Offshore engineering services firm Odfjell Technology has acquired Aberdeenshire-based McGarian TDC in a deal worth “in excess of £3 million”.
Odfjell said the acquisition will strengthen its plug and abandonment (P&A) and slot recovery offering and enhance its well services division.
Founded in 2005, McGarian designs whipstocks, casing and packer miling, fishing and remedial products from its base in Portlethen.
Odfjell said demand in the global P&A sector is growing rapidly, with the segment now representing up to 45% of an asset’s decommissioning costs.
A recent report from Offshore Energies UK forecast £20bn in North Sea decommissioning spending over the next decade.
International markets such as Australia are also seeing significant spending, with global offshore decommissioning spending set to reach almost $100bn (£78.6bn).
Odfjell Technology chief executive officer Simon Lieungh said McGarian TDC’s engineering and product design “perfectly complements” Odfjell’s existing P&A services.
“P&A represents a significant investment for our customers involved in of end-of-life operations,” Mr Lieungh said.
“Our aim has always been to provide an efficient service with a focus on safety and environmental security – this strategic acquisition enables us to further strengthen that commitment to our customers.”
Odfjell Technology said it expects to fully absorb McGarian into its business, and McGarian TDC owner Bruce McGarian said: “Joining forces with Odfjell Technology presents an exciting opportunity for us to leverage our expertise on a larger scale.”
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