WORLEYPARSONS has bought Amec Foster Wheeler’s North Sea upstream oil and gas business for a total of £228m (US$300m).
The price includes an enterprise value of £182m along with various pre-adjustments. Amec Foster Wheeler’s North Sea oil and gas business was put up for sale in May by Wood Group, as part of the efforts to secure regulatory clearance for its takeover of Amec Foster Wheeler. WorleyParson’s purchase was conditional on the completion of Wood Group’s takeover of Amec Foster Wheeler. This was confirmed at 08:00 BST on 9 October. Wood Group first announced in March that it would acquire Amec Foster Wheeler in an all-share deal worth £2.2bn.
WorleyParsons said in a filing with the Australian Stock Exchange that buying Amec Foster Wheeler’s oil and gas business would give it a “robust entry” into the North Sea industry. The Australian firm said that Amec Foster Wheeler’s leading maintenance, modifications and operations (MMO) business would accelerate its own plans for a global MMO business. WorleyParsons will also gain access to engineering and construction, operations and maintenance, and hook up services markets on the UK continental shelf.
The transaction, which does not include Amec Foster Wheeler’s commissioning business, is expected to be completed by the end of the month.
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