Drilling contractor Archer is buying Norwegian well intervention company DeepWell for £15 million.
Archer said it would use its existing cash and liquidity reserves to finance the transaction.
DeepWell provides wireline and downhole services to oil companies on the Norwegian Continental Shelf (NCS).
Headquartered at Karmoy, DeepWell employed about 200 people and had a revenue of £30.8m in 2020.
Archer’s VP wireline, Lage Nordby, said: “We are pleased to welcome DeepWell’s team of employees to Archer.
“By strengthening our wireline equipment fleet and organization, increasing our low emission solutions, and continuing our track record for service quality, Archer is well positioned on the Norwegian Continental Shelf.
“The acquisition of DeepWell gives us access to equipment and employees needed in order to fulfill our obligations under our recently awarded wireline contracts with Equinor and ConocoPhillips.”
Jan Erik Rugland, COO of Moreld AS and CoB of Deepwell, said: “We are pleased to have reached an agreement with Archer securing continued operations on existing contracts and the continued development of DeepWell’s state of the art wireline technology.
“I want to thank all the employees, both on- and offshore, for their dedication and perfection.
“This transaction is in line with our strategy to divest capital intensive businesses in order to focus our energy on transition and growth plans.”
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