent times after a drop in onshore drilling in the USA, putting it under pressure from main shareholder Seadrill.
Reynolds said the appointment of King would be the next step in the company’s recovery.
“David has an impressive background in the oilfield service industry, deep experience in creating value in Archer’s core business lines, and a vision for leading Archer to the next level,” said Reynolds.
“We would like to thank Fredrik Halvorsen for his leadership during what has been a challenging period for Archer and the global oilfield service business.
“We are confident that the recent capital raise and the sale of the rental and tubular business combined with the commitments given from Seadrill as the major shareholder has created a solid financial foundation for our company.”
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