Cabin specialist OEG Offshore has snapped up two oilfield services companies based in Perth, Australia, for a total of at least £1million.
The two firms, Oilfield & Resource Rentals (ORR) and Offshore Cryogenic Services (OCS), are involved in the provision
and inspection of transportable storage tanks and pumping services and have operations in Perth, Karratha, Broome and Darwin.
They will retain their trading names as part of OEG group, whose headcount has now swelled to 170 employees operating in 25 countries.
OEG declined to disclose the exact amount it had paid out, saying only that it was a seven-figure sum.
The company, which designs, builds, leases and sells cabins and containers for the offshore oil and gas market, already had interests in Australia, having bought Melbourne’s OPC in 2013 and Tank and Pump Services of Darwin in 2012.
OEG’s attraction to Australia appears to be well founded. ORR’s managing director and co-owner Patrick Hanna said the amount of investment in its line of work in Australia has skyrocketed from zero at the turn of the century to about £325million.
The trend for increased investment is likely to continue as Perth cements it place as the strategic centre for oil and gas
supply services off the northwest coast of Australia.
OEG chief executive John Heiton said: “We were attracted to ORR and OCS due to their experienced and dedicated team and,
in particular, noted that all of the technical staff are accredited with the National Australian Testing Association to provide the highest level of competence to the oil and gas industry, which allows us to offer an excellent service to our Australian and overseas customer base.”
His firm’s growth strategy is funded by US private equity giant Kohlberg Kravis Roberts.
OEG – which last month appointed Adrian Bannister, formerly of Viking Seatech, as its new chief financial officer – was created in 2012 off the back of a merger between Continental Offshore and Vertec Engineering.
In 2012, London-based private-equity firm Lonsdale Capital Partners sold OEG’s parent company, Offshore Containers Holdings, to Cyprus-registered group Morcell.
The value of the deal was not disclosed, but Lonsdale said it received nearly five times its investment in the business.