U.S. offshore oil and gas services company Helix Energy Solutions Group is set to buy stakes in Louisiana’s Alliance group of companies for $120 million in cash at closing, plus the possibility of additional consideration after fence.
Alliance is a privately held, Louisiana-based company that provides support services to upstream and midstream industries on the Gulf of Mexico Shelf, including offshore oil field decommissioning and reclamation, project management, engineered solutions, intervention, maintenance, repair, heavy transport, and commercial diving services.
Helix said the acquisition aligns with its energy transition business model by expanding its decommissioning presence in the Gulf of Mexico Shelf and advancing Helix’s ESG initiatives by responsibly supporting end-of-life requirements. life of oil and gas projects.
The company said the purchase bolstered its decommissioning service and field maintenance capabilities through the addition of Alliance’s comprehensive shallow water assets, including a fleet of law-compliant lift boats. Jones, offshore supply vessels, a heavy lifting barge and diving vessels. , as well as plug and dropout systems, coiled tubing systems, and damping units.
$3 billion in decom spending in North America
“[The acquisition] positions Helix to further penetrate the decommissioning market in North America, with published reports predicting nearly $3 billion in decommissioning spending between 2022 and 2025, and potential for expansion into the global market,” said Helix.
“Based on a number of market and regulatory drivers and our current expectations, we are confident that the offshore oil and gas dismantling market will experience significant growth in the near term,” said Owen Kratz, President and CEO of Helix. “This acquisition complements Helix’s current deepwater abandonment offerings by adding shelving and facility abandonment capabilities, and significantly strengthens our position as a full-service abandonment provider, both in the Gulf of Mexico than globally. We also see opportunities to expand our opportunities within our existing end-of-life manufacturing business. We are excited to add Alliance to the Helix family, and believe this acquisition is a significant step in Helix’s responsible participation in this era of energy transition.
“This transaction represents the culmination of many years of hard work, as we have developed Alliance from the ground up,” commented Alliance Owner Steve Williams. “Our recent successes in acquiring and developing businesses and assets to establish Alliance as an offshore shallow water energy services company has led us to Helix, which we consider the industry standard in deepwater energy services We are excited about the potential combination of Helix and Alliance and the value proposition we can bring to our customers.
As previously mentioned, the purchase price is equal to $120 million in cash at closing, plus the possibility of additional post-closing consideration payable in 2024, in the event that Alliance activity reaches certain metrics. in 2022 and 2023. Helix has the option to pay any earn-out in cash, Helix shares or a combination. The acquisition is expected to be finalized in mid-2022.